Securities Arbitration Lawyers Blog

Former LPL Financial LLC Broker Larry Allen Stapp is Suspended and Fined by FINRA

April 17, 2017 | Silver Law Group

Allegations of borrowing from a customer and potential elder financial fraud caused LPL Financial to discharge Stapp after almost 20 years of employment

Midland, Texas-based broker Larry Stapp allegedly borrowed $200,000 from an LPL Financial LLC customer, according to the Financial Industry Regulatory Authority (FINRA). Stapp also reportedly falsely stated to the firm’s representative that the loan was not from a firm customer. In fact, according to FINRA, Stapp “submitted branch manager/financial advisor questionnaires to the firm in which he affirmed his compliance with the firm’s policies and procedures that [were] false because Stapp had borrowed funds from the firm’s customer that had not been repaid at the time each questionnaire was completed.”

In addition, these funds were reportedly borrowed from an 81-year old customer, leading to possible concerns over elder financial fraud.

Elder Financial Fraud is on the Rise Nationwide, Says a New York State Study

April 14, 2017 | Silver Law Group

New statistics show that elder financial exploitation is getting more common

One of the fastest-growing segments of the U.S. population is baby boomers, with about 10,000 of them turning 65 every day. Unfortunately, the elderly are also some of the most vulnerable members of society, especially where their finances are concerned.

According to a recent study from the state of New York, every year around five million older Americans are financially exploited. Another study – this one from MetLife – found that the annual losses suffered by seniors from elder financial exploitation total almost $3 billion. Perhaps most troubling of all is that elder financial fraud is often not reported.

Illinois Broker Brian Sak Receives Permanent Bar from FINRA

April 7, 2017 | Silver Law Group

The former Morgan Stanley broker is reported to have convinced clients to invest in his own real estate deal

After numerous customer complaints, the Financial Industry Regulatory Authority (FINRA) began an investigation into the actions of broker Brian Sak. FINRA reported that he recommended to several clients that they invest in an outside business deal that his member firm knew nothing about. When Sak failed to provide FINRA with information, he was permanently barred from acting as a broker.

The investment Sak solicited his clients for was reportedly a real estate deal in which he himself was a partner. At the time, he was working for Morgan Stanley in Deerfield, IL. When the firm found out what Sak was doing, he was given the opportunity to resign.

Florida-based Ameriprise Broker Brian T. Perry Under Investigation

April 7, 2017 | Silver Law Group

Silver Law Group is investigating former Ameriprise Financial Services, Inc. (CRD# 6363) broker Brian T. Perry (CRD# 2874937) after FINRA permanently barred him.

According to Perry’s FINRA BrokerCheck report, FINRA permanently barred Perry in December 2016 from acting as a broker or otherwise associating with firms that sell securities to the public. FINRA barred Perry because he failed to respond to a FINRA inquiry.

Perry’s permanent bar follows a customer complaint in October 2016 alleging Perry made unauthorized trades, failed to follow transaction instructions, and provided poor service which resulted in losses. The claim, according to the BrokerCheck report, was denied.

Colorado Cetera Advisors Broker Ken A. Balser Permanently Barred by FINRA

April 7, 2017 | Silver Law Group

Silver Law Group is investigating Colorado-based Cetera Advisors LLC (CRD# 10299) broker Ken A. Balser (CRD# 704053) after FINRA permanently barred him.

According to Balser’s FINRA BrokerCheck report, FINRA permanently barred Balser from acting as a broker or otherwise associating with firms that sell securities to the public. The permanent bar follows Cetera Advisor’s discharge of Balser in July 2016 due to allegedly engaging in private securities transactions in violation of Cetera Advisors policy.

Balser, according to the FINRA BrokerCheck report, consented to sanctions and the entry of findings that he refused to appear for testimony and provide documents and information requested by FINRA for an investigation into the allegations that Balser had engaged in private securities transactions with Cetera Advisors.

Jeffrey L. Offen, Employed by 17 Different Firms, Suspended by FINRA

April 7, 2017 | Silver Law Group

Silver Law Group is investigating New York-based broker Jeffrey L. Offen (CRD# 2893980) after FINRA suspended him.

According to Offen’s FINRA BrokerCheck report, FINRA suspended Offen for 60 days and fined him $5,000 in December 2016. Offen consented to the sanctions and entry of findings that he failed to timely update his Form U4 to disclose reportable information.

Offen has 16 disclosures on his BrokerCheck report, but most of them are civil and tax judgment/liens. Two (2) FINRA arbitration complaints were settled against him, though.

Sherman L. Greer, Formerly North Carolina LPL Financial Branch, Under Investigation

April 7, 2017 | Silver Law Group

Silver Law Group is investigating former Locust, North Carolina-based LPL Financial LLC (CRD# 6413) broker Sherman L. Greer(CRD# 4910464) after FINRA permanently barred him.

According to Greer’s FINRA BrokerCheck report, FINRA permanently barred Greer in November 2016 from acting as a broker or otherwise associating with firms that sell securities to the public after Greer failed to respond to FINRA’s request for information.

Prior to FINRA’s bar, LPL Financial discharged Greer in May 2016 after he failed to respond to inquiries from LPL Financial’s compliance department.

FINRA’s Securities Helpline for Seniors

April 7, 2017 | Silver Law Group

In April 2015, the Financial Industry Regulatory (FINRA) established the toll-free, FINRA Securities Helpline for Seniors. In the short amount of time of its existence, the helpline and the awareness it has brought to FINRA member firms has produced fruitful results.

According to a wealthmanagement.com report, $1.25 million in reimbursements have gone back to customers since the inception of the helpline. The helpline has received over 4,000 in-bound calls, according to the report.

According to the report, these phone calls can range from being strictly educational and used to learn about different FINRA functions or investment products to ones where FINRA discovers fraud.

FINRA Bars Anthony Mastroianni for Failing to Appear for Elder Fraud Testimony

April 5, 2017 | Silver Law Group

The New York broker was accused of churning an elderly customer’s account

Anthony Mastroianni is no longer allowed to act as a broker. Due to allegations against him concerning excessive trading and borrowing client funds, the Financial Industry Regulatory Authority (FINRA) requested that he appear for on-the-record testimony. Because he refused, FINRA permanently barred him in December of 2016.

A 12-year veteran of the securities industry, Mastroianni worked for five firms, ending his career at Meyers Associates, LP, which was formerly known as Roan-Meyers AssociatesJoseph Stevens & Company, Inc. – Old Bridge, NJ

Illinois Broker Raul Jacobs’ Brief Career is Over

April 5, 2017 | Silver Law Group

FINRA permanently barred the broker after he admitted to theft from an elderly client and failed to respond to information requests

In January of 2012, Raul Jacobs began working as a broker for MetLife Securities Inc. out of Orland Park, IL. But just three years later, his career came to an end. While working for T2 Asset Management, LLC in Naperville, IL, he failed to tell the firm that he had power of attorney over a client account not associated with the firm, and admitted to stealing funds for his personal use to Illinois regulators.

Jacobs was discharged from T2 and then fined and suspended by the Financial Industry Regulatory Authority (FINRA). Because he never contacted FINRA to supply them with more information, the agency barred him permanently from acting as a broker.