Securities Arbitration Lawyers Blog

K.C. Ward Financial Broker Craig David Dima Under Investigation by FINRA

January 12, 2017 | Silver Law Group

K.C. Ward Financial Broker Craig David Dima Under Investigation by FINRA on silverlaw.com

Regulatory action is pending against New York financial advisor for unauthorized trading, misrepresentation and omissions, among other allegations

In August 2016, the Financial Industry Regulatory Authority (FINRA) initiated an investigation into allegations against Craig David Dima made by one of his long-standing customers. The complaint alleges that Dima made approximately 41 unauthorized sales of a company’s stock in the account of a senior customer. It also alleges that to conceal this unauthorized trading, Dima made fraudulent misrepresentations and omissions to the customer. In fact, it is alleged that Dima falsely told the customer that the sales were the result of computer issues, human error, or statements to that effect, rather than his unauthorized trades.

The customer, a 72-year old retired employee of Colgate-Palmolive Company (Colgate), worked 28 years for the company and accumulated the stocks throughout her career.

President and CEO Leigh Garber Suspended by FINRA

January 12, 2017 | Silver Law Group

President and CEO Leigh Garber Suspended by FINRA on silverlaw.com

It was the New Woodstock, NY executive’s second suspension in 10 months

In October, Leigh Garber received a three-month suspension from the Financial Industry Regulatory Authority (FINRA). It was the second time in 2016 that she was penalized by the agency.

An 18-year veteran of the securities industry, Garber first began with IBN Financial Services, Inc. in Liverpool, NY. She then proceeded to work for several firms in New Woodstock, NY, before starting at National Securities Corporation in November of 2015.

New Jersey Broker David Seigerman is Permanently Barred by FINRA

January 11, 2017 | Silver Law Group

New Jersey Broker David Seigerman is Permanently Barred by FINRA on silverlaw.com

Failure to respond to agency request ends Seigerman’s securities industry career

According to the Financial Industry Regulatory Authority (FINRA), New Jersey-based broker David Seigerman failed to respond to the agency’s request for information and a result has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Working as a broker in the securities industry for twenty years, customer complaints about Seigerman’s performance began in 2007. Since then, there have been five customer disputes filed against him, according to his FINRA BrokerCheck report. Damage amounts requested against Seigerman exceed $1.3 million from customers claiming he engaged in unauthorized trading, breach of fiduciary duty, and unsuitability, among other allegations.

Boston Investment Partners Broker Richard Cody Charged with Defrauding Retirees

January 6, 2017 | Silver Law Group

The SEC is investigating a crime that goes back more than a decade

In December of 2016, the Securities and Exchange Commission (SEC) filed a complaint in Boston’s federal court against broker Richard Cody. The complaint charged Cody with defrauding at least three of his retired clients. He was registered as a broker with Concorde Investment Services, but conducted business as Boston Investment Partners.

The SEC alleges that over a 12-year span, Cody concealed from those clients that their retirement accounts had suffered losses, and that he led them to believe that their investments were maintaining value and that they were living off income from them.

Former Wells Fargo Broker Under Investigation After FINRA Suspended Him For to Unauthorized Trading Allegations

January 5, 2017 | Silver Law Group

Silver Law Group is investigating former Wells Fargo Advisors, LLC (CRD# 19616) broker Robert T. Tuffy (CRD# 1201052) after FINRA barred him over unauthorized trading allegations.

According to Tuffy’s FINRA BrokerCheck report, FINRA suspended him in July 2016 for executing six trades in two accounts of a customer prior to receiving the customer’s authorization. FINRA and Tuffy entered into an Acceptance, Waiver & Consent (“AWC”) memorializing the sanction.

The suspension follows a termination of employment by Wells Fargo in October 2015, according to the BrokerCheck report.

FINRA Arbitration Awards Risk Going Unpaid in the Face of Closing Brokerage Firms

January 5, 2017 | Silver Law Group

Scott L. Silver, Managing partner of Silver Law Group was recently sourced in an InvestmentNews article discussing the issue of unpaid FINRA arbitration awards for brokerage firms that are going out of business.

According to the InvesmentNews report, FINRA reported that the number of brokerage firms open for business today is 13 percent less than were opened in 2011. These closing firms are obviously not the one making big dollars for their customers or else they’d still be in business, and that poses a problem for many aggrieved investors seeking retribution for securities misconduct and fraud.

Sometimes, the FINRA arbitration awards simply go unpaid.

FINRA Suspends Petersen Investments Broker for Failing to Disclose Settlement With Client

January 5, 2017 | Silver Law Group

FINRA suspended New York-based broker Peter G. Alcure (CRD# 2406903) after he settled a customer’s losses without bringing the demand and subsequent settlement to his employing firm, Petersen Investments, Inc. (CRD# 38537).

According to Alcure’s FINRA BrokerCheck report, FINRA suspended him in July 2016 for one month after one of his customers verbally demanded that he pay her $20,000 to compensate her for losses she incurred in her account. According to the Acceptance, Waiver & Consent (“AWC”) entered into between Alcure and FINRA, Alcure failed to notify his firm about the verbal demand or the settlement of the claim.

Alcure, according to the AWC, sent the customer approximately 21 checks totaling an amount of approximately $12,500 to compensate her for her losses. Alcure was suspended for one month and fined $5,000, according to the AWC.

BB&T Broker Under Investigation After FINRA Suspension for Misrepresenting Compensation Received for Serving as Trustee of Customer’s Trust

January 5, 2017 | Silver Law Group

Silver Law Group is investigating BB&T Securities, LLC (CRD# 142785) broker Joseph B. Feldman (CRD# 205910) after FINRA suspended him for misrepresenting the compensation he received for serving as the trustee for a customer’s trust.

According to Feldman’s FINRA BrokerCheck report, the suspension follows a termination of Feldman by Merrill Lynch, Pierce, Fenner & Smith Inc. (CRD# 7691) on February 2016, which vaguely states the reason for discharge as “conduct involving failure to follow the Firm’s directive related to an approved outside business activity.”

In July 2016, FINRA suspended Feldman for three months and fined him $5,000. According to the Acceptance, Waiver & Consent (“AWC”) entered into between Feldman and FINRA, Feldman disclosed that he was serving as trustee for a relative’s trust, as allowed by his employing firm. However, Feldman later falsely stated to the firm’s compliance department that the trust was not going to compensate him for trustee services. A supervisor later detected that a check Feldman received was in fact a payment from the trust.

Former Wells Fargo Broker Under Investigation After FINRA Suspended Him For to Unauthorized Trading Allegations

January 5, 2017 | Silver Law Group

Silver Law Group is investigating Ameriprise Financial Services, Inc. (CRD# 19616) broker Paul S. Plemenos (CRD# 2193190) after FINRA suspended him over unauthorized trading allegations at his former firm.

According to Plemenos’s FINRA BrokerCheck report, FINRA suspended him in July 2016 for executing trades in the accounts of customers without written authorization from the customers and without having the accounts approved as discretionary accounts by Merrill Lynch, Pierce, Fenner & Smith (CRD# 7691), Plemenos’s employing firm at the time.

FINRA and Plemenos entered into an Acceptance, Waiver & Consent (“AWC”) memorializing the suspension. According to the AWC, Plemenos was ordered to pay $7,500 in fines and was suspended 30 days.

Peter Kohli, DMS Advisors and Marshad Capital Group Under Investigation for Allegations of $3.2 Million Fraud

January 5, 2017 | Silver Law Group

Silver Law Group is investigating SEC allegations against Peter R. Kohli (CRD# 1064334), DMS Advisors, Inc. and Marshad Capital Group, Inc., the parties that allegedly deceived investors into investing $3.2 million in Kohli’s failing mutual fund business.

According to the SEC Complaint filed in September 2016, Kohli, a registered representative of Trustmont Financial Group (CRD# 18312), Inc. at the time, Kohli filed false mutual fund registration statements with the SEC, misappropriated funds, and made false and misleading statements when selling securities in a company controlled by Kohli.

Kohli launched DMS Funds, which ultimately consisted of four emerging market mutual fund series, according to the Complaint. DMS Advisors, Inc. was DMS Funds’ investment adviser, and a separate Kohli-controlled company. Kohli then proceeded to file registration statements with the SEC that falsely overstated DMS Funds’ sophistication. Furhter, they failed to disclose the most important risk, that Kohli and DMS Funds were unable to pay the funds’ expenses.