Securities Arbitration Lawyers Blog

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.

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 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.

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.

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.

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.

Silver Law Group is investigating Cetera Advisors (CRD# 10299) broker Daniel B. Vazquez Sr. (CRD# 3141463) after FINRA permanently barred him.

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

The permanent bar comes just two months after a FINRA arbitration was filed alleging unsuitable recommendations and unauthorized trades which led to portfolio losses.  In addition to that FINRA arbitration filed in April 2016, another FINRA arbitration filed in August 2016 is currently pending.  That FINRA arbitration also alleges unsuitable recommendations and unauthorized trades in addition to misrepresentations in the amount of $107,000.

Silver Law Group is investigating former Feltl & Company (CRD# 6905) broker Lance J. Ziesemer (CRD# 2342087) for a plethora of filed FINRA arbitrations alleging unauthorized trading, unsuitable recommendations, and other securities misconduct, including activity involving unit investment trusts (“UITs”).

According to Ziesemer’s FINRA BrokerCheck Report, Ziesemer has 12 disclosures, a large majority of them coming in the past four years.

In November 2008, FINRA suspended and fined Ziesemer for settling with two clients and not reporting it.  FINRA alleges that Ziesemer settled quietly to purposely avoid reporting the settlements, according to the Acceptance, Waiver & Consent (“AWC”) entered into between Ziesemer and FINRA.

Silver Law Group is investigating former Texas-based Next Financial Group, Inc. (CRD# 46214) broker Tye Calvin Williams (CRD# 1271046) after allegations of unsuitable investments in Smashburger and a FINRA permanent bar.

According to Williams’ FINRA BrokerCheck report, FINRA permanently barred Williams from acting as a broker or otherwise associating with firms that sell securities to the public in September 2016.  According to the BrokerCheck report, Williams and FINRA entered into an Acceptance, Waiver & Consent (“AWC”) to settle the allegations.

According to that AWC, FINRA found that Williams failed to produce documents and information after being repeatedly requested to do so by FINRA.  The findings stated that the documents and information requested by FINRA are related to an investigation regarding a customer complaint alleging that Williams converted over $1 million from customers’ accounts, made unsuitable recommendations, and engaged in unauthorized transactions and mismanaged assets.