Securities Arbitration Lawyers Blog

Silver Law Group is investigating former Stifel, Nicolaus & Company, Incorporated (CRD# 793) broker Jon B. Schmidhammer (CRD# 1548931) after Stifel allowed him to resign following an arrest for allegedly stealing money from a client.

According to Schmidhammer’s FINRA BrokerCheck report, FINRA permanently barred Schmidhammer from acting as a broker or otherwise associating with firms that sell securities in September 2016 after he failed to respond to a FINRA request for information.  The permanent bar follows Schmidhammer’s resignation from Stifel in July 2016, according to his BrokerCheck report.

This was not Schmidhammer’s first dark mark on his BrokerCheck report.  In February 2004, the American Stock Exchange fined Schmidhammer $10,000 after charging him with inappropriately extending credit to a customer to satisfy margin requirements, violating his employing firm’s internal procedures regarding extension of credit, and misleading the firm in an attempt to avoid detection of his wrongdoing.  Nine months later, UBS Financial Services Inc. (CRD# 7059) discharged Schmidhammer for providing inaccurate statements on his pre-employment application.

Silver Law Group is investigating former New York-based Morgan Stanley (CRD# 149777) broker Scott P. Alcus (CRD# 2983730) after FINRA barred him for failing to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

According to Alcus’s FINRA BrokerCheck Report, Alcus was barred in May 2014 when Alcus failed to respond to a FINRA inquiry for information.  But, more recently, FINRA further sanctioned Alcus on September 2016 when he failed to comply with a settlement agreement or arbitration award.

Alcus has four other disclosures on his BrokerCheck report.  Two of the disclosures, both filed in November 2013, were FINRA arbitrations that settled.  The first alleged unauthorized transactions made in Alcus’s client’s account and settled for $10 million.  The second alleged unsuitable recommendations in addition to unauthorized trading and settled for $350,000.

Silver Law Group is investigating former Long Island City, New York-based LPL Financial LLC (CRD# 6413) broker Michael Quiles III (CRD# 4351166) after FINRA suspended him.

FINRA suspended Quiles in July 2016 after he failed to respond to a FINRA inquiry for information.

The bar follows a discharge from LPL Financial in February 2016.  According to Quiles’ FINRA BrokerCheck report, LPL discharged Quiles after he received a loan from a non-client in violation of LPL Financial’s policy.  Quiles operated under the moniker Financial Resources Group in Long Island City, New York.

Silver Law Group is investigating Independent Financial Group, LLC (CRD# 7717) broker Russell Leo Sadler (CRD# 2600742) after FINRA suspended him for an entire year over allegations of conducting business outside of his firm.

FINRA suspended Sadler for a full year in September 2016 after the regulatory body and Sadler entered into an Acceptance, Waiver & Consent (“AWC”).  According to the AWC, Sadler consented to the entry of findings that he engaged in private securities transactions without providing prior written notice to his member firm or receiving written approval from the firm.

The findings state that Sadler invested at least $200,000 in the securities of a company which had proposed to build a movie studio in Plymouth, Massachusetts.

Silver Law Group is investigating former Pennsylvania-based LPL Financial LLC (CRD# 6413) broker David Garrett Shaw (CRD# 4146204) after FINRA permanently barred him.

FINRA permanently barred Shaw in August 2016 after he failed to respond to a FINRA inquiry for information.  The bar permanently precludes Shaw from acting as a broker or otherwise associating with firms that sell securities to the public.

The bar follows a FINRA arbitration filing in March 2016 that is currently pending.  The FINRA arbitration alleges misrepresentation and unsuitable recommendations.

Silver Law Group is investigating former Meyers Associates, L.P. (CRD# 34171) broker John E. Buonocore (CRD# 2337214) after FINRA permanently barred him amidst unsuitable recommendations and churning allegations.  This is the second Meyers Associates broker our firm has investigated at the same New York, New York location of Meyers Associates, the third one in less than six months.

According to Buonocore’s FINRA BrokerCheck report, Buonocore entered into an Acceptance, Waiver & Consent (“AWC”) with FINRA agreeing to a permanent bar.  According to the AWC, Buonocore refused to appear for on-the-record testimony as requested by FINRA in connection with an investigation into certain trading anomalies at his member firm which may have affected the accounts of one or more of Buonocore’s customers.

According to Buonocore’s FINRA BrokerCheck report, Buonocore has had four FINRA arbitrations filed against him.  One FINRA arbitration alleging unsuitable recommendations settled in April 2004 for $58,000.  Another FINRA arbitration alleging unsuitable recommendations and churning settled in July 2014 for $315,000.