Securities Arbitration Lawyers Blog

Former Independent Financial Group Broker Under Investigation for Allegedly Stealing Client Funds and Unsuitable Recommendations

September 21, 2016 | Silver Law Group

Silver Law Group is investigating FINRA-barred broker John Vernon Heath (CRD# 2331052) for stealing client funds and recommending unsuitable investments.

Heath was employed most recently at Independent Financial Group, LLC in Bloomington, Minnesota. Independent Financial Group then discharged Heath after he admitted to wrongfully taking client funds, according to his FINRA BrokerCheck report. Shortly thereafter, FINRA permanently barred Heath from securities industry for failing to respond to FINRA’s request for information.

The State of Minnesota Department of Commerce (“MDOC”) commenced a formal criminal action against Heath on the allegations. In the MDOC complaint, the MDOC alleges that Heath stole the identity of an elderly client and used the client’s funds on various personal expenditures totaling $78,744.54.

Minnesota Broker Mark David Holt Barred by FINRA

September 20, 2016 | Silver Law Group

Minnesota Broker Mark David Holt Barred by FINRA on silverlaw.com

Holt has lost his license and been permanently barred by the regulatory agency

Mark D. Holt has lost his license and can no longer act as a broker or representative in the financial services industry. According to the Financial Industry Regulatory Authority (FINRA), Holt is the subject of 11 disclosures, several customer complaints, two criminal complaints, and one regulatory sanction.

His 14-year career included work for several firms, most recently with Harbour Investments in North Oaks, Minnesota from 2007 to 2013, and before that with Geneos Wealth Management in Shoreview, Minnesota from 2005 to 2007. He was also employed by Linsco/Private Ledger Corporation in Boston, Massachusetts from 2000 through 2005 and by Securities America in Lavista, Nebraska from 1999 through 2000.

FINRA Suspends Broker Gregory Taylor

September 20, 2016 | Silver Law Group

FINRA Suspends Broker Gregory Taylor on silverlaw.com

This Morgan Stanley broker in Texas has been suspended by the Financial Industry Regulatory Authority

According to the Financial Industry Regulatory Authority (FINRA), Texas broker Gregory Taylor engaged in unethical conduct with an elderly customer who was suffering from dementia and he has subsequently been suspended.

Taylor’s career in the securities industry began in 1986 when he worked for Fidelity Brokerage Services in Smithfield, Rhode Island. Since then, he has been a member of various firms, including, most recently, Morgan Stanley in Dallas, Texas. He was also associated with Citigroup Global Markets in Salinas, California, E*Trade Securities in Palo Alto, California, and Charles Schwab and Company in Phoenix, Arizona.

New Jersey Broker Glenn King Barred by FINRA

September 19, 2016 | Silver Law Group

New Jersey Broker Glenn King Barred by FINRA on silverlaw.com

Allegations against King include making fraudulent misrepresentations to clients

Glenn King, a former broker based in New Jersey, has been barred from acting as a broker by the Financial Industry Regulatory Authority (FINRA) for misconduct. A veteran in the securities industry with a career that dates back to 1992, King has received 19 customer complaints and is the subject of several investigations and two financial disclosures.

According to FINRA, King allegedly made fraudulent misrepresentations and neglected to provide the required prospectus to clients in association with Unit Investment Trusts (UITs) while employed by Royal Alliance Associates, a national financial advisory firm. The FINRA report states that King made his elderly clients believe that he would use their investment funds to purchase safe, no-risk bonds and that he would not charge commissions for these transactions. However, investigations show that he purchased 44 UITs that caused his clients to lose tens of thousands of dollars while he made $38,000 in commissions. These FINRA allegations and an internal review by his member firm caused King to be terminated from Royal Alliance Associates in June of 2011.

WestPark to Acquire Some Newport Coast Securities Reps

September 19, 2016 | Silver Law Group

WestPark to Acquire Some Newport Coast Securities Reps on silverlaw.com

A majority of these representatives may have official complaints filed against them

WestPark Capital Inc. is set to acquire some of 109 registered financial representatives from Newport Coast Securities, a small, independent broker-dealer based in Irvine, CA. It’s notable that 63% of Newport’s representatives have at least one “disclosure event” on their Financial Industry Regulatory Authority (FINRA) BrokerCheck reports, which, in most cases, means that an official complaint has been filed against them.

WestPark hires Newport reps with multiple disclosure events

Silver Law Group Files another FINRA Arbitration Complaint Against RBC Capital Markets for Unsuitable Recommendations in the Oil and Gas Industry

September 15, 2016 | Silver Law Group

Silver Law Group has filed a FINRA arbitration complaint against RBC Capital Markets, LLC (CRD# 31194) for unsuitable recommendations to invest in oil and gas securities.

Our client, an older individual, had been working with her RBC broker, Lisa J. Lowi (CRD# 1347790), for many years. Our client alleges she was primarily invested in high-quality bonds to ensure healthy and consistent income for herself in her retirement years.

Rather than investing in conservative investments the client alleges, Lowi pushed oil and gas investments, including master limited partnerships (“MLPs”), and overconcentrated our client in the industry. Lowi failed to disclose the high risks that come with investing in the oil and gas industry.

Is FINRA’s Senior Helpline Working to Combat Elder Financial Fraud?

September 5, 2016 | Silver Law Group

Is FINRA’s Senior Helpline Working to Combat Elder Financial Fraud? on silverlaw.com

FINRA recognizes that our seniors are especially vulnerable to financial fraud—is HELPS helping?

In 2015, FINRA launched a new program called HELPS, a hotline for senior investors with questions about the legitimacy of their investments. The program is intended to help combat elder financial fraud, which is rampant across the US, but especially prevalent in South Florida, which is already a hotbed of national and international fraud.

Senior investors are especially vulnerable because of health and memory problems like Alzheimer’s and dementia as well as a lack of education about the changing financial environment and new investment products. To make the matter worse, unethical brokers may particularly target seniors in order to take advantage of their vulnerabilities, aiming to convincing them to purchase risky and expensive investments, and, on occasion, attempting to directly steal their funds.

5 Tips for Preventing and Discovering Stockbroker and Investment Fraud

September 2, 2016 | Silver Law Group

5 Tips for Preventing and Discovering Stockbroker and Investment Fraud on silverlaw.com

Frauds can go undetected for years, so what can investors do to prevent, identify, and address this growing issue?

In a financial environment where a uniform fiduciary standard for brokers doesn’t yet exist, it pays for clients to be constantly vigilant for signs of stockbroker and investment fraud. Even when brokers are legally required to act in your best interest, it is still in your best interest to confirm that they are. Sometimes it can take years to detect a problem, so what can you do to spot fraud? How can you confirm that a fraud has occurred? And what do you do when the worst has happened to you?

1. Choose the right broker

Silver Law Group Defending Thousands of Investors in an International Fraud Case Against Cryptsy CEO

September 1, 2016 | Silver Law Group

Silver Law Group Defending Thousands of Investors in an International Fraud Case Against Cryptsy CEO on silverlaw.com

Paul Vernon’s former clients say he stole millions from Cryptsy, which traded Bitcoin and other digital currencies, and then fled the country with $8M in investor funds. Now we’re representing them in a class action lawsuit.

Paul Vernon, CEO of Project Investors Inc., which does business as Cryptsy, a Delray Beach-based digital currency exchange, fled to China with $8 million dollars in client money, allege a group of international investors we’re currently representing in class action suit that was certified by U.S. District Judge Kenneth Marra in West Palm Beach on August 24.

In 2015, Vernon notified Cryptsy clients that software problems were causing the company to pause all electronic wallets. That December, he notified them of a phishing scam targeting the site. Plaintiffs alleged that Vernon shut down the exchange and stopped responding to client inquiries in late 2015.

The Definitive Guide to Securities Arbitration and Mediation

September 1, 2016 | Silver Law Group

The Definitive Guide to Securities Arbitration and Mediation on silverlaw.com

If you decide to use FINRA’s dispute resolution process to resolve a dispute with a broker or financial firm, you have two options, arbitration and mediation.

When investors have a dispute with a brokerage firm registered with FINRA that cannot be settled through mutual agreement or outside settlement, the case may be arbitrated or mediated through FINRA’s dispute resolution forum, which includes both arbitration and mediation.

Securities arbitration and mediation have been found to be much faster, less expensive, and less complex than litigation when it comes to resolving financial disputes between investors and brokers, financial advisors, or brokerage firms.