Securities Arbitration Lawyers Blog

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.

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.