Securities Arbitration Lawyers Blog

Silver Law Group is investigating former Stifel, Nicolaus & Company, Incorporated (CRD# 793) broker Assan Faal (CRD#  5863258) after FINRA permanently barred him.

According to Faal’s FINRA BrokerCheck report, FINRA permanently barred Faal from acting as a broker or otherwise associating with firms that sell securities in June 2016 after he failed to respond to a FINRA request for information.

Faal currently has one other disclosure on his FINRA BrokerCheck report.  The disclosure is a FINRA arbitration filed in April 2016 alleging misappropriation and $33,000 in damages.

Silver Law Group is investigating former National Securities Corporation (CRD# 7569) broker Bingyu Hu (CRD# 5573954) after FINRA permanently barred him and for excessive trading allegations.

According to Hu’s FINRA BrokerCheck report, FINRA permanently barred Hu from acting as a broker or otherwise associating with firms that sell securities in May 2016 after he failed to respond to a FINRA request for information.

Hu has three misconduct disclosures on his FINRA BrokerCheck.  He currently has one FINRA arbitration pending that alleges excessive trading.  The FINRA arbitration was filed in July 2015.

Silver Law Group is investigating former Miami, Florida-based J.P. Morgan Securities LLC (CRD# 79) broker Yohandy Gonzalez (CRD# 6298112) after J.P. Morgan discharged him and a FINRA suspension.

According to Gonzalez’s FINRA BrokerCheck report, J.P. Morgan discharged Gonzalez on March 9, 2016.  According to the FINRA BrokerCheck report, Gonzalez, in the capacity of an affiliate bank employee, deposited a check drawn from a personal bank account at another financial institution into his personal Chase account that was returned.  Additionally, according to the FINRA BrokerCheck report, Gonzalez deposited a check into his personal Chase account from another personal Chase account that had been closed.

When FINRA followed up with Gonzalez requesting information, Gonzalez failed to respond.  Subsequently, FINRA suspended Gonzalez.

Silver Law Group is investigating former Morgan Stanley (CRD# 149777) broker Myrna M. Perez (CRD# 4389021) after a FINRA permanent bar.

According to Perez’s FINRA BrokerCheck report, FINRA permanently barred Perez from acting as a broker or otherwise associating with firms that sell securities in June 2016 after she failed to respond to a FINRA request for information.

Perez currently has one other disclosure on her FINRA BrokerCheck report.  The disclosure is a discharge from employment by Morgan Stanley.  Morgan Stanley alleges that Perez processed a fraudulent third party wire transfer request without orally confirming the request with the client.  Further, the wire request was received by electronic mail and was sent by someone fraudulently impersonating the client.

Silver Law Group is investigation former Sagepoint Financial, Inc. (CRD# 133763) broker James L. Carpenter (CRD# 2199138) after FINRA barred the broker and because of variable annuity misconduct allegations.

According to Carpenter’s FINRA BrokerCheck report, Carpenter was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public by FINRA in May 2016 after he failed to respond to a FINRA request for information.

In less than two years, according to the BrokerCheck report, Carpenter had three FINRA arbitrations filed against him, both alleging misconduct relating to the sale of variable annuities (VAs).  One of those FINRA arbitrations settled in June 2015 for over $50,000.  One FINRA arbitration alleging $3 million in damages is currently pending.

Silver Law Group is investigation former Meyers Associates, L.P. (CRD# 34171) broker Michael S. Lavolpe (CRD# 5054798) over numerous FINRA arbitrations alleging unsuitable recommendations as well as a FINRA-led regulatory action.

According to Lavolpe’s FINRA BrokerCheck report, Lavolpe has been alleged to be involved in a little broker misconduct.  Spanning back to May 2015, five individuals have filed FINRA arbitrations alleging unsuitable recommendations against Lavolpe.  One FINRA arbitration has settled for $60,000.

Of the other four FINRA arbitrations, they collectively allege over $1 million in damages.

The Financial Industry Regulatory Authority (“FINRA”) has filed a case against Richard William Lunn Martin (“Martin”) (CRD# 723309) for allegedly recommending clients invest in unsuitable non-traditional exchange traded funds (“non-traditional ETFs”).

Martin has been employed by G.F. Investment Services, LLC (CRD# 132939) from April 2014 to July 2015 and between July 2009 and April 2014.  Between martin’s two stints at G.F. Investment Services, he was employed by Global Strategic Investments, LLC (CRD# 117028).  At both brokerage firms, Martin was based out of Miami, Florida.

According to the complaint, Martin claimed to believe that the world economy was “on the precipice of catastrophe,” and his customers should invest in these non-traditional ETFs as a safeguard.  As a result of this belief, Martin recommended to almost all of his customers that they invest almost exclusively in and hold for long periods of time non-traditional ETFs, despite the enormous risks associated with holding these investments for more than one trading session; one day.

Silver Law Group is investigating former Sagepoint Financial, Inc. (CRD# 133763) broker Gary E. Donovan (CRD# 866235) after FINRA permanently barred Donovan for placing limit buy orders for an illiquid OTC security MIXX.

In May 2016, FINRA permanently barred Donovan after he placed 180 buy orders for Mix 1 Life, Inc. (“MIXX”), an illiquid security traded on the OTC Markets, in 90 customer accounts according to the Acceptance, Waiver & Consent (“AWC”) entered into with FINRA.  Donovan also placed buy orders in two other accounts owned by himself and his immediate family members, according to the AWC.

According to the AWC, Donovan made the purchases at a stock promoter’s direction.  Donovan, according to the AWC, placed 100 limit orders that were matched in amount and price with recently-placed sell limit orders.  Donovan’s limit orders were frequently priced above the market and/or inside ask price for MIXX, according to the AWC, and the orders had the effect of stabilizing the price of MIXX at around $6.00 per share.

Silver Law Group is investigating recently-FINRA-barred former Janney Montgomery Scott LLC (CRD# 463) broker David A. Seigerman (CRD# 2200011).

FINRA permanently barred Seigerman after he failed to respond to a FINRA request for information.  The FINRA bar follows a suspension the regulatory body levied on Seigerman in April 2016 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.

Seigerman, based out of New Jersey, has a total of seven disclosures on his FINRA BrokerCheck report, including the two regulatory proceedings noted above.  He currently has one FINRA arbitration pending that alleges failure to follow instruction and breach of fiduciary duty, among other things.  The FINRA arbitration alleges damages in the amount of over $350,000.  Additionally, another FINRA arbitration settled in September 2010 for $43,000 that alleged unauthorized trading.

Silver Law Group has filed a claim against Citigroup Global Markets Inc. (CRD# 7059) broker Charlie Yeung (CRD# 2785343) for unsuitably recommending and overconcentrating our client in Alpha Natural Resources.

Our client doesn’t speak English and felt comfortable with Yeung because he could speak her native language.  Yeung proceeded to invest heavily in Alpha Natural Resources, an oil and gas company that has declined precipitously over the last three years and declared bankruptcy in 2015.

Our client is older, retired, and had a conservative risk profile, yet Yeung proceeded to overconcentrate our client’s money in the risky oil, gas and energy sector.  Consequentially, our client lost a majority of the investment and the value of her account.