Securities Arbitration Lawyers Blog

Broker Ricardo Broome Permanently Barred From FINRA

August 8, 2016 | Silver Law Group

Broker Ricardo Broome Permanently Barred From FINRA on silverlaw.com

Allegations of unauthorized trading and unauthorized use of margin, along with failure to respond, drive FINRA decision

Multiple customer disputes and tax liens line Ricardo A. Broome’s FINRA-generated BrokerCheck report. Most recently, allegations against Broome include unauthorized trading and unauthorized use of margin. Damages granted in customer disputes against Broome in his 12 years in the securities industry equal almost $50,000.

Tax liens and/or judgments against Broome during the same time period equal almost $40,000. Ultimately, however, Broome failed to respond to a FINRA request for information in late 2015, and as a result, FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

South Florida Broker Giovanni Acevedo Accused of Converting Funds and Providing False Information to FINRA

August 5, 2016 | Silver Law Group

South Florida Broker Giovanni Acevedo Accused of Converting Funds and Providing False Information to FINRA on silverlaw.com

Voya Financial Advisors, Inc. discharges Acevedo and FINRA permanently bars him as a result of alleged misconduct

Not only is former ING Financial Partners, Inc (now known as Voya Financial Advisors, Inc.) broker Giovanni Acevedo accused of converting over $160,000 in customer funds for his own personal use, he is also accused of lying to FINRA investigators when questioned about the related customer complaints.

According to FINRA, Acevedo made recommendations to three separate customers and took actions as follows:

Michigan-based Broker Merid Amde Suspended and Fined $20,000 By FINRA

August 5, 2016 | Silver Law Group

Michigan-based Broker Merid Amde Suspended and Fined $20,000 By FINRA on silverlaw.com

Allegations include violation of firm policy, unsuitability, excessive trading, unsolicited trade confirmations, among others.

During a 27-year career in the securities industry, Michigan broker Merid Amde has a total of six disclosure events listed on his BrokerCheck record. The most recent disclosure event landed the broker with a 3-month suspension from association with any FINRA member in all capacities and a fine of $20,000.

A closer look at the allegations listed on the most recent settlement agreement indicates the following:

Church Loses $135,000 Due to Alleged Bad Advice From Broker Betsy Marcom

August 4, 2016 | Silver Law Group

Church Loses $135,000 Due to Alleged Bad Advice From Broker Betsy Marcom on silverlaw.com

Broker fined $15,000 and suspended for four months as a result of FINRA investigation

After having damages granted against her in the amount of $135,000 by a customer questioning the suitability of her investments in December 2012, Texas financial advisor Betsy B. Marcom (previously known as Betsy Bratton Perryman) is once again under scrutiny by FINRA.

In a disciplinary action dated November 19, 2015, the Next Financial Group, Inc. financial advisor, Betsy Marcom, accepted and consented (without admitting or denying the findings) to the entry of FINRA findings that stated:

Michigan-based Firm and Licensed Broker Pocket $11.4 Million in Commissions

August 4, 2016 | Silver Law Group

Michigan-based Firm and Licensed Broker Pocket $11.4 Million in Commissions on silverlaw.com

Alleged misrepresentation of REITs and BDCs by Purshe Kaplan Sterling Investments and Gopi Vungarala to their client, a Native American Tribe, lead to exorbitant commissions to the detriment of the tribe

Purshe Kaplan Sterling Investments and their licensed broker Gopi Vungarala have been named respondents in an FINRA compliant that alleges numerous violations of the securities commission.

A registered and licensed broker for eleven years, Gopi Vungarala is under investigation for repeatedly lying about investments and commissions to his client, a Native American Tribe, for more than three years. According to his BrokerCheck report, Vungarala, as the tribes registered representative and treasury investment manager, convinced his client to invest hundreds of millions of dollars in non-traded REITs and business development companies without revealing that he and his firm received commissions on the sales or that these sales were eligible for volume discounts. Instead, it is alleged that Vungarala kept those discounts in the form of commissions for himself and the firm.

Cryptocurrency Exchange Bitfinex Suspends Its Operations

August 3, 2016 | Silver Law Group

Just two months after being sanctioned by the U.S. Commodity Futures Trading Commission (CFTC), Hong Kong-based cryptocurrency exchange Bitfinex — one of the largest Bitcoin exchanges in the world — has now halted all its Bitcoin trading operations until further notice, claiming it has suffered a security breach. According to published reports, the alleged security breach involved the theft of $65 million worth of Bitcoin from Bitfinex users. News of the alleged theft has caused the price of Bitcoin to plummet worldwide by more than twenty percent.

In June 2016, the CFTC issued an Order sanctioning Bitfinex for offering illegal off-exchange financed retail commodity transactions in Bitcoin and other cryptocurrencies. In addition, the Order cited Bitfinex as having failed to register with the CFTC before engaging in any commodity transactions. The Order required Bitfinex to pay a $75,000 civil monetary penalty and to cease and desist from future such violations.

According to the CFTC, Bitfinex permitted its users to borrow funds from other users on the platform so they could trade Bitcoins on a leveraged, margined, or financed basis. However, the CFTC alleged that Bitfinex did not actually deliver those Bitcoins to the traders who purchased them and instead held the Bitcoins in deposit wallets that Bitfinex itself owned and controlled.

Paul Steffany Barred After Allegations of Forgery and Conversion

August 2, 2016 | Silver Law Group

Paul Steffany Barred After Allegations of Forgery and Conversion on silverlaw.com

Seasoned broker permanently barred from all securities activity after allegations of conversion and forgery

The Financial Industry Regulatory Authority (FINRA) took action against Raymond James stockbroker Paul Steffany in October of 2015, after allegations surfaced that he illegally converted funds as executor of a client’s trust and forged signatures on checks that were made payable to the individual’s estate. Steffany is permanently barred from all future FINRA activity after consenting to the FINRA findings.

FINRA reports indicate that Paul Steffany acted as the executor and trustee of the estate of a customer from his registered firm, Raymond James. This estate was established for the benefit of the customer’s son and grandchildren. During the time he served in this capacity, he allegedly paid himself $193,900 for his role as trustee between 2007-2014. The FINRA found that a minimum of $112,742 of what converted was excessive given the minimal time and effort devoted to this trust.

New York Broker Gregory Flemming Suspended by FINRA

August 2, 2016 | Silver Law Group

New York Broker Gregory Flemming Suspended by FINRA on silverlaw.com

Long history of misconduct ends seventeen-year career

Gregory Flemming, Jr. has a troubled past when it comes to his career in the securities industry. In addition to allegations of failing to disclose tax warrants, a tax lien and a judgment on his U4 (required industry documentation), he has also been accused of negligent misrepresentation, unsuitable private placement and failure to follow instructions to enter a stop loss order, the culmination of which is a permanent suspension from the industry.

Flemming has also been the subject of criminal charges, including one guilty charge for reckless endangerment in the first degree and another for criminal impersonation, disorderly conduct and aggravated unlicensed operator.

Barbara Fife Barred from Securities Industry After Two Decades

August 1, 2016 | Silver Law Group

Allegations concerning customer funds lead to permanent FINRA bar

Barbara Fife consented to the sanction that she failed to provide documents and information requested by FINRA during an investigation into accusations that she converted funds from a customer.

In October of 2015, a client reported that she wrote checks directly to Fife and that the funds were never invested or deposited into the the customer’s accounts. Damages in the amount of $257, 5000 were awarded to the client.

Liam O’Keefe, Fraud Advisors Investigation

August 1, 2016 | Silver Law Group

Liam O’Keefe, Fraud Advisors Investigation on silverlaw.com

FINRA has barred Liam Gerald O’Keefee alleging unauthorized trading, misappropriation of funds, and unsuitable recommendations.

As of October 20, 2015, Liam Gerald O’Keefee has been permanently barred by FINRA. O’Keefee consented to the sanctions and to the findings that he did not provide the information and documents requested by FINRA.

During his 16 years in the securities industry, O’Keefee was most recently employed with Triad Advisors in Danbury, Connecticut from April to October, 2015. For the seven years preceding that, he worked at Merrill Lynch, Pierce, Fenner & Smith in Southbury, Connecticut. He was also employed by Wachovia Securities, Prudential Securities, and Oppenheimer and Company.