Securities Arbitration Lawyers Blog

Paul Posillico, Aegis Financial Corp., Investigation

May 18, 2016 | Silver Law Group

Manager Touching The Word UNAUTHORIZED Onscreen on silverlaw.com

Paul Posillico, a New York stock broker, is no longer licensed.

After ten years in the securities industry, Paul Posillico has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Although his barring occurred in June of 2015, Posillico was in hot water with FINRA for years before, including five complaints against him and two regulatory disputes.

His employment history includes most recently working as a broker for Aegis Capital Corporation in Melville, New York, from February 2013 to October 2014. He was also employed at Obsidian Financial Group from April 2008 to April 2013, a firm that was expelled by FINRA in October 2013.

David Burke, Shearson Financial Services, LLC of Boca Raton, FL

May 17, 2016 | Silver Law Group

David Burke, Shearson Financial Services, LLC of Boca Raton, FL

David Burke has been barred by FINRA.

David Burke failed to respond the requests from FINRA for information, and as a result has been permanently barred from the securities industry. Accused of selling away, which means that Burke solicited clients to purchase securities not held or offered by his member firm, his alleged damages are in excess of $195k.

Burke’s employment history includes Shearson Financial Services in Boca Raton, Florida, where he was employed from October 2011 to November 2014. He also worked for Sunbelt Securities in Houston, Texas, LF Financial in Boca Raton, Florida, Capstone Investments in San Diego, California, and Carolina Capital Markets in Chapel Hill, North Carolina.

Murphy’s Misconduct

May 6, 2016 | Silver Law Group

Murphy’s Misconduct on silverlaw.com

New Jersey broker Edward T. Murphy permanently barred by FINRA due to multiple allegations of misconduct.

Multiple serious client complaints have plagued Wells Fargo broker, Edward T. Murphy over the last several years and he has now been permanently barred from all securities activity by the Financial Industry Regulatory Authority (FINRA). The ban comes after Murphy failed to request that this suspension be terminated within three months of the date of the notice of the suspension. He also failed to respond to an FINRA request for information. As a result, he is automatically barred from association with any FINRA member in any capacity.

Allegations include negligence, breach of fiduciary duty, fraud and others

Silver Law Group Investigates U.S. Mutual Fund Companies with heavy concentration in Puerto Rican debt

May 4, 2016 | Silver Law Group

With Puerto Rico’s credit issues and default taking front and center in the media, people may not realize that the damage from what is going on is not limited to Puerto Rico but may affect a number of U.S. Mutual Fund Companies. In fact, the average, small passive investor may not appreciate that the mutual fund he and/or she owns actually holds a significant amount of Puerto Rico debt. Several municipal bond funds hold a large percentage of Puerto Rico municipal bonds despite the negative publicity and questions that have been raised about Puerto Rico and its ability to meet its obligations.

Here is a sample list of some mutual fund companies holdings a large percentage of Puerto Rican debt:

Oppenheimer Rochester Maryland Municipal;

Silver Law Group Continues to Investigate and Pursue Claims Against Brokerage Firms in Puerto Rico for Investment Losses in Leveraged Closed-End Bond Funds

May 3, 2016 | Silver Law Group

Silver Law Group is pursuing securities arbitration claims for the sale of leveraged closed-end bond funds by brokerage firms such as UBS Financial Services, Inc. of Puerto Rico, Popular Securities, LLC, Santander Securities, LLC, Oriental Financial Services Corp., and Merrill Lynch. The investigation involves the sales practices of these brokerage firms concerning the failure to comply with FINRA rules and regulations in terms of the recommendation to buy and/or hold the leveraged closed-end bond funds which may result in a legal cause of action filed in a FINRA arbitration claim.

It has been estimated that investors in the closed-end funds sold by UBS Financial Services, Inc. of Puerto Rico lost $1.66 billion during the first nine months of 2013. Though UBS maintained the majority of market share, Silver Law Group also represents investors that maintained accounts at Popular, Santander, Oriental, BBVA and Merrill Lynch. The Puerto Rico government is allegedly defaulting on a $422 million debt payment due on May 2, 2015, and indicating it will default on the $2 billion payment due on July 1, 2016. As a result, the prices of the leveraged closed-end bond funds may continue to drop in value and investors may suffer additional losses.

If you invested in closed-end funds or believe you were sold other unsuitable investments related and/or tied to Puerto Rico, you may be entitled to recover some of your investment losses. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.

Broker William Siegel Discharged by Morgan Stanley and Permanently Barred by FINRA

May 3, 2016 | Silver Law Group

Broker William Siegel Discharged by Morgan Stanley and Permanently Barred by FINRA on ilverlaw.com

Allegations of churning, unsuitability, and questionable exercise of discretion surround barred broker.

William Siegel began his securities industry career in 2001 with Citigroup Global Markets Inc. in New York. Shortly after moving to Morgan Stanley & Co. in 2007, Siegel received his first complaint arising out of the sale of an auction rate security (ARS). The timing of the sale preceded the widespread auction failure and illiquidity that took place in mid-February 2008 and resulted in damages granted in the amount of $500,000.00.

In 2011, another complaint was registered against Siegel alleging churning in the customer’s account. Churning is the term used when a broker excessively trades within a customer account largely to generate commissions, without regard to the customer’s investment objectives.

Silver Law Group Retained by a Court Appointed Corporate Monitor to Pursue Claims Against a Large Broker-Dealer and Clearing Firm

April 27, 2016 | Silver Law Group

Pursuant to a civil action brought by an aggrieved investor against OM Investment Management (“OMIM”), an investment adviser, and its managing member Gignesh Movalia (“Movalia”) in Miami-Dade County, Florida, the Court appointed a Corporate Monitor to “discover, marshal and preserve funds and assets derived from investors.” In turn, the Corporate Monitor has retained Silver Law Group to pursue claims against a large national broker-dealer and clearing firm that allegedly provided the platform for Movalia and his company OMIM to perpetrate a Ponzi scheme.

Silver Law Group recently filed a FINRA arbitration against a large national broker-dealer and clearing firm (collectively the “Respondents”) seeking over $1 million dollars in damages. The arbitration claim alleges that the Respondents permitted Movalia, who has been criminally convicted of securities and investment fraud, and OMIM to cloak their activities with an air of legitimacy by aligning themselves with and using the name and reputation of the Respondents to attract investors. The arbitration claims that Respondents failed to act on red flags concerning the misconduct of Movalia and OMIM and that the Respondents also failed to alert individual clients of Respondents of what they had uncovered as a result of a customer complaint. Specifically, after receiving the customer complaint, the Respondents investigated the situation and decided to cancel their relationship with Movalia and OMIM. However, at no time did Respondents alert its customers of the concerns which permitted the fraud to go unabated until the appointment of the Corporate Monitor.

Silver Law Group has been retained by receivers and corporate monitors to assist in the recovery of losses due to investment fraud or Ponzi schemes. Silver Law Group continues to represent the interests of investors who have been the victims of investment fraud or Ponzi schemes. If you have questions about your legal rights pertaining to your investments or believe you have been a victim of fraud, please contact the attorneys of the Silver Law Group for a free consultation toll free at (855) 755-4799 or ssilver@silverlaw.com.

How to Help Your Parents Avoid Fraudulent Investments

April 26, 2016 | Silver Law Group

How to Help Your Parents Avoid Fraudulent Investments on silverlaw.com

Ensure your parents are properly educated when it comes to fraudulent investments.

As your parents age, there are many things to think about and consider. Their health, their living situation, and their financial situation are generally at the top of the list. You realize too that your relationship with your parents has evolved over time and you may feel that you are suddenly functioning more as the caregiver than the child. This is a tough transition for families, but a necessary one. As you think about how best to take care of your parents as they age, you must think about how best to protect them from falling victim to scams, elder financial fraud, and mistakenly trusting their money with someone who could take it or, even worse, steal their identity.

8 Steps You Can Take To Protect Your Parents

The New Fiduciary Duty Rule Governing Retirement Accounts

April 25, 2016 | Silver Law Group

While it has been argued by investor advocates for a long time that a fiduciary duty applies to those individuals that give investment advice to others, the Department of Labor (DOL) finally put the issue to rest with respect to retirement accounts. After six years in the making, the DOL put forth a rule that redefines who is a retirement investment advice fiduciary. The rule is designed to protect investors who obtain investment advice for retirement accounts from stockbrokers, insurance agents and other types of financial advisor who “put their own profits ahead of their clients’ best interest.” Several provisions of the rule are expected to take effect April 2017 with full compliance required by January 1, 2018.

Under the rule any person that is paid to give advice to a plan sponsor (e.g., an employer with a retirement plan), plan participant or IRA owner is now to be considered a fiduciary. The fiduciary standard would also apply to advisors that provide advice as to whether to rollover money from an employer-sponsored retirement plan (e.g., 401(k)) to an IRA. The new rule is meant to do away with possible conflict of interests by increasing fee disclosures and requiring the investment adviser to always put the investors’ best interest first. Previously, a financial advisor’s recommendation was only required to be “suitable” meaning that if there were a couple of products that fit the investor’s investment objectives and risk tolerance, the advisor could pick the one with the higher commissions and fees which would lower the possible return instead of what was in the best interest of the investor.

Legal challenges to the rule from the Securities Industry are expected. However, according to several news stories the DOL is confident that the new rule will survive legal challenges

FINRA Bars Individuals in April 2016 for Failure to Comply with FINRA Rules

April 21, 2016 | Silver Law Group

According to FINRA Disciplinary actions for April 2016, the following individuals were barred from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:

NAME	FORMER EMPLOYERS
Thomas Edward Andrews	LPL Financial LLC
Ryan Jerry Attenson	Merrill Lynch, Pierce, Fenner & Smith, Inc.
Ryan Jerry Attenson	Wells Fargo Advisors, LLC
John H. Berry	Crown Capital Securities, LP
John H. Berry	LPL Financial LLC
Keith Joseph Bettex	Pruco Securities, LLC
Ricardo Athelstone Broome	Chelsea Financial Services
Ricardo Athelstone Broome	Woodstock Financial Group, Inc.
Thomas Buono	Park Avenue Securities
Henry Kimtong Chang	Cetera Advisor Networks LLC
Henry Kimtong Chang	Financial Network Investment Corp.
Veronica A. Deese	The Vanguard Group, Inc.
Aaron Alexander Fauntleroy	IMCA Retirement Corporation
Larry Gordon Goldston	Caprock Securities, Inc.
Larry Gordon Goldston	Morgan Stanley DW Inc.
Rogelio Fernando Guevara	Northwestern Mutual Investment Services, LLC
Gregory Kieth Hines, Jr.	The Huntington Investment Company
Gregory Kieth Hines, Jr.	Chase Investment Services Corp.
Warren Scott Koch	J.P. Morgan Securities, LLC
Warren Scott Koch	Chase Investment Services Corp.
Tiffany K. Le	J.P. Morgan Securities, LLC
Tiffany K. Le	Chase Investment Services Corp.
Sergio D. Lopez	MML Investors Services, LLC
Sergio D. Lopez	NYLife Securities, LLC
Gary James Lundgren	Interpacific Investors Services, Inc.
Gary James Lundgren	Global Finance & Investment Company
Chakkin Tony Mok	Cetera Financial Specialists LLC
Chakkin Tony Mok	Hochman & Baker Securities, Inc.
April Christine Morris-Spicer	Wunderlich Securities, Inc.
April Christine Morris-Spicer	Lincoln Investment
Samuel Sean Nelson	Waddell & Reed, Inc.
Hai Yan Ni	T. Rowe Price Investment Services, Inc.
Hai Yan Ni	HSBC Securities (USA) Inc.
Bernard Mark Parker	Edward Jones
Bernard Mark Parker	Beaconsfield Financial Services, Inc.
Sean David Portnoy	Nobles & Richards, Inc.
Sean David Portnoy	Sethi Financial Group
Samantha Raeshawn Raines	Fidelity Brokerage Services, LLC
Royal Vance Keith Charles Reynolds III	Pruco Securities, LLC
William Victor Siegel	Morgan Stanley & Co, Inc.
William Victor Siegel	Citigroup Global Markets, Inc.
Abel Gaim Teklai	Key Investment Services, LLC
Angelos Stephen Tsigounis	Stifel, Nicolaus & Company, Inc.
Angelos Stephen Tsigounis	VFinance Investments, Inc.
Makiasa Donyell Turner	Allstate Financial Services, LLC
Joseph Arnold Weber	Farmers Financial Solutions, LLC
Teule S. Williams	J.P. Morgan Securities, LLC
Teule S. Williams	Chase Investment Services Corp.

Silver Law Group represents investors in securities and investment fraud cases through FINRA arbitration or court. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide in securities arbitration to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.