$70 MILLION Recovery for Investment Fraud

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$25 MILLION Recovery Against National Brokerage Firm

$9.1 MILLION FINRA Arbitration Award Against Brokerage Firm

$7.9 MILLION Securities Arbitration Award Against Stockbroker

$1 MILLION Securities Arbitration Award for Elder Financial Fraud

Securities Arbitration Lawyers Blog

Broker Sylvester King Jr. Sanctioned and Suspended by FINRA

November 25, 2015 | Silver Law Group

Broker Sylvester King Jr. Sanctioned and Suspended by FINRA on silverlaw.com

Allegations of selling away and other policy violations have Wells Fargo broker in hot water

In a recent case drawing from allegations beginning in July 2009 and up to the year 2012, Sylvester King Jr. was accused of violating policies with his employer, Ft. Lauderdale Wells Fargo, in order to assist another broker in covering up more than $400,000 in loans made to three customers at the firms. In addition, King was named in connection with loaning another customer $25,000 without commission and participating in undisclosed private securities transactions known as selling away. This allowed eight customers to invest more than $3 million.

King became active in the securities industry in 1999. Between 2006 and 2009, he worked with Citi Group Global Markets Inc., between 2009 and 2010 he worked with Morgan Stanley and from 2011 until 2015 he was connected to Wells Fargo. Wells Fargo filed a termination form U-5 at the end of April in 2015, the same day that FINRA entered into an agreement with the broker accepting a fine and sanction stating the reasons that he was being discharged from the firm. His FINRA suspension at that time was 18 months. After this date, FINRA filed an additional regulatory action stating that King did not pay the $35,000 required within the settlement.

FINRA Takes Action Against Cantone Research

November 24, 2015 | Silver Law Group

FINRA Takes Action Against Cantone Research on silverlaw.com

Allegations include misrepresentation in sales of $8 million of promissory notes

On Friday, November 20, 2015, FINRA filed a complaint against Cantone Research and its president Anthony J. Cantone. The action against Cantone is for fraud in relation to the execution of promissory notes on behalf of Christopher Brogdon, who is currently being charged by the SEC for fraud, multiple SEC violations, commingling and misappropriation of funds.

According to FINRA, Cantone sold more than $8 million of COP in five promissory notes and all but one of the notes have already defaulted with losses estimated at $6 million—while Cantone and his firm, Cantone Research, collected more than $1 million in payments for fees and commissions.

The SEC Brings Christopher Brogdon to Justice After More Than a Decade of Fraudulent Activity

November 24, 2015 | Silver Law Group

The SEC Brings Christopher Brogdon to Justice After More Than a Decade of Fraudulent Activity on silverlaw.com

Allegations state that since 1992, Brogdon has conducted fraud through at least 43 of the entities he owns or controls

Former broker Christopher Brogdon, who was a licensed broker at Dean Witter Reynolds in New York from 1978 to 1991, was permanently barred from membership in the National Association of Securities Dealers (FINRA’s predecessor) and is now being brought to justice by the SEC.

With decades of misdoing shrouding his history, including making unauthorized trades and preparing inaccurate records while he was working for Harbor Twin Securities, and paying a fine in excess of $50,000, ten years after his broker’s license was revoked, Brogdon now faces a lawsuit by the SEC in an action that alleges that since 1992, he has conducted fraud through at least 43 of the entities he owns or controls.

FINRA Files Complaint Against Advisor Valentino Infante

November 23, 2015 | Silver Law Group

FINRA Files Complaint Against Advisor Valentino Infante on silverlaw.com

Broker failed to disclose outside business practices and refused to provide testimony after a FINRA request

In July of 2015, FINRA’s Department of Enforcement filed a complaint against Florida-based financial advisor Valentino Infante and barred him from associating with any FINRA member firm. According to the allegations, they found that the broker refused to cooperate with request for testimony in connection with this investigation, and that he provided misleading and false information to a FINRA member firm such as failing to disclose his outside business practices to his employer, Wells Fargo, as well as engaging in selling away in violation of firm policies. Brokers have a responsibility to disclose certain information about their activities to a licensed firm they work with and to cooperate with any FINRA investigations, if necessary.

According to the complaint, Infante solicited one client to provide funding for a limited liability company known as IMonsters Machinery. The purpose of this company was to buy and resell tractors. Infante was the sole proprietor of this business, but he did not make this clear to the investor and he did not share this with his employing firm, Wells Fargo.

FINRA Bars David Levy From Practicing as a Financial Advisor

November 13, 2015 | Silver Law Group

FINRA Bars David Levy From Practicing as a Financial Advisor on silverlaw.com

Disciplinary history involves alleged churning and misrepresentation

David Levy was barred by FINRA from acting as a broker in any capacity on June 26. This bar was a direct result of his alleged failure to respond to a FINRA request for information, according to FINRA, but it follows a career marred by allegations of unauthorized trading and breaches of fiduciary duty.

In July 2014, Levy was named in a FINRA complaint alleging that he was involved in churning, or the excessive buying and selling of securities with the intent to generate commission for the broker without benefiting the investor, according to FINRA’s Broker Check.

Tiffany Peacock-Asakawa Gets 10-Month Suspension Following Allegations of False Representation and Document Falsification

October 30, 2015 | Silver Law Group

Tiffany Peacock-Asakawa Gets 10-Month Suspension Following Allegations of False Representation and Document Falsification on silverlaw.com

Broker was also fined $15,000 for accepting trade orders she was not licensed to accept

Tiffany Peacock-Asakawa was suspended from practicing in the securities industry for 10 months in August, following allegations that she was involved in false representation and the falsification of records of trade orders at her member firm, according to FINRA.

According to FINRA reports, Peacock-Asakawa allegedly accepted trade orders that she was not licensed to accept, as she was not registered as a financial adviser in Hawaii. Sanctions were levied against her in the form of a 10-month suspension from the industry and a $15,000 fine.

SEC Settles with UBS Over Losses in the Willow Fund, a UBS Proprietary Alternative Investment

October 28, 2015 | Silver Law Group

UBS has agreed to pay $17.5 million to settle charges from the U.S. Securities and Exchange Commission that the UBS Willow Fund changed its investment strategy focused on distressed debt without informing investors and subsequently lost over 80% of its value. However, investors have lost millions of dollars which has not been recovered. UBS Willow Management LLC and UBS Fund Advisor LLC agreed to be censured and some of the funds will be returned to investors for restitution. However, most investors will only receive a de minimis amount of their entire loss. Some investors have already pursued securities arbitration claims against UBS for allegedly misrepresenting the fund.

According to the SEC, UBS Willow Management, made investments in the UBS Willow Fund from 2000 through 2008 that were consistent with a strategy described in its offering and marketing materials, which was based on the debt increasing in value.

Problems with the fund began in 2008 when UBS Willow Management shifted the fund’s investments to include large quantities of credit default swaps, a bet that the value of the related debt would decline, without adequately disclosing the shift in investment strategy, the SEC claimed.

NFP Advisor Services, LLC Censured and Fined $500,000 by FINRA

October 27, 2015 | Silver Law Group

NFP Advisor Services, LLC Censured and Fined $500,000 by FINRA on sillverlaw.com

Allegations include failure to supervise registered representatives, among others

Austin, Texas-based NFP Advisor Services, LLC has been censured and fined $500,000 according to their FINRA BrokerCheck report. As a FINRA member firm since 1997, the censure and fine follow allegations of failure to abide by several regulatory obligations related to its supervision of registered representatives.

According to the firm’s FINRA Letter of Acceptance, Waiver and Consent (AWC), the firm allegedly failed to commit the necessary time, attention, and resources to several critical regulatory obligations related to its supervision of registered representatives, including the failure to supervise the private securities transactions of 79 representatives.

Indiana-based Broker Thomas Joseph Buck Permanently Barred by FINRA

October 26, 2015 | Silver Law Group

Indiana-based Broker Thomas Joseph Buck Permanently Barred by FINRA on silverlaw.com

Allegations include misrepresentation and other misconduct

Thomas Joseph Buck’s 33-year career in the securities industry, beginning with Merrill Lynch, Pierce, Fenner & Smith, Inc (Merrill Lynch) in December 1981 is now over. According to the Financial Industry Regulatory Authority (FINRA) Department of Enforcement document filed on July 24, 2015, Buck allegedly engaged in misrepresentations and other misconduct while handling client accounts.

According to the filing, beginning in at least 2009, Buck engaged in unethical and improper business practices that increased his status as a top-producing broker. It is alleged that Buck placed customer assets in commission-based accounts that resulted in higher commission-earnings on his part, even though Buck knew customers would have paid less to maintain fee-based accounts. In addition, Buck allegedly not only misled customers in the relative costs associated with these accounts, he exercised discretion in customer accounts without written or oral authorization and made unauthorized trades in certain customer accounts.

Legal Investigations Follow SEC Risk Alert Regarding Oil & Gas Investments

October 24, 2015 | Silver Law Group

Legal Investigations Follow SEC Risk Alert Regarding Oil & Gas Investments on silverlaw.com

Bank-issued structured notes under scrutiny after sustained losses over a 2 year period

A risk alert issued in August by the Securities and Exchange Commission (SEC) has prompted legal investigations into potential claims by investors. In its alert, the SEC announced it had analyzed 26,600 structured product transactions that equaled $1.25 billion, finding numerous instances where investments were made that were unsuitable for investors’ objectives and needs.

In addition, the SEC found that the brokerage firms involved followed weak and insufficient supervisory procedures, especially in their supervision of sales of structured products. Of interest in the legal investigation are structured notes linked to oil and gas prices issued by the following firms, among others: