$70 MILLION Recovery for Investment Fraud

$44 MILLION Recovery for Ponzi Scheme Victims

$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

SEC Charges Mark A. Jones with Operating $10 Million Ponzi Scheme that Claimed to Offer Loans to Jamaican Businesses

March 28, 2016 | Silver Law Group

The U.S. Securities and Exchange Commission (SEC) has charged former Boston resident, and current Miami resident, Mark A. Jones with operating a $10 million Ponzi scheme that claimed to generate profits from “bridge loans” to Jamaican businesses.

According to the SEC’s Complaint — filed earlier this month in federal court in Boston — Mr. Jones began soliciting investors in 2007 and said their money would be pooled and used for “bridge loans” to Jamaican businesses awaiting funds from approved commercial bank loans. Mr. Jones purportedly told the investors that the loans would generate approximately 15 to 20 percent interest each year. He appeared in YouTube videos promoting investment opportunities in Jamaica and even met with some investors in Jamaica to show them local projects in which their funds were purportedly invested. Contrary to those representations, though, the SEC alleges that Mr. Jones was actually using investors’ money to pay other investors — the hallmark of a Ponzi scheme. In addition, Mr. Jones is alleged to have used some of the invested funds for his own personal use. In all, Mr. Jones raised about $10 million from at least 21 investors in several states and Washington, D.C., including some of his own relatives. Targeting investors from the same community or religious group is generally referred to as affinity fraud.

The SEC has obtained a Court order freezing Mr. Jones’ assets and an order to repatriate investor funds that were moved overseas. In addition, the SEC is seeking a permanent injunction, return of allegedly ill-gotten gains with interest, and other monetary penalties. Mr. Jones is also being criminally prosecuted by the U.S. Attorney for the District of Massachusetts for his actions.

SEC Halts Fraud by New Jersey-Based Fund Manager of Investments in Pre-IPO Tech Companies

March 28, 2016 | Silver Law Group

The Securities and Exchange Commission announced fraud charges and asset freezes obtained in a case filed on March 21, 2016 against a New Jersey-based fund manager and two firms he controls for orchestrating a Ponzi-like scheme that marketed shares in promising pre-IPO technology companies in the Bay Area.

The SEC alleges in its complaint that John Bivona raised over $53 million through Saddle River Advisors and SRA Management Associates (collectively, the “SRA Funds”) and used the assets to pay off earlier investors, establish and fortify other funds, and pay family-related expenses. The complaint also alleges that Bivona stole over $5.7 million from investors and diverted millions more to other improper and undisclosed uses.

According to the complaint, much of the funds were diverted to Bivona’s nephew, Frank Mazzola, who was barred from the securities industry in a prior SEC enforcement action and is also charged in the complaint. The diverted funds were used to pay, among other things, credit card bills, income taxes, a car loan, unrelated defense attorney fees, and the mortgage on a Jersey Shore vacation home, according to the complaint.

Investor Beware: Does Your Broker Have Access to Your Online Trading Account?

March 22, 2016 | Silver Law Group

Investor Beware: Does Your Broker Have Access to Your Online Trading Account? on silverlaw.com

California broker, Angelo Talebi, finds himself in hot water with his firm and FINRA, as well as his clients.

Does your broker have your username and password for your online trading account? If so, does his current employer know that he does? If not, it could spell trouble for everyone involved.

Take into account Royal Alliance Associated, Inc. broker Angel Talebi out of California according to FINRA records, or about December 2013, Talebi’s customer from Royal Alliance Associates, Inc. moved his accounts with Royal to another FINRA member firm that provided online trading. Without informing Royal, Talebi used the customer’s login credentials to execute transactions through the customer’s other FINRA member firm.

LPL Financial Broker Eugene Smietana Discharged from Firm and Permanently Barred by FINRA

March 21, 2016 | Silver Law Group

LPL Financial Broker Eugene Smietana Discharged from Firm and Permanently Barred by FINRA on silverlaw.com

Have you invested funds with Eugene Smietana?

For investors who may have utilized the services of LPL Financial LLC broker Eugene Smietana out of Traverse City, Michigan, may have potential claims against LLP.

As of September 2015, FINRA has permanently barred Smietana from acting as a broker or otherwise associating with firms that sell securities to the public.

Broker Russell Macke Banned by FINRA After Multiple Complaints, FINRA Actions, and Terminations

March 18, 2016 | Silver Law Group

Broker Russell Macke Banned by FINRA After Multiple Complaints, FINRA Actions, and Terminations on silverlaw.com

Churning, unsuitable investments misconduct and elder fraud among allegations that ended Macke’s career

In October 2015, the Financial Industry Regulatory Authority (FINRA) permanently banned Russell Macke from acting as a broker and from associating with any securities firms. This decision comes after numerous customer complaints, regulatory actions, employment terminations, as well as seven judgments or liens against him. Macke has been accused of churning, investment fraud, unsuitable investments as well as several other charges.

Macke has been registered in the securities industry since 1989. He was most recently registered with B.B. Graham & Company of Orange, CA (between 2012-2015). Other recent registrations include:

Morgan Stanley Discharges and FINRA Permanently Bars Broker Samuel Wylie Sloane

March 17, 2016 | Silver Law Group

Morgan Stanley Discharges and FINRA Permanently Bars Broker Samuel Wylie Sloane on silverlaw.com

Broker accused of taking $1.8M in trust assets while serving as a trustee.

Samuel Wylie Sloane’s 15-year career in the securities industry ended abruptly in December 2015 when FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

According to the disciplinary action document in Sloane’s FINRA BrokerCheck record, the broker refused to respond to FINRA’s request for documents and information during an investigation. The investigation was initiated following allegations that Sloane converted a customer’s trust assets while serving as a trustee.

David Levy, of Titus Rockefeller, LLC, Permanently Barred from Broker Activity After Long Career of Suspicious Activity

March 17, 2016 | Silver Law Group

David Levy, of Titus Rockefeller, LLC, Permanently Barred from Broker Activity After Long Career of Suspicious Activity on silverlaw.com

Financial broker finally barred from FINRA activity after decades of questionable behavior.

After a career plagued by multiple and repeated allegations of breaches of fiduciary duty and unauthorized trading dating back to 1994, David Levy has been permanently barred by FINRA for acting as a broker in any capacity. These final sanctions come as a result of failure to provide FINRA required information; specifically, he did not request termination of his most recent suspension within three months of the date of the suspension. He was permanently barred from all broker activities, effective September 29, 2015.

FINRA’s final action against Levy comes after more than 20 years of serious allegations against him, including churning, misrepresentation, and breach of fiduciary duty. Multiple client disputes total nearly $2 million, however, many of the companies he was affiliated with at the time of the specific allegations settled with clients for much less.

Have You Invested Money with William “Billy” Nelson and Lost?

March 16, 2016 | Silver Law Group

Have You Invested Money with William “Billy” Nelson and Lost? on silverlaw.com

Customer disputes, judgments and tax liens checker this New York broker’s record.

William “Billy” Nelson entered the securities industry over 18 years ago and to date has 16 disclosure events reported on his FINRA BrokerCheck record. Allegations against Nelson, currently with Meyers Associates, L.P., include a wide range of transgressions such as:

Unauthorized transactions

Recidivist Fraudster Edward Durante is Indicted for Scamming Investors out of $11 Million Through the Sale of VGTel

March 16, 2016 | Silver Law Group

After serving 10 years in prison for prior securities law violations, investment fraud orchestrator Edward Durante is back in the news for allegations of a penny stock pump-and-dump scheme.

Durante was criminally charged in December 2015 by the U.S. Attorney’s Office for the Southern District of New York and civilly charged by the Securities Exchange Commission (the “SEC”) for defrauding at least 50 investors out of at least $11 million through the sale of securities of VGTel, Inc. (“VGTel”), a shell company Durante controlled.

According to the SEC’s complaint, Durante sold approximately six millions shares of VGTel stock to investors using various fictitious names to hide his criminal past, including “Edward Wise,” “Ted Wise,” “Efran Eisenberg,” and “Anthony Walsh.” He solicited and enlisted the aid of Larry Werbel (CRD# 828351) and his adviser firm Evolution Partners Wealth Management, LLC (“Evolution Partners”), Sheik Khan (CRD# 2448117), Christopher Cervino (CRD# 2778817), Walter Reissman, and Kenneth Wise to help perpetrate the scheme, according to the complaint.

New York Broker Patrick Teutonico Under Investigation

March 16, 2016 | Silver Law Group

According to the Financial Industry Regulatory Authority (FINRA) BrokerCheck website, a customer filed a complaint against Teutonico (CRD# 2875434) on November 23, 2015 for excessive trading. This is the eleventh disclosure on his checkered broker report and the fifth in the last year. Teutonico has been employed by Network 1 Financial Securities, Inc. since December 2012.

Silver law group previously covered Teutonico’s checkered broker report and the ramifications of a report littered with disclosures. On March 27, 2015, Teutonico, without admitting or denying the findings, consented to sanctions in the amount of $5,000 and a suspension totaling 15 business days for failing to observe the high standards of commercial honor and just and equitable principles of trade in violation of FINRA Rule 2010.

Teutonico’s other FINRA report disclosures indicate multiple clients alleging he churned their accounts – meaning he allegedly made excessive trades in client accounts to generate commissions. Additionally, the disclosures allege that he made unsuitable and unauthorized transactions, abused commissions, breached his fiduciary duty, executed excessive markup/markdowns and committed possible fraud, all totaling more than $650,000 in requested damages.