Securities Arbitration Lawyers Blog

New York Broker Nathalo Menendez Permanently Barred By FINRA

September 14, 2015 | Silver Law Group

New York broker Nathalo Menendez (CRD# 4882003), was permanently barred by FINRA and is no longer licensed to act as a broker, or otherwise associating with firms that sell securities to the public. Menendez is barred from association with any FINRA member in any capacity.

According to FINRA, during the period 2007 through 2010, while employed as a broker at iTRADEdirect.com, Menendez engaged in unauthorized trading and excessive trading (“churning”), and unauthorized account openings, in violation of FINRA Rule 2010 and NASD Rules 2110, 2310, and 3110. The assertions against him involved the excessive buying and selling of stock for the purpose of generating commissions, and not for the benefit of the client.

Menendez was registered with nine firms between 2004 and April 26, 2013 [Salomon Grey Financial Corp., Westpark Capital, Inc., Fordham Financial Management, Inc., iTRADEdirect.com Corp., EKN Financial Services Inc., John Thomas Financial, Laidlaw & Company LTD., and A & F Financial Securities Inc.], and left the securities industry on April 26, 2013. Four out of the nine firms he worked for have been expelled from the brokerage industry by FINRA for violations of the law and misconduct. Additionally, Menendez has other claims against him including a customer award dated August 22, 2013, in the amount of $166,000.00 plus interest against Menendez and EKN Financial Services Inc., jointly. This suit was for unsuitability, fraud, excessive trading, and breach of fiduciary duty, among other claims.

FINRA Has Darrel Michael “Mike” Cruz Under Fire After Alleged Supervisory Failings

September 14, 2015 | Silver Law Group

Regulatory action pending against president of Scottsdale Capital Advisors

D. Michael Cruz, president of Scottsdale Capital Advisors, is involved in a pending regulatory action by FINRA after his alleged involvement in the sale of more than 74 million unregistered shares between three microcap stocks.

Cruz has been registered with the firm since 2008, and FINRA is implicating him and Chief Compliance Officer Timothy DiBlasi in the case due to their alleged failure to enforce supervisory procedures that prevent fraud and illicit activity, according to the report.

Scottsdale Capital Advisors Awaiting FINRA Disciplinary Action After Alleged Scheme

September 11, 2015 | Silver Law Group

The company’s Chief Compliance Officer and President may be implicated in the case

Scottsdale Capital Advisors, an Arizona brokerage firm established in 2001, is pending disciplinary action by FINRA after allegations of inappropriate business conduct by a client, the firm’s compliance officer and the then-president of the firm.

In May, FINRA filed a complaint against the firm as well as individuals John Hurry, Timothy DiBlasi and Mike Cruz in regards to allegations that these individuals and the firm violated FINRA rules by being involved in the sale of more than 74 million unregistered shares of three separate stocks, resulting in proceeds of more than $1.7 million for the customer and $170,000 in commissions for the firm, according to FINRA.

John Hurry May Face FINRA Charges, Sanctions Following Allegations

September 10, 2015 | Silver Law Group

Allegations include sales of millions of unregistered stock shares

John Hurry, a broker investment adviser who has been in the securities industry for 20 years, is pending disciplinary review by FINRA following allegations of his involvement with the illicit sale of more than 74 million unregistered shares through Arizona-based firm Scottsdale Capital Advisors.

In May, FINRA filed a complaint against the firm, Hurry and two of the firm’s higher-ups in regards to allegations that the individuals and the firm violated FINRA rules by selling 74 million unregistered shares of three separate stocks, resulting in proceeds of more than $1.7 million for the customer and $170,000 in commissions for the firm, according to FINRA.

Richard Gomez Allegedly Involved With Fraudulent Company

September 10, 2015 | Silver Law Group

Alleged damages are estimated to be at least $499,000

According to FINRA, in April 2015, Richard Gomez, currently registered with Avenir Financial Group, was named as a respondent to a complaint regarding a fraudulent foreign company called Praetorian whose shares he sold to investors, allegedly causing nearly $500,000 in financial losses.

The complaint alleges that he did not disclose the adverse information available about the company, resulting in his earning at least $14,950 in commissions. Gomez maintains that even though the company was fraudulent does not mean his business activities relating to the company were problematic.

Martin Knapp, Formerly a Broker with Syndicated Capital, Barred from Industry by FINRA

September 9, 2015 | Silver Law Group

A former broker with Syndicated Capital in Great Neck, New York, Martin Knapp, was permanently barred by FINRA. This action occurred because Knapp failed to respond to a FINRA request for information in which he was suspended in April 2015. Because Knapp did not request termination of his suspension within three months, he was automatically barred from association with any FINRA member in any capacity.

Knapp was with Syndicated Capital from March, 2010 when he entered the securities industry.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide 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.

Dalyne Shinneman Barred from Practice after 23 Years in Securities Industry

September 9, 2015 | Silver Law Group

Appealed suspension, but did not cooperate with FINRA investigation

According to the FINRA website, Dalyne L. Shinneman has been barred from the securities industries following a career riddled with disclosures and disputes.

A broker since 1989, Shinneman was most recently employed by Ridgeway & Conger, Inc., before facing suspension in July 2014. FINRA officially barred her in November 2014 after she allegedly requested termination of her suspension but failed to cooperate with further measures in the investigation.

Broker Sylvester King, Jr. Resigns from Wells Fargo Advisors, LLC Concurrent with FINRA Suspension

September 8, 2015 | Silver Law Group

King allegedly concealed loans from the firm, among other violations

Fort Lauderdale-based broker Sylvester King, Jr. found himself in hot water with FINRA in April 2015, according to the BrokerCheck website. So much so that he resigned from his most recent employer, Wells Fargo Advisors, LLC the same day he filed his Acceptance, Waiver and Consent (AWC) letter with FINRA.

According to the AWC letter, while employed by Morgan Stanley in 2009 and lasting through 2012 when employed by Wells Fargo, King allegedly violated FINRA rules in a number of ways. First, he allegedly helped another broker conceal almost $400,000 in loans to three firm customers, and made a $25,000 loan to a customer without his firm’s permission. He was also allegedly involved in an undisclosed private securities transaction that involved eight firm customers investing more than $3 million. Then, on two separate questionnaires, he allegedly provided false information to Morgan Stanley regarding participating in private securities transactions.

Spartan Securities Broker Scott Reynolds Fined by FINRA

September 8, 2015 | Silver Law Group

Miami, Florida based broker Scott Reynolds was fined by FINRA for allegedly failing to report an outside brokerage account to his member firm, Spartan Securities, violating FINRA rules. Reynolds was censured fined $10,000 for this violation.

Reynolds has been employed by Spartan Securities since 2005. Prior to working at Spartan, he was with Empire Financial Group, Park Financial Group and Advantage Trading Group.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide 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.

Scott Matthews Barred From FINRA Due to Failure to Disclose Leads

September 8, 2015 | Silver Law Group

Customer disputes led to his discharge from last employer

According to the FINRA BrokerCheck website, Scott Frederick Matthews, a financial adviser for 22 years, led a relatively quiet career before a string of several customer disputes in the past two years.

Prior to June 2013, Matthews had been involved in just two customer disputes, one of which was denied and the other closed without action. But in the last week of that month, everything got a bit messier.