Securities Arbitration Lawyers Blog

SEC Announces Citigroup Affiliates to Pay $180 Million in Hedge Fund Fraud Settlement

September 7, 2015 | Silver Law Group

Affiliates allegedly defrauded traditional bond investors

Following allegations and an investigation by the Securities and Exchange Commission (SEC), two Citigroup affiliates have agreed to pay nearly $180 million to settle charges that they defrauded investors in two hedge funds. The firms are accused of claiming the hedge funds in question were safe, low-risk and appropriate for traditional bond investors, when in fact, the funds were in dire condition.

According to the SEC press release, Citigroup Global Markets Inc. (CGMI) and Citigroup Alternative Investments LLC (CAI) neither admitted to nor denied the SEC’s charges, but agreed to bear all costs of distributing the $180 million in settlement funds to harmed investors.

1st Discount Brokerage, Inc., Mark Miller, Alan Miller Censured and Fined by FINRA

September 4, 2015 | Silver Law Group

Failed to follow Securities Act requirements

Lake Worth, Florida-based 1st Discount Brokerage, Inc along with Naples, Florida-based Alan Miller and Overland Park, Kansas-based Mark Miller are all players in a FINRA disciplinary action, according to the June 2015 FINRA Disciplinary Action Report.

Both Alan Miller and Mark Miller consented to the sanctions and entry of the findings, without admitting or denying the findings, that their firm did not follow appropriate Securities Act requirements when executing sales of large blocks of low-priced securities frequently referred to as penny stocks.

FINRA Levies $250,000 Fine Against LPL Financial

September 4, 2015 | Silver Law Group

FINRA also orders cease and desist after failure to abide by Massachusetts state regulation on senior financial designations

FINRA fined LPL Financial LLC a total of $250,000 on July 10 after allegations that the firm failed to establish or enforce supervisory procedures that complied with Massachusetts’ regulations. The regulations in question went into effect in 2007 and concern the use of “senior-specific” titles in the securities industry.

The regulation in question states that a broker may only use a title suggesting that he or she is specially trained to work with investors aged 65 or older if the broker has legitimate accreditation recognized by the Secretary of the Commonwealth of Massachusetts.

John Thornes Barred by SEC After Conversion Allegations

September 3, 2015 | Silver Law Group

Alleged conversions include two trusts – one that helped provide Alzheimer’s care and another used to provide scholarships

On August 8, following a 21-year career in the securities industry, John Thomas Thornes has been permanently barred from practicing as a broker by the US Securities and Exchange Commission according to a report published by FINRA.

Thornes was suspended in May for allegedly failing to comply with a prior settlement agreement or award, as well as failure to respond to a FINRA request, according to a FINRA disclosure on Thornes’ broker report.

Morgan Stanley broker Peter H. Kim Barred for Allegedly Taking Client Funds for Personal Use

September 3, 2015 | Silver Law Group

Kim is permanently barred by FINRA

FINRA Rule 2010 provides that “[a] member, in the conduct of his business, shall observe high standards of commercial honor and just and equitable principles of trade,” and broker Peter Kim was found in violation of it, according to a recent FINRA disciplinary action.

In fact, according to the report, Kim’s acts, practices and conduct constituted such violation of the rule that FINRA permanently barred Kim from acting as a broker or otherwise associating with firms that sell securities to the public.

Two South Florida Brokers in the FINRA Spotlight for Making Inappropriate Loans

September 3, 2015 | Silver Law Group

Patrick McGrath and Aaron Parthemer: Separate FINRA complaints for similar violations

In two separate FINRA disciplinary actions, two South Florida investment brokers were found to have made loans to, or borrowed funds from, their firm’s customers without permission. Generally, brokerage firms prohibit stockbrokers from asking clients for personal loans or otherwise soliciting direct investments from a client.

In the case of Fort Lauderdale, Florida-based Aaron Parthemer, his actions have resulted in his being permanently barred by FINRA from the securities industry in any capacity. While Parthemer did not admit to or deny the findings, he consented to the sanction and entry of the findings on several counts. Parthemer was registered with Wells Fargo Advisors, LLC in Fort Lauderdale, Florida.

Thomas Hogle Barred by FINRA After Alleged Lack of Cooperation With Investigation

September 1, 2015 | Silver Law Group

Allegations concern unsuitable, excessive and unauthorized trades for a 101-year-old customer

After 16 years in the securities industry, FINRA barred Thomas Morley Hogle from acting as a broker or associating with FINRA members in a professional capacity on May 11, according to the FINRA website.

The action comes in the wake of a FINRA investigation into whether Hogle made unsuitable investment recommendations to a 101-year-old customer. According to FINRA documents, FINRA requested documents and information from Hogle in two separate letters. When he did not respond to those requests FINRA staff spoke to him on the phone, at which time Hogle allegedly acknowledged the requests but stated that he would not produce the information requested at any point.

Neil Buysse Barred by FINRA

September 1, 2015 | Silver Law Group

Permanent action follows a three-month suspension from the securities industry

According to the Financial Industry Regulatory Authority (FINRA), Neil J. Buysse has been permanently barred from practicing within the securities industry following a 2014 suspension.

Buysse was suspended on Dec. 1 following his alleged failure to respond to a FINRA request for information. As of Feb. 10, Buysse has been barred from practicing in any capacity as a broker or as an investment adviser.

Anthony Diaz Permanently Barred by FINRA for Alleged Unethical Practices

August 31, 2015 | Silver Law Group

Diaz was also fined $10,000 amid allegations of fraud, negligence, unsuitability and misrepresentation

After a 14-year career in the securities industry marred by 44 disclosure events, Anthony Diaz has been permanently barred from acting as a broker and fined $10,000 by FINRA on June 10, 2015. This follows allegations of dishonest and unethical practices, according to FINRA’s report on the matter.

Between December 11, 2014 to May 12, 2015, Diaz was named in 20 customer disputes that are currently pending review by FINRA and one that was settled for $10,000. The amount of damages alleged against Diaz in just those five months total more than $7.3 million. According to the FINRA website, he was working for First Allied Securities, Inc., in Scotrun, Pennsylvania, when the alleged infractions occurred and continued at his subsequent firms.

Cetera Broker Alex P. Anderson Permanently Barred by FINRA

August 28, 2015 | Silver Law Group

Ohio broker Alex P. Anderson (CRD# 4243107) was permanently barred by FINRA in April 2015, for converting customer funds for his own use and benefit, in violation of FINRA Rules 2510 and 2010. According to the Letter of Acceptance Waiver and Consent, Anderson was appointed Power of Attorney over a 94 year-old customer of his, which gave Anderson broad authority over the customer’s financial affairs. Between May 21, 2014 and November 14, 2014, Anderson issued nine checks totaling $75,500 from the client’s bank account and deposited them into a bank account under Anderson’s control, for his own use and benefit. Due to these acts, Anderson violated FINRA Rules 2150(a) and 2010 and was permanently barred from the association with any FINRA member in any capacity. Anderson was registered with FINRA member firm Cetera Financial Specialists LLC from June 2004 through December 2014, and Hochman and Baker Securities Inc. of Stamford CT, from January 2002 through August 2004.

Many brokerage firms prohibit financial advisors from serving as trustees of clients’ trust accounts or executors of clients’ trust and estate plans. Financial advisors are generally prohibited from serving as power of attorney for elderly clients or managing money separate from investors’ accounts.

If you invested money with Alex P. Anderson or his firms and suffered losses, you may be entitled to recover some or all of those investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak with an experienced attorney and to find out how we may be able to help you regain some or all of your losses. Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful in your lawsuit.