Securities Arbitration Lawyers Blog

Blackbook Capital LLC Fined $50,000 by FINRA

August 26, 2015 | Silver Law Group

Firm Allegedly Listed Commissions as “Miscellaneous” or “Additional Fees”

BlackBook Capital, LLC, with headquarters on Wall Street in New York City, has been sanctioned by FINRA for allegedly mischaracterizing and understating commissions charged to its investors, among other charges.

According to the FINRA disclosure, the firm –without admitting or denying the findings – consented to the sanctions and the entry of findings that it charged its customers $60.50 on separate transactions in addition to or in place of a designated commission charge. The charges were allegedly listed as “miscellaneous” or “additional fee,” however a large portion of the charge could not be contributed to a cost or expense incurred by the firm. In short, it was a minimum commission charge.

New York Trident Partners Broker and CCO William Michael Quigley Permanently Barred by FINRA

August 26, 2015 | Silver Law Group

New York broker and Chief Compliance Officer of Trident Partners Ltd., William Michael Quigley (CRD# 1968265), was permanently barred by FINRA commencing on June 23, 2015, for failing to respond to a FINRA request for information, pursuant to FINRA Rule 9552(d). Quigley is barred from association with any FINRA member in any capacity. Quigley failed to request termination of his suspension within 3 months of the date of his Notice of Suspension, and therefore, was automatically barred by FINRA (FINRA Rule 9552(h)).

Additionally, on May 28, 2015, the Securities & Exchange Commission filed an indictment against Quigley alleging that he and his 2 brothers, Michael and Brian Quigley, participated in a fraudulent offering scheme from at least 2003 to 2012, while he was Chief Compliance Officer at Trident Partners Ltd., a brokerage firm in Woodbury, New York. The SEC alleges misappropriation of funds by the 3 brothers, as well as conspiracy to commit wire fraud and money laundering conspiracy in connection with a fraudulent investment scheme. “Quigley and his co-conspirators allegedly engaged in a coordinated and sophisticated scheme built on lies and deceit to defraud overseas investors,” stated Acting United States Attorney Kelly Currie, for the Eastern District of New York.

William Michael Quigley was registered with Trident Partners Ltd. from October 2007 through September 2014, and was employed by Joseph Stevens and Co. from October 2005 through September 2007.

Puerto Rico’s Debt Crisis Hits Home With Local Investors

August 26, 2015 | Silver Law Group

Promises of safe bond investments result in lost nest eggs

High returns and tax-free income and a government that could not default on its debt. If you think that sounds like a pretty sound investment, so did many who bought Puerto Rico bonds and leveraged bond funds sold by Swiss bank UBS.

According to a recent article in the New York Times, “Puerto Rico officials now say the government cannot afford to pay its $72 million in debt.” And, for the first time since the island became a United States protectorate 117 years ago, the government defaulted on a bond payment.

Randy Bostick Permanently Barred from Securities Industry

August 26, 2015 | Silver Law Group

This final action follows two previously disclosed customer disputes

Randy Bostick was barred from the securities industry following a suspension for failing to respond to a FINRA request for information.

According to the FINRA website, Bostick, who was most recently employed by Janney Montgomery Scott LLC at the time of his suspension, has two prior disclosures regarding customer disputes in his 14 years of practice in the industry.

Florida Broker Errol Constantine Hyde Permanently Barred by FINRA

August 25, 2015 | Silver Law Group

Broker Errol Constantine Hyde (CRD# 1812079) was permanently barred by FINRA commencing on June 23, 2015, for failing to respond to a FINRA request for information, pursuant to FINRA Rule 9552. Hyde is barred from association with any FINRA member in any capacity. Hyde failed to request termination of his suspension within 3 months of the date of his Notice of Suspension, and therefore, was automatically barred by FINRA (FINRA Rule 9552(h)).

Hyde first became a registered securities broker in 1991 and worked for Travelers Equities Sales, Inc. (El Segundo, CA) and Advantage Capital Corp (Atlanta, GA and Miami, FL). Most recently, Hyde was employed by H.D. Vest Investment Services of Port Saint Lucie and Miami Florida, from 2004 through 2014.

If you invested money with Errol Constantine Hyde 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.

James E. Scott Permanently Barred from Securities Industry by FINRA

August 24, 2015 | Silver Law Group

Barred for allegedly aiding and abetting violation of federal securities law

After 16 years in the securities industry, James E. Scott has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Scott was most recently registered with International Assets Advisory, LLC.

According to the FINRA BrokerCheck website, Scott worked as a long-time sales assistant for an individual broker referred to in the disciplinary action as “RO.” From April 2012 through December 2012, Scott allegedly aided and abetted RO to continue acting as a broker – engaging in the recommendation and sale of securities transactions – in the state of Texas.

Broker Focus: Broker Peter Yao Permanently Barred from Securities Industry

August 24, 2015 | Silver Law Group

Failure to respond to FINRA request for information ends Yao’s securities career

After only 8 years in the securities industry, broker Peter Yao, most recently registered with Morgan Stanley out of Seattle, Washington, has been permanently barred by FINRA. In short, this action by FINRA means Peter Yao may no longer act as a broker or otherwise associate with firms that sell securities to the public.

Why was he barred? According to the FINRA BrokerCheck website, Yao failed to respond to a regulatory agency request for information. This follows a customer dispute from July 21, 2014 in which the customer alleged that Yao abused his relationship by convincing the customer to make a loan to another customer and made false promises of repayment. In that claim, the customer requested $120,000 in damages. This dispute is still pending.

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

August 24, 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.

Alleged Manipulative Trading of Securities Lands Firm and Brokers in FINRA Complaint

August 24, 2015 | Silver Law Group

Meyers Associates, L.P., George Johnson, Joseph Mahalick and Christopher Wynne all named in FINRA complaint

In the June 2015 FINRA Disciplinary Actions report, one firm and three brokers were named in a FINRA complaint alleging numerous violations that include manipulative trading of securities.

According to the complaint, Meyers Associates, L.P., George Johnson, Joseph Mahalick and Christopher Wynne were all named as respondents. The report alleges that Johnson willfully violated SEC rules by soliciting some customers to buy stocks while at the same time soliciting others to sell the same stock, all at inflated prices. As part of this scenario, both Johnson and Wynne allegedly provided firm customers with information regarding the stocks that contained misleading information. The stock was a penny stock called Ice Web, Inc. (OTCBB.IWEB)

FINRA Warns Investors About Utilizing Automated Investment Tools

August 23, 2015 | Silver Law Group

Earlier this year, the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) released an investor alert related to automated investor tools. While these types of tools provide benefits to investors, they also come with certain risks and limitations.

What are the Risks and Benefits?

Automated investment tools have been utilized by financial professionals for several decades. They include, but are not limited to, personal financial planning tools, portfolio selection or asset optimization services, and online investment management programs. Professionals in the financial industry use them to help build and manage the portfolios of customers.