Securities Arbitration Lawyers Blog

J. P. Turner Associates Turning Elsewhere After Firm Closure

August 19, 2015 | Silver Law Group

Cetera Financial Group is placing advisers at Summit and other firms

Independent financial adviser network Cetera Financial Group has taken steps toward relocating advisers at J. P. Turner & Co. after making the decision to close the firm. According to Investment News, about 50 percent of its current advisers have been invited to join Summit Brokerage Services Inc. while the remainder are reportedly being redistributed elsewhere among the firms under Cetera’s umbrella.

The firm’s closure may come as little surprise to those who are aware of its reputation. Investment News InvestmentNews reports Pershing LLC did not want to allow J.P. Turner on its platform. Pershing provides “global financial solutions” to advisers and broker-dealers, according to its website.

Douglas William Finlay Jr. Suspended and Fined by FINRA

August 19, 2015 | Silver Law Group

Allegations include falsifying documents

Douglas William Finlay Jr. is facing an 18-month suspension and fine of more than $15,000 to be paid later, according to FINRA.

According to the disciplinary action documents, Finlay allegedly falsified a customer’s forms by claiming her net worth was more than $1.3 million, when in fact it was about $135,000. On the same form, he allegedly claimed the customer’s income was $150,000 when it was actually $70,000. These alleged falsifications resulted in the firm having inaccurate forms and led to another allegation of recommending an unsuitable transaction.

Class Action Suit Against Citigroup Results in $13.5 Million Settlement

August 17, 2015 | Silver Law Group

Bank accused of misleading investors in proprietary alternative investments

A settlement has been reached in a class action against Citigroup, Inc. resulting in a $13.5 million payout by the banking giant. According to Law360, papers filed August 10, 2015 indicate Citigroup allegedly misled investors by allowing them to buy into the bank’s Corporate Special Opportunities fund without disclosing risky debt – debt that resulted in losses over $400 million.

In the October 2012 complaint filed by plaintiffs David Beach and Christopher Kelly, Citigroup is accused of misleading investors about trades made in the debt of ProSeiben, a German media company. According to the suit, Citigroup was to govern the fund, but violated scaling and concentration restrictions on investments.

Fined and Suspended by FINRA: Douglas J. Dannhardt of Prospera Financial Services, Inc.

August 14, 2015 | Silver Law Group

Broker faces $25,000 fine and 9 month suspension for excessive trading

As a broker in the securities industry for over 29 years, Douglas J. Dannhardt recently settled a FINRA disciplinary action relating to allegations of excessive trading in a customer’s account.

According to the FINRA BrokerCheck website, Dannhardt’s first disclosure event was a customer dispute in June 2012 in which the claimants alleged Dannhardt excessively traded within their accounts, made unsuitable investments, breached their contract, breached his fiduciary duty and failed to supervise their interests. The claim was ultimately settled for $300,000.

Firm Focus: Liberty Partners Financial Services, LLC Fined $20,000 by FINRA

August 14, 2015 | Silver Law Group

Firm Fined and Censured for Failure to Report Required Information

According to FINRA’s BrokerCheck website, Liberty Partners Financial Services, LLC of Bakersfield, California, put itself in the FINRA spotlight by failing to properly follow its own written supervisory procedures regarding Order Audit Trail System (OATS) reporting. Without admitting or denying the findings, Liberty Partners Financial Services, LLC has consented to sanctions, including the fine and the imposition of a censure.

To clarify, OATS is a system developed by FINRA to ensure that customer orders are transmitted to the marketplace in a timely manner. The system tracks each order through every stage of its life from receipt to execution or cancellation. Every firm is required to submit daily electronic OATS reports to FINRA. In the case of Liberty Partners Financial Services, the firm failed to transmit required information to OATS from January 29, 2007 through November 16, 2007.

Lawrence LaBine Under Fire for Alleged Unsuitable Recommendations and More

August 13, 2015 | Silver Law Group

Newbridge securities advisor allegedly has conflict of interest between software company and his clients

According to FINRA, Lawrence Michael LaBine is the subject of a disciplinary action pending against him after an alleged conflict of interest leading to several customer disputes.

In his 29 years in the securities industry, LaBine has had 30 disclosures according to FINRA, many of which are related to his alleged relationship with a sinking software company, leading him to make what clients claimed to be inappropriate recommendations.

Miami Broker Phil Donnahue Williamson Charged with Defrauding Retired Teachers

August 12, 2015 | Silver Law Group

Williamson Accused of Spending Investors’ Money on Personal Expenses

These individuals dedicated their lives to improving the lives of others. Some spent their days teaching in the school system. Some spent their days and nights making neighborhoods safer for the community. And they all believed that when they retired, their safe investment choices would allow them a comfortable retirement.

Unfortunately, their investment adviser had other plans for their money.

Boca Raton Oppenheimer Employees Settle SEC Investigation

August 11, 2015 | Silver Law Group

Each faces a one-year suspension for alleged unregistered sale of penny stocks

On Thursday, the Securities and Exchange Commission announced settlements in the cases of three Oppenheimer & Co. employees in Boca Raton, Florida. Scott A. Eisler, Arthur M. Lewis and Robert Okin allegedly were involved in the unregistered sale of more than 2.5 billion shares of penny stocks for a customer in 2009 and 2010.

The investigation alleges that Eisler should have conducted an inquiry into the customer’s trading activity, as it raised red flags that could point to illegal activity. According to the SEC, the proceeds from these transactions amounted to about $12 million, with Oppenheimer making more than $588,000 in commissions.

UBS Puerto Rico Under Federal Investigation for Alleged Violations

August 10, 2015 | Silver Law Group

Investigation focuses on one UBS financial adviser in particular

In a securities filing on July 28, 2015, the Swiss banking giant UBS AG reported that federal authorities are investigating one of its financial advisers and some of its customers for allegedly violating loan agreements and bank policies in Puerto Rico.

According to a Law360 release, the bank’s “second-quarter report included the news that it is responding to requests from the U.S. Securities and Exchange Commission and was aware of a U.S. Department of Justice criminal inquiry into the practice of unnamed customers and a UBS financial adviser of using loans backed by securities to invest in more securities, which is prohibited by bank policy and regulation.”

SEC Charges 54Freedom, Inc. with Securities Fraud

August 10, 2015 | Silver Law Group

The Securities and Exchange Commission (SEC) had announced it has charged two individuals and eight companies with fraud in relation to company securities and what was described as “charitable gift annuities.” The complaint was filed in the U.S. district court in Syracuse, New York.

Allegations of Investment Fraud

One of the defendants is James P. Griffin, the founder and Chief Executive Officer (CEO) of 54Freedom Inc. (54Freedom). Both Griffin and the company are located in Cazenovia, New York. 54Freedom was initially formed to sell insurance products to Americans with disabilities. However, after several years, the defendants changed the company’s purported business plan to focus on the sale of its charitable gift annuities. Throughout the company’s existence, the SEC claims the defendants provided unrealistic financial projections to prospective investors.