Securities Arbitration Lawyers BlogInvestor Update: What You Need to Know About Churning
Churning is a Type of Securities Fraud
What is churning?
Simply put, churning is defined as excessive trading.
$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
Have You Suffered Financial Losses with Bruce Sabourin?
Formerly of Cetera Advisors, you may not be the only one who has suffered.
Investment broker Bruce Michael Sabourin (CRD #2556826), most recently with Cetera Advisors, once again has a FINRA reported disclosure. Sabourin is now permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. According to the April 2015 FINRA Disciplinary and Other FINRA Actions Report, Sabourin was suspended as of February 23, 2015 for allegedly failing to provide information or keep information current according to FINRA rules.
What exactly is FINRA, you ask? Good question. It is the Financial Industry Regulatory Authority. All brokers and investment firms must agree to abide by FINRA rules. It’s the watchdog you want keeping an eye on investment players to make sure everyone is playing by the same rules. When someone isn’t, FINRA steps in.
SEC Charges Florida based DFRF Enterprises, LLC with Operating $15 Million Gold Mining Ponzi Scheme Targeting Spanish and Portuguese-speaking Investors
The U.S. Securities and Exchange Commission (SEC) has charged Orlando, Florida-based DFRF Enterprises, LLC, its owner, and several of its promoters with operating a $15 million pyramid and Ponzi scheme falsely promising over 1,400 investors in Spanish and Portuguese-speaking communities in Massachusetts, Florida, and elsewhere interests in non-existent gold mines in Brazil and Africa. DFRF Enterprises, LLC (a Florida-based company), DFRF Enterprises LLC (a Massachusetts-based company) (collectively “DFRF”), company owner Daniel Fernandes Rojo Filho (of Winter Garden, FL), and investment promoters Wanderley M. Dalman (Revere, MA), Gaspar C. Jesus (Malden, MA), Eduardo N. DaSilva (Orlando, FL), Heriberto C. Perez-Valdes (Miami, FL), Jeffrey A. Feldman (Boca Raton, FL), and Romildo DaCunha (Brazil) were charged with multiple violations of federal securities laws in a Complaint filed in Massachusetts federal court. The SEC is seeking injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and civil monetary penalties.
According to the SEC, DFRF claimed to operate more than 50 gold mines in Brazil and Africa that collectively produced 13-16 tons of gold monthly, realized a return of over 100% on each kilogram it produced, and controlled gold reserves valued at approximately $1.4 trillion. The sales pitch also claimed, among other things, that DFRF donated 25% of its profits to African charities and that investors could realize a 15% monthly return — an annual return of nearly 200%. DFRF purportedly promised investors that their investments were fully insured and promised investors that with the company’s stock allegedly set to become publicly traded, each investor would have the ability to convert his/her membership interests into stock options at approximately $15.00 per share. When recently questioned about the status of the stock, Filho allegedly claimed that the “value” of the stock had already surpassed $64 per share.
However, according to the SEC: “There are no gold mines, no gold reserves, or no gold operations. DFRF bank documents indicate that none of the investors’ money has been used to conduct gold mining, and DFRF has received no proceeds from gold mining operations.” Instead, the SEC has charged that the company’s revenue came solely from selling membership interests to investors, not from mining gold; and that to keep the fraud afloat, commissions were paid to earlier investors using new investors’ funds in typical a Ponzi-like fashion. In the SEC lawsuit, Filho is accused of siphoning more than $6 million for his own personal lavish lifestyle that included a fleet of luxury automobiles.
Alex Makarovsky Recently Sanctioned by FINRA
In the news again.
According to the FINRA website, Alex Makarovsky is once again in the hot seat for allegedly violating FINRA By-Laws and SEC rules. Makarovsky was most recently registered with Blackbook Capital, LLC.
Let’s go back a few years to build some context on his history. In 2010, while associated with Avenir Financial Group, Makarovsky allegedly made unauthorized trades in a client’s account. As a result, Makarovsky’s State of Indiana license was suspended for five years. In addition he and his firm had to pay a civil penalty and restitution to two customers.
Michael McGregor Suspended for 45 Days, Fined $5000
Currently employed by and registered with Blackbook Capital, LLC
Since 1997, Michael Anthony McGregor has been registered with FINRA as a General Securities Representative (GSR). Through the years, McGregor has been subject to judgments and liens that have not been properly reported. By not reporting them, Michael McGregor is in violation of FINRA’s By-Laws and now he’s facing FINRA sanctions.
In March 2015, Michael McGregor was handed a 45-day suspension and fined $5,000 by FINRA for allegedly failing to amend and timely amend his FINRA registration to reflect unsatisfied judgments and liens he received. Without admitting or denying the findings, McGregor consented to the sanctions and to the entry of the findings.
Broker Robert Tricarico Permanently Barred from Securities Industry
Alleged mismanagement of funds and failure to provide documentation to FINRA lead to Industry Bar
FINRA had questions for Robert Tricarico, Tricarico did not provide the information requested. And now Robert Tricarico is permanently barred from associating with any FINRA member in any capacity. That means he is barred from the securities industry forever.
To fill in the background, here are the details:
FINRA Bars Wesley C. Smith
Earlier this year, the Financial Industry Regulatory Authority (FINRA) barred Wesley Smith from working for any FINRA member. The broker had been previously registered with Edward Jones from January of 2008 to September of 2014. According to the CRD, Mr. Smith had not passed any principal/supervisory exams, but had passed one general industry/product exam and one state securities law exam. Mr. Smith has five customer disputes that have been resolved, and one pending.
Following FINRA Notice of Suspension and Suspension from Association letters dated November 4, 2014 and December 1, 2014, FINRA, pursuant to Rule 9552(H), barred Mr. Smith from any association with any FINRA member in any capacity. Specifically, the bar resulted due to Mr. Smith’s failure to request termination of his suspension within three months of the date of the Notice of Suspension. While notice of it occurred on November 4th, Mr. Smith’s actual suspension began on November 28, 2014. A failure to make a request to end a suspension results in an automatic expulsion or bar from association with FINRA. The sanction was officially ordered on February 9, 2015.
Operated by FINRA, the CRD is the central licensing and registration system for the U.S. securities industry and its regulators. It contains the registration records of over 6,500 registered broker-dealers. Additionally, the CRD contains the qualification, employment and disclosure histories of more than 650,000 active registered individuals. Access to the Web CRD is for entitled members only. In order to gain access, firms must go through the entitlement process administered by FINRA.
FINRA Terminates Brokers’ Licenses in June 2015
According to FINRA Disciplinary actions for June 2015, the following individuals were barred from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:
|
NAME |
FORMER EMPLOYERS |
| Jason Wade Cox | Edward Jones |
| Dillon M. Edwards | Princor Financial Services Corporation |
| Gino Arturo Fortis | H.D. Vest Investment Services |
| Foresters Equity Services, Inc. | |
| Herbert Andrew Hood Jr. | Valic Financial Advisors, Inc. |
| Merrill Lynch, Pierce, Fenner & Smith Inc. | |
| Rodney Bryan Howell | Transamerica Financial Advisors, Inc. |
| Melissa Diana Powell | |
| Tina Lynn Reed | Merrill Lynch, Pierce, Fenner & Smith Inc. |
| Wachovia Securities, LLC | |
| Lynn Marie Schmidt | Meritus Financial Group, Inc. |
| Rise, Inc. | |
| Mark I. Stark | LPL Financial LLC |
| Five Star Investment Services, Inc. | |
| Peter Yao | Morgan Stanley |
| Merrill Lynch, Pierce, Fenner & Smith Inc. |
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.
Brokers’ Licenses Revoked by FINRA in June 2015
According to FINRA Disciplinary actions for June 2015, the following individuals’ licenses were revoked for failure to pay fines and/or costs to FINRA pursuant to FINRA rules:
| NAME | FORMER EMPLOYERS |
| Frank E. Brickell | World Trade Financial Corporation |
| Ameritrade | |
| Rodney Preston Michel | World Trade Financial Corporation |
| Del Mar Financial Services, Inc. |
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.
FINRA Suspends Registered Individuals for Violations of FINRA Rules in June 2015
According to FINRA Disciplinary actions for June 2015, the following individuals were suspended from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:
|
NAME |
FORMER EMPLOYERS |
| Frank Carmen Aquila | Legend Equities Corporation |
| Legend Capital Corporation | |
| Modesto Biney | Wells Fargo Advisors, LLC |
| Thomas Howard Caniford | LPL Financial LLC |
| M Holdings Securities, Inc. | |
| Andrew M. Carter | LPL Financial LLC |
| NYLIfe Securities LLC | |
| Fernando Diaz | JP Morgan Securities LLC |
| Chase Investment Services Corp | |
| Jordan Hart | |
| Steven J. Hiles | NYLife Securities LLC |
| Erroll Constantine Hyde | H.D. Vest Investment Services |
| Advantage Capital Corporation | |
| Dolores Marie Jones | |
| Ariana Grace Kaiser | ING Financial Partners, Inc. |
| Anthony Uzoma Ogbonna | JP Morgan Securities LLC |
| Chase Investment Services Corp | |
| Bernard Popilevsky | JP Morgan Securities LLC |
| Chase Investment Services Corp | |
| Christina Powers | |
| William Michael Quigley | Trident Partners Ltd |
| Joseph Stevens & Company, Inc. | |
| Michael Joseph Quinn | Independent Financial Group, LLC |
| LPL Financial LLC | |
| Robert John Sprott | Securities Service Network, Inc. |
| Walnut Street Securities, Inc. | |
| Daniel Kunihiko Tamaki | NYLife Securities LLC |
| Mary V. Tropeano |
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.