Securities Arbitration Lawyers Blog

FINRA Bars Mark Foster from Securities Industry

February 3, 2015 | Silver Law Group

Mark Foster, of Pasadena, California, was barred from association with any FINRA member in any capacity. Foster worked for Stern Fisher Edwards, Inc. until May 2012. The sanction was based on findings that Foster failed to respond to requests from FINRA for information and documents and to appear and provide on-the-record testimony regarding allegations that he misappropriated more than $2 million in customer funds. Stern Fisher allegedly paid a customer $625,000 to settle the claim. (FINRA Case #2014039867601)

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 Bars Ismail Elmas for Theft of Client Funds

February 3, 2015 | Silver Law Group

Ismail Elmas, of Virginia, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Elmas was registered with CUNA Brokerage Services, Inc. from 2007 through 2013. He subsequently worked for CUSO Financial Services, L.P. until August 2014. Without admitting or denying the findings, Elmas consented to the sanction and to the entry of findings that he failed to provide documents and information FINRA had requested in connection with an investigation into allegations that he converted client funds for personal use and participated in an unauthorized outside business activity. (FINRA Case 2014042148801) Mr. Elmas was discharged by CUSO because he allegedly engaged in an improper outside business activity. CUSO also claims it is cooperating with a client where a variable annuity was improperly surrendered.

If you invested money with Ismail Elmas, you may be entitled to recover some of your investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.

SunTrust Investment Services, Inc. Fined by FINRA for Improper Assessment of Investment Advisory Fees

February 3, 2015 | Silver Law Group

SunTrust Investment Services, Inc. submitted an AWC in which the firm was censured and fined $80,000. SunTrust consented to the sanctions, without admitting liability, and to the entry of findings that it failed to establish a supervisory system reasonably designed to monitor the proper assessment of fees charged to certain investment advisory customers. The findings stated that the firm overcharged investment advisory fees to customers enrolled in one of the firm’s investment advisory programs. These overcharges resulted from the installation of new fee-engine software by the firm’s clearing firm that, without the firm’s knowledge, failed to correctly bundle certain asset classes for the purpose of calculating breakpoint discounts for fees. The firm failed to discover the investment advisory fee overcharges for a period of approximately two-and-a-half years. The firm also failed to conduct adequate periodic reviews to ensure that the proper fees were assessed for certain investment advisory accounts. (FINRA Case #2011029668001)

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 Broker, Phillip John Bucaro, Fined for Selling Unapproved Annuities

February 3, 2015 | Silver Law Group

Phillip John Bucaro submitted a FINRA AWC in which he was fined $7,500 and suspended from association with any FINRA member in any capacity for four months. Bucaro has been registered with The Leaders Group, Inc. since August 2012. Without admitting or denying the findings, Bucaro consented to the FINRA sanctions and to the entry of findings that he engaged in outside business activities by receiving approximately $203,000 in compensation for selling equity-indexed annuities (EIAs) to customers of his firm. The firm maintained an approved product list that included certain EIAs that the brokerage firm allowed its representatives to sell to customers. However, Bucaro sold EIAs to the firm customers that were not on the firm’s approved product list. Bucaro neglected to give prior or prompt written notice of his engagement in such business activities to the firm. (FINRA Case #2011028635701)

Investors who have suffered losses through the sale of variable annuities and non-traded REITsmay be able recover their losses through arbitration. The attorneys at Silver Law Group are experienced in representing investors in cases against brokerage firms for violations of the sales of these complex or high commission products. We primarily represent investors on a contingent fee basis and, in most cases, we will agree to advance any costs.

Thomas Neil Charbonneau Barred by FINRA for Selling Penny Stocks

February 3, 2015 | Silver Law Group

Thomas Neil Charbonneau, of Minnesota, submitted a FINRA AWC in which he was barred from association with any FINRA member in any capacity. Charbonneau was registered with Feltl and Company from March 2005 through October 2010. Charbonneau then joined Berthel Fisher & Company. Without admitting or denying the findings, Charbonneau consented to the sanction and to the entry of findings that he sold over 1.5 million shares of a speculative penny stock he owned, generating approximately $400,000, while he solicited and sold the same speculative penny stock to his clients without disclosing that he was selling his own proprietary holdings. Charbonneau’s conduct in failing to disclose his stock sales to his customers clearly prevented them from making an informed investment decision. The findings also stated that Charbonneau caused a customer to sign and initial in blank investment-related member firm documents pertaining to a potential investment in a REIT in contravention of his firm’s prohibition against such conduct. (FINRA Case #2010024882201)

Silver Law Group represents defrauded investors in FINRA arbitration claims for losses due to Wall Street malfeasance or stockbroker misconduct. We are currently investigating Thomas Neil Charbonneau and trading activity relating to penny stocks and the possibility of assisting any investors with the recovery of any losses they may have suffered. We primarily handle cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients. Any investors that believe they lost any money as a result of Mr. Charbonneau’s alleged improper sale of penny stocks may contact the securities and investment fraud attorneys at Silver Law Group for a free, no-obligation evaluation of their recovery options, at (800) 975-4345.

FINRA Bars David Gabai for Market Manipulation

February 3, 2015 | Silver Law Group

David Lawrence Gabai, of West Hills, California, submitted a FINRA AWC in which he was barred from association with any FINRA member in any capacity. Gabai was registered with LPL Financial Corporation until 2010. Mr. Gabai then briefly worked for Comerica Securities. Gabai consented to the sanction and to the entry of findings that he held significant quantities of shares in a security in his personal brokerage accounts, and used deceptive, fraudulent, and manipulative devices and schemes involving the trading of the security. The findings stated that through the use of his personal and other brokerage accounts, Gabai engaged in pre-arranged trading and wash sales, in an attempt to create a false or misleading appearance of active trading relating to the market for the security and pump up the price of the security. Among other things, Gabai’s misconduct enabled him to avoid margin calls in his personal brokerage accounts avoiding sales of the stock. Gabai effected trades that set the closing and opening price of the security. In some of these instances, Gabai and another registered representative effected matched trades between the brokerage accounts of Gabai’s customers and the brokerage accounts of the other registered representative’s customers to give the appearance of a more active market. The matched orders were typically effected at prices that were equal to or higher than the prior trade price for the shares pushing the price higher.

The findings also included that Gabai effected pairs of wash trades in the security that took place within his personal brokerage accounts or between his personal brokerage accounts. The wash trades did not involve any change in beneficial ownership and Gabai effected them to create a false or misleading appearance of active trading relating to the market for the security and to manipulate the security’s price. As a result of his conduct, Gabai willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Gabai also caused the publication or circulation of reports of non-bona fide purchases or sales of the security. (FINRA Case #2009017402501)

If you invested money with David Lawrence Gabai, you may be entitled to recover some of you investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.

FINRA Bars Jan Ernest Helen for Refusing to Cooperate in Investigation Relating to Missing Customer Funds

February 3, 2015 | Silver Law Group

Jan Ernest Helen, of Denver, Colorado, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Helen was registered with Janco Partners, Inc. from 1996 through September 2014. Without admitting or denying the findings, Helen consented to the sanction and to the entry of findings that he failed and refused to appear for FINRA on-the-record testimony in connection with an investigation into his possible conversion or misuse of investor funds. The findings stated that Helen, through counsel, informed FINRA that he would not appear for testimony on the scheduled date or at a future date. (FINRA Case #2014042231401)

In 2012, FINRA sanctioned Helen for misconduct relating to a private placement offering and Janco’s failure to have a reasonable supervisory system for the sale of private placements. Helen now faces even more serious allegations involving possible theft of customer funds.

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 Bars Clark Gardner from Securities Industry for Converting Customer Funds

February 3, 2015 | Silver Law Group

Clark Smith Gardner, of Orem, Utah, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Gardner was registered with Cetera Advisors, LLC until May, 2014. Without admitting or denying the findings, Gardner consented to the sanction and to the entry of findings that he used customer funds for his own benefit. An investor provided Gardner with a check for almost $250,000 for an investment opportunity sold by Gardner. Gardner put the money into his personal bank account and failed to invest any of the funds on the customer’s behalf. Instead, Gardner used the customer’s money to repay funds Gardner owed to other individuals. Gardener also engaged in an outside business activity by serving as a real estate agent of an investment company without his member firm’s knowledge or consent. Gardner facilitated the customer’s $150,000 real property investment through the company, without the firm’s permission, and received $20,000 from the company for facilitating the transaction. (FINRA Case #2014041351601) Real estate scams have become increasingly popular as advisors recommend real estate as part of an overall investment strategy or are tempted to become principals in deals with a conflict of interest to the advisor’s customers. However, brokerage firms frequently prohibit advisors from investing in deals with clients.

We are currently involved in multiple cases against brokerage firms for mismanagement of elderly investors’ accounts and/or improper conflicts of interest between the financial advisor and the customer. We routinely work closely with estate planning attorneys to help resolve disputes between family members regarding the management of an elderly family member’s financial affairs and we are frequently consulted regarding the improper sale of securities or mismanagement of the portfolio by a fiduciary, trustee or other trusted advisor.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

FINRA Bars Herbert Kaye for Executing Trades without Prior Authorization

February 3, 2015 | Silver Law Group

Herbert Leonard Kaye, of Delray Beach, Florida, submitted an AWC in which he was assessed a deferred fine of $25,000, which includes disgorgement of $11,000 of commissions received, and suspended from association with any FINRA member in any capacity for four months. Kaye was registered with First Allied Securities in Boca Raton, Florida from 2008-2013. Without admitting or denying the findings, Kaye consented to the sanctions and to the entry of findings that he entered discretionary trades in equities and ETFs in a customer’s account without the customer’s prior written authorization. Kaye’s member firm’s written policies and procedures prohibited registered representatives from exercising discretion in customer accounts except in certain, limited circumstances that did not apply to the customer’s account. The trades generated almost $175,000 in gross commissions and fees. Accordingly, it appears that Kaye may have executed some trades simply to generate additional fees or commissions. This is typically referred to as churning.

The findings also stated that Kaye recommended his customer invest $1.1 million in a gold and precious minerals fund that was not suitable for her in light of her moderate risk tolerance, investment objective of growth and income, desire to avoid market fluctuations, the concentrated nature of the investment and her age. Kaye received $11,000 in gross commissions for the investment. Cases involving precious metals have become prevalent as advisors recommend gold and other metals to their clients.

If you invested money with Herbert Leonard Kaye, you may be entitled to recover some of you investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.

FINRA Suspends James Edward Rooney Jr. for Unauthorized Transactions

January 28, 2015 | Silver Law Group

James Edward Rooney Jr., of Carrollton, Texas, was fined by FINRA a total of $75,000, suspended from association with any FINRA member in any capacity for a total of two years and was suspended in any supervisory capacity for 18 months. FINRA alleges that Rooney engaged in private securities transactions involving installment contracts without providing prior written notice his member firm. The findings stated that Rooney recommended the installment contract to his client without a reasonable basis for believing it to be a suitable investment. Rooney allegedly did not conduct a reasonable investigation into the company offering the installment plan contracts or the contracts themselves. Rooney sold the product expecting to receive a commission. The findings also stated that Rooney made negligent misrepresentations of material fact to the customer. Although Rooney may not have known that his representations regarding the organization and the features of the contract were false, a simple investigation would have uncovered numerous red flags. Rooney also presented oversimplified, incomplete and misleading sales materials to his customer when soliciting the installment contract. The findings also included that Rooney failed to adequately supervise other registered representative’s sales of the installment contracts. (FINRA Case #2009019042402)

If you invested money with James Edward Rooney Jr., you may be entitled to recover some of your investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses through FINRA arbitration.