Securities Arbitration Lawyers Blog

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.

FINRA Bars Timothy Landrum for Possible Misappropriation of Client Funds

January 28, 2015 | Silver Law Group

Timothy Landrum, of Atlanta, Georgia, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Landrum consented to the sanction and to the entry of findings that he failed to provide FINRA with on-the-record testimony in connection with an investigation into allegations that he misappropriated funds from the accounts of multiple bank clients. (FINRA Case #2014041267001)

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 Registered Individuals for Violations of FINRA Rules

January 20, 2015 | Silver Law Group

According to FINRA Disciplinary actions for December, 2014, 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
Bryan Wayne Anderson	Pruco Securities, LLC
Bryan Wayne Anderson	Metlife Securities Inc.
Byron Ray Claflin	Pruco Securities, LLC
Courtney Lamant Crusoe
William Stanley David	Edward Jones
Tauber Lawrence Emmings	Cambridge Investment Research, Inc.
Tauber Lawrence Emmings	Gunnallen Financial, Inc.
Michael Melvin Frazier	Princor Financial Services Corporation
Michael Melvin Frazier	The Prudential Insurance Company of America
Arsen A. Gaboyan	JP Morgan Securities LLC
Arsen A. Gaboyan	Chase Investment Services Corp.
William Joseph Gaspar	Harbour Investments, Inc.
William Joseph Gaspar	Allied Beacon Partners, Inc.
Theresa Rene Harfoot	Fidelity Brokerage Services LLC
Akshay Balakrishna Hegde	National Securities Corporation
Akshay Balakrishna Hegde	VFinance Investments, Inc.
Erik Lawrence Hockenberry	LPL Financial LLC
Erik Lawrence Hockenberry	Ameriprise Financial Services, Inc.
Jeffrey Einer Lewis	HD Vest Investment Services
Patricia S. Miller	Investors Capital Corp.
Patricia S. Miller	Janney Montgomery Scott LLC
James Ward Noble	Terminus Securities, LLC
Devlin Wayne Osburn	Unionbanc Investment Services, LLC
Devlin Wayne Osburn	LPL Financial LLC
Stephen Eldridge Ridgely II	Ameriprise Financial Services, Inc.
Stephen Eldridge Ridgely II	Merrill Lynch, Pierce, Fenner & Smith Incorporated
Andrea Sanchez	NSM Securities, Inc.
Andrea Sanchez	Max International Broker/Dealer Corp.
Monica L. Smith
Hope Renee Thomas	Invest Financial Corporation
Hope Renee Thomas	1784 Investor Services, Inc.
Julia Luisa Volkman	Northwestern Mutual Investment Services, LLC

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.

FTC and State of Florida Charge Inbound Call Experts LLC and Advanced Tech Supportco LLC in $120 Million Fraud Scheme

January 19, 2015 | Silver Law Group

The Federal Trade Commission (“FTC”) and the Office of the Attorney General of the State of Florida have filed a complaint alleging South Florida-based Inbound Call Experts LLC d/b/a Advanced Tech Support (“ICE”), Advanced Tech Supportco LLC (“ATS”), and their principals in a $120 Million telemarketing scheme through which ICE and ATS allegedly marketed deceptive computer software and tech support services to consumers that were little more than false promises aimed at bilking consumers of millions of dollars.

According to the lawsuit, which was filed in federal court in Florida, ICE and ATS used software designed to trick consumers into thinking that there were problems with their computers and then subjected those consumers to high-pressure deceptive sales pitches for tech support products and services to fix their non-existent computer problems. By preying upon consumers’ lack of technical knowledge, the companies were able to convince consumers that their computers were fraught with Spyware, Malware, viruses, and a multitude of computer errors for which those consumers purportedly needed security software and tech support services that each cost as much as $500. In all, the companies were able convince numerous consumers that the non-existent problems actually did exist, and Advanced Tech Support and others made millions of dollars of sales in the process.

Silver Law Group has successfully recovered multi-million dollar awards for its clients in a wide variety of fraud cases throughout the country and abroad. If you have questions about your legal rights, or have been the victim of telemarketing fraud or high-pressure sales pitches attempting to convince you to purchase needless computer software and computer repair services, contact Scott L. Silver to discuss your legal matter in a free consultation. CONTACT: Silver Law Group, 11780 W. Sample Road, Coral Springs, FL 33065; Telephone: (800) 975-4345 (Toll Free); Web site:www.oldsilverlaw.p7dev.com; E-mail: ssilver@silverlaw.com.

Stockbroker Patricia Miller Terminated for Allegedly Misappropriating Customer Funds

January 16, 2015 | Silver Law Group

Patricia Miller was associated with Investors Capital Corp from July 2010 until Investors Capital Corp fired her in May 2014. In October 2014, FINRA suspended her in all capacities from any FINRA firm for her failure to cooperate in a FINRA investigation. Investors Capital Corp is now facing multiple arbitration claims relating to Ms. Miller’s alleged misappropriation from multiple customers and Ms. Miller is facing criminal charges relating to her handling of client 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.

Chapin Davis Settles Claims Relating to Structured Notes

January 16, 2015 | Silver Law Group

Chapin Davis, Inc., of Baltimore, Maryland, submitted an AWC in which the firm was censured and fined by FINRA $35,000. Without admitting or denying the findings, Chapin Davis agreed to the sanctions and to the findings in connection with the sale of structured products, the firm’s supervisory system and WSPs were inadequate. The findings stated that the firm sold approximately $24.5 million in structured notes and Federal Deposit Insurance Corporation (FDIC) insured structured certificates of deposit (CDs) to retail customers. The firm did not have a system or WSPs for evaluating and conducting due diligence on the products, including determining risks and suitability issues, as applicable, and for approving the products. The firm offered limited training on the products, and its WSPs did not specifically address the products or provide guidance or restrictions unique to the products, including assessment or consideration of customer-specific suitability, as applicable. In addition, the firm did not sufficiently review transactions in the products, including monitoring of accounts for overconcentration of the products. (FINRA Case #2012030601701)

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.

Stephen Eldridge Ridgely, II Barred from Securities Industry

January 16, 2015 | Silver Law Group

Silver Law Group is investigating Stephen Eldridge Ridgely, II who was suspended by FINRA for failing to respond to FINRA requests for information.

Mr. Ridgely was registered with Ameriprise Financial Services, Inc.’s Plantation, Florida office from September 2012 through March 2014. Prior to that time, he was registered with Merrill Lynch’s Coral Springs, Florida office.

According to Mr. Ridgely’s BrokerCheck Report, he was the subject of a FINRA arbitration claim alleging unauthorized transactions which settled in August 2014. In November 2013, Merrill Lynch settled another claim involving Mr. Ridgely for $745,000 relating to claims alleging unauthorized trading, unsuitable investments and excessive trading.