FINRA

Douglas Wayne Studer : Elder Financial Fraud Alert

March 14, 2017 | Silver Law Group

An alleged inheritance of a client’s condo led to the Florida broker’s downfall

In 2001, Douglas Studer started working for Prime Capital Services, Inc. in Port Richey, Florida, which began his 15-year career. That career ended in September of 2016 after an investigation by the Financial Industry Regulatory Authority (FINRA). FINRA found that Studer had violated his firm’s policy by being named in a client’s estate documents to inherit the client’s waterfront condominium.

Studer didn’t admit or deny the allegations against him, but he did agree to the sanctions, which make him ineligible to act as a broker or have anything to do with firms that sell securities to the public.

Matthew Christopher Maczko Permanently Barred from Practicing as a Broker

March 10, 2017 | Silver Law Group

Matthew Christopher Maczko Permanently Barred from Practicing as a Broker on silverlaw.com

The former Wells Fargo broker was banned after allegations of unsuitable trading for elderly client

On February 9, 2017, Matthew Christopher Maczko was permanently barred by the Financial Industry Regulatory Authority (FINRA) after Maczko consented to the sanction and FINRA’s findings.

FINRA found that between January 2009 and April 2016, Maczko made excessive and unsuitable trades on behalf of his elderly client, now 93 years old. FINRA also reported that Maczko inaccurately testified before FINRA that he had not spoken with other clients, also senior citizens, since his termination. However, telephone records revealed that he had in fact spoken with these clients several times in that period.

New York Broker Christopher Vincent Paul Permanently Barred by FINRA

March 7, 2017 | Silver Law Group

New York Broker Christopher Vincent Paul Permanently Barred by FINRA on silverlaw.com

An assortment of charges, firings, and settlements have followed the broker for the last decade

Christopher Vincent Paul’s 14-year career has come to an end. After failing to give the Financial Industry Regulatory Authority (FINRA) information it was looking for, the agency permanently barred him from acting as a broker.

From May of 2001 to August of 2015, these are the firms with which Paul was associated, all of them in New York:

New York Broker Stanley Niekras Under Investigation for Elder Fraud

March 6, 2017 | Silver Law Group

FINRA allegations include billing elderly clients $70,000 in false fees to make up lost commissions

Former Purshe Kaplan Sterling Investments and MML Investors Services, LLC adviser Stanley Clayton Niekras is under investigation by the Financial Industry Regulatory Authority (FINRA) for allegedly taking advantage of elderly clients.

In its complaint, FINRA alleges that Niekras billed two elderly customers more than $70,000 for both estate and financial planning services that he was not entitled to, in addition to the fact that Niekras did not receive his firm’s approval for such billing.

Former Broker Matthew Maczko has been Barred Permanently by FINRA

March 6, 2017 | Silver Law Group

Former Broker Matthew Maczko has been Barred Permanently by FINRA on silverlaw.com

Maczko is reported to have earned nearly $600K in commissions by excessively trading an elderly client’s account

After almost 30 years in the securities industry, Matthew Maczko’s career is over. Earlier this month, the Financial Industry Regulatory Authority (FINRA) permanently barred him from acting as a broker due to allegations of churning.

FINRA found that between January of 2009 and April of 2016, Maczko made excessive trades in four accounts of a customer, who was in her late 80s when he began. These accounts – which had a value of about $3 million – were controlled by Maczko, and during that time span earned him almost $600K in commissions. The client ended up paying another $84K in fees, and lost nearly $400K through Maczko’s investments.It was also discovered that given his client’s age, income needs, and risk tolerance, Maczko’s level of trading was unsuitable, which would mean he acted contrary to the client’s goals or financial situation, and thus primarily to enrich himself. Excessive trading – also known as churning – is just that: a way for a broker or firm to benefit while an investor potentially loses a lot of money in commissions and fees.

Oppenheimer & Co. and Other Firms Cited for Discovery Violations in FINRA Arbitration

March 6, 2017 | Silver Law Group

Oppenheimer & Co. and Other Firms Cited for Discovery Violations in FINRA Arbitration on silverlaw.com

Discovery violations can severely impede the chance of a fair arbitration proceeding

Between 2010 and 2013, investment management firm Oppenheimer & Co. is reported to have repeatedly failed to produce documents during the discovery process for a group of claimants who alleged that the firm had not properly supervised a broker who managed their investments.

Why the discovery process is so important in securities arbitration

FINRA Sanctions Oppenheimer & Co. $3.4 Million for Reporting Violations and More

March 6, 2017 | Silver Law Group

FINRA Sanctions Oppenheimer & Co. $3.4 Million for Reporting Violations and More on silverlaw.com

FINRA says that the investment firm often reported essential data more than 4 years late

This January, the Financial Industry Regulatory Authority (FINRA) fined investment bank and wealth management firm Oppenheimer & Co. $1.575 million for allegedly failing to report mandatory data, withholding documents in discovery for clients in arbitration, and for failing to apply sales charge waivers to clients. As a part of the settlement agreement, FINRA also ordered the company to pay $1.85 million in restitution to clients.

According to FINRA, lack of reporting was pervasive throughout the firm

Former Broker Winston Turner’s Career is Over Barely after it Begun

March 1, 2017 | Silver Law Group

Former Broker Winston Turner’s Career is Over Barely after it Begun on silverlaw.com

The former Sarasota, FL broker has been permanently barred by FINRA for falsifying information, among other charges

After only about four years in the securities industry, Winston Turner has been barred permanently by the Financial Industry Regulatory Authority (FINRA). In February of 2016, FINRA made the decision based on evidence showing Turner falsified information in regard to variable annuity transactions.

FINRA found that, in addition to circumventing his firm’s supervisory review process to misrepresent the sources of funds, Turner submitted documents with forged customer signatures. He is also reported to have failed to disclose outside business activity. The final nail in the coffin came when Turner reportedly refused to offer information to FINRA and didn’t appear for scheduled testimony.

FINRA Hands Down Fines and a Suspension to Broker Ciro Cavazos

February 28, 2017 | Silver Law Group

It’s reported that the California broker didn’t disclose that he borrowed money from a client, among previous accusations of elder financial exploitation

Ciro Cavazos learned in August of 2016 that he was being fined and suspended by the Financial Industry Regulatory Authority (FINRA). The agency discovered that Cavazos borrowed money from a client and that the action was undocumented. In addition, he only agreed to pay back the loan verbally when he could, and that there were no repayment terms or a fixed maturity date. When Cavazos’ registration was transferred to another firm – along with the client’s account – he had only partially paid back the client.

Although he wouldn’t admit or deny the findings, Cavazos agreed to the suspension and the fines.

34-Year Career of Wisconsin-based Broker James Paul Kolf Comes to an Abrupt End

February 28, 2017 | Silver Law Group

34-Year Career of Wisconsin-based Broker James Paul Kolf Comes to an Abrupt End on silverlaw.com

Allegations of securities fraud and violation of the Securities Exchange Act of 1934 drive FINRA action to permanently bar Kolf

According to the Financial Industry Regulatory Authority (FINRA), broker James Kolf allegedly recommended and sold at least $588,000 in securities to twelve firm customers between October 2013 and July 2014. These customers believed they were investing in securities of “SFN Financial Network,” however, such securities did not actually exist. Instead, Kolf is reported to have used his customer’s funds to pay for his own business and personal expenses. Taking it a step further, Kolf allegedly then created and distributed falsified account statements to his customers reflecting their interests in the fake investments.

Such allegations of fraud and material misrepresentation ended what to date had been a spotless career in the securities industry.