Articles Posted in Suitability

shutterstock_177792281-300x198The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Charles Kerker (Kerker), formerly employed by Next Financial Group, Inc. (Next Financial) was has been subject to at least one customer complaint and one employment termination for cause during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Westenbarger’s customer complaint alleges that Kerker recommended unsuitable investments among other allegations of misconduct relating to the handling of their accounts.

In June 2019 Kerker’s employer, Next Financial, discharged Kerker alleging failure to adequately respond to a compliance inquiry regarding equity transactions in 12 customer accounts. Specifically, the date and time that clients were contacted regarding each transaction, the rationale for the transactions, the suitability analysis conducted for each customer and copies of investment research.

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shutterstock_181783781-200x300The securities attorneys at Gana Weinstein LLP are investigating advisor Herbert Shiraishi (Shiraishi), currently registered with Independent Financial Group, LLC (Independent Financial) out of Honolulu, Hawaii and Hilo, Hawaii.  According to a BrokerCheck report,  Shiraishi has been subject to at least four customer complaints and one employment termination for cause during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Shiraishi concern allegations of variable annuity sales practices.

In May 2018 a customer filed a complaint alleging that Shiraishi’s investments in variable annuities were unsuitable to the customer’s needs.  The customer requested $25,500 in damages.  The claim was closed.

In January 2017 a customer alleged that Shiraishi failed to disclose his purchase of a variable annuity to the customer causing $7,708 in damages.  The claim was denied.

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shutterstock_64025263-199x300The law offices of Gana Weinstein LLP are investigating claims against advisor Mel Hertz (Hertz), currently registered with The Strategic Financial Alliance, Inc. (Strategic Financial) out of Kailua, Hawaii.  According to a BrokerCheck report, Hertz has been subject to at least three customer complaints and one investigation.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Hertz concern allegations of unsuitable investment recommendations.

In May 2018 Hertz was investigated by the State of Hawaii over allegations of his unsuitable investment recommendations.  This investigation is currently pending.

In April 2018 a customer filed a complaint alleging that from April 2013 through April 2018 Hertz engaged in unsuitable investments and misrepresentations causing $133,000 in damages.  The customer also alleged that Hertz failed to properly monitor third-party managed account.  This dispute is still pending.

In April 2013 a customer alleged that Hertz made unsuitable alternative investments of direct participation products (DPPs) and real estate securities causing in damages.  The claim settled for $150,000.

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shutterstock_20354398-300x200The attorneys at Gana Weinstein LLP are currently investigating Winfield Capital Partners, LP (Winfield Capital) and its principals Richard Hartnett (Hartnett) and Taryn Hartnett.  If you have suffered investment losses with Winfield Capital Partners our firm would be interested in speaking with you.  According to a BrokerCheck report, through April 2016 Hartnett was a broker with Morgan Stanley out of the firm’s West Palm Beach, Florida office location.  Hartnett has been subject to at least eight customer complaints and one regulatory action during the course of his career.

According to the complaints it appears that Hartnett was indebted to Morgan Stanley in the amount $1,288,872 at or aroud the time he left the firm.  In December 2018 Morgan Stanely was able to obtain an arbitration award for this amount against Hartnett which Hartnett may be still liable for.  Thereafter, FINRA suspended Hartnett for failing to comply with the award.  Prior to leaving Morgan Stanely Hartnett was subject to a number of customer complaints alleging excessive trading that generated large fees and commissions for Hartnett at the client’s expense.

Winfield Capital Partners began soliciting investors in or around 2016 after filing a Regulation D Private Placement offering with the Securities and Exchange Commission (SEC).  According to Winfield Capital Partners’ filings the fund sought to raise approximately $55 million in investor funds.

Winfield Capital Partners’ does not disclose the customer complaints against Hartnett or the award Morgan Stanely obtained against him.  Instead, the website merely discloses that Hartnett seeks to continue trading investor funds through Winfield Capital Partners.

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shutterstock_93851422-300x240According to BrokerCheck records financial advisor Elvis Parkes (Parkes), currently employed by Reid & Rudiger LLC (Reid & Rudiger) has been subject to 10 customer complaints, two regulatory actions, and one termination for cause during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Parkes concern allegations of unsuitable investments.

In February 2007 Parkes was terminated by First Republic Group, LLC over allegations of unsuitable transactions by the firm.  Thereafter, in June 2008 the state of Illinois fined Parkes and denied his registration in the state.

In September 2018, a customer complained that Parkes engaged in excessive and reckless trading. The claim is currently pending.

In July 2018, a customer complained that Parkes engaged in unsuitable investments causing $79,000 in damages.  The claim is currently pending.

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shutterstock_112866430-300x199The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Mariondy Fernandez (Fernandez). According to BrokerCheck Records held by the Financial Industry Regulatory Authority (FINRA), Fernandez has been subject to 19 customer disputes, 10 of which are still pending. The majority of these disputes concern violations of various securities laws regarding Puerto Rico municipal bonds and closed-end funds.

Most recently, in June 2018, a client alleged that Fernandez violated various securities laws, was negligent to industry standards, breached fiduciary duty, and failed to supervise in the case of the customer’s investments in Puerto Rico bonds and closed-end funds. This dispute is currently still pending.

In December 2017, a customer similarly alleged that Fernandez unsuitably placed the customer into Puerto Rico municipal bonds and over-concentrated the customer’s funds in the investments. In addition, the customer alleges failure to supervise and negligence. The customer has requested $1,910,000 in damages. this dispute is currently still pending.

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shutterstock_164634200The investment fraud attorneys at Gana Weinstien LLP are currently investigating previously registered broker Donnell Bowen (Bowen). According to BrokerCheck Records held by the Financial Industry Regulative Authority (FINRA), Bowen has been subject to 13 customer disputes, one financial action, one regulatory action, termination from employment, and a civil lien. The majority of these disputes concern unauthorized changes and forgery of customer signatures on life insurance/variable annuity forms.

In December 2016, a customer alleged that Bowen forged the customer’s signature on nonvariable insurnace documents to convert the term life insurance policies into whole life insurance policies. The case was settled at $50.

Shortly after, in January 2017, Bowen was permitted to resign from Northwestern Mutual Investment Services LLC (Northwestern Mutual) while under investigation for alleged forgery of customer signatures on documents.

shutterstock_120556300-300x300The securities attorneys at Gana Weinstein LLP have been investigating Morgan Stanley broker Barry Garapedian (Garapedian). According to BrokerCheck Records, Garapedian has been subject to 14 customer disputes, two of which are still pending. The majority of these disputes concern unsuitable investment recommendations.

Most recently, in April 2018, a customer alleged that Garapedian recommended investments that were unsuitable and over-concentrated the customers funds into the investments. The customer also alleged that the account had excessive fees. The customer has requested $713,000 in damages. This dispute is currently still pending.

In March 2018, another customer similarly alleged that from 2013 to 2015, Garapedian was recommending unsuitable investments that didn’t align with the customer’s needs and goals. This dispute is currently still pending.

In March 2018, a customer alleged that from March 2013 to December 2017, Garapedian was recommending unsuitable investments that didn’t align with the customer’s investment objectives. The customer requested $106,178 in damages.

In March 2008, a customer alleged that Garapedian’s recommendation of Auction Rate Securities (ARS) was unsuitable to the customer’s investment needs and falsely represented. The case was settled at $125,000.

Auction Rate Securities are debt securities sold through a dutch auction at an interest rate that will clear the market at the lowest possible yield in order to ensure that all bidders receive the same yield. Since 2008, most auctions have failed and the market has largely collapsed – leaving many investors with illiquid investments that have long-term maturities. Continue Reading

shutterstock_176198786-300x200The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Laurence Greene (Greene). According to BrokerCheck Records held by the Financial Industry Regulatory Authority (FINRA), Greene has been subject to two pending customer disputes concerning unsuitable investments.

Most recently, in May 2018, a customer alleged that Greene placed the customer’s funds into risk oil and gas securities which were unsuitable to to the customer’s investment objectives. In addition, the customer alleges churning of the account. This dispute is currently still pending.

In November 2017, a customer alleged that during 2013, Greene placed the customer in unsuitable investments, churned the account, breached fiduciary duty and excessively traded the accounts. The customer has requested $375,000 in damages. This dispute is currently still pending.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

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shutterstock_176283941-300x200The securities attorneys at Gana Weinstein LLP are currently investigating Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merill Lynch) broker Charles Kenahan (Kenahan). According to BrokerCheck Records held by the Financial Industry Regulatory Authority (FINRA), Kenahan has been subject to four customer disputes, three of which are still pending. The majority of these disputes concern unsuitable investment recommendations and excessive trading of the customer account.

In May 2018, a customer alleged that from 2012 to 2017, Kenahan excessively traded the funds in the customer account and also unsuitably recommended investments to the customer. The customer has requested $700,000 in damages. This dispute is currently still pending.

In March 2018, a customer alleged that from February 2012 to December 2017, Kenahan excessively traded customer funds, misrepresented the nature of the investments, and unsuitably recommended the investments to the customer. This dispute is currently still pending.

In February 2018, a customer alleged that from December 2007 to February 2018, Kenahan had placed the customer into unsuitable investments and excessively traded the customer’s funds in the account. This dispute is currently still pending.

In August 2009, a customer alleged that from December 2007 to February 2018, Kenahan recommended investments that were unsuitable to the customer and excessively traded the account. The customer requested $148,353 in damages.

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