Articles Tagged with Buckman Buckman & Reid

shutterstock_38114566Investment attorneys at Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against David Lerner (Lerner) currently associated with Network 1 Financial Securities Inc. (Network 1) alleging unsuitable investments and failure to follow instructions among other claims.  According to brokercheck records Lerner has been subject to 10 customer complaints, one regulatory sanction, one employment separation for cause, and three judgments/liens.

In July 2015, Lerner received a tax lien in the amount of $16,388.  Earlier in April 2015 Lerner was subject to another tax lien of $81,986.  A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

Brokers in the financial industry have the fundamental responsibility to treat investors fairly.  This obligation includes making only suitable investments for their client.  The suitable analysis has certain requirements that must be met before the recommendation is made.  First, there must be reasonable basis for the recommendation for the investment based upon the broker’s and the firm’s investigation and due diligence.  Common due diligence looks into the investment’s properties including its benefits, risks, tax consequences, the issuer, the likelihood of success or failure of the investment, and other relevant factors.  Second, if there is a reasonable basis to recommend the product to investors the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives.  These factors include the client’s age, investment experience, retirement status, long or short term goals, tax status, or any other relevant factor.

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shutterstock_179465345The securities lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker William Baumner (Baumner).  According to BrokerCheck records Baumner has been subject to at least seven customer complaints and five judgements or liens.  The customer complaints against Baumner allege securities law violations that including unsuitable investments, breach of fiduciary duty, and misrepresentations among other claims.   According to the disclosures, many of the complaints involve private companies, private placements, penny stocks, and one complaint mentions a recommendation for CTX Virtual.

In December 2015 a customer filed a complaint alleging $100,000 in damage stemming from misrepresentations for a stock between February 2014 and January 2016.  The complaint has been denied.  Baumner has disclosed several large tax liens including a $5,825 lien in January 2015.  Substantial judgements and liens on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services.  A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

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shutterstock_179921270The securities lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Honetta Kao (Kao). According to BrokerCheck records Kao is subject to two customer complaints, one regulatory action, onr investigation, and one financial matter.

FINRA terminated Kao after the broker failed to respond to a letter request for information in August 2015. Prior to that time, in January 2015, FINRA opened an investigation into Kao alleging potential willful violations of securities fraud laws and FINRA rules. In addition, in April 2015, a customer filed a complaint alleging that Kao mishandled the account and provided bad advice. The complaint is pending. Another client alleged in May 2013, that Kao engaged in unsuitable recommendations and unauthorized trading.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

The number of events listed on Kao’s brokercheck is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.

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shutterstock_177231056The securities lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Marat (a/k/a Matt) Zeltser (Zeltser). According to BrokerCheck records there are at least one customer complaint, one regulatory, one investigation, and one employment separation that have been filed against Zeltser. The customer complaints against Zeltser alleges a number of securities law violations including that the broker invested money in triple leveraged ETFs over long periods of time among other claims. The claim is currently pending.

FINRA terminated Zeltser after the broker failed to respond to a letter request for information in August 2015. Prior to that time, in January 2015, FINRA opened an investigation into Zeltser alleging potential willful violations of securities fraud laws and FINRA rules. Prior to that, Zeltser was discharged from Pointe Capital, Inc. for violating the firm’s advertising policy and the use of unapproved communications.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

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shutterstock_170709014The securities fraud attorneys of Gana LLP are investigating potential recovery options for investors with broker Glenn King (King). Recently The Financial Industry Regulatory Authority (FINRA) brought an enforcement action (FINRA No. 2015044444801). In addition, to the FINRA complaint, King’s BrokerCheck disclosures reveal an astonishing number of reported incidents including 1 investigation, 19 customer complaints, 1 firm termination, 2 financial disclosures – which includes a bankruptcy filing, and 1 judgement or lien.

The FINRA complaint alleges that from April 2008 through March 2011, while King was associated with brokerage firm Royal Alliance Associates, Inc. (Royal Alliance), King made fraudulent misrepresentations and omissions to seven Royal Alliance customers in connection with the sale of Unit Investment Trusts (UITs). FINRA found that King misrepresented to the customers that he would use their investment funds to purchase safe, no-risk bonds, and that King would not charge fees or commissions for the transactions. ln reality, King was alleged to have purchased 44 UITs that resulted in approximately $17,000 in realized losses to the customers, approximately $43,000 in unrealized losses, and approximately $38,000 in commissions to King.

FINRA also alleged that from January 2013 through December 2014, while King was associated with Buckman, Buckman & Reid (BBR), King engaged in a pattern of short-term trading in long-term investment products in the accounts of four customers. FINRA alleged that the pattern of trading was excessive and unsuitable, and resulted in approximately $163,000 in losses to the customers while profiting King by generating commissions of approximately $210,000.

Finally, FINRA alleged that from January 2013 through December 2014, King exercised discretion in the accounts of four BBR customers without their written authority or the approval of his brokerage firm to conduct the trading.

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shutterstock_102757574According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Robert Yasnis (Yasnis) has been the subject of 3 customer complaints, and 3 regulatory actions. The customer complaints against Yasnis allege securities law violations that claim unauthorized trading among other claims. The most recent complaint was filed in June 2015, and alleged $34,350 in losses due to unauthorized trading in May 2011.

The most recent regulatory action was taken by the state of Florida in 2013, when the state alleged that a material false statement was made on an application for registration resulting in a denial of registration. In 1997, the state of Virginia alleged that Yasnis offered unregistered securities in the state and received a fine. Finally in 1994, the state of Texas revoked Yasnis’ securities license in the state due to allegations that he misled the state concerning the status of registration within the state.

Yasnis entered the securities industry in 1993. From February 2007, until July 2009, Yasnis was associated with Hallmark Investments, Inc. From November 2009, until April 2010, Yasnis was associated with Stephen A. Kohn & Associates, Ltd. Thereafter, from April 2010, until October 2012, Yasnis was associated with Buckman, Buckman & Reid, Inc. From October 2012, until January 2014, Yasnis was associated with Meyers Associates, L.P. Presently, Yasnis is associated with Laidlaw & Company (UK) Ltd. out of the firm’s New York, New York branch office location.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

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shutterstock_106111121According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Jason Klabal (Klabal) has been the subject of at least eight customer complaints six of which have been filed since 2014. The customer complaints against Klabal allege a number of securities law violations including that the broker made unsuitable investments, engaged in churning (excessive trading), misrepresentations, negligence, fraud, and breach of fiduciary duty among other claims.

Klabal entered the securities industry in 1997. From 1999 through October 2008, Klabal was associated with J.P. Turner & Company, L.L.C. (JP Turner). Thereafter from October 2008, until January 2010, Klabal was registered with Mercer Capital LTD. From there, Klabal was associated with Buckman, Buckman & Reid, Inc from January 2010, until August 2011. Finally, Klabal became associated with Legend Securities, Inc. in August 2011.

Pace’s employment separation involved allegations by Global Arena Capital claiming that Pace allowed client information to be taken from the office by another person. The information was later returned to the firm.

The number of complaints and regulatory actions against Klabal is relatively large by industry standards. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must disclose different types of events, not necessarily all of which are customer complaints. These disclosures can include IRS tax liens, judgments, and even criminal matters.

In addition, almost all of the complaints against Klabal involve claims of churning. When brokers engage in churning the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades.

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shutterstock_102217105According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker David Persaud (Persaud) a/k/a Dwarka Persaud has been the subject of at least 5 customer complaints and one regulatory action over the course of his career. Customers have filed complaints against Persaud alleging a litany of securities law violations including that the broker made unsuitable investments, unauthorized trades, breach of fiduciary duty, and churning among other claims.  Two of these customer complaints were filed recently.

An examination of Persaud’s employment history reveals that Persaud moves from troubled firm to troubled firm. The pattern of brokers moving in this way is sometimes called “cockroaching” within the industry. See More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities, The Wall Street Journal, (Oct. 4, 2013). In Persaud’s 28 year career he has worked at 21 different firms.

Since 2008 Persaud has been registered with The Concord Equity Group, LLC, Andrew Garrett Inc., Garden State Securities, Inc., and since May 2015, Buckman, Buckman & Reid, Inc.