investment fraud lawyer

Michael Burkoff Has Investor Complaint Over Structured Products Sales

June 30, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Michael Burkoff (Burkoff), currently employed by National Securities Corporation (National Securities) has been subject to at least four customer complaints and one criminal matter during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Burkoff’s one of customer complaints alleges that Burkoff recommended unsuitable investments in various investments such structured products among other allegations of misconduct relating to the handling of their accounts.

In December 2019 a customer complained that Burkoff violated the securities laws by alleging that Burkoff engaged in sales practice violations related to unsuitable trading and breach of fiduciary duty relating to the sale of structured products. The claim alleges $150,000 and is currently pending.

In August 2015 a customer complained that Burkoff violated the securities laws by alleging that Burkoff engaged in sales practice violations related to poor advice. The claim was denied by the firm.

Structured products range in risk from benign to extreme. However, most structured products produce inferior risk/return profiles than ordinary debt or equity instruments because the brokerage firms that issue these products seek to profit from the spread between the payment to investors and the amount of money the brokerage firm can make from the issuance. When dealing with some of the more complex structured products most investors will lack the ability to understand the merits of investments nor are many structured products appropriate for investors seeking a fixed or reliable income and preservation of capital.

Advisor John Jaramillo Terminated for Selling a Non-Approved Product

May 15, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor John Jaramillo (Jaramillo) has been accused by his former employer of selling a non-approved product among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Jaramillo has been terminated by his prior employer, Western International Securities, Inc. (Western International) concerning his outside business activities. If you have been a victim of Jaramillo’s alleged misconduct our firm may be able to assist you in recovering funds.

In March 2020 Western International terminated Jaramillo after alleging that he sold a non-approved product.

Jaramillo’s outside business activities disclosed on his publicly available BrokerCheck report include accident & health insurance and Integrity Real Estate Solutions which is listed as a real estate agent.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

Advisor Ferrell Rollins Terminated for Borrowing Customer Funds

May 14, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Ferrell Rollins (Rollins) has been accused by his former employer of borrowing client funds among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Rollins has been terminated by his prior employer, Capital Investment Group, Inc. (Capital Investment Group) concerning his outside business activities. If you have been a victim of Rollins’ alleged misconduct our firm may be able to assist you in recovering funds.

In September 2019 Capital Investment Group terminated Rollins after alleging violation of firm policy and FINRA Rules 2010 and 3240 related to borrowing money from a customer and making false statements to the firm on forms related to said loan.

Rollins’ outside business activities disclosed on his publicly available BrokerCheck report include Telco Credit Union.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

Merrill Lynch Financial Advisor Juan Barreras Has Suitability Customer Complaints

May 11, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Juan Barreras (Barreras), currently employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) has been subject to at least five customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Barreras’ customer complaints alleges that Barreras recommended unsuitable investments in various investments including allegations of unsuitable municipal bonds and mutual fund securities among other allegations of misconduct relating to the handling of their accounts.

In August 2019 a customer complained that Barreras violated the securities laws by alleging that Barreras made investments recommendations in unsuitable investment recommendations and misrepresentation. The claim alleges $800,000 in damages and is currently pending.

In January 2019 a customer complained that Barreras violated the securities laws by alleging that Barreras made investments recommendations in unsuitable investment recommendations and misrepresentation. The claim alleges $600,000 in damages and is currently pending.

In August 2016 a customer complained that Barreras violated the securities laws by alleging that Barreras made investments recommendations in unsuitable investment recommendations, misrepresentation and omission of material facts from January 2011 to December 2016. The claim alleges $500,000 in damages and settled for $125,000.

Advisor Benjamin Lowder Accused of Selling Private Securities – Investor Recovery

February 27, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Benjamin Lowder (Lowder) has multiple client complaints concerning allegations that he engaged in the sales of private securities among other allegations. Lowder was also barred by The Financial Industry Regulatory Authority (FINRA) concerning his private securities sales conduct. According to BrokerCheck records, Lowder was formerly registered with FINRA member firm MSI Financial Services, Inc. (MSI Financial). If you have been a victim of Lowder’s alleged misconduct our firm may be able to assist you in recovering funds.

In October 2019 FINRA found that Lowder consented to the sanctions and a bar from them industry as well as to the entry of findings that he refused to appear for testimony before FINRA during the course of an investigation that began after investor civil lawsuits submitted by his former member firm. FINRA found that the civil lawsuits alleged unfair and deceptive trade practices and state securities fraud regarding investments in fictitious entities.

According to Lowder’s publicly disclosed records the he has no disclosed outside business activities.

Michael Stanton Subject to Multiple Customer Complaints Over Securities Trading

October 1, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Michael Stanton (Stanton), currently employed by Worden Capital Management LLC (Worden Capital) has been subject to at least four customer complaints, two regulatory complaints, and nine financial disclosures and or tax and civil liens. According to records kept by The Financial Industry Regulatory Authority (FINRA), Stanton’s customer complaints allege that Stanton recommended unsuitable securities and engaged in excessive trading and churning among other allegations of misconduct in the handling of customer accounts.

In November 2016 Stanton was named a respondent in a FINRA complaint alleging that he and his member firm failed to establish, maintain, and enforce a reasonable supervisory system to prevent a registered representative from churning and excessively trading a customer’s brokerage accounts. FINRA alleged that Stanton and the firm failed to adequately investigate red flags demonstrating that the registered representative was churning the customer’s accounts. FINRA found that Stanton and the firm also failed to adequately investigate that the registered representative engaged in aggressive, “in-and-out” trading for no apparent reason – the hallmark of excessive trading and churning. Stanton was suspended for seven months and fined $5,000 as a result.

Advisor Anthony Conti Subject to Complaints Over Investment Suitability

September 24, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP is currently investigating advisor Anthony Conti (Conti), currently associated with Boenning & Scattergood, Inc. (Boenning & Scattergood) out of Carnegie, Pennsylvania. According to a BrokerCheck report, Conti has been subject to at least one customer dispute during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Conti’s customer complaints concern allegations of unsuitable investments.

In October 2016 it was alleged that Conti’s previous employer, Ross, Sinclaire & Associates, LLC (RSA), three clients of RSA commenced an arbitration claim against the firm. The clients alleged that RSA misrepresented the safety and security of film tax credit notes purchased from the issuer, leading clients to believe their principal was not subject to significant risk. The clients allege that these misrepresentations and negligence caused the loss of principal. The claim alleged $2,200,000 in damages. This dispute is currently still pending.

Michael Rappa Barred from the Securities Industry Over Private Securities Transactions

September 23, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Michael Rappa (Rappa) engaged in undisclosed and unapproved private securities transactions. According to records kept by The Financial Industry Regulatory Authority (FINRA), Rappa, formerly registered with Foresters Equity Services, Inc. (Foresters Equity) out of San Diego, California was barred from the financial industry and disclosed at least two customer complaints. According to a BrokerCheck report, Rappa’s customer complaints allege that Rappa made unsuitable private securities transaction recommendations.

In February 2019, FINRA stated that Rappa consented to the sanction and to the entry of findings that from August 2016 to July 2017, he engaged in undisclosed and unapproved private securities transactions totaling $2,731,287. The findings stated that Rappa solicited investors to purchase promissory notes relating to a purported real estate investment fund.

In May 2018, a customer alleged that in 2016, Rappa made unsuitable private securities transaction recommendations. The customer has requested $75,000 in damages. This dispute is currently still pending.

In February 2018, another customer similarly alleged that in 2017, Rappa was recommending unsuitable private securities transactions. The customer has requested $700,000 in damages. This dispute is currently still pending.

Richard Cagle Barred by Financial Regulatory Over Investment Violations

September 23, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Richard Cagle (Cagle), formerly employed by Hilltop Securities Independent Network Inc. (Hilltop Securities) has been subject to at least two customer complaints and one regulatory complaint resulting in a bar from the financial industry. According to records kept by The Financial Industry Regulatory Authority (FINRA), Cagle’s customer complaints allege that Cagle recommended unsuitable securities recommendations among other allegations of misconduct in the handling of customer accounts.

In July 2019 Cagle consented to the sanction and to the entry of findings that he refused to appear and provide an on-the-record testimony requested by FINRA. FINRA stated that it commenced an investigation into whether Cagle violated FINRA rules by making unsuitable investment recommendations and mismarking customer order tickets while associated with his former member firm. Cagle’s failure to respond to the investigation drew an automatic bar from the industry.

Stephen Whittaker Discharged By Multiple Firms Over Business Practices

June 27, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Stephen Whittaker (Whittaker), formerly employed by First Financial Equity Corporation (First Financial) and previously with Morgan Stanley has been subject to at least 2 customer complaints, one bankruptcy filing, and two terminations for cause during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Whittaker’s customer complaints allege that Whittaker recommended unsuitable securities recommendations among other allegations of misconduct in the handling of customer accounts.

In May 2012 Whittaker was forced to resign from Morgan Stanley after the firm found that Whittaker communicated with third parties regarding two client accounts without written authorization and his potential involvement in unapproved outside business activities (OBAs).

In April 2015 Whittaker declared bankruptcy. FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.

In April 2019 Whittaker was terminated by First Financial after the firm found out that Whittaker was engaged in undisclosed business activities including tax planning for firm clients.