Oppenheimer

David Krumrey Barred Over Risky EFT and VIXX Trading – Investor Recovery

June 22, 2020 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor David Krumrey (Krumrey), in January 2018, was sanctioned by FINRA and barred from the financial industry concerning his failure to respond to an investigation into the sales of leveraged exchanged traded funds (Non-Traditional ETFs). Krumrey was previously terminated by his employer Oppenheimer & Co. Inc (Oppenheimer) because he attempted to settle a complaint away from the firm. In addition, Krumrey has been subject to five customer complaints concerning his securities activity. These investors have alleged in losses stemming allegations of unsuitable Non-Tradition ETF trading.

In January 2018 FINRA barred Krumrey for failing to respond to FINRA’s requests for information.

In January 2019 a FINRA panel rendered a ruling that Krumrey’s employer – Oppenheimer – was liable for investments he made to an investor. The claims involved claims of breach of fiduciary duty, negligence, negligent supervision, respondeat superior, unjust enrichment, and violations of the Louisiana Securities Law. The causes of action relate to securities including Amarin Corp. PLC ADR and Energy XXI Limited, and exchange-traded notes issued by Barclays.

As a background, Non-Traditional ETFs behave drastically different and have different risk qualities from traditional ETFs. While traditional ETFs seek to mirror an index or benchmark, Non-Traditional ETFs use a combination of derivatives instruments and debt to multiply returns on underlining assets, often attempting to generate 2 to 3 times the return of the underlining asset class. Non-Traditional ETFs are also used to earn the inverse result of the return of the benchmark.

Advisor Timothy Atyeo Alleged to Have Recommended Unsuitable Energy Securities

December 10, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Timothy Atyeo (Atyeo), currently employed by Oppenheimer & Co. Inc. (Oppenheimer), has been subject to at least four customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA) Atyeo has been accused by multiple customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

In July 2019 a customer filed a complaint alleging that Atyeo violated the securities laws by engaging in, among other violations, negligence, breach of fiduciary duty, misrepresentations, and over concentration and speculative trading in the energy sector. The claim alleges $1,100,000 in damages and is currently pending.

In June 2017 a customer filed a complaint alleging that Atyeo violated the securities laws by engaging in, among other violations, too much risk and lack of diversification from 2014 through 2017 causing $4,000,000 in damages. The claim was denied by the firm.

Demos Argyros Subject to Investment Disputes

June 7, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Demos Argyros (Argyros), currently employed by Oppenheimer & Co. Inc. (Oppenheimer) 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), Argyros’ customer complaints allege that Argyros recommended unsuitable securities recommendations in a variety of products including unsuitable equities and warrants among other allegations of misconduct in the handling of customer accounts.

In February 2019 a customer filed a complaint alleging that Argyros violated the securities laws by, among other things, that Argyros breached his fiduciary duty, negligence, breach of contract relating to unsuitable equities and warrants from May 2008 until November 2016 causing $100,000 in damages. The claim is currently pending.

In April 2017 a customer filed a complaint alleging that Argyros violated the securities laws by, among other things, that Argyros breached his fiduciary duty, churning, excessive fees and missing funds from January 2008 until December 2016 causing $900,000 in damages. The claim settled for $275,000.

Advisor Michael Greenfield Subject to Investment Complaints

May 24, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Michael Greenfield (Greenfield), currently employed by Newbridge Securities Corporation (Newbridge Securities) has been subject to at least six customer complaints and one bankruptcy cause during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Greenfield’s customer complaints allege that Greenfield recommended unsuitable securities recommendations in a variety of products including master limited partnerships (MLPs), municipal and corporate bonds, and other securities among other allegations of misconduct in the handling of customer accounts.

In January 2019 a customer filed a complaint alleging that Greenfield violated the securities laws by, among other things, that Greenfield was negligent and breached his fiduciary duty with respect to the purchase of MLPs. MLPs are speculative oil and gas related investments that are linked to the oil markets. The alleged damages are $200,000 and the claim is currently pending.

In July 2015 Greenfield declared bankruptcy. Large tax liens or bankruptcy filings on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. In addition, a broker’s inability to manage their own finances is relevant in a customer’s decision to use their services.

National Securities Broker Robert Abramowitz Subject to Customer Complaints

January 31, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Robert Abramowitz (Abramowitz), currently employed by National Securities Corporation (National Securities) has been subject to at least three customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Abramowitz’s customer complaints allege that Abramowitz made unsuitable recommendations in a variety of investments including equities including energy related stocks.

In July 2018 a customer complained that Abramowitz violated the securities laws by engaging in unsuitable investments, breach of fiduciary duty, and negligence. The customer alleges $100,000 in damages and the claim is currently pending.

In March 2018 a customer complained that Abramowitz violated the securities laws by engaging in conduct alleges investments were misrepresented to her and were unsuitable based on her investment objectives. The customer also alleged that her investment objectives and risk tolerance were incorrectly stated on new account paperwork. The customer alleges $149,236 in damages. The claim was settled for $75,000.

Paul Dangelo Subject to Customer Complaint Alleging Unsuitable Puerto Rico Bond Investments

July 31, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Paul Dangelo (Dangelo). According to BrokerCheck Records, Dangelo has been subject to six customer disputes, the majority concerning unauthorized trades and unsuitable investment recommendations in Puerto Rico bonds. In addition, Dangelo has been subject to termination from two firms of employment.

In January 2017, a customer alleged that from March 2005 to January 2017, Dangelo placed the customer in high-risk, uninsured Puerto Rico bonds that were unsuitable for the customer’s investment needs and objectives considering the customers old age of 70 years old and retiree status.

In addition, in September 2016, a customer alleged that from March 2005 to February 2015, Dangelo placed the customer in unsuitable bonds that did not match the customer’s objectives of safe, passive income investments.

Abraham Heimann Subject to Multiple Customer Complaints

July 3, 2017 | by Staff Attorney

Since the beginning of 2017 broker Abraham Heimann (Heimann) has subject to three customer complaints alleging millions in damages. Heimann left his last employer Cetera Advisors LLC (Cetera) in February 2016. According BrokerCheck the customer complaints allege breach of fiduciary duty, unsuitable investments, negligence, and failure to diversify the portfolio, among other claims.

The most recent complaint was filed in April 2017 and alleges breach of fiduciary duty, negligence, and failure to diversify the portfolio and claims $30,000 in damages. The claim is currently pending. In March 2017 a customer filed a complaint alleging $2,000,000 in damages due to breach of fiduciary duty and negligence. The complaint is currently pending. The securities lawyers of Gana Weinstein LLP continue to investigate the customer complaint against Heimann.

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.

Financial Advisor Guy Deemer Subject to Multiple Regulatory Actions

December 5, 2016 | by Staff Attorney

Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against financial advisor Guy Deemer (Deemer) currently registered with IFS Securities, alleging excessive trading or churning and unauthorized trading among other claims. According to brokercheck records Deemer has been subject to six customer complaints, two regulatory actions, and one employment termination for cause.

In September 2015 Oppenheimer & Co. Inc. (Oppenheimer) terminated Deemer after alleging that he failed to follow management’s directions when he failed to move accounts from transaction based to fee based.

In July 2014 a customer filed a complaint alleging excessive trading activity from July 2009 through December 2013. The customer alleged $300,000 in damages. The claim was settled for $115,000.

FINRA Sanctions Financial Advisor Zahir Walji Over Private Securities Transactions

September 17, 2016 | by Staff Attorney

The investment fraud lawyers of Gana Weinstein LLP are investigating the regulatory investigation filed by The Financial Industry Regulatory Authority (FINRA) against broker Zahir Walji (Walji). According to BrokerCheck records Walji is subject to five customer complaints one FINRA matter and one employment separation for cause. The FINRA regulatory matter concerns an investigation surrounding alleged sales of private securities transactions. (FINRA No. 2012034370501).

According to FINRA, from April 2011 through October 2012, while Walji was associated with UBS Financial Services, Inc (UBS), Walji participated in two outside business activities (OBAs) and participated in six private securities transactions without providing prior written notice of the OBAs or the private securities transactions to his firm. In addition, FINRA alleged that although Walji provided notice to UBS of two additional OBAs, he did not comply with the restrictions that UBS placed on him. As a result FINRA determined that Walji violated FINRA Rules. The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it unclear the nature and scope of Walji’s OBAs and private securities transactions. According to BrokerCheck records Walji disclosed that he is involved in outside business acitvities including KML, Inc. – a real estate related company, Round Rock – a real estate company, and Triad Equities, LLC – a real estate company. Often times, brokers sell promissory notes and other investments through side businesses as accountants, lawyers, or insurance to clients of those side practices.

Broker Investigation: Customer Complaints Against Zak Shapiro

April 23, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Zak Shapiro (Shapiro). According to BrokerCheck records Shapiro has been subject to at least four customer complaint, 11 financial disclosures, and 1 employment separation. The customer complaints against Shapiro allege securities law violations that including unsuitable investments and unauthorized trading among other claims.

In February 2016 a customer filed a complaint alleging unsuitable investments and unauthorized trade occurred in or about September 2014. The complaint has been denied. Shapiro has disclosed 11 financial matters. Substantial financial disputes 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. Advisors are also not allowed to engage in unauthorized trading. Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). These rules explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.