Articles Tagged with vFinance Investments

shutterstock_113632177According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Daren Dorval (Dorval) has been the subject of at least 6 customer complaints, 1 regulatory matter, and one criminal matter over the course of his career. Customers have filed complaints against Dorval alleging securities law violations that focus primarily on churning and excessive trading. In addition to the churning claims, customers have complained of unsuitable investments, negligence, fraud, unauthorized trading, and misrepresentations, among other claims.

According to a 2010 FINRA finding, the regulator alleged that Dorval engaged in unauthorized discretionary trading in a customer account by entering trades based upon the orders of a person related to the customer without appropriate written trading authority.

Dorval entered the securities industry in 2001. From January 2002, until September 2009, Dorval was associated with vFinance Investments, Inc. Thereafter, Dorval became associated with Legend Securities, Inc where he remains registered.

shutterstock_170886347According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Anthony Pace (Pace) has been the subject of at least six customer complaints and one employment seperation. The customer complaint against Pace allege a number of securities law violations including that the broker made unsuitable investments, engaged in churning (excessive trading), misrepresentations, negligence, fraud, breach of fiduciary duty, and failure to execute among other claims.

Pace entered the securities industry in 1994. From 2005 through May 2009, Pace was associated with J.P. Turner & Company, L.L.C. (JP Turner). Thereafter from May 2009, until September 2010, Pace was registered with vFinance Investments, Inc. From there, Pace was associated with Global Arena Capital Corp from September 2010, through April 2015. Finally, Pace became associated with Alexander Capital, L.P. in March 2015.

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.

shutterstock_186471755According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Brian Decker (Decker) has been the subject of at least 10 customer complaints and 2 judgments and liens over the course of his career. Customers have filed complaints against Decker alleging a litany of securities law violations including that the broker made unsuitable investments, unauthorized trades, breach of fiduciary duty, misrepresentations and false statements, and churning, among other claims. The claims involve different investment recommendations including claims involving equity securities among other speculative securities.

Decker entered the securities industry in 2006 with brokerage firm J.P. Turner & Company, L.L.C. Thereafter, in January 2007 through June 2009, Decker was associated with brokerage firm vFinance Investments, Inc. Finally since September 2009, Decker has been registered with Legend Securities, Inc. in Trinton Falls, New Jersey.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. When brokers engage in churning the investment trading activity in the client’s account serves no reasonable purpose for the investor and is transacted to profit the broker through the generation of commission payments. The elements to establish a churning claim, which is considered a species of securities fraud, are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements.

shutterstock_143179897Gana Weinstein LLP is investigating claims were brought by securities and exchange commission (SEC) against Matthew Bell (Bell) and Craig Josephberg (Josephberg) in connection with participation in a $300 million securities fraud market manipulation scheme. The SEC brought charges against Abraxas J. Discala (Discala), Marc E. Wexler (Wexler), and Ira Shapiro (Shapiro), for manipulating the stock price of sale of CodeSmart Holdings (OTC: ITEN), Cubed, Inc. (OTC: CRPT), StarStream (OTC: SSET) and The Staffing Group, Ltd. (OTC: TSGL).

According to the complaint, in 2013, Discala and Wexler conspired with Bell and Josephberg, both registered representatives with different brokerage firms, to inflate the price of the stock of CodeSmart. The SEC found that Discala, Wexler, Bell, and Josephberg then profited by selling their shares at inflated values at the expense of Bell’s clients and Josephberg’s customers.

Bell was taken into custody by the FBI and appeared in federal court in San Antonio. In Court, Bell was informed of a 10-count indictment returned in Brooklyn, New York, and was released on bond. Bell has a long history of customer complaints and two firm terminations.

shutterstock_184149845In our prior post, our offices, Gana Weinstein LLP, noted its investigation of the July 17, 2014, claims brought by securities and exchange commission (SEC) against Craig Josephberg in connection with his participation in a $300 million securities fraud market manipulation scheme. The SEC brought charges against Abraxas J. Discala (Discala), Marc E. Wexler (Wexler), Matthew A. Bell (Bell), Craig L. Josephberg (Josephberg), and Ira Shapiro (Shapiro), for manipulating the stock price of four publically traded companies, CodeSmart Holdings, Inc. (CodeSmart), Cubed, StarStream Entertainment Inc., and the Staffing Group, Ltd.

According to the complaint, in 2013, Discala and Wexler conspired with registered representatives Bell and Josephberg to inflate the price of the stock of CodeSmart. The SEC found that Discala, Wexler, Bell, and Josephberg then profited by selling their shares at inflated values at the expense of Bell’s clients and Josephberg’s customers.

Josephberg has a long and troubled regulatory, criminal activity, debts, customer complaints, among a host of other supervisory “red flags” of potential misconduct in the handling of his clients. Josephberg entered the securities industry in 1996. Thereafter, he was associated with eight different firms including Maxim Group LLC, ICM Capital Markets, LTD, vFinance Investments, Inc., Halcyon Cabot Partners, LTD. (Halcoyon), and most recently Meyers Associates, L.P. (Meyers Associates). Indeed, when Josephberg was terminated from Halcoyon he was under investigation by the firm for sales practice violations including the selling of unsuitable securities, unauthorized trades, and securities fraud in connection with the sale of penny stocks including VHGI and Cell Therapeutics.

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