Articles Posted in Investment Attorney

shutterstock_130706948-300x199According to BrokerCheck records financial advisor Philip Rosensweig (Rosensweig), currently employed by WestPark Capital, Inc. (WestPark Capital) has been subject to at least ten customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Rosensweig’s customer complaints allege that Rosensweig made unsuitable recommendations in a variety of securities.

In March 2016 a customer brought a complaint against Rosensweig alleging the broker violated the securities laws by breaching his fiduciary duty, negligence, and fraud from 2015 through 2016.  The claim alleged $100,000 in damages and settled.

In March 2016 a customer brought a complaint against Rosensweig alleging the broker violated the securities laws by breaching his fiduciary duty, negligence, and fraud from 2014 through 2016.  The claim alleged $75,000 in damages and settled.

In October 2006 a customer brought a complaint against Rosensweig alleging the broker violated the securities laws by making unauthorized trades.  The claim alleged $10,000 in damages and settled.

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shutterstock_140186524-300x298According to BrokerCheck records financial advisor David Phillips (Phillips), formerly employed by Moloney Securities Co., Inc. (Moloney Securities) has been subject to one customer complaint and one tax lien during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaint against Phillips concerns allegations of unsuitable investments in Future Income Payments, Inc. (FIP).

In October 2018 a customer complained that Phillips recommending an investment in Future Income Payments, Inc. that was misrepresented and improperly recommended.  The claim alleges $106,368 in damages and is currently pending.

The law offices of Gana Weinstein LLP have been investigating investor recovery options due to the alleged pay advance fraud scheme orchestrated by Future Income Payments, LLC (Future Income Payments) also known as Pensions, Annuities, and Settlements, LLC, and its owner Scott Kohn (Kohn). Future Income Payment is an unregistered and illegal security offering.  Numerous state and local regulators and agencies also have concluded that FIP product violates a host of laws including securities, loan laws, usury laws, elder abuse, and consumer protection laws.

At the heart of the alleged scheme is the misrepresentation that Future Income Payments engages in agreements that are sales of pensions and not loans. However, regulators have claimed that the company misstates the effect of the contract and that in fact pensioners are entering into a consumer loan and not a sale.  The purpose of the misrepresentations are to try to exempt Future Income Payments loans from consumer lending laws and regulations and to collect interest on loans at illegal rates.

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shutterstock_120115444-300x198According to BrokerCheck records financial advisor Paul Muran (Muran), currently employed by Thurston Spinger Financial (Thurston Spinger) has been subject to four customer complaints during his career.  In addition, Muran has been twice terminated for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Muran concern allegations of unsuitable investments and allegations of overconcentration involving equities, oil and gas, life settlement contracts, and structured products.

In March 2011, Muran was terminated by Merrill Lynch Pierce, Fenner and Smith, Inc. (Merrill Lynch) over allegations that he participated in an outside investment without the firm’s approval.  Thereafter, in October 2017 Muran was then terminated by UBS Financial Services, Inc. (UBS) on similar charges that Muran facilitated client purchases of life-settlement products not listed on firm platform, failing to escalate a client complaint, responding to the complaint without managerial approval, and failing to disclose a client’s subsequent investment in an outside passive investment.

In November 2018 a customer complained that Muran recommended investments that violated the securities laws by recommending a life settlement contract that was misrepresented and unsuitable. The client further alleges unauthorized trading of structured products and that the client had no idea she was borrowing from her loan account.  The customer alleges an unknown amount of damages but the claim is currently settled for $250,000.

In May 2018 a customer complained that Muran recommended investments that violated the securities laws including unsuitable investments, unauthorized credit line agreement, unauthorized trades, uninvested funds, and lost market opportunity. The customer claimed $183,000 in damages and is currently pending.

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shutterstock_123928846-300x268According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Jon Pariser (Pariser), formerly associated with Independent Financial Group, LLC (Independent Financial) in Pacific Grove, California was sanctioned by FINRA resulting in a bar from the industry.  In October 2018 Pariser consented to the FINRA sanction and an entry of findings that he failed to provide FINRA with requested documents and information related to allegations that he referred some of his customers to an individual who was not registered and who may have recommended or sold potentially unsuitable securities to them.

It is believed that Pariser recommended that his clients invest with Christopher Parris, an unlicensed broker.  At that time Parris has been accused by the SEC of running an investment fraud scheme through First Nationle Solution.  According to an Securities and Exchange Commission (SEC) complaint filed in June 2018, Parris and others orchestrated the First Nationle Solution Ponzi scheme and bilked investors out of over $102 million.  Parris and others have been accused of using brokers like Pariser to liquidate safe or non-fraudulent investments in order to obtain financing of their scheme.

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shutterstock_160350752-300x200According to BrokerCheck records financial advisor Farrukh Kazmi (Kazmi), currently employed by Berthel, Fisher & Company Financial Services, Inc. (Berthel Fisher) has been subject to one customer complaint, two terminations for cause, one financial disclosures, and one regulatory complaint.  According to records kept by The Financial Industry Regulatory Authority (FINRA), in August 2018 Kazmi was subject to a regulatory complaint by FINRA alleging a number of securities laws violations.

The FINRA complaint alleged that Kazmi regularly used instant messaging and text messaging to communicate with his member firm’s customers to conduct securities business and ignored Berthel Fisher’s explicit instruction that he discontinue using instant messaging to communicate with his customers. FINRA also claims that Kazmi did not inform his firm that he used text messaging or instant messaging to conduct securities business, nor did he provide copies of these communications to the firm. The complaint further alleges that Kazmi repeatedly made false statements to Berthel Fisher and to FINRA about using instant messaging to conduct securities business.

FINRA is also claiming that Kazmi exercised discretion on hundreds of occasions when placing trades in the accounts of customers, without prior written authorization from the customers or written approval from his firm. FINRA also alleges that Kazmi is falsely denying exercising discretion in customer accounts in statements to both Berthel Fisher and FINRA.

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shutterstock_85873471-300x200According to BrokerCheck records financial advisor David Barber (Barber), formerly employed by Madison Avenue Securities, LLC (Madison Avenue) has been subject to five customer complaints, two regulatory actions, and one employment termination for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Barber customer complaints allege that Barber made unsuitable recommendations in equity securities.

In March 2018, FINRA sanctioned Barber and barred him from the industry.  FINRA alleged that Barber failed to produce information and documents request by FINRA during the course of an ongoing examination to determine whether he engaged in unauthorized trading in the accounts of customers of his member firm, exercised discretion in customer accounts without written authorization, or otherwise acted in violation of FINRA rules.

In addition, in September 2011 Raymond James and Associates, Inc. (Raymond James) discharged Barber claiming that he was alleged to misappropriate funds from a client, engaged in outside business activities and selling away, and that the firm lost confidence in the broker.

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shutterstock_103665437-300x300According to BrokerCheck records financial advisor Charles Kenahan (Kenahan), currently employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) has been subject to four customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Kenahan’s customer complaints allege that Kenahan made unsuitable recommendations or engaged in excessive trading – sometimes referred to as churning.

In May 2018 a customer alleged excessive trading and unsuitable investment recommendations from 2012 until 2017. The claim alleged $700,000 in damages and is currently pending.

In March 2018 a customer alleged unsuitable investment recommendations, excessive trading and misrepresentation from February 2012 until December 2017.  The claim is currently pending.

shutterstock_184429547-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor John Krohn (Krohn), formerly associated with Principal Securities, Inc. (Principal Securities) in West Des Moines, Iowa was suspended and sanctioned concerning allegations that Krohn engaged in private securities transactions.

FINRA alleged that between April 2014 and January 2017, Krohn served as an officer or a director of four companies, including one that invested in early-stage and distressed companies.  In addition, between December 2012 and December 2016, Krohn was alleged to have made more than two dozen purchases totaling $7.9 million of ten companies’ securities. FINRA alleged that Krohn did not notify Principal Securities about those transactions, his role in them, and whether he had received or expected to receive compensation. In addition, FINRA alleged that Krohn made some of those purchases through the investing company that he owned jointly with a customer.

Krohn disclosed a number of outside business activities including outside insurance business and tax preparation.  In addition, Krohn also disclosed involvement with Domiknow as a board member, Spotlight Innovation, Inc., as a board member, Tax Saver Plus, and Cash Flow Structure Group.

shutterstock_95416924-300x225The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker David Manor (Manor). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Manor has been subject to two customer disputes concerning unsuitable investment recommendations and false representations of investments. One of these disputes is currently still pending. In addition, Manor has been subject to resignation from a previous employer.

Most recently, in April 2018, a customer alleged that in 2017, Manor recommended unsuitable investments to the customer. The customer requested $224,837.25 in damages. This dispute is currently still pending.

In January 2016, a customer alleged that Manor falsely represented investments to the customer by failing to disclose the surrender penalty to the investment. The customer further alleged that the investment was unsuitable to her financial status and needs, being that the funds were her only source of income. The customer requested $30,000 in damages.

shutterstock_128856874-300x200The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Edward Mirabella (Mirabella). According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), Mirabella has been subject to 5 customer disputes, 2 of which are still pending. Mirabella has also been subject to two tax liens. The majority of these disputes involve unsuitable investment recommendations, unauthorized trading, and breach of fiduciary duty.

Most recently, in November 2017, a customer alleged that Mirabella churned the customer account and engaged in unsuitable investment transactions. The customer has requested $879,584 in damages. This dispute is currently still pending.

In January 2014, a customer alleged that Mirabella was executing unauthorized trades in the customer account. The customer has requested $40,000 in damages. This complaint is currently still pending.