Articles Posted in Investment Lawyer

shutterstock_20354401-300x200According 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.

Continue Reading

shutterstock_173849111-227x300According to BrokerCheck records financial advisor Roshan Loungani (Loungani), currently employed by Arete Wealth Management, LLC (Arete Wealth) has been subject to at least five customer complaints and one regulatory action.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Loungani’s customer complaints allege that Loungani made unsuitable recommendations in a variety of investments including options trading.

In June 2016 FINRA sanctioned Loungani and determined that Loungani consented to the sanctions and to the entry of findings that he recommended unsuitable investments for customers to invest $658,000 in limited partnership interests in two hedge funds that Loungani created and managed, which employed a high-risk trading strategy and use of aggressive options trading. FINRA found that these investments were not suitable for the customers based on their investment objectives and risk tolerances and resulted in an unsuitable concentration of the customers’ net worth in these investments.

In August 2018 a customer complained that Loungani violated the securities laws by engaging in unsuitable investments.  The customer alleges $26,488 in damages and the claim is currently pending.

Continue Reading

shutterstock_120556300-300x300According to BrokerCheck records financial advisor Thomas Kelly (Kelly), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Kelly concern allegations of unsuitable investments and allegations of unauthorized trading, misrepresentations and negligence mostly in equity products.

In November 2018 a customer complained that Kelly recommended investments that violated the securities laws by recommending unsuitable investments, unauthorized trading, breach of fiduciary duty, and negligence.  The customer alleges $500,000 in damages and the claim is currently pending.

In October 2018 a customer complained that Kelly recommended investments that violated the securities laws including misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $230,000 in damages and is currently pending.

In August 2018 a customer complained that Kelly recommended investments that violated the securities laws including unsuitable investments, misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $750,000 in damages and is currently pending.

Continue Reading

shutterstock_160486019-300x300According to BrokerCheck records financial advisor Maria Hendershott (Hendershott), currently employed by Raymond James & Associates, Inc. (Raymond James) has been subject to four customer complaints during her career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Hendershott concern allegations of unsuitable investments and allegations of overconcentration.

In November 2018 a customer complained that Hendershott recommended investments that violated the securities laws including breach of contract, violation of provisions of The Texas State Securities Statutes, Ann. Tx Civil Statutes Art. 581-33, violation of The Texas Deceptive Trade Practices Act Bc. Code Ann. § 17.46 and Tex Bc. Code Ann. § 17.50, breach of fiduciary duty that took place from 01/15/2015 until 09/12/2016.  The customer alleges $500,000 in damages and the claim is currently pending.

In October 2017 a customer complained that Hendershott recommended investments that violated the securities laws including during 06/30/2014 until 07/31/2015 claiming gross mismanagement of accounts, investor abuse, churning, breach of fiduciary duty, negligence, and violation of industry rules.  The customer claimed $100,000 in damages.  The case settled for $75,000.

Continue Reading

shutterstock_188269637-300x200Biotech company Akers Bioscience (AKER) went public in 2014 using Aegis Financial as its investment underwriter. The company’s IPO price was $5 but has subsequently fallen to only $.25.  According to SeekingAlpha not only did Aegis underwrite the security but it also promoted it to investors and potentially the firm’s own brokerage clients buy maintaining a buy rating on the stock.  Akers was given an $11.00 price target in June 2014.

The company has also been subject to a recent class action complaint.  The complaint alleges that the company made materially false and misleading statements regarding the Akers’ business, operational and compliance policies.

According to the company’s website, Akers Biosciences, Inc. (aka Akers Bio) was founded in 1989, with the objective of developing proprietary, in vitro diagnostic technologies that accelerate the rate at which clinicians, and in some cases consumers, can obtain health information. The tests are designed to provide the same level of accuracy as traditional laboratory testing methods but at a fraction of the cost and turn-around time.

Continue Reading

shutterstock_102242143-300x169According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Roy Failla (Failla) has been subject to three customer complaints.  Failla is currently employed by First Standard Financial Company LLC (First Standard Financial).  Many of the customer complaints against Failla concern allegations of high frequency trading activity also referred to as excessive trading, churning, unauthorized trading, and unsuitable investments.

In May 2018 a customer filed a complaint alleging unsuitable and unauthorized trading.  The claim alleges $1,500,000 in damages and is currently pending.

In May 2010 a customer filed a complaint alleging churning, unsuitable trades, and misrepresentations claiming $417,000 in damages.  The complaint was settled for $40,000.

In February 2010 a client filed a complaint alleging unauthorized trading, fraud, breach of fiduciary duty, and excessive trading and claimed $299,817 in damages.  The claim was settled for $75,000.

Continue Reading

shutterstock_156764942-200x300Securities attorneys from Gana Weinstein LLP are investigating Kestra Investment Services, LLC (Kestra Investment Services) broker Mitchell Walk (Walk).

According to BrokerCheck records, Walk has been subject to 5 customer complaints, 2 of which are still pending. The majority of these complaints regard unsuitable investment recommendations.

In August 2017, a customer alleged that Walk made unsuitable investment recommendations to the customer and that Kestra Investment Services failed to properly supervise this activity. The client has requested $72,000 in damages. This dispute is currently still pending.

shutterstock_188631644-300x225The securities attorneys at Gana Weinstein LLP are investigating claims against Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) broker Patrick McNamara (McNamara). According to BrokerCheck records, McNamara has been subject to seven customer complaints. The majority of these complaints concern unsuitable investment recommendations and misrepresentation of material facts.

In August 2017, a customer alleged that from September 2011 to July 2017, McNamara misrepresented the nature of investments to customers. The case was settled at $16,063.98.

In August 2015, a customer alleged that from July 2014 to January 2015, McNamara provided unsuitable investment recommendations. The case was settled at $8,438.00.

shutterstock_191231699-300x200According to BrokerCheck records financial advisor Jack Griffith (Griffith), currently employed by Janney Montgomery Scott LLC (Janney Scott) has been subject to five customer complaints and one lien.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Griffith’s customer complaints allege that Griffith made unsuitable recommendations in equity securities.

In January 2018 a customer made allegations unsuitable recommendations for the client’s account, overconcentration, and breached his fiduciary duty. The claim alleged $200,000 in damages and is currently pending.

Also in January 2018 another customer made allegations of unsuitable recommendations for the client’s account.  The claim alleged $150,000 in damages and is currently pending.

shutterstock_136504499Gana Weinstein LLP is investigating the LJM Preservation and Growth Fund (Ticker Symbols LJMAZ, LJMCX, LIMIX). The LJM Funds relied extensively on a strategy that is designed to profit from calm markets. The LJM Preservation and Growth Funds collapsed and lost more than 80% of its value as a result of last week’s market volatility. The combonation of LJMAZ, LJMCX and LIMIX at one point collectively held over $800 million in assets CNC reached out to Chicago-based LJM Partners, Inc. – the funds managers, and no comment was made.

According to its annual report to shareholders, LJM explained that it options “to deliver solid returns while maintaining risk parameters.” LJM also suggested that it used techniques to mitigate losses in extreme market conditions. The fund was designed to take advantage of the spread between realized and implied volatility. According to CNBC, “LJM Preservation and Growth Fund had been run by Anthony Caine, a veteran of the 1990s technology boom who later founded LJM, and Anish Parvataneni, a former trader for well-known investor Ken Griffin’s Citadel.”

According to reports, LJM was infused with almost $400 million in new capital in 2017 alone.