Articles Posted in Reg BI

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Hung Ly (Ly), previously associated with Wells Fargo Clearing Services, LLC, has at least 2 disclosable events. These events include 2 customer complaints, alleging that Ly recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint on January 15, 2025.

Attorney for customers complains that they relied to their detriment on advice given by their financial advisor relating to investments by foreign investors seeking to obtain visas for US residency. (3/5/2017-8/29/2019)

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Michael Lehman (Lehman), currently associated with Ameriprise Financial Services, LLC, has at least one disclosable event. These events include one customer complaint, alleging that Lehman recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $300,000.00 on January 15, 2025.

Time frame: May 2012 to 2023 Allegations: Claimant’s counsel alleges UBS failed to do adequate due diligence on a fund of funds, which counsel alleges was unsuitable for any investor, and as a result all relevant risks were not disclosed to investors.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Jason Head (Head), previously associated with Morgan Stanley, has at least 3 disclosable events. These events include 2 customer complaints, one regulatory, alleging that Head recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on January 15, 2025.

Without admitting or denying the findings, Head consented to the sanction and to the entry of findings that he converted over $498,000 from two customers of his member firm for his personal use. The findings stated that Head withdrew at least $231,733 from five brokerage, advisory, and line of credit accounts belonging to one of the customers. Head primarily wired funds from the customer’s accounts to accounts that Head controlled at two other banks and initiated ACH transfers from the customer’s accounts to directly pay certain of Head’s expenses. The customer was not aware that Head was withdrawing the funds and did not authorize the withdrawals. In addition, Head withdrew at least $267,000 from a liquidity access line of credit account that the second customer held at Head’s firm affiliate and deposited those funds in his accounts at other banks. The second customer was not aware of seven of these withdrawals and did not authorize the withdrawals. In addition, for one other withdrawal, which totaled $80,000, Head persuaded the second customer to authorize the withdrawal by stating falsely to the customer that there was an opportunity for the customer to invest in a company’s initial public offering. However, the purported initial public offering did not exist, and Head deposited the funds in his own account.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Daniel Mann (Mann), currently associated with Independent Financial Group, LLC, has at least one disclosable event. These events include one customer complaint, alleging that Mann recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a settled customer complaint with a damage request of $25,449.82 on January 13, 2025.

Client alleged that notes did not perform as anticipated, resulting in losses.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Matthew Turner (Turner), currently associated with Westpark Capital, Inc., has at least one disclosable event. These events include one regulatory, alleging that Turner recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on January 15, 2025.

Without admitting or denying the findings, Turner consented to the sanctions and to the entry of findings that he willfully violated Exchange Act Rule 15l-1(a)(1) (Regulation BI) when he recommended trading in customer accounts, including those of seniors, that was excessive, unsuitable and not in their best interest. The findings stated that the customers relied on Turner’s advice and routinely followed his recommendations, and as a result, Turner exercised de facto control over the customers accounts. The trading generated $34,269.69 in commissions and resulted in realized losses of $160,822. The findings also stated that Turner exercised discretionary authority to place 148 trades in four customer accounts, including the three customer accounts he excessively traded, without obtaining written authorization from the customers and without his firm having accepted the accounts as discretionary.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Curtis Sathre (Sathre), currently associated with Great Point Capital LLC, has at least one disclosable event. These events include one customer complaint, alleging that Sathre recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint on January 16, 2025.

Investment disputes from 2004 – 2009 that ended in FINRA DR 10-00507 for the defense with the defense’s costs and expert fees assessed against  the investor and an expungement award for the broker.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Joe Henderson (Henderson), previously associated with Equitable Advisors, LLC, has at least one disclosable event. These events include one customer complaint, alleging that Henderson recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $5,000.00 on January 14, 2025.

Customer alleges variable annuity purchased in 2021 was unsuitable.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Christopher Chiampas (Chiampas), previously associated with Northwestern Mutual Investment Services, LLC, has at least one disclosable event. These events include one regulatory, alleging that Chiampas recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on January 16, 2025.

Without admitting or denying the findings, Chiampas consented to the sanctions and to the entry of findings that he willfully failed to disclose a customer complaint on his Form U4. The findings stated that Chiampas and a member of his immediate family, a senior for whom he held a power of attorney, opened a joint brokerage account at his member firm as co-account holders. Three months later, Chiampas wired $328,000 out of the account in connection with the purchase of real estate. Subsequently, the customer complained in writing to Chiampas stating that he had not authorized the transaction and demanding that the $328,000 be repaid. Chiampas did not forward the complaint to the firm, as required by its policies. Chiampas also failed to amend his Form U4 to disclose the complaint. The findings also stated that Chiampas settled the customer complaint away from his firm. Chiampas and the customer signed a settlement agreement pursuant to which Chiampas repaid the customer the withdrawn funds minus an agreed-upon setoff for certain expenses. The firm did not know of the complaint or approve Chiampas’ agreement to repay the customer. The firm’s policies prohibited Chiampas from settling the complaint independently.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Gwendolyn Hayes (Hayes), previously associated with Ameriprise Financial Services, LLC, has at least one disclosable event. These events include one regulatory, alleging that Hayes recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on January 17, 2025.

Without admitting or denying the findings, Hayes consented to the sanction and to the entry of findings that she refused to produce information requested by FINRA in connection with its examination into whether she changed customers’ investment objectives without their consent, mismarked transactions as unsolicited, and accepted trading instructions from unauthorized individuals.

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker David Geake (Geake), previously associated with American Trust Investment Services, Inc., has at least 25 disclosable events. These events include 23 customer complaints, 2 tax liens, alleging that Geake recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $200,000.00 on January 21, 2025.

Breach of Fiduciary Duty; Suitability; Misrepresentation; FINRA Rules 2010, IM-2310-2 & 2020; Failure to Supervise; Breach of Contract

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