Articles Posted in Securities Attorney

shutterstock_189276023-300x198The law offices of Gana Weinstein LLP are currently investigating claims that advisor Tyler Dean Delahunt (“Delahunt”) has been accused by a securities regulator of engaging in unapproved business activities among other allegations. Delahunt was sanctioned by The Financial Industry Regulatory Authority (FINRA) concerning his private securities and undisclosed outside business activity conduct.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Reed was employed by Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”) at the time of the activity. If you have been a victim of Delahunt’s alleged misconduct our firm may be able to assist you in recovering funds.

In January 2021, FINRA brought a regulatory action and found that Delahunt consented to sanctions and findings that he failed to provide documents and information requested by FINRA in connection with its investigation into Delahunt’s termination. Delahunt’s former firm, Merrill Lynch filed a Form U5 disclosing his termination for alleged misconduct involving the solicitation of clients in an outside investment and participating in financial arrangements with clients. Continue Reading

Securities arbitration is a method of resolving disputes between investors and their brokers or brokerage firms, which is governed by the Financial Industry Regulatory Authority (FINRA). FINRA is a self-regulatory organization that oversees the securities industry and provides a forum for resolving disputes between investors and their brokers or brokerage firms.

Securities arbitration through FINRA is a legal process that allows investors to seek redress for claims arising out of their investment accounts, such as fraud, breach of fiduciary duty, unsuitable investment recommendations, selling away or other misconduct. Securities arbitration is generally faster and less expensive than going to court, and the decision of the arbitrator is final and binding on both parties. It is important for investors to understand their rights and legal options if they believe they have been the victim of misconduct by their broker or brokerage firm.

To initiate a securities arbitration through FINRA, an investor must file a Statement of Claim with FINRA, which sets forth the facts and legal basis for the claim. The Statement of Claim must be filed within six years from the occurrence or event giving rise to the claim. However, the occurrence or event that gives rise to a claim is usually considered the date of damages, or the date a reasonable investor knew or should have known about the claim. While brokerage firms usually argue it is the date of purchase, most arbitration panels disagree with that analysis.

shutterstock_128655458-300x200Advisor Jonathan Ellefson (Ellefson), currently employed by brokerage firm Intervest International Equities Corporation (Intervest) has been subject to at least four disclosures and customer complaints.  According to a BrokerCheck report the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements.  In Ellefson’s case at least one of the complaints occurred from the sale of GWG Holdings L-Bonds.  GWG went into bankruptcy.  The attorneys at Gana Weinstein LLP represented nearly 100 investors who suffered losses in GWG.

GWG’s business focused on the acquisition of life insurance policies in the secondary market.  GWG was offered to investors even though the company had no significant operating history and no profits.  Until 2018, GWG’s sole business was to borrow money to buy life insurance policies in the secondary market at prices that are less than the face value of the insurance benefits payable upon the death of the insureds.  GWG would then hold the policies until maturity and collect the face value upon the insured’s death.

The contours of the GWG bonds are as follows:

shutterstock_156972491-300x198The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Richard Foerster Reynolds (Reynolds), currently employed by SW Financial has been subject to at least 13 customer complaints during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Reynolds’ customer complaints alleges that Reynolds recommended unsuitable investments in various investments, among other allegations of misconduct relating to the handling of their accounts, including unauthorized trading.

In April 2019, a customer complained that Reynolds violated the securities laws by alleging that Reynolds charged unauthorized commissions. The damage amount requested was $8,000. The claim settled in the amount of $4,000.

In December 2018, a customer complained that Reynolds violated the securities laws by alleging that Reynolds engaged in negligence and negligent supervision. The damage amount requested was $65,000. The claim settled in the amount of $14,500.

In November 2018, a customer complained that Reynolds violated the securities laws by alleging that Reynolds engaged in statutory and common law fraud, misrepresentation, negligence, breach of contract, and breach of fiduciary duty. The damage amount requested was $56,000. The claim settled in the amount of $14,999.99.

In May 2018, a customer complained that Reynolds violated the securities laws by alleging that Reynolds engaged in churning, improper use of margin, unsuitability, and charged high commissions.. The damage amount requested was $503,828.39. The claim settled in the amount of $150,000.

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shutterstock_132317306-300x200The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Frank Venturelli has been subject to at least one customer complaint and two regulatory sanctions during his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Venturelli’s customer complaint alleges that Venturelli engaged in unauthorized trading and recommended unsuitable investments. While the two regulatory actions brought against him state that he consented to sanctions of engaging in unsuitable trading in customers’ accounts and committed fraud.

In December 2020, the New Jersey Bureau of Securities initiated disciplinary action against Venturelli. They alleged that Venturelli engaged in an act, practice, or course of business which would operate as fraud or deceit upon another person. BrokerCheck records state that Venturelli engaged in a pattern of excessive, unsuitable, and unauthorized trading activity in the accounts of certain customers. Civil and administrative penalties in the amount of $120,000 were issued against Venturelli’s employer, First Standard Financial Company LLC.

In June 2019, FINRA initiated disciplinary action against Venturelli. They allege that Venturelli engaged in quantitatively unsuitable trading in customers’ accounts. The findings stated that Venturelli recommended the trading in customers’ accounts, and they followed his recommendations. These recommendations were excessive, unsuitable given the customers’ investment profiles, and were such that it was virtually possible for any customers to earn a profit. Venturelli’s trading of the accounts resulted in high turnover rates and significant losses. Venturelli’s customers suffered collective losses of $373,226 and paid $169,803 in commissions and fees. Venturelli neither admits nor denies these findings. As a result, FINRA suspended Venturelli in all capacities for eleven months and issued partial restitution, due to his limited ability to pay, in the amount of $30,000.

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shutterstock_143933158-300x300The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Michael Anthony Fahsholtz (Fahsholtz), most recently employed by Stifel, Nicolaus & Company, Inc. (Stifel) has been subject to at least twelve customer complaints during the course of his career. Fahsholtz is no longer registered as a broker. According to records kept by The Financial Industry Regulatory Authority (FINRA), Fahsholtz’s customer complaints alleges that Fahsholtz recommended unsuitable investments in various investments including allegations involving debt-corporate securities, unit investment trusts, and variable annuities, among other allegations of misconduct relating to the handling of their accounts.

In September 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, and misrepresentations related to the risks of the recommended investments.  The claim alleges $255,791 in damages and is currently pending.

In February 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, negligence, and breach of fiduciary duty. Additionally, the customer alleges that  Fahsholtz violated the Securities Act of Washington and FINRA Rule 3110. The damage amount requested was $106,000. The claim settled in the amount of $25,000.

In December 2020, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz purchase inappropriate securities for the customer, including stocks, bonds, and UITs. The damage amount requested was $40,000. The claim settled in the amount of $7,500.

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shutterstock_183549914-300x200The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Johnny Guan (Guan), currently employed by Aegis Capital Corp. (Aegis Capital) has been subject to at least two customer complaints during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Mr. Guan’s customer complaints alleges that Mr. Guan recommended unsuitable investments in various investments including allegations involving real estate securities, options, and penny stocks, among other allegations of misconduct relating to the handling of their accounts

In December 2019, a customer complained that Mr. Guan violated the securities laws by alleging that Mr. Guan engaged in negligent investment advice, breach of fiduciary duty, and unauthorized transactions.  The claim settled in the amount of $5,400.

In April 2016, a customer complained that Mr. Guan violated the securities laws by alleging that Mr. Guan engaged in unsuitable investment advice, negligence, and material misrepresentations.  The claim settled in the amount of $7,200.

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shutterstock_190371500-300x200The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Eric Bachinsky (Bachinsky), currently employed by Raymond James & Associates, Inc. (Raymond James) 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), Bachinsky’s customer complaints alleges that Bachinsky recommended unsuitable investments in various investments.

In March 2020, the attorney for a customer’s estate complained that Bachinsky violated the securities laws by alleging that Bachinsky engaged in unsuitable investments.  The damage amount requested was $228,465.26. The damages were denied.

In November 2011, a customer complained that Bachinsky violated the securities laws by alleging that Bachinsky engaged in negligence, misrepresentation, breach of contract, and breach of fiduciary duty. The damage amount requested was $80,000. The claim settled in the amount of $24,000.

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shutterstock_176283941-300x200The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that advisor John Howard (Howard), currently employed by Raymond James & Associates, Inc. (Raymond James) has been subject to at least three customer complaints during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Howard’s customer complaints alleges that Howard recommended unsuitable investments in various investments including allegations involving unauthorized trading among other allegations of misconduct relating to the handling of their accounts.

In September 2019, a customer complained that Howard violated the securities laws by alleging that Howard engaged in breach of fiduciary duty, negligence, breach of contract, and violated several other securities laws. The claim settled in the amount of $97,500.

In March 2008, a customer complained that Howard violated the securities laws by alleging that Howard engaged in unauthorized purchase of commercial paper. The claim settled in the amount of $1,134,601.00.

In February 2005, a customer complained that Howard violated the securities laws by alleging that Howard conducted unauthorized trades. The claim alleges settled in the amount of $7,859.83.

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shutterstock_77335852-300x225Advisor James Babineaux (Babineaux), currently employed by Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch) has been subject to at least two customer complaints during the course of his career.  According to a BrokerCheck report the customer complaints concern unsuitable investment recommendations and unauthorized trading.  In August 2018, a customer alleged Babineux engaged in unauthorized trading from July 26, 2018 through July 27, 2018. Additionally, that same year, another customer alleged that Babineux engaged in unsuitable investment recommendations and unauthorized trading from January 18, 2018 through July 27, 2018. Both matters settled for $1,322.21 and $2,853.93 respectively.

Unauthorized trading occurs when a broker sells securities without the prior consent from the investor. All brokers, who do not have discretionary authority to trade an account, are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). Under the NASD Conduct Rule 2510(b), a broker is prohibited from trading in a non-discretionary customer account without prior written authorization from the customer. Unauthorized trading is a type of investment fraud because the Securities Exchange Commission (SEC) has found that disclosures of trades being made are essential and material to an investor. Unauthorized trading is often a gateway violation to other securities violations including churning, unsuitable investments, and excessive use of margin.

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