Securities Lawyer

Advisor Anthony Conti Subject to Complaints Over Investment Suitability

September 24, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP is currently investigating advisor Anthony Conti (Conti), currently associated with Boenning & Scattergood, Inc. (Boenning & Scattergood) out of Carnegie, Pennsylvania. According to a BrokerCheck report, Conti has been subject to at least one customer dispute during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Conti’s customer complaints concern allegations of unsuitable investments.

In October 2016 it was alleged that Conti’s previous employer, Ross, Sinclaire & Associates, LLC (RSA), three clients of RSA commenced an arbitration claim against the firm. The clients alleged that RSA misrepresented the safety and security of film tax credit notes purchased from the issuer, leading clients to believe their principal was not subject to significant risk. The clients allege that these misrepresentations and negligence caused the loss of principal. The claim alleged $2,200,000 in damages. This dispute is currently still pending.

Former Broker Paul Soll Barred from the Securities Industry

September 20, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating advisor Paul Soll (Soll), formerly registered with Western International Securities, Inc. (Western International) and Financial West Group (FWG) out of Los Angeles, California. According to records kept by The Financial Industry Regulatory Authority (FINRA), Soll was barred from the financial industry for failing to provide the regulator with information about his trading activities that concern possible excessive trading a securities law violation that is similar to churning. According to a BrokerCheck report, Soll also disclosed at least one customer complaint alleging breach of fiduciary duty.

In July 2018, FINRA stated that Soll violated FINRA Rules 8210 and 2010 by failing to provide the regulator with information about his potential trading abuses. Soll was thereby barred from the securities industry.

Moreover, a customer filed a complaint alleging that Soll engaged in breach of fiduciary duty, breach of contract, and misrepresentation in the sale of bonds. The amount of damages was not specified. The claim settled for $660,574.

Former Morgan Stanley Advisor Ian Deliz has Numerous Complaints Over Unsuitable Puerto Rico Bond Investments

September 18, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims against advisor Ian M. Deliz Morales (Deliz), formerly registered with Morgan Stanley out of Tampa, Florida. According to a BrokerCheck report, Deliz has been subject to at least 22 customer disputes, 13 of which are still pending. In addition, Deliz disclosed a $169,324 tax lien against him. According to records kept by The Financial Industry Regulatory Authority (FINRA), the majority of these disputes concern violations of securities laws regarding unsuitable investments of Puerto Rico bonds and closed-end funds.

Most recently, in June 2019, a client alleged that Deliz violated the securities laws by recommending unsuitable investments in Puerto Rico bonds causing $315,000 in damages. This dispute is currently still pending.

In July 2017 a customer filed a complaint alleging that Deliz made unsuitable recommendations to hold Puerto Rico bonds in an over-concentrated manner. The complaint alleged $1 million in damages and was settled for $275,000.

Advisor Bud McLaughlin Has A Complaint and A Bankruptcy Disclosure

September 9, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are currently investigating advisor Bud McLaughlin Jr. (McLaughlin), currently employed by Century Securities Associates, Inc. (Century Securities) out of Chaska, Minnesota. According to a BrokerCheck report, McLaughlin has been subject to at least one customer dispute, one regulatory action, and one bankruptcy disclosure during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the customer complaint against McLaughlin alleges breach of fiduciary duty.

In February 2018 a customer filed a complaint alleging that from 2012 through 2015, McLaughlin breached his fiduciary duty and was negligent in his recommendation of an energy company causing $1,125,000 in damages. The claim was denied.

In August 2017 McLaughlin declared bankruptcy. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

Alberto Sanchez Barred From the Securities Industry Over Undisclosed Activity

July 2, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Alberto Sanchez (Sanchez) engaged in undisclosed outside business activities (OBAs) that were not approved by his brokerage firm. Sanchez, formerly registered with SagePoint Financial, Inc. (SagePoint Financial) and MML Investors Services, LLC (MML Investors) out of Fort Lauderdale, Florida was barred from the financial industry according to records kept by The Financial Industry Regulatory Authority (FINRA). In addition, Sanchez disclosed at least two customer complaints.

In June 2019 FINRA found that Sanchez consented to the sanctions and findings that he did not provide documents as requested by FINRA in connection with an investigation concerning his involvement in a potential undisclosed outside business activity. Accordingly, Sanchez was automatically barred from the securities industry.

At this time it is unclear what OBA Sanchez engaged in that FINRA was investigating and whether or not that activity also involved private securities transactions. Sanchez’s public disclosures state that he was involved in a number of OBAs including rental property business, an insurance business, Creative Financial Network, and Health Insurance. It is unclear if these OBAs were the subject of FINRA’s investigation.

Stephen Whittaker Discharged By Multiple Firms Over Business Practices

June 27, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Stephen Whittaker (Whittaker), formerly employed by First Financial Equity Corporation (First Financial) and previously with Morgan Stanley has been subject to at least 2 customer complaints, one bankruptcy filing, and two terminations for cause during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Whittaker’s customer complaints allege that Whittaker recommended unsuitable securities recommendations among other allegations of misconduct in the handling of customer accounts.

In May 2012 Whittaker was forced to resign from Morgan Stanley after the firm found that Whittaker communicated with third parties regarding two client accounts without written authorization and his potential involvement in unapproved outside business activities (OBAs).

In April 2015 Whittaker declared bankruptcy. FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.

In April 2019 Whittaker was terminated by First Financial after the firm found out that Whittaker was engaged in undisclosed business activities including tax planning for firm clients.

John Forrester Has Investment Complaints and Bankruptcy Disclosures

June 20, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor John Forrester (Forrester), currently employed by Newbridge Securities Corporation (Newbridge Securities) has been subject to at least four customer complaints, one regulatory action, and has two bankruptcy disclosures during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Forrester’s customer complaints allege that Forrester recommended unsuitable securities recommendations in a variety of products including alternative investments among other allegations of misconduct in the handling of customer accounts.

In April 2019 a customer filed a complaint alleging that Forrester violated the securities laws by, among other things, that Forrester breached his fiduciary duty and was negligent in the sale of alternative investments causing $55,000 in damages. The claim is currently pending.

In June 2017 Forrester declared bankruptcy. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

Wells Fargo Employed Risky Broker Leonard Kinsman

June 11, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Leonard Kinsman (Kinsman), currently employed by Wells Fargo Advisors Network, LLC (Wells Fargo) 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), Kinsman’s customer complaints allege that Kinsman recommended unsuitable securities recommendations among other allegations of misconduct in the handling of customer accounts.

In addition, a recent Washington Post article exposed how brokerage firms as large as Wells Fargo still hire brokers with troubling work histories. Kinsman had prior multiple complaints from clients and worked for two banned brokerages firms. One firm was Meyers Pollock Robbins, a notorious bucket shop whose ex-president pleaded guilty to charges of engaging in a pump-and-dump stock scheme. The fraud was alleged to have been linked to a bribery scheme coordinated by organized crime.

Recently, Kinsman was the subject to a new customer complaint where the client accused the broker of losing a $2.25 million insurance settlement after the client’s husband died unexpectedly in 2011. The complaint alleges aggressive options trading and false documentation.

Demos Argyros Subject to Investment Disputes

June 7, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Demos Argyros (Argyros), currently employed by Oppenheimer & Co. Inc. (Oppenheimer) 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), Argyros’ customer complaints allege that Argyros recommended unsuitable securities recommendations in a variety of products including unsuitable equities and warrants among other allegations of misconduct in the handling of customer accounts.

In February 2019 a customer filed a complaint alleging that Argyros violated the securities laws by, among other things, that Argyros breached his fiduciary duty, negligence, breach of contract relating to unsuitable equities and warrants from May 2008 until November 2016 causing $100,000 in damages. The claim is currently pending.

In April 2017 a customer filed a complaint alleging that Argyros violated the securities laws by, among other things, that Argyros breached his fiduciary duty, churning, excessive fees and missing funds from January 2008 until December 2016 causing $900,000 in damages. The claim settled for $275,000.

Advisor Alex Blanco Subject to Complaints Over Annuities and REITs

June 3, 2019 | by Staff Attorney

Advisor Alex Blanco (Blanco), currently employed by MML Investors Services, LLC (MML Investors) has been subject to at least three customer complaints during the course of his career. According to a BrokerCheck report some of the customer complaints concern variable annuities and alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In December 2018 a customer complained that Blanco violated the securities laws by alleging that the financial advisor made unsuitable investments as well as overstating assets and inadequate accounts to statement causing $315,000 in damages. The claim is currently pending.

In May 2018 a customer complained that Blanco violated the securities laws by alleging that the financial advisor recommended investments purchased in 2015 were not suitable and he is requesting to liquidate the account. The claim was denied by the firm.

Our firm often handles cases involving annuities and direct participation products, Non-Traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These products are almost always unsuitable for investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments which provides a perverse incentives by brokers to create an artificial market for products that no honest advisor would sell.