Securities Lawyer

SagePoint Advisor Marvin Fisher Subject to A Complaint and Tax Liens

June 2, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Marvin Fisher (Fisher), currently employed by SagePoint Financial, Inc. (SagePoint Financial) has been subject to at least one customer complaint, one employment termination for cause, and four tax liens or judgments during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Fisher’s customer complaints allege that Bernstein recommended unsuitable variable annuity among other allegations.

In October 2018 a customer filed a complaint alleging that Fisher violated the securities laws by, among other things, that the guaranteed minimum income benefit rider on variable annuity purchased in 2006 was misrepresented to the client. The claim alleges $5,000 in damages and settled for $25,000.

In July 2016 Fisher was subject to a tax lien of $107,674. Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. In addition, a broker’s inability to manage their own finances is relevant in a customer’s decision to use their services.

Izhar Shefer Subject to Multiple Investment Complaints Over Options Trading

May 29, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Izhar Shefer (Shefer), formerly employed by Morgan Stanley has been subject to at least ten customer complaints during the course of her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Shefer’s customer complaints allege that Shefer recommended unsuitable securities recommendations in a variety of products including options trading among other allegations of misconduct in the handling of customer accounts.

In August 2018 a customer filed a complaint alleging that Shefer violated the securities laws by, among other things, that Shefer made unsuitable investments from 2011 to 2017. The alleged damages are $700,000 and the claim is currently pending.

In May 2018 a customer filed a complaint alleging that Shefer violated the securities laws by, among other things, that Shefer made unsuitable investments from 2015 to 2017. The claim settled for $26,840.

In September 2017 a customer filed a complaint alleging that Shefer violated the securities laws by, among other things, that Shefer made unsuitable investments from July 2015 to February 2017. The claim settled for $30,000.

Advisor Richard Bernstein Has Investor Complaints

May 24, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Richard Bernstein (Bernstein), currently employed by Wells Fargo Clearing Services, LLC (Wells Fargo) has been subject to at least eight customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Bernstein’s customer complaints allege that Bernstein recommended unsuitable investments and securities among other allegations.

In February 2019 a customer filed a complaint alleging that Bernstein violated the securities laws by, among other things, that the client is seeking at least $53,000.00 in damage and claims that from February 2013 to July 2015 the advisor made unauthorized trades which conflicted with the client’s stated investment goals. The claim is currently pending

In January 2019 a customer filed a complaint alleging that Bernstein violated the securities laws by, among other things, that from 2015 through 2016 the advisor made unsuitable investments. The claim is currently pending.

Summit Brokerage Broker Robert Berg Subject to Customer Complaints

May 15, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Robert Berg (Berg), currently employed by Summit Brokerage Services, Inc. (Summit Brokerage) has been subject to at least three customer complaints and one bankruptcy. According to records kept by The Financial Industry Regulatory Authority (FINRA), Berg’s customer complaints allege that Berg recommended unsuitable investments and securities.

In January 2019 a customer filed a complaint alleging that Berg violated the securities laws by, among other things, engaged in aggressive and speculative investment recommendations. The claim alleged $75,000 in damages and is currently pending.

In April 2018 a customer filed a complaint alleging that Berg violated the securities laws by, among other things unauthorized withdrawal of funds. The claim resulted in an award or judgement of $16,400.

In March 2013 Berg declared bankruptcy. Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. 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.

Morgan Stanley Broker Barry Speyer Subject to Multiple Customer Investment Complaints

April 28, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Barry Speyer (Speyer), currently employed by Morgan Stanley has been subject to at least seven customer complaints and one regulatory action. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Speyer’s customer complaints allege that Speyer made was negligent and made unsuitable investments.

In January 2019 a customer filed a complaint alleging that Speyer violated the securities laws including unsuitable investments from August 2014 until October 2018 causing damages. The claim is currently pending.

In August 2013 a customer filed a complaint alleging that Speyer violated the securities laws including that Speyer failed to follow the instructions of the client in or about December 2011. The claim was denied by the firm.

Advisor Michael Olinde Discharged Over Unapproved Business Activities

April 25, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Michael Olinde (Olinde), currently associated with Capital Financial Services, Inc. (Capital Financial), in May 2017, was discharged from his employer LPL Financial LLC (LPL) due to allegations that he violated the firm’s policies regarding outside business activities. Thereafter, according to Olinde’s BrokerCheck, Olinde has been subject to a FINRA investigation regarding his outside business activity.

Engaging in undisclosed outside business activities represents a risk to brokerage firms that the advisor may be engaging in unmonitored securities related businesses. The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

In this case it is unclear what sort of business activities Olinde was engaged in. However, his disclosures include many businesses including: 1) Olinde Brothers Properties – a commercial building partnership; 2) Olinde Financial Group – his d/b/a for brokerage activity; 3) Olinde Investment Holdings LLC; 4) The Massad Olinde Group; 5) Alpha Consulting Group; 6) Prciniple Matters, LLC – a radio program; 7) Avive Nutraceuticals, LLC – partner and board member; 8) Olinde Management, LLC – resendential properties rentals; 9) K & M Olinde Farms; 10) M202 – real estate business.

Raymond James Advisor George Mathis Has Five Investment Complaints

March 18, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor George Mathis (Mathis), currently employed by Raymond James & Associates, Inc. (Raymond James) has been subject to at least five customer complaints and one termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Mathis’ customer complaints allege that Mathis made unsuitable recommendations in a variety of securities.

In May 2018 a customer brought a complaint against Mathis alleging the broker violated the securities laws by breaching his fiduciary duty, negligence, and fraud from 2014 through September 2016. The claim alleged $65,000 in damages and is pending.

In August 2016 a customer brought a complaint against Mathis alleging the broker violated the securities laws by breaching his fiduciary duty, negligence, and and violation of the FINRA Rules from September 2013 through January 2016. The claim alleged $190,000 in damages and settled.

In August 2015 a customer brought a complaint against Mathis alleging the broker violated the securities laws by making misrepresentations. The claim alleged $17,946 in damages and was closed.

Broker Mark Lamendola Barred Over Annuity Practices

February 26, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Mark Lamendola (Lamendola), formerly employed by Wordl Capital Brokerage, Inc. (World Capital) has been subject to six customer complaints, two terminations for cause, and two regulatory actions during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the customer complaints against Lamendola concern allegations over variable annuity sales practices.

In January 2019, FINRA barred Lamendola alleging that Lamendola made misrepresentations to a customer by fabricating letters that purported to come from an annuity company regarding the status of the customer’s deposit. FINRA found that Lamendola wrote in each letter that the incorrect deposit was re-deposited into the correct account and the transaction was not reportable to the Internal Revenue Service. FINRA determined that Lamendola had mistakenly deposited the customer’s IRA contributions into his variable annuity account rather than his fixed annuity account. In addition, FINRA determined that Lamendola paid $15,999.55 to the customer to settle his verbal complaint regarding the mistaken IRA deposits.

In June 2018, Lamendola was discharged from World Capital due to his annuity practices.

Advisor Stephen Carver Has Multiple Disclosures Including Complaints and Regulatory Action

February 4, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Stephen Carver (Carver), formerly employed by Lifemark Securities Corp. (Lifemark Securities) and Cetera Advisors LLC (Cetera Advisors) has been subject to at least two customer complaints, one regulatory complaint, three employment terminations for cause, and three tax liens. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Carver’s customer complaints allege that Carver made unsuitable recommendations in a variety of securities including alternative investments such as REITs.

In January 2019 FINRA brought a complaint against Carver alleging that he willfully failed to timely amend his Form U4 to disclose three unsatisfied Internal Revenue Service tax liens totaling approximately $92,000 that were filed against him. FINRA claims that Carver also falsely attested to his member firm on an annual compliance questionnaire that he was in compliance with FINRA’s Form U4 disclosure requirements. The regulatory complaint is currently pending.

In October 2018 a customer brought a complaint against Carver alleging the broker violated the securities laws by committing elder abuse. The claim alleged $9.3 million in damages and is currently pending.

In September 2017 Cetera Advisors discharged Carver claiming that he violated firm policy by not disclosing gifts from a client.

Herbert J. Sims Broker Robert Salles Subject to Complaints of Bond Sales

February 1, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Robert Salles (Salles), currently employed by Herbert J. Sims & Co, Inc. (Herbert J. Sims) has been subject to at least six customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Salles customer complaints allege that Salles made unsuitable recommendations in a variety of investments including junk bonds, Puerto Rico bonds, and structured notes.

In July 2018 a customer complained that Salles violated the securities laws by engaging in unsuitable investments. The customer alleges $100,000 in damages and the claim was denied by the firm.

In May 2018 a customer complained that Salles violated the securities laws by engaging in conduct from September 2009 to present that was a breach of fiduciary duty, negligence, breach of contract, fraud misrepresentation, and failure to supervise involving junk bonds, Puerto Rico bonds, and structured notes. The customer alleges $200,000 in damages. The claim is currently pending.