Selling Away

Former Mutual Securities Advisor Gary Pevey Accused of Selling Unapproved Securities

December 3, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Gary Pevey (Pevey), formerly associated with Mutual Securities, Inc. (Mutual Securities) in Sacramento, California has been accused by his former firm over unapproved securities. In addition, Pevey has one customer complaint on his record.

In February 2018 Mutual Securities terminated Pevey stating that he violated policies concerning private securities transactions.

Thereafter in September 2018 a customer filed a complaint alleging that Pevey engaged in high-risk and fraudulent investments and inadequate supervision causing $171,000 in damages. The claim is currently pending.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Pevey’s public disclosures state that the activity was conducted through his Registered Investment Advisory (RIA) firm Wealth Design Group. It is unknown the nature of the transactions from public filings.

Advisor Dexter Thomas Accused of Engaging in Client Loans and Unapproved Securities

November 24, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Dexter Thomas (Thomas), formerly associated with United Planners Financial Services of America LP (United Planners) in Dallas, Texas has been accused by his former firm over unapproved securities and making client loans. In addition, Thomas has 19 customer complaints on his record – most of which relate to the unapproved activities.

In August 2018 United Planners terminated Thomas stating that he affiliated with the firm in late-2017. A short period of time later, the Thomas passed away. The firm claimed that immediately before his death, Thomas disclosed that he was involved with a number of private loans or private investments with individuals which private loans or investments were neither disclosed to, nor approved by, the firm. After Thomas’ death customers have claimed that Thomas did not return all of the funds privately loaned to or invested.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Thomas’ public disclosures state that his securities activity was conducted through a d/b/a – Dexter Thomas Financial Services, LLC.

Advisor Floyd Powell Accused of Selling Fraudulent Securities

November 18, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Floyd Powell (Powell), formerly associated with MML Investors Services, LLC (MML Investors) in Albertville, Alabama has been accused by at least four clients of selling fraudulent investments.

In October 2018 a customer filed a complaint alleging that Powell, beginning in or around 2016, recommended that they invest in unregistered and fraudulent investment programs, made false representations, and failed to disclose material facts about the investments. The customer alleged over $3.1 million in damages. The claim is currently pending.

Also in October 2018 another customer filed a complaint alleging that Powell made inappropriate and unsuitable investment recommendations to and transactions beginning in early 2017. The claim is currently pending.

In August 2018 another client alleged violations of securities law regarding Powell’s recommendation to invest in unregistered and fraudulent investment program in July 2016. The claim alleges $250,000 in damages and is currently pending.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Powell’s public disclosures only state that he operates his business through a DBA called Faithway Financial Solutions LLC.

Advisor Mitchell Kurtz Termnated Over Unapproved Product Sales and Ethical Violations

November 8, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Mitchell Kurtz (Kurtz), formerly associated with Henley & Company LLC (Henley & Company) in Roslyn Heights, New York was terminated by the firm. In July 2017 Kurtz was discharged after the firm claimed that based discussions with Kurtz and the SEC Auditors that it is necessary to terminate Kurtz’s registrations with Henley & Company due to violations of both FINRA and SEC rules and firm policies and procedures regarding outside business activities (OBAs), selling away, fiduciary duty obligations, violation of professional standards and the firm’s Code of Ethics.

In addition in August 2012 FINRA brought a regulatory action against Kurtz for altering certain account records. In December 2009 Kurtz was terminated by his prior employer Raymond James Financial Services, Inc. (Raymond James) for altering documents.

At this time it is unclear the nature or scope of the alleged OBAs and private securities transactions that Kurtz may have been involved in.

Geneos Wealth Broker Bradley Tennison Barred for Selling Away Practices

October 3, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP have currently been investigating previously registered broker Bradley Tennison (Tennison). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Tennison was barred from the financial industry due to a customer complaint alleging Tennison’s selling away activities during his employment at Geneos Wealth Management Inc (Geneos Wealth). In addition, Tennison has been subject to two other customer disputes and termination from employment at two firms.

In January 2018, the customer alleged that in January 2016, Tennison recommended the client to wire $300,000 of her funds into “The Joseph Project” away from the member firm, with a promise of a 5% enhancement. Geneos Wealth had no record of such investment, and the customer never received any statements or return on the principal of the investment. Subsequently after, in April 2018, Geneos Wealth discharged Tennison from employment after failing to locate any record of investment and for being unable to retrieve information from Tennison regarding the investment. This complaint is currently still pending.

Shortly after, in July 2018, Tennison was barred from the financial industry for failing to show up to on-the-record testimony regarding the selling away allegations of “The Joseph Project” at Geneos Wealth. By failing to provide information and show up to the testimony, Tennison was in violation of FINRA Rules 8210 and 2010. Without admitting or denying the findings, Tennison consented to the sanction and to the entry of findings.

In addition, Tennison has been subject to two preceding customer disputes. In March 2010, a customer alleged that Tennison placed the Continue Reading

Advisor Alex Herrera Barred Over Sale of Unapproved Products

September 22, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Alex Herrera (Herrera), formerly associated with UBS Financial Services Inc. (UBS) in Coral Gables, Florida was barred by FINRA. In the regulatory action FINRA claimed that Herrera consented to the sanction and findings that he refused to provide information requested by FINRA in connection with its investigation of his possible participation in unreported outside business activities (OBAs) and private securities transactions.

At this time it is unclear the nature or scope of the alleged OBAs and private securities transactions that Herrera was involved in. However, in May 2018 a customer filed a complaint alleging that Herrera stole her money to buy a vacation home. The claim is currently pending.

Daniel Flores Discharged Over Selling Unapproved Financial Product

September 9, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Daniel Flores (Flores), formerly associated with Woodbury Financial Services, Inc. (Woodbury Financial) in Appleton, Wisconsin was terminated by his firm concerning allegations that Flores engaged in an unapproved financial transaction with a client. Thereafter in May 2018 a customer filed a complaint alleging that that Flores engaged in unauthorized and excessive trading. The claim is currently pending. In July 2018 FINRA sought documents and information from Flores which he refused to provide. Accordingly, Flores was barred from the industry for failing to respond to FINRA’s requests.

At this time, the claims against Flores are unclear as to the exact nature and extent of the activity. Flores has outside business disclosures including New Heights Insurance Services and Fox River Valley.

Advisor Stacy Cheney-Jamison Sanctioned Over Private Investment Sales

September 9, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Stacy Cheney-Jamison (Cheney-Jamison), a/k/a Stacy Cheney, Stacy Edwards, Stacy Kuczynski, and Stacy Sang was formerly associated with CUNA Brokerage Services, Inc. (CUNA) in Boca Rotan, Florida was barred by FINRA concerning allegations that Cheney-Jamison sold investments away from her firm.

In May 2018 FINRA found that Cheney-Jamison consented to the sanctions and to the entry of findings that she refused to provide information requested by FINRA in connection with its investigation into allegations regarding her involvement in private securities transactions and falsification of client account forms. In addition, in March 2018 a customer filed a complaint alleging multiple violations of the securities laws and claiming $350,000 in damages.

The allegations concerning private securities transactions are often accompanied by claims of engaging in outside business activities. Private securities transactions is a practice known in the industry as “selling away” – a serious violation of the securities laws.

At this time, the selling away claims against Cheney-Jamison are unclear as to the exact nature and extent of the activity. Cheney-Jamison does not have any outside business disclosures on her public record

Advisor Thomas Sova Terminated Over Unapproved Product Sales

September 7, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Thomas Sova (Sova), formerly associated with Hornor, Townsend & Kent, Inc. (Hornor Townsend) in Baton Rouge, Louisiana was terminated by his firm concerning allegations that Sova violated firm policies and procedures regarding disclosure of outside business activities relating to the outside sale of an unapproved and unregistered security. That termination came on the heels of an arbitration complaint filed a couple of months earlier in April 2018. The customer complaint alleged that Sova sold and unregistered security in May 2016 and seeks $100,000 in damages. The claim is currently pending.

At this time, the claims against Sova are unclear as to the exact nature and extent of the activity other than that it involves a mortgage investment fraud or real estate security. Sova has outside business disclosures including Sova Financial Group – his investment d/b/a. Sova also discloses that he is the owner of rental property.

FINRA Bars Bradley Tennison for Alleged Selling Away Practices

August 3, 2018 | by Staff Attorney

The investment attorneys at Gana Weinstein LLP are currently investigating previously registered broker Bradley Tennison (Tennison). According to BrokerCheck Records, the Financial Industry Regulative Authority (FINRA) barred Tennison indefinitely from the financial industry for failing to appear to an on the record testimony regarding an investigation of Tennison’s outside business activities at Geneos Wealth Management, Inc. (Geneos Wealth Management). In addition, Tennison has been subject to three customer disputes, one of which is still pending. The majority of these disputes involve unsuitable limited partnerships and selling away. Tennison has also been subject to termination from two firms of employment.

In April 2018, a customer alleged that in 2016, Tennison recommended a former client to invest $300,000 in “The Joseph Project”, which he represented to be a 12 month investment with 5 % returns. The customer never received any statements or returns on her principal payment. The customer has requested $300,000 in damages. This dispute is currently still pending.

Subsequently, in April 2018, Tennison was terminated from Geneos Wealth Management for failing to be in compliance with the firm’s policies and regulations regarding outside business activities and selling away.