Securities Lawyers Blog

Advisor Robert Burns Has Complaints Over Altnerative Investment Sales

December 17, 2019 | by Staff Attorney

Advisor Robert Burns (Burns), currently employed by Cetera Advisor Networks LLC (Cetera Advisor) has been subject to at least two customer complaints during the course of his career. According to a BrokerCheck report the customer complaints concerns 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 represented dozens of investors who suffered losses caused by these types of high risk, low reward products.

Burns’ customers complain that they lost money investing in products such as Penneco 10, Carter Validus, GMI, Cypress, KBS REIT, Resource Real Estate, and UDF IV. UDF has been accused of being an investment fraud scheme.

In August 2019 a customer complained that Burns violated the securities laws by alleging that Burns recommended an overconcentration and unsuitable investments in alternative products and alleged the firm failed to do due diligence of the alternative investments. The claim alleges $500,000 in damages and is currently pending.

In August 2018 a customer complained that Burns violated the securities laws by alleging that Burns recommended unsuitable investments in alternative products. The claim settled for $150,000.

Advisor Dain Stokes Accused Of Running An Investment Scam – Recovery Options

December 16, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Dain Stokes (Stokes) was discharged by his employer after being accused of running an investment fraud scheme. According to BrokerCheck records, Stokes is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm LPL Financial LLC (LPL Financial). In addition, Stokes disclosed two regulatory complaints and four customer complaints. If you have been a victim of Stokes’ alleged misconduct our firm may be able to assist you in recovering funds.

On August 1, 2019 an investor reported to the Fremont Police Department that he had possibly been defrauded by Stokes related to an investment of two hundred one thousand dollars. The complaint alleges that the investment was for an alleged project in Africa purportedly involving popstar Taylor Swift. The victim provided copies of cancelled checks, unsecured promissory notes, and text messages to the Fremont Police Department that corroborated his complaint.

According to the complaint Stokes used fraudulent messages to continue to entice the investor including:

On November 29, 2018, Stokes is claimed to have wrote: “We are getting close, a week, maybe two, I just had a long talk with Taylor about it in the middle of the night lol.”
On May 8, 2019, Stokes is claimed to have wrote: “Taylor is meeting with Bill Gates and the rest of the sponsors who are paying out the commissions on May 20th To try in wrap things up, so we all get paid.”
On June 12, 2019, Stokes is claimed to have wrote: “Trump’s illegally locked my bank accounts, and I’m fighting it in the Federal Bank Commission in the New Hampshire AG’s Office. Taylor is releasing a new song on Instagram in 30 minutes and I’m promoting it.”

In August 2019 LPL Financial discharged Stokes in connection with State of New Hampshire suspension of investment adviser agent and broker-dealer representative license.

Advisors Beg Clients to Wait it Out While GPB Capital Collapses

December 16, 2019 | by Staff Attorney

Our firm has been contacted by hundreds of clients that have been defrauded in GPB Capital Holdings (GPB Capital) related investments. One common element in our firm’s contact with GPB Capital investors is the advisor’s recommendation to victims – do absolutely nothing. The advisors recommendation is expressed in phrases like “the audits will come out”, “GPB Capital is a completely transparent company and not a scam”, and sometimes “just hang in there.”

However, in November GPB Capital’s patience game crumbled and the firm admitted that no financial audit would occur anytime in the near future. In sum, investors now know there is nothing to hang onto. Advisors have no counter talking points to weigh against multiple accusations of being a Ponzi scheme, the ongoing U.S. Securities and Exchange Commission (SEC) and FBI investigations, and even GPB’s chief compliance officer being indicted for illegally obtaining information on the SEC’s investigation. Now even Volkswagen and Toyota are threatening to pull the plug on GPB Capital auto dealerships. By the day, advisor recommendations to do nothing appear to be completely self-serving, out of the loop, and not in the interest of the investor.

Our firm has analyzed the GPB Capital offerings and believe that brokerage firms did not review GPB Capital offerings in any significant detail. Any serious due diligence would have revealed that GPB Capital was a dubious offering destined to fail. In complaints filed with The Financial Industry Regulatory Authority (FINRA) our clients have alleged that GPB Capital’s scam was highly predictable and easy to spot. Nearly every aspect of the offering raised unanswerable questions from GPB Capital’s senior management, fantastical business claims, and intra-fund lending practices.

Alan Appelbaum Accused of Churning and Unsuitable Trading

December 12, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Alan Appelbaum (Appelbaum), currently associated with Aegis Capital Corp. (Aegis), has been subject three regulatory actions and at least thirteen customer complaints. The customer complaints against Appelbaum concern various allegations of misconduct including churning, unauthorized trading, and unsuitable investments among other claims being made against the broker.

In September 2019 a customer complained that Appelbaum violated the securities laws by alleging violations of the securities laws including that from July 2015 through present Appelbaum engaged in unsuitable and unauthorized transactions. The claim does not have a specific damage figure and is currently pending.

In November 2018 a customer complained that Appelbaum violated the securities laws by alleging violations of the securities laws including that from July 2015 through August 2018 Appelbaum engaged in unsuitable recommendations to the client. The claim alleged $1.8 million in damages and is currently pending.

Advisor Anthony Joslin Subject to Regulatory and Customer Complaints

December 12, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Anthony Joslin (Joslin), currently employed by Garden State Securities, Inc. (Garden State Securities) has been subject to at least eight customer complaints, one employment termination for cause, and two regulatory actions during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Joslin’s customer complaints alleges that Joslin recommended unsuitable investments, negligence, and breach of fiduciary duty among other allegations of misconduct relating to the handling of their accounts.

In June 2014 the State of Massachusetts brought a regulatory action against Joslin alleging that he has been subject to eight customer complaints and contributed $103,000 towards the settlement of complaints. Further, Joslin resigned while under investigation from the Grayson Financial, LLC brokerage firm under allegations that he misappropriated proprietary information from the firm. Further, the state found that Joslin had been subject of an NASD action due to his failure to supervise and prevent violations of the securities laws by those under his supervision. The state of Massachusetts placed Joslin under heightened supervision for 3 years.

In June 2019 a customer complained that Joslin violated the securities laws by alleging violations of the securities laws including breach of fiduciary duty, fraud, and negligence. The claim alleges $300,763 in damages and is currently pending.

Advisor Timothy Atyeo Alleged to Have Recommended Unsuitable Energy Securities

December 10, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Timothy Atyeo (Atyeo), currently employed by Oppenheimer & Co. Inc. (Oppenheimer), has been subject to at least four customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA) Atyeo has been accused by multiple customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

In July 2019 a customer filed a complaint alleging that Atyeo violated the securities laws by engaging in, among other violations, negligence, breach of fiduciary duty, misrepresentations, and over concentration and speculative trading in the energy sector. The claim alleges $1,100,000 in damages and is currently pending.

In June 2017 a customer filed a complaint alleging that Atyeo violated the securities laws by engaging in, among other violations, too much risk and lack of diversification from 2014 through 2017 causing $4,000,000 in damages. The claim was denied by the firm.

Advisor Darren Kubiak Suspended by FINRA and Has Complaint Over GPB Capital

December 10, 2019 | by Staff Attorney

Our firm represents multiple clients who have collectively lost millions in the sale of fraudulent GPB Capital Holdings (GPB Capital) related investments. Our firm has analyzed the GPB Capital offerings and believe that brokerage firms did not review these offerings in any significant detail. Any serious due diligence would have revealed that GPB Capital was an investment fraud scheme.

Advisor Darren Kubiak (Kubiak), according to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), has been accused of selling GPB Capital. Kubiak is formerly registered with member firm Kalos Capital, Inc. (Kalos Capital). In addition, Kubiak disclosed three total customer complaints and one FINRA regulatory action. If you have been a victim of Kubiak’s alleged misconduct our firm may be able to assist you in recovering funds.

FINRA alleged in a regulatory filing that Kubiak consented to sanctions and findings that he recommended the purchase of leveraged and inverse exchange traded funds (LIETFs) to customers without having a sufficient understanding of the risks and features associated with the LIETFs. FINRA found that Kubiak failed to have a reasonable basis to make these recommendations. In addition, according to FINRA Kubiak recommended these customers purchase LIETFs then held them for an average of 722 days causing Kubiak’s customers to incur approximately $98,000 in losses. FINRA found that Kubiak failed to perform reasonable due diligence and accordingly did not understand that LIETFs are generally expected to lose value over time and that losses are compounded because of daily resets.

Broker Nicholas Schiano Subject to Customer Complaints Over Investment Recommendations

December 9, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Nicholas Schiano (Schiano), currently employed by Spartan Capital Securities, LLC (Spartan 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), Schiano’s customer complaints allege that Schiano recommended unsuitable investments, and committed negligence, misrepresentations, and breach of fiduciary duty among other allegations of misconduct relating to the handling of their accounts.

In April 2019 a customer complained that Schiano violated the securities laws by alleging misrepresentations, negligence, and breach of fiduciary duty resulting in $208,000. The claim settled for $32,500.

In August 2017 a customer complained that Schiano violated the securities laws by alleging unsuitable transactions causing $128,541 in damages. The claim settled for $35,000.

Leon Almeida Discharged By NYLife Over Securities Sales Practices

December 9, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Leon Almeida (Almeida), formerly employed by MML Investors Services, LLC (MML Investors) has been subject to four customer disputes and one criminal matter during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the customer complaints against Almeida concerns allegations over variable annuity sales practices.

In August 2019 a customer complained that Almeida violated the securities laws by alleging that Almeida sold him a new variable annuity in 2016, which was misrepresented, after first advising him that the company that held his existing account wouldn’t be remaining in business. The claim is currently pending.

In March 2019 a customer complained that Almeida violated the securities laws by alleging that that the AIG Variable Annuity Almeida sold to him in 2018 was an inappropriate investment and he would like his money returned. The claim was withdrawn.

In January 2019 a customer complained that Almeida violated the securities laws by alleging that the VAs Almeida sold to him in 2018 were misrepresented and he wants his investment returned. The claim settled for $19,038.

Advisor Luke Johnson Accused of Selling Fraudulent GPB Capital Investments

December 8, 2019 | by Staff Attorney

Our firm represents multiple clients who have collectively lost millions in the sale of fraudulent GPB Capital Holdings (GPB Capital) related investments. Our firm has analyzed the GPB Capital offerings and believe that brokerage firms did not review these offerings in any significant detail. Any serious due diligence would have revealed that GPB Capital was an investment fraud scheme.

Advisor Luke Johnson (Johnson), according to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), has been accused of selling GPB Capital. Johnson is currently registered with member firm Coastal Equities, Inc. (Coastal Equities). In addition, Johnson disclosed seven total customer complaints. If you have been a victim of Johnson’s alleged misconduct our firm may be able to assist you in recovering funds.

Our firm’s investigation has found that brokerage firms failed to conduct due diligence and investigate multiple aspects of GPB Capital’s business including its senior management, fantastical business claims, and intra-fund lending practices. For instance, with respect to GPB Capital’s senior management the company was founded by David Gentile (Gentile). Had brokerage firms investigated GPB Capital’s senior manager it would have found that prior to founding GPB Capital, Gentile’s experience was as a CPA and company advisor with the accounting practice his family ran at Gentile Pismeny & Brengel, LLP (GP&B) in New York. Nonetheless, GPB’s PPMs claimed expertise in these areas. GPB Holdings II, LP, PPM, pg. 9 (Apr. 13, 2015) (“GPB’s senior management have a great deal of experience investing in the Automotive Retail, Managed IT Services and Life Sciences sectors.”).