Securities Lawyers Blog

Jeffrey Wilson Alleged to Have Recommended Unsuitable Oil & Gas Securities

January 4, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Jeffrey Wilson (Wilson), employed by Wells Fargo Clearing Services, LLC (Wells Fargo), has been subject to four customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA) Wilson has been accused by a customers of unsuitable investment advice concerning various investment products including energy stocks that likely include 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.

The most recent claim was filed in August 2017 and alleges that Wilson in or around August 2014, recommended the purchase of unsuitable energy securities. The claim is currently pending.

In May 2016 another customer alleged that Wilson from June 2014 through November 2015 made unsuitable investments in oil and energy investments. The customer’s claims were settled for $250,000.

Broker Clifford Vatter Terminated for Unauthorized Trading

January 2, 2018 | by Staff Attorney

According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), broker Clifford Vatter (Vatter) has received six customer complaints. Furthermore, Vatter was terminated in July 2017 from Raymond James & Associates for allegedly engaging in unauthorized trading in one customer’s account.

In September 2016, a customer alleged Vatter made unsuitable investment recommendations, misrepresented and omitted material facts and breached his fiduciary duty. This dispute settled for $250,000.

In April 2009, a customer alleged Vatter made unauthorized withdrawals among other allegations. This dispute settled for $13,300.

Elaine LaCerte Suspended from Securities Industry

January 2, 2018 | by Staff Attorney

According to BrokerCheck records, Elaine LaCerte (LaCerte), also known as Elaine Diones and Elaine Diones Helzer, was suspended by the Financial Industry Regulatory Authority (FINRA) in August 2017.

LaCerte was suspended for allegedly engaging in an unsuitable pattern of short-term trading of Unite Investment Trusts (UITs) in over 100 customer accounts. Without admitting or denying the findings, LaCerte consented to the sanctions and the entry of findings. The findings stated that “in connection with these accounts, LaCerte repeatedly recommended that the customers purchase UITs and then sell these products well before their maturity dates. In addition, on more than 100 occasions, LaCerte recommended that her customers use the proceeds from the short-term sale of a UIT to purchase another UIT with identical investment objectives. LaCerte’s recommendations caused the customers to incur unnecessary sales charges, and were unsuitable in view of the frequency and cost of the transactions.” LaCerte has been banned from the industry for six months and was ordered to pay a $5,000 fine.

Moreover, LaCerte has been subject to four customer disputes.

ARC New York City REIT Investment Loss Options

January 2, 2018 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating investor losses in American Realty Capital New York City REIT (ARC New York REIT) a non-traded real estate investment trust (Non-Traded REIT). According to the firm’s website, seeks to provide its investors with a combination of current income and capital appreciation through strategic investments in high-quality commercial real estate located within the five boroughs of New York City, particularly Manhattan. The funds’ three primary objectives are stated as to preserve and protect capital, pay monthly stable cash distributions; and increase the value of assets in order to generate capital appreciation.

However, according to secondary market sources for non-traded REITs, shares of ARC New York REIT are currently listed for $11.02 per share a far drop from the sale price of $25 per share when the REIT issued shares to investors.

Our firm often handles cases involving direct participation products (DPPs), private placements, Non-Traded REITs, and other alternative investments. These products are almost always unsuitable for middle class investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments providing perverse incentives for brokers to sell high risk and low reward investments.

Teryl Trenchard Under Investigation For Securities Fraud

January 2, 2018 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA), former Capitol Securities Management (Capitol Securities) employee Teryl Trenchard (Trenchard) in under investigation for fraud. In March 2017 FINRA initiated its investigation into Trenchard for fraud. On the same day Capitol Securities terminated Trenchard for the same reason. Thereafter, in July 2017 a customer filed a complaint alleging breach of fiduciary duty, conversion, and unsuitable investments causing $700,000 in damages. The claim is currently pending.

Thereafter, in September 2017 another customer alleged that from 2005 to March 15, 2017 Trenchard engaged in misappropriation, forgery, fraud, and unauthorized trading in unsuitable transactions. The customer alleged $1,800,00 in damages. The claim is currently pending.

At this time it is unclear the extent and scope of Trenchard’s securities violations and the exact details of the fraud under investigation. Trenchard’s CRD lists a business called Market Technician’s Association and no other businesses.

Broker Jeffrey Eglow Subject to Multiple Customer Complaints

December 27, 2017 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating claims against John Eglow (Eglow). According to BrokerCheck records, Eglow, who works out of Delray Beach, Florida, has been subject to four customer disputes.

In May 2017, a customer alleged she was overcharged for trades. This dispute settled for $48,758.

In July 2016, a customer alleged Eglow made unsuitable recommendations, resulting in unrealized losses. This dispute settled for $115,000.

Anthony Ferrara Subject to Customer Complaints Over Variable Universal Life Policies

December 27, 2017 | by Staff Attorney

According to BrokerCheck records financial advisor Anthony Ferrara (Ferrara), currently employed by Larson Financial Securities, LLC (Larson Financial), has been subject to four customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), in July 2017 a customer filed a complaint alleging that Larson Financial made unsuitable recommendations and material omissions in the sale of a variable universal life (VUL) policy that was purchased in 2013. The customer requested $40,000 in damages and is currently pending. Many of the complaints concerning Ferrara’s conduct include claims concerning the sales of VULs.

In January 2017 another customer filed a complaint alleging unsuitability of the product, misrepresentation, breach of fiduciary duty, deceptive business practices, general fraud and negligence. The customer alleged $350,000 in damages and the claim is currently pending.

VUL are complex insurance and investment products that investors must fully understand the risks and benefits of prior to investing. One feature of a VUL policy is that the owner can allocate a portion of his premium payments to a separate sub-account that can be used to grow in value through investments. Monthly charges for the life insurance policy, including a cost of insurance charge and administrative fees, are deducted from the policy’s cash value. The cash value of the policy may increase or decrease based on the performance of the sub-account investments. In addition, the VUL policy terminates, or lapses, if at any time the net cash surrender value is insufficient to pay the monthly cost deductions. Upon termination of the policy, the remaining cash value becomes worthless.

James Cox Suspended from Securities Industry

December 27, 2017 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against broker James Cox (Cox).

According to Cox’s Brokercheck records, he has been sanctioned by FINRA because he allegedly recommended unsuitable annuity transactions to a customer and received commissions of $25,460 in connection with the exchange. Without admitting or denying the findings, Cox consented to the sanctions and to the entry of findings. Cox was suspended from FINRA for four months and fined a total of $35,460.

In April 2017, Cox was terminated from Stifel, Nicolaus & Company, Incorporated because of a “lack of confidence after settlement of customer complaint and nondisclosure of outside business activity”

John Schneider Has Multiple Customer Complaints Over Investment Losses

December 27, 2017 | by Staff Attorney

According to BrokerCheck records financial advisor John Schneider (Schneider), formerly employed by PWA Securities, Inc. (PWA Securities), has been subject to five customer complaints and one regulatory action. According to records kept by The Financial Industry Regulatory Authority (FINRA), in August 2017 a customer filed a complaint alleging that Schneider made unsuitable recommendations, over-concentration of accounts, and failed to supervise. The claim is currently pending.

In June 2017 a customer claimed that after receiving a 50% return of principal on a real estate private placement investment the investment became worthless.

In July 2016 a customer alleged unauthorized trading, inadequate supervision, and unsuitable investments that took place from June of 2010 through May of 2016 causing $100,000 in damages. The claim was settled for $60,000.

James Merkel Terminated by Merrill Lynch Over Private Securities Sales

December 21, 2017 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor James Merkel (Merkel), in August 2017, was terminated by his employer Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) after the firm alleged that Merkel violated firm policy relating to selling away.

Prior to the firm’s termination, in June 2016 a customer filed a complaint alleging unsuitable investment recommendations and misrepresentation and omission of material facts involving options. The customer alleged $1,000,000 in damages and the claim is currently pending.

At this time it is unclear the extent and scope of Merkel’s securities violations and outside business activites. Merkel’s CRD lists that he operates an outside business activity concerning real property. Merkel also lists an entity called Merkel’s Lfan LLC that is a business that produces adironack chairs and other items. At this time it is unknown the exact nature of the firm’s allegations concerning private securities transactions – a practice known in the industry as “selling away”.