Securities Lawyers Blog

Advisor Tyler Dean Delahunt barred from industry over unapproved business activity

April 22, 2023 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Tyler Dean Delahunt (“Delahunt”) has been accused by a securities regulator of engaging in unapproved business activities among other allegations. Delahunt was sanctioned by The Financial Industry Regulatory Authority (FINRA) concerning his private securities and undisclosed outside business activity conduct. According to records kept by The Financial Industry Regulatory Authority (FINRA), Reed was employed by Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”) at the time of the activity. If you have been a victim of Delahunt’s alleged misconduct our firm may be able to assist you in recovering funds.

In January 2021, FINRA brought a regulatory action and found that Delahunt consented to sanctions and findings that he failed to provide documents and information requested by FINRA in connection with its investigation into Delahunt’s termination. Delahunt’s former firm, Merrill Lynch filed a Form U5 disclosing his termination for alleged misconduct involving the solicitation of clients in an outside investment and participating in financial arrangements with clients. Continue Reading

Advisor John Blakezuniga Has Several Regulatory Actions – Investor Recovery

April 22, 2023 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP have currently been investigating previously registered broker John Blakezuniga (Blakezuniga). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Blakezuniga, has three regulatory disclosures on his profile.

In 2017, Blakezuniga allegedly violated his firm’s policy when he borrowed $775,000 from two of his firm’s customers and did not repay the full principal amount for either of these loans. According to FINRA, it is generally prohibited for an investment advisor to borrow money from a client unless certain conditions are met, which did not occur here. The purpose of this rule is to avoid serious potential conflicts of interest and risks associated with an investment adviser, who is a fiduciary, borrowing his or her client’s money. Furthermore, Blakezuniga was allegedly untruthful when he completed his firm’s annual compliance questionnaire and answered no to a question that asked if he ever borrowed money from a customer which was false.

Also in 2017, Blakezuniga was fined and suspended for 22 months when he recommended approximately 1,280 transactions in inverse and inverse leveraged exchange traded funds (non-traditional ETFs) in 85 customer accounts without a reasonable basis for the recommendations. In fact, Blakezuniga recommended that his customers hold these non-traditional ETF’s for periods ranging from 30 days to several years despite the fact that these investments were not meant to be held for long periods of time. According to FINRA, an investment adviser is always required to have a reasonable basis for making investment recommendations to clients. This is known as the “suitability” standard, which requires a recommendation based on a client’s idiosyncratic profile such as their individual financial situation, investment objectives, risk tolerance, and other factors.

Securities Arbitration – The Basics: What you need to know.

February 23, 2023 | by Staff Attorney

Securities arbitration is a method of resolving disputes between investors and their brokers or brokerage firms, which is governed by the Financial Industry Regulatory Authority (FINRA). FINRA is a self-regulatory organization that oversees the securities industry and provides a forum for resolving disputes between investors and their brokers or brokerage firms.

Securities arbitration through FINRA is a legal process that allows investors to seek redress for claims arising out of their investment accounts, such as fraud, breach of fiduciary duty, unsuitable investment recommendations, selling away or other misconduct. Securities arbitration is generally faster and less expensive than going to court, and the decision of the arbitrator is final and binding on both parties. It is important for investors to understand their rights and legal options if they believe they have been the victim of misconduct by their broker or brokerage firm.

To initiate a securities arbitration through FINRA, an investor must file a Statement of Claim with FINRA, which sets forth the facts and legal basis for the claim. The Statement of Claim must be filed within six years from the occurrence or event giving rise to the claim. However, the occurrence or event that gives rise to a claim is usually considered the date of damages, or the date a reasonable investor knew or should have known about the claim. While brokerage firms usually argue it is the date of purchase, most arbitration panels disagree with that analysis.

Advisor Anthony Tricario Accused of Churning and Sanctioned By Financial Regulator

January 22, 2023 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Anthony Tricario (Tricario), formerly associated with Aegis Capital Corp. (Aegis), has been subject to at least three customer complaints and three regulatory complaints during his career. Several of those complaints against Tricario concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

In January 2021, FINRA suspended Tricario, finding that he consented to findings that he executed trades in customers’ accounts that were excessive and quantitatively unsuitable given the customers’ investment profiles. Tricarico’s trading in the accounts of three of his firms’ customers generated high cost-to-equity ratios and turnover rates as well as significant losses and commissions. Continue Reading

Kirk Badii Has Six Customer Complaints and Multiple Terminations

October 10, 2022 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Kirk Badii (Badii) has at least eight disclosable events. These events include six customer complaints alleging that Badii engaged in some form of investment related misconduct in the handling of the client’s accounts. In addition, Badii has been terminated for cause by two firms. Badii is currently employed by Independent Financial Group, LLC (Independent Financial). Badii’s customer complaints alleges that Kemp recommended unsuitable investments in different investment products including alternative investments among other allegations and complaints.

In December 2021 a customer complained that Badii violated the securities laws by alleging that Badii made unsuitable investment recommendations to an elderly homemaker, mismanaged her accounts by recommending alternative investments that were unsuitable. The Claimant states that credit lines were established to qualify the Claimant for those alternative investment purchases as well as using those credit lines to make distributions to Claimant’s family which family believed to be from income generated from investments. Additional accounts were alleged to be established that contained concentrated unsuitable investments and that trading was made in these accounts on a discretionary basis without being approved for discretionary trading specific to reverse convertible securities. The investor alleged damages of $3 million and the claim is currently pending.

In August 2018 UBS terminated Badii alleging that he was discharged after firm review found that FA: (i) violated firm’s social media policy and blocked management’s ability to monitor his social media and (ii) violated firm’s KYC/AML policy in connection with the onboarding of certain clients and prospects.

Broker Brian Roth Has Alternative Investment Customer Complaints

October 10, 2022 | by Staff Attorney

Advisor Brian Roth (Roth), currently employed by brokerage firm Newbridge Securities Corporation (Newbridge Securities) has been subject to at least nine disclosures including four customer complaints, one regulatory action, and four judgement or liens. According to a BrokerCheck report some of the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products and have recovered in excess of $50 million in investor losses.

In June 2022 a customer complained that Roth violated the securities laws by alleging that Roth made recommendations that violated rules such as suitability, negligence, fraud, failure to supervise, violation FINRA rule 2010, and breach of contract. The claim is currently pending and the investor seeks $1,500,000 in damages.

In April 2020 a customer complained that Roth violated the securities laws by alleging that Roth made recommendations that violated rules such as breach of fiduciary duty, negligence, failure to supervise, violation FINRA rules, and breach of contract. The claim is currently settled for $100,000.

Broker Jerry Tuma Has Customer Suitability Complaints

October 6, 2022 | by Staff Attorney

Advisor Jerry Tuma (Tuma), currently employed by brokerage firm Independent Financial Group, LLC (Independent Financial) has been subject to at least five disclosures and customer complaints. According to a BrokerCheck report the customer complaints concern investment advisory activity and one complaint involves alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products and have recovered in excess of $50 million in investor losses.

In January 2022 a customer complained that Tuma violated the securities laws by alleging that Tuma made investment recommendations that were not suitable and was not in line with stated objectives. The claim is currently pending and the investor seeks $200,000 in damages.

In January 2022 a customer complained that Tuma violated the securities laws by alleging that the client engaged CFS in an advisory relationship beginning in 12/2017. The client also alleged her account was not managed in accordance with her best interests, that certain management and product fees were excessive, and in inappropriate products given her risk profile. The claim is currently settled for $14,906 in damages.

Jonathan Ellefson Sold GWG Bonds and Has Investor Complaints

October 6, 2022 | by Staff Attorney

Advisor Jonathan Ellefson (Ellefson), currently employed by brokerage firm Intervest International Equities Corporation (Intervest) has been subject to at least four disclosures and customer complaints. According to a BrokerCheck report the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. In Ellefson’s case at least one of the complaints occurred from the sale of GWG Holdings L-Bonds. GWG went into bankruptcy. The attorneys at Gana Weinstein LLP represented nearly 100 investors who suffered losses in GWG.

GWG’s business focused on the acquisition of life insurance policies in the secondary market. GWG was offered to investors even though the company had no significant operating history and no profits. Until 2018, GWG’s sole business was to borrow money to buy life insurance policies in the secondary market at prices that are less than the face value of the insurance benefits payable upon the death of the insureds. GWG would then hold the policies until maturity and collect the face value upon the insured’s death.

The contours of the GWG bonds are as follows:

Gana Weinstein Represents Clients of Chad Barancyk Concerning Alternative Investments

October 5, 2022 | by Staff Attorney

Advisor Chad Barancyk (Barancyk), formerly employed by brokerage firms First Allied Securities, Inc. (First Allied) and Great Point Capital, LLC (Great Point) has been subject to at least 14 disclosures including 11 customer complaints, two regulatory actions, and an employment termination for cause. According to a BrokerCheck report the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products and have recovered in excess of $50 million in investor losses. Our firm also represented investors of Barancyk to try to recover their losses.

In their complaint, the clients allege that they trusted Barancyk, doing business as Naples Private Wealth (NPW) to invest funds for their retirement in a prudent and suitable manner. Instead, it was alleged that Barancyk misled Claimants and other investors by recommending unsuitable investment strategies in various illiquid alternative investments from approximately 2009 onward. In total, the clients allege they invested approximately $2 million with Barancyk in alternative investments resulting in over $500,000 in losses not including well-managed damages.

It was also alleged that Barancyk failed, as well as First Allied, to disclose multiple criminal related incidents on Mr. Barancyk’s Form U4. It was alleged that on October 2018 Barancyk was arrested and charged with battery. This arrest does not appear on Barancyk’s Form U4. On January 14, 2021 it was alleged that Barancyk was charged with a DUI where his blood alcohol level was .15 or higher or with a person under the age of 18 in the vehicle as well as knowingly driving while his license was suspended. It was alleged that First Allied terminated Barancyk one day later on January 15, 2021 but did not file a Form U5 noting the DUI.

Anthony Gallea Has Complaints Over Complex Options Trading

October 5, 2022 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Anthony Gallea (Gallea) has at least four disclosable event. The four events are customer complaints alleging that Gallea engaged in some form of investment related misconduct in the handling of the client’s accounts. Gallea is currently employed by Morgan Stanley. Gallea’s customer complaints alleges that Gallea recommended unsuitable investments in a complex options trading strategy among other allegations and complaints.

In May 2022 a customer complained that Gallea violated the securities laws by alleging that Gallea unsuitability with respect to option trading strategy implemented in the account from 2018 through 2022. The claim is currently pending.

In April 2022 a customer complained that Gallea violated the securities laws by alleging that Gallea unsuitability with respect to option trading strategy implemented in the account from 2019 through 2021. The claim is currently pending.

An option is a contract that allows an investor to buy or sell an underlying security at a predetermined price over a certain period of time. Buying an option that allows you to buy shares at a later time is called a “call option,” and buying an option that allows you to sell shares at a later time is called a “put option.” Options are considered derivative securities because their price is derived from the value of the securities or other underlying instruments. The value change in options as they approach expiration is what is called time decay – meaning their value decays over time as expiration nears. Accordingly, an options trading strategy involving many options trades needs to be managed closely. Due to the risks of trading options FINRA has special rules and requirements related to their trading and to qualify investors for options trading.