Ameritas

Advisor Robert Gianchiglia Has Customer Complaints Over Private Placements and Alternative Investments

June 30, 2020 | by Staff Attorney

Advisor Robert Gianchiglia (Gianchiglia), currently employed by USA Financial Securities Corporation (USA Financial) has been subject to at least six customer complaints and two criminal complaints during the course of his career. According to a BrokerCheck report several 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.

In November 2019 a customer complained that Gianchiglia violated the securities laws by alleging that Gianchiglia engaged in sales practice violations related to misrepresentations in the sale of private placement. The claim alleges $200,000 and is currently pending.

In March 2017 a customer complained that Gianchiglia violated the securities laws by alleging that Gianchiglia engaged in sales practice violations related to misrepresentations, unsuitable trading, breach of fiduciary duty, and failure to supervise relating to DPPs. The claim settled for $45,000.

In November 2014 a customer complained that Gianchiglia violated the securities laws by alleging that Gianchiglia engaged in sales practice violations related to misrepresentations and breach of fiduciary duty relating to DPPs. The claim settled for $14,995

According to BrokerCheck, Gianchiglia operates through several d/b/a entities including Financial Resource Partners, Edia-Eastern Dental Insurance Agency, and PIAM among other business related disclosures.

Gary Barth Has Complaint Over Alternative Investment Sales Practices

June 29, 2020 | by Staff Attorney

Advisor Gary Barth (Barth), currently employed by Ameritas Investment Company, LLC (Ameritas) has been subject to at least four customer complaints during the course of his career. According to a BrokerCheck report one customer complaint concerns 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.

In November 2019 a customer complained that Barth violated the securities laws by alleging that Robare engaged in sales practice violations related to an misrepresentation in the sale of REITs. The claim alleges $600,000 and is currently pending.

According to BrokerCheck, Barth operates through several d/b/a entities including Barth Financial Wealth Management Group and Barth Financial. Barth also engages in other businesses including Kaufmann Building LLC, BAB Properties LLC, and Kearney Hub among other business related disclosures.

Advisor James Anderson Terminated Over Promissory Note Sales

May 19, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor James Anderson (Anderson), formerly associated with Ameritas Investment Corp. (Ameritas), and operating under the d/b/a name Central Financial Group was terminated by Ameritas in February 2019. Anderson was accused by Ameritas, upon conclusion of internal investigation, that he was found to have engaged in the sales of Indexed Annuities and Promissory Notes away from the firm.

In addition, in 2013 FINRA had found that during the exam period, Anderson was found to have sold Indexed Annuities that were not listed on the firm’s approved list. The transactions equaled to an undisclosed outside business activity, to which prompt/prior notice was not given to the firm.

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”. At this point is unclear what securities or business activities Anderson was engaged in. His public disclosures state only that he operated out of his d/b/a firm Central Financial Group.

Alonza Barnett Barred By FINRA Over Failure to Respond to Requests for Information

November 28, 2017 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Alonza Barnett (Barnett), in March 2017, was barred from the industry by FINRA after FINRA requested documents and information and he failed to request termination of his suspension within three months of the date of the Notice of Suspension drawing an automatic bar from association with any FINRA member in all capacities. Previously, Barnett was registered with Ameritas Investment Corp. (Ameritas).

In February 2017 a customer filed a complaint alleging that for a 15 year period Barnett engaged in conversion of funds, breach of fiduciary duty and constructive fraud, and violation of the North Carolina Investment Advisors Act. The claim appears to involve private securities. The claim alleged $1,750,000 in damages and is currently pending.

At this time it is unclear the extent and scope of Barnett private securities activities. Barnett CRD lists that he is engaged in fixed insurance products and operates a d/b/a called Dacthler Wealth Management as an outside business activity. 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”.

Ameritas Broker Jason Muskey Accused of Stealing Customer Funds

December 31, 2014 | by Staff Attorney

The Financial Industry Regulatory Authority (FINRA) recently barred broker Jason Muskey for failing to respond to the regulator’s requests for information. FINRA’s investigation appears to have been prompted by Muskey’s termination from Ameritas Investment Corp. (Ameritas) after the firm alleged that he failed to respond to the firm’s request for information concerning an internal investigation concerning theft and forgery. Muskey was registered with Ameritas from June 2006, through June 2014. Muskey operated his business through Ameritas, upon information and belief, through a DBA called Muskey Financial Services.

Since the termination eight customers have filed customer complaints against Ameritas accusing the firm of failing to supervise Muskey’s activities and alleging that Muskey engaged in a Ponzi scheme that led to the theft of their funds.

As recently reported in the times-tribune Muskey was sued recently by his own mother, his wife’s uncle, an aunt, and two others alleging that he stole almost $400,000 in the scheme. Muskey allegedly used the money for his personal benefit and covered up the thefts for years by sending out fake quarterly financial statements that listed a set of phony investments. Many of Muskey’s victims are hard-working blue collar workers who had placed their money with Muskey for retirement.

Michael Blake Sanctioned Over Sales of Real Estate Securities

November 17, 2013 | by Staff Attorney

The Financial Industry Regulatory Authority (FINRA) recently sanctioned broker Michael James Blake (Blake) over allegations that Blake engaged in the unlawful sale of securities including, upon information and belief, securities linked to Longest Drive, LLC and Grace Communities, LLC. According to FINRA, Blake participated in private securities transactions involving the investment of more than $3.2 million by approximately 28 investors in 3 investment contracts without providing prior written notice to his firms of his proposed roles in the transactions. FINRA imposed a $10,000 fine and banned Blake from association with any broker-dealer for one year.

The allegations against Blake are consistent with a “selling away” violation. Selling away occurs when a securities broker solicits securities that were not approved by the broker’s affiliated firm. Selling away is a violation of FINRA Rule 3040. The most common securities sold away from brokerage firms involve private placements and promissory notes. Investors are often completed unaware that the broker’s sales activity is improper. In addition, the investor does not learn that the broker’s activities were wrongful until the investment scheme is publicized, the broker is sanctioned, or the broker stops returning client calls.

FINRA’s order states that between approximately February 2006 and June 2007, Blake recommended to customers to invest $3,200,000 in real estate properties being developed by entity “GC”, which is believed to stand for Grace Communities. The invested funds were provided by 28 investors. According to FINRA, 6 persons invested $250,000 in Development 1 between August and November 2006, 3 persons invested $200,000 in Development 2 in October and November 2006, and 23 persons invested approximately $2,755,000 in Development 3 between February 2006 and June 2008. According to FINRA, as of September 9, 2013, investors in Blake’s real estate investments have not received a return of their principal or any interest or other payments.