Articles Tagged with breach of fidcuairy duty

shutterstock_189302954-300x203The securities attorneys at Gana Weinstein LLP are currently investigating Garden State Securities, Inc. (Garden State) broker Jason Zwibel (Zwibel). According to BrokerCheck records, Zwibel has been subject to 4 customer complaints, one of which is still pending.

In November 2017, a customer alleged that Zwibel engaged in unsuitable investments and breach of fiduciary duty from 2013 to 2016. The customer is requesting $2,670,750 in damages. This complaint is still pending.

In June 2007, a customer alleged that Zwiber engaged in breach of fiduciary duty, misrepresentation of investments, and failure to supervise. The case settled at $50,000.

shutterstock_94632238-300x214The experienced securities fraud lawyers of Gana Weinstein LLP are investigating multiple customer disputes filed with the Financial Industry Regulatory Authority (FINRA) against broker Andrew Bruce Elsoffer (Elsoffer). According to Elsoffer’s FINRA BrokerCheck records, there are several disclosures on his record pertaining to securities fraud, misrepresentation, unsuitability, breach of fiduciary duty, and negligence amongst other allegations.

Elsoffer entered the securities industry in 1994 and was only registered with Merrill Lynch, Pierce, Fenner & Smith, Inc. until November 2011. He is currently employed at Stifel Nicolaus & Co., Inc. since November 2011. He was previously employed at:

• Bank of America (December 2009 – October 2011)

shutterstock_32215765-300x200The securities and investment lawyers of Gana Weinstein LLP are investigating customer complaints filed with the Financial Industry Regulatory Authority (FINRA) against broker Malcolm Segal (Segal). According to FINRA’s BrokerCheck record, there are at least 11 disclosures on Segal’s record including customer complaints, multiple regulatory actions, and one employment separation from Aegis Capital Corp. The customer complaints against Segal allege misappropriation of customers’ funds, negligence, breach of fiduciary duty, and breach of contract.

Throughout his career with Aegis, Segal received number customer complaints:

January 2016: Alleging misappropriation of funds and misrepresentation. The damage amount requested is $135,000.00. This complaint is currently pending.

shutterstock_183201167-300x198The investment attorneys of Gana Weinstein LLP are interested in speaking with clients of broker Parks Heard Brown Jr. (Brown). According to his BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA), Brown has been the subject of at least four customer complaints. The customer complaints against Brown allege securities law violations that claim unsuitable investments, churning, unauthorized trading, breach of fiduciary duty, and negligence among other claims.

The most recent complaint was filed in October 2016, alleging that the broker while employed at VSR Financial Services Inc. made unsuitable investments based on the client’s liquidity needs. In March 2014, FINRA found that Brown violated FINRA rules 2090 and 2111 that require the use of reasonable diligence when recommending investment strategies. In addition, a customer alleged an unsuitable series of investments made in account between June 2012 and January 2014 resulting in damages of $245,750.00. The case settled for $71,500.00.

In another case filed in March 2004 a customer alleged that in June 2003 Brown misrepresented and failed to inform the account activity that caused $7,000.00

shutterstock_132704474The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Michael Androulakis (Androulakis).  According to BrokerCheck records Androulakis has been the subject of at least three customer complaints.  The customer complaints against Androulakis allege a number of securities law violations including that the broker made unsuitable investments, breach of fiduciary duty, and churning (excessive trading) among other claims.

One complaint filed in April 2015 alleged $134,350 in damages due to unsuitable recommendations and churning.  The complaint is currently pending.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time.  Often times the account will completely “turnover” every month with different securities.  This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades.  Churning is considered a species of securities fraud.  The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions.  A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements.  Certain commonly used measures and ratios used to determine churning help evaluate a churning claim.  These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

shutterstock_71403175The law offices of Gana Weinstein LLP are investigating a string of customer complaints against broker Shawn Burns (Burns) currently registered Salomon Whitney LLC (Salomon). According to The Financial Industry Regulatory Authority (FINRA) BrokerCheck system, the customer complaints primarily allege unauthorized trading, failure to execute, suitability, misrepresentation, fraud, churning, and breach of fiduciary duty.

Burns has been in the industry since 1999. In only 15 years Burns has been employed by 10 different firms. After leaving Westrock Advisors, Inc. in May 2007, Burns became registered with J.P Turner & Company, L.L.C. until June 2009. From June 2009, until July 2011, Burns was registered with First Midwest Securities, Inc. Thereafter, Burns was registered with Salomon until August 2012. Then Burns became associated with Cape Securities Inc. until April 2014 before again going back to Salomon where he is currently registered.

Burns has had 12 customer complaints filed against him during his career, one termination, and five judgments or liens. These statistics are troubling because so many customer complaints are rare. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. These disclosures do not necessarily have to include customer complaints but can include IRS tax liens, judgments, and even criminal matters. The number of brokers with multiple customer complaints is far smaller.

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