Articles Tagged with churning and excessive trading

shutterstock_170949320-300x199Gana Weinstein LLP’s investment fraud attorneys are looking into multiple customer disputes filed with the Financial Industry Regulatory Authority (FINRA) against broker Rodger James Burskey (Burskey) that led to a regulatory action by FINRA. According to Burskey’s FINRA BrokerCheck records, there are several disclosures on his record pertaining to unauthorized, unsuitable, and excessive trading. Burskey has dealt with an employment separation and was barred by FINRA from the securities industry. In December 2016, Burskey was barred by FINRA from having any registration capacities in the securities industry. He consented to the sanctions and findings of FINRA and refused to appear on the record regarding allegations of making unsuitable recommendations and engage in discretionary trading.

Burskey entered the securities industry in 1985 and was last employed at Voya Financial Advisors, Inc. until November 2015. He was previously registered at:

• US Allianz Securities, Inc. (February 1999 – November 2006)

shutterstock_102217105-300x200The securities and investment lawyers of Gana Weinstein LLP are investigating customer complaints filed with the Financial Industry Regulatory Authority (FINRA) against broker David James Mura (Mura). According to FINRA’s BrokerCheck records for Mura, there are at least 14 disclosures on Mura’s record including customer complaints, multiple regulatory actions, and one employment separation from Aegis Capital Corp. The customer complaints against Mira allege securities law violations that claim unsuitable investments, excessive trading or “churning”, negligence, and breach of fiduciary duty.

The most recent customer complaint against Mura was in August 2014, alleging unsuitable investments, negligence, breach of fiduciary duty, and breach of contract. This claim occurring during Mura’s employment at J.P. Turner & Company. The customer alleged losses of $268,000.00 and the claim settled for the amount of $55,000.00.

In July 2013, another customer complaint was filed with FINRA alleging that Mura of unsuitable investments in private placement exchange-traded funds, negligence, breach of fiduciary duty, and breach of contract. The statement of claim did not specify an amount and the settled for $1,100,000.00.

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_185582-300x225The investment lawyers of Gana Weinstein LLP are investigating a pending customer complaint filed with the Financial Industry Regulatory Authority (FINRA) against Silvano Rolando Trino (Trino). According to FINRA’s BrokerCheck record for Trino, there are at least 4 disclosures on Trino’s records, all pertaining to customer complaints. The customer complaints against Trino allege unauthorized use of margin, unsuitable trading, and churning.

All brokers who are registered with FINRA are required to disclosure customer complaints and arbitrations, regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings.

The most recent customer complaint against Trino was filed with FINRA in September 2014 alleging unauthorized use of margin, unsuitable trades, and churning. This claim occurred during Trino’s current employment at Northeast Securities, Inc.

shutterstock_160486019According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Lucian Hodgman (Hodgman) has been the subject of at least 4 customer complaints, 4 regulatory action, and three employment terminations. Customers have filed complaints against Fladell alleging securities law violations including churning and excessive trading, unsuitable investments, and unauthorized trades among other claims.

Nearly all of the regulatory actions and brokerage firm terminations revolve around allegations of dishonest conduct. For instance in 2001, UBS Financial Services Inc. (UBS) discharged Hodgman stating that he mpurchased a mutual fund in a client’s account without the client’s authority. In April 2002, the NASD alleged that Hodgman effected transactions in a customer’s account without the customer’s knowledge. In 2013, brokerage firm Moors & Cabot, Inc terminated Hodgman stating that the broker failed to cooperate with the firm’s investigation of marketing materials that were sent out to customers without the firm’s knowledge or approval. Thereafter, in December 2013, the Maine Office of Securities alleged that Hodgman made false statements in a record filed with the office in connection with his application to apply to the brokerage firm, Investors Capital Corp. In March 2014, Investors Capital Corp. discharged Hodgman stating that the firm determined that Hodgman was not truthful to the Maine Office of Securities. Thereafter, the state of Massachuestts initiated an action against Hodgman concerning his advertising in the state.

With this history in mind in June 2015, FINRA suspended Hodgman for 18 months alleging that between May and July 2013, Hodgman caused approximately 40,000 copies of advertisement postcards to be sent out through a third-party marketing company without approval of Moors & Cabot. According to FINRA, the postcards contained information about investing in fixed annuities that violated industry standards by failing to provide a sound basis for evaluating an investment in fixed annuities. In addition, FINRA alleged that in July and August 2013, Hodgman falsely represented to his firm that the marketing company had mailed the postcards prematurely and without Hodgman’s knowledge or authorization. To bolster this story, FINRA claims that Hodgman made a telephone call to a Moors & Cabot compliance officer impersonating a representative of the marketing company.

shutterstock_188874428According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Jeffrey Fladell (Fladell) has been the subject of at least 6 customer complaints, one regulatory action, and one criminal matter. Customers have filed complaints against Fladell alleging securities law violations including churning and excessive trading, unsuitable investments, negligence, and overconcentrated positions among other claims. Most of the claims against Fladell relate to allegations that the investor was concentrated in municipal bonds or other debt obligations that caused losses. For instance once complaint alleged damages of $1,000,000 as a result of concentration in municipal bonds that were inconsistent with the client’s objective of principal protection.

Fladell entered the securities industry in 1970. From March 1995, until October 2009, Fladell was associated with J.B. Hanauer & Co. Since October 2009, Fladell became associated with RBC Capital Markets, LLC out of the firm’s Parsippany, New Jersey office location.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

shutterstock_24531604According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Hilary Zimmerman (Zimmerman) has been the subject of at least 6 customer complaints over the course of her career. Customers have filed complaints against Zimmerman alleging securities law violations including that the broker made unsuitable investments, negligence, unauthorized trading, misrepresentations, churning and excessive trading, fraud, and breach of fiduciary duty, among other claims.

Zimmerman entered the securities industry in 1991. From December 2007 until present Zimmerman has been associated with Morgan Stanley out of the firm’s Ridgeland, Mississippi office.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.