E1 Asset Management

FINRA Bars Broker Ricardo Fancois During Investigation Into Sales Practices

February 3, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating the termination by The Financial Industry Regulatory Authority (FINRA) of broker Ricardo Fancois (Fancois). According to BrokerCheck records Fancois is subject to one regulatory action, one investigation, and two judgement or lien.

FINRA terminated Fancois after the broker failed to respond to a letter request for information in July 2015. Prior to that time, in March 2015, FINRA opened an investigation into Fancois alleging potential willful violations of the securities fraud laws and FINRA rules. Because FINRA terminated Fancois due to the broker’s failure to respond to the regulator’s requests for information, there is no additional information listed with specifics of Fancois’ alleged wrongdoing. Prior to that time Fancois was subject to over $3,000 in liens.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

FINRA Bars Broker James Starks During Investigation Into Sales Practices

February 1, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker James Starks (Starks). According to BrokerCheck records Starks is subject to one regulatory action, two investigations, and one criminal matter.

FINRA terminated Starks after the broker failed to respond to a letter request for information in July 2015. Prior to that time, in January 2015, FINRA opened an investigation into Starks alleging potential willful violations of the FINRA rules. Prior to that time, in March 2014, FINRA opened another investigation into Starks alleging potential willful violations of securities fraud laws and FINRA rules.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

FINRA Bars Richard Adams Over Churning Customer Accounts

September 28, 2015 | by Staff Attorney

The Financial Industry Regulatory Authority (FINRA) brought and enforcement action against broker Rasheed a/k/a Richard Adams (Adams) (FINRA No. 2015045911001) resulting in a bar from the securities industry alleging that between July 2013, and June 2014, Adams engaged in unsuitable excessive trading and churning in two of his customers’ accounts. In addition, FINRA alleged that Adams willfully failed to amend his Uniform Application for Securities Industry Registration and Transfer (Form U4) to disclose 12 unsatisfied judgments and liens.

Adams first became associated with a FINRA member in 1997. From May 2002, until August 2010, Adams was associated with E1 Asset Management, Inc. Thereafter, from August 2010, until June 2011, Adams was associated with PHD Capital, Finally, from June 2011, until May 2015, Adams was associated with Caldwell International Securities out of their New York, New York office location. In 2010, Adams created and was the 100% owner of Adams Wealth Management, Inc. (AWM).

According to FINRA, from July 2013, to June 2014, Adams exercised de facto control over two customers’ accounts referred to by the initials “AD” and “PV”. FINRA found that Adams excessively and unsuitably traded and churned AD’s account and PV’s account in a manner that was inconsistent with those customers’ investment objectives, financial situations, and needs. Specifically, FINRA found Adams’ trading activity was inappropriate because it resulted in a turnover rate in AD’s account of 16.14, and a cost-to-equity ratio of 70.99% while in PV’s account the turnover ratio was 19.16 and the cost-to-equity ratio was 91.96%. FINRA found that the improper trading activity in these two accounts resulted in losses of approximately $37,000 and generated commissions of approximately $57,000.

FINRA Sanctions E1 Asset Management, Ron Itin, and Ahsan Shaikh Over Churning Customer Accounts

August 24, 2015 | by Staff Attorney

The Financial Industry Regulatory Authority (FINRA) sanctioned (Case No. 2010025835701) broker E1 Asset Management, Inc. (E1 Asset) Ron Itin (Itin), and Ahsan Shaikh (Shaikh) concerning numerous irregularities and misconduct including allegations that between July 2008, and April 2012, including the failure to conduct reasonable supervisory reviews designed to detect and prevent excessive trading, otherwise known as churning, in customer accounts.

Itin’s BrokerCheck records reveal at least 9 customer disputes. These disputes involve claims of unsuitable investments, churning (excessive trading), unauthorized trading, breach of fiduciary duty, misrepresentations and false statements, among other claims. The claims state that among the products traded in client accounts were penny stocks, options, and other equities. In January 2015, Itin declared chapter 7 bankruptcy in New Jersey. Itin has been associated with E1 Asset Management, Inc. since 1999 and is a supervisory principal at the firm.

Shaikh’s BrokerCheck records show at least at least nine customer disputes. The disputes involve claims similar in nature to Itin’s records. Shaikh has been associated with E1 Asset Management, Inc. since 1999 and is a supervisory principal at the firm.