Articles Tagged with Four Points Capital Partners

shutterstock_160304408-300x199The investment fraud attorneys at Gana Weinstein LLP are currently investigating previously registered broker Daniel Fischer (Fischer). According to BrokerCheck, in January 2018, the Securities Exchange Commission (SEC) barred Fischer from the financial industry claiming that from December 2012 to May 2015, Fischer recommended an unsuitable investment strategy in penny stocks to 5 customers and falsely represented and omitted material facts about the strategy. In addition, the SEC alleged that Fischer was engaging in churning of accounts and in unauthorized trading. The SEC found that as a result of recommending unsuitable investments, Fischer had violated federal laws including Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act and Rule 10b-5.

In addition, Fischer has also been subject to one regulatory action and one civil action in which the SEC and the Federal Industry Regulative Authority (FINRA) sanctioned Fischer for various violations of the securities laws.

In July 2016, FINRA suspended Fischer on the grounds that he was exercising discretion in customer accounts without prior customer approval. As a result of violating NASD Conduct Rule 2510(b) and FINRA Rule 2010, Fischer incurred a fine of $5,000 and a suspension of 20 days.

shutterstock_184430498The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Sean McCabe (McCabe).  According to BrokerCheck records McCabe has been the subject of at least four customer complaints.  The customer complaints against McCabe allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, and churning (excessive trading) among other claims.

The most recent complaint was filed in March 2016 and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $550,000 in damages.  The complaint is currently pending.  Also in March 2016 another investor filed a similar complaint and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $150,000 in damages.  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_113872627The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Michael McMahon (McMahon). According to BrokerCheck records McMahon has been the subject of at least nine customer complaints since November 2007. The customer complaints against McMahon allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, negligence, breach of fiduciary duty, and churning (excessive trading) among other claims.

The most recent customer complaint filed in July 2015 and alleged breach of fiduciary duty, negligence, and misrepresentations claiming $1 million in damages. The claim is still pending. Also in July 2015, another client filed a complaint alleging McMahon made unsuitable investments among other claims claiming $442,000 in damages. The dispute is currently pending. In a third complaint filed in June 2015, an investor claimed that McMahon engaged in excessive trading and made unauthorized trades among other claims resulting in over $250,000 in damages. The claim is still 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_1744162The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Allan Montalbano (Montalbano). According to BrokerCheck records Montalbano has been the subject of at least four customer complaints and one bankruptcy filing. The customer complaints against Montalbano allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, negligence, breach of fiduciary duty, and churning (excessive trading) among other claims.

In November 2015, Montalbano disclosed that he entered bankruptcy. The most recent customer complaint filed in June 2015 and alleged unsuitable recommendations and excessive trading claiming $250,000 in damages. The claim is still pending. In May 2013, another client filed a complaint alleging Montalbano failed to follow instructions. The claim closed.

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_112362875According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Edward Segur (Segur) has been the subject of at least 2 customer complaints, 3 judgements or liens, 1 criminal matter, and 2 regulatory actions. Customers have filed complaints against Segur alleging securities law violations including excessive commissions and unauthorized trades among other claims. In addition, Segur has had difficulty managing his own finances and had a tax lien of $125,687 imposed in February 2015. Tax liens and judgements are often a sign that the broker cannot manage their own personal finances and may be tempted to recommend high commission products or strategies to clients in order to satisfy debts.

Finally, two state regulators have brought actions against Segur. The state of Arkansas alleged that in January 2013, Segur cold called a resident of the state to recommend the purchase of Sandridge Energy, Inc. (Sandridge). At that time Sandridge was trading at about $7 per share and that Segur stated that he had information that the stock would rise to $12 in less than three months because a new chief executive officer would take over Sandridge causing the stock price to increase. The state of Arkansas found that such statements were unjustified and violated the state’s securities laws. In addition, the state of New Hampshire alleged that Segur cold called one of its residents even though the resident was on the state’s do not call list.

Segur entered the securities industry in 1998. An examination of Segur’s employment history reveals that Segur moves from troubled firm to troubled firm. The pattern of brokers moving in this way is sometimes called “cockroaching” within the industry. See More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities, The Wall Street Journal, (Oct. 4, 2013). In Segur’s 16 year career he has switched firms 22 times even returning to several firms on different occasions. Many of the firms have been expelled by FINRA including John Thomas Financial which was run by Anastasios “Tommy” Belesis who recently agreed to be banned from the securities industry when the SEC accused him of defrauding investors in two hedge funds. In addition, John Thomas faced allegations of penny-stock fraud by FINRA after the firm reaped more than $100 million in commissions over its six-year history before it closed in July. According to new sources trainees at the firm earned as little as $300 a week to pitch stocks with memorized scripts.