Articles Tagged with Freedom Investors

shutterstock_185190197-300x199The law offices of Gana Weinstein LLP are currently investigating multiple claims that advisor Chris Kubiak (Kubiak) has engaged in a misappropriation scheme.  Kubiak, formerly registered with Calton & Associates, Inc. (Calton) and American Global Wealth Management, Inc. (American Global Wealth) operating out of McDonough, Georgia and Brookfield, Wisconsin respectively has been accused by customers and the Department of Justice (DOJ) of engaging in securities fraud and misappropriating funds.

In October 2018 FINRA barred Kubiak after he consented to the sanction and to the entry of findings that he converted customer funds.  FINRA found that four customers, including three seniors, gave funds to Kubiak totaling approximately $270,000 to invest on their behalf.  FINRA found that instead Kubiak deposited the funds into his personal bank account and then used them for his own personal use such as gambling and to paying for personal medical bills.

In March 2019 the DOJ announced  charges against Kubiak include seven counts of wire and mail fraud concerning Kubiak’s scheme where he arranged to make withdrawals or to liquidate the investment accounts of his elderly clients. The DOJ indictment identifies a total of six clients from whom he is alleged to have wrongfully misappropriated approximately $370,000 over a five year period.

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shutterstock_168478292The securities lawyers of Gana Weinstein LLP are investigating customer complaints and a FINRA action against broker William Watson (Watson). The Financial Industry Regulatory Authority (FINRA) brought an enforcement action (FINRA No. 2013038091901) against Watson. In addition, there are at least five customer complaints against Watson and four judgements or liens. In the FINRA regulatory action against Watson, the agency alleged that from March 2013 through June 2014 while employed at Finance 500, Inc. (Finance 500) Watson participated in securities offerings with four different issuers where he used marketing materials that were not fair and balanced because they failed to discuss each of the issuers poor financial performance and made misleading unwarranted or unsupported statements.

FINRA alleged that Watson was the Vice President of Corporate Finance at Finance 500 and identified companies that needed financing and worked with those companies to sell the companies’ securities to customers. FINRA found that Watson used or permitted issuers to use marketing presentations that were not fair and balanced, made misleading, unwarranted or unsupported statements, and failed to disclose Finance 500’s name and involvement in the offerings. FINRA determined that Watson also sent these presentations to retail customers through email and used them on telephone conference calls with retail investors. Watson also allegedly used, or permitted issuers to use, powerpoint presentations that contained inadequate risk disclosure and failed to provide a balanced presentation of the risks and rewards of the investment.

Specifically, FINRA alleged that for issuer by the initialed “BB” which upon information and belief refers to Bill the Butcher, Inc., (BB) the presentations failed to disclose BB’s accumulated deficits, net losses, or the fact that BB’s auditor had issued a “going concern” opinion. In addition, the BB presentations compared the sales-to-investment ratio of BB, a start-up company, to that of well established fast-food restaurants. Similar issues were cited by FINRA for presentations for issuers initialed CP, GE, and SC. FINRA found the lack of disclosures from the foregoing presentations to be in violation of industry rules.

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