Articles Tagged with IFS Securities

shutterstock_20354401-300x200The securities attorneys at Gana Weinstein LLP are investigating claims against Fortune Financial Services, Inc. (Fortune Financial) broker Bruce Musselman (Musselman). According to BrokerCheck records, Musselman has been subject to nine customer complaints and one criminal regulatory action.

Most recently, in February 2013, customers alleged that Musselman recommended unsuitable investments, misrepresented securities, over-concentrated customer funds into aggressive investments, and excessively used margin. The dispute was settled at $14,900.

In August 2011, a customer alleged that from 2007 to 2009, Musselman recommended highly risky investments that were unsuitable and inappropriate to customer’s needs. The customer requested $80,000 in damages. Continue Reading

shutterstock_112866430-300x199Former IFS Securities, Inc. (IFS) and Voya Financial Advisors, Inc. (Voya) broker James Flynn (Flynn) has been subject to at least ten customer complaints, two employment terminations for cause, three tax or civil judgment liens, and one bankruptcy proceeding.  According to a BrokerCheck report many of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs).  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In February 2017 Voya discharged Flynn accusing the broker of providing misleading information to the firm during a complaint investigation.  Despite numerous customer complaints and financial troubles IFS hired Flynn anyway only to also discharge him a year later in February 2018.  IFS claims that Flynn was terminated because he executed unauthorized trades.

In addition, Flynn was subject to large tax liens totaling hundreds of thousands of dollars.  In April 2005 Flynn disclosed a tax lien of over $256,000.  Thereafter, Flynn declared bankruptcy in April 2013.  The fact that a broker cannot manage his own personal finances is material information for a client to consider.  In addition, the types of products clients have alleged were unsuitable are high commission products that may be recommended to generate high profits for the advisor at the expense of the client.

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shutterstock_26269225-300x200According to BrokerCheck records financial advisor Coleman Devlin (Devlin), formerly associated with IFS Securities (IFS), has been subject to 14 customer complaints.  In addition, Devlin has been subject to two regulatory matters and has been terminated by two firms for cause.  In June 2016 Devlin was discharged from Stifel, Nicolaus & Company, Incorporated (Stifel, Nicolaus) on allegations of unauthorized trading.  Thereafter, The Financial Industry Regulatory Authority (FINRA) conducted its own investigation of Devlin’s trading activities.

In October 2017, FINRA found that Devlin effected discretionary trades in five customer accounts without obtaining prior written authorization from the customers and without acceptance of the accounts as discretionary by his member firm.

Devlin has also been subject to numerous customer complaints over the course of his career.  The most recent case was filed in November 2017 and alleged unsuitable investments.  The customer seeks $600,000 in damages and the claim is currently pending.

In May 2017 another customer filed a complaint alleging that Devlin made unsuitable and unauthorized investments from September 2013 through June 2016.  The claim was settled for $95,000.

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shutterstock_180968000-300x200According to BrokerCheck records financial advisor George Warner (Warner), currently associated with Chelsea Financial Services (Chelsea Financial), has been subject to one customer complaint, one regulatory action, and two terminations for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA), in June 2013, LPL Financial LLC (LPL Financial) terminated Warner for cause alleging that he obtained client signatures on black account transfer forms.  Thereafter, Warner was terminated from NFP Advisors Services (NFP Advisors) under similar circumstances.  NFP Adviosrs claimed in November 2014 that Warner corrected client documents after the client had signed them.

In April 2017, FINRA sanctioned Warner stated that Warner altered various customer documents on at least five occasions after the documents had already been signed by the customers. FINRA found that Warner corrected or included the customer’s anticipated liquidity needs, net worth, liquid net worth, and/or annual income on new account forms, alternative investment disclosure forms, and an IRA application.

Often times, brokers change client information or have clients sign documents in blank in order to use false information to purchase products that the client is otherwise not qualified to purchase.

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shutterstock_80511298-300x218Broker James Lynn (Lynn) was recently terminated by his former employer Voya Financial Advisors, Inc. (Voya).  According BrokerCheck  Voya alleged that Lynn provided misleading information to the firm during a complaint investigation.  In addition to the termination, Lynn has been subject to six customer complaints, one bankruptcy and three judgments or tax liens.  The securities lawyers of Gana Weinstein LLP are investigating the customer complaints against Lynn.

Many of the complaints concern variable annuities or direct participation products (DPPs) such as non-traded real estate investment trusts (REITs).  The most recent complaint filed in May 2017 requested $115,000 in damages alleging that the investor claimed the that the REIT investments and the replacement of a variable annuity policy was unsuitable. The REITs were purchased in 2014 and 2015.  The claim is currently pending.

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shutterstock_20354398-300x200The securities lawyers of Gana Weinstein LLP are investigating customer complaints and a FINRA enforcement action with The Financial Industry Regulatory Authority’s (FINRA) against broker Michael Hebner (Hebner). According to BrokerCheck records, Hebner has been subject to five customer complaints and one employment termination for cause. The customer complaints against Hebner allege a number of securities law violations including that the broker made unsuitable investments and unauthorized trading among other claims.

Hebner was terminated in January 2015 by Wunderlich Securities, Inc. on allegations that Hebner failed to follow firm procedures regarding the approval and retention of correspondence.  The most recent claim was filed in January 2017 alleging Hebner made unsuitable recommendations from 2010 until 2014.  The customer claims that the activity caused $429,000 in damages.  The claim is currently pending.

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shutterstock_175835072-300x199The investment fraud attorneys with Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Gary Saitowitz (Saitowitz) currently not associated with any broker-dealer.  According to brokercheck records Saitowitz has been subject to three customer complaints, declared bankruptcy in March 2015, was terminated for cause by Transamerica Financial Advisors, Inc. (Transamerica), and sanctioned by FINRA in January 2017.  Saitowitz’s termination for cause and FINRA sanctions involve his conduct concerning direct participation products (DPPs) such as non-traded real estate investment trusts (REITs) and potentially other alternative investments.

In January 2017, Saitowitz consented to FINRA sanctions that he had customers sign blank and incomplete brokerage forms and that some of the pre-signed forms authorized fund movement or loans from customer accounts, while others related to customer financial information, used by the firm to supervise whether transactions solicited by Saitowitz were suitable for customers. FINRA found that the maintaining of pre-signed forms enhanced the risk that customers would be placed in unsuitable investments or subject to unauthorized account activity.  FINRA also found that his brokerage firm imposed limits on the amount of a customer’s liquid assets that could be invested in non-traded REITs but that in order to circumvent the limits Saitowitz maintained records overstating the liquid net worth of certain customers in connection with sales of non-traded REITs.

FINRA also found that Saitowitz used personal email addresses to conduct securities business in contravention of the firm’s policies and procedures. Finally, FINRA also determined that Saitowitz failed to report a judgment and a tax lien and to timely report five tax liens.

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shutterstock_24531604-200x300Our firm is investigating claims made by The Financial Industry Regulatory Authority (FINRA) and the Securities Exchange Commission (SEC) against broker Richard Cody (Cody) that involves potentially millions in either stolen client funds or misrepresentations concerning the state of their accounts.  Cody is a formerly associated broker with brokerage firms Westminster Financial Securities, Inc. (Westminster), Concorde Investment Services, LLC (Concorde Investment), and IFS Securities (IFS).  Cody conducted his business through his advisory firm Boston Investment Partners.  According to brokercheck, Cody has been subject to three regulatory events, two investigations, and 15 customer disputes among other disclosures.

The SEC’s complaint lays out an astonishing scheme to defraud investors.  The SEC alleged that Cody would tell retired clients that their accounts were flourishing and making money when in fact they were dwindling to near-zero balances.  The SEC tells the tale of three clients who were lied to by Cody about their rapidly depleting retirement accounts through monthly deductions that were unsustainable.

Further, to make the scheme work Cody fabricated account statements, told clients they were withdrawing investment gains rather than depleting their principal, and sent a doctored document to indicate that a financial firm was holding an annuity on behalf of one client.  Cody’s conduct occurred over a 12 year period in which Cody was registered as a broker with five different independent firms.

In addition, Cody was suspended from the securities industry by FINRA from January 7, 2013 to January 6, 2014 for allegedly sending clients inflated account statements while at Westminster and Concorde.  Despite the suspension Cody continued to manage his accounts and violate the terms of the suspension by turning the accounts over to his wife Jill who was also registered with Westminster Financial and Concorde Investment.

During his suspension, Cody used personal email accounts to communicate with clients about investment strategies that then forward recommendations to Jill to execute trades.  Cody is also alleged to have forged client signatures to move their accounts to IFS.  Jill Cody was later the subject of separate FINRA sanction for her facilitation of Cody’s conduct.

Finally, Cody was fired by IFS Securities, his seventh and last employer, in September of 2016 on allegations of selling away and forgery.

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shutterstock_123758422-300x200Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Barry Rumpel (Rumpel) currently associated with IFS Securities alleging unsuitable investments among other claims.  The majority of the complaints involve variable universal life insurance policies (VULs).  According to brokercheck records Rumpel has been subject to four customer complaints, one employment separation for cause, and one criminal matter.

In May 2016 Woodbury Financial Services, Inc. (Woodbury Financial) alleged that Rumpel engaged in a personal financial transaction with a client and terminated Rumpel.  The most recent customer complaint was filed in October 2016 and alleged that a VUL sold to the customer and his wife were not suitable and that wrong net worth was entered in application in 2011 and 2012.  The claim was dismissed.

VULs are often unsuitable life insurance products for many investors due to their high costs compared to traditional life insurance policies.  VULs can also lapse if policy premiums are not paid resulting in a complete loss of the investors capital without any life insurance benefit.

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shutterstock_170709014Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against financial advisor Guy Deemer (Deemer) currently registered with IFS Securities, alleging excessive trading or churning and unauthorized trading among other claims.  According to brokercheck records Deemer has been subject to six customer complaints, two regulatory actions, and one employment termination for cause.

In September 2015 Oppenheimer & Co. Inc. (Oppenheimer) terminated Deemer after alleging that he failed to follow management’s directions when he failed to move accounts from transaction based to fee based.

In July 2014 a customer filed a complaint alleging excessive trading activity from July 2009 through December 2013.  The customer alleged $300,000 in damages.  The claim was settled for $115,000.

The type of claims being made against Deemer are often associated with claims of excessive trading or churning.  When brokers engage in excessive trading the broker will typically 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.  Many brokers who engage in churning will not take the time to explain to the investor the exact reasons for the transactions and will provide vague and general responses to requests for information such as this is the strategy we are pursuing.

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