Articles Tagged with investment fraud attorney

shutterstock_177577832-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Brian Royster (Royster), formerly associated with HD Vest Investment Services (HD Vest), in November 2017, was barred from the financial industry by FINRA concerning allegations that he borrowed funds from clients.  FINRA found that Royster consented to the sanction and findings that he refused to comply with a FINRA request for documents related to its investigation into the circumstances surrounding his termination from HD Vest. FINRA found that HD Vest filed a Form U5 terminating Royster’s registration and stating that he had violated its policy regarding borrowing money from clients.

In addition to the bar Royster has been subject to two customer complaints concerning his variable annuity sales practices.

At this time it is unclear the extent and scope of Royster’s securities violations and outside business activites.  The firm’s allegations concern borrowing of funds could be considered a private securities transaction – a practice known in the industry as “selling away”.

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shutterstock_145368937-300x225According to BrokerCheck records financial advisor John Schneider (Schneider), formerly employed by PWA Securities, Inc. (PWA Securities), has been subject to five customer complaints and one regulatory action.  According to records kept by The Financial Industry Regulatory Authority (FINRA), in August 2017 a customer filed a complaint alleging that Schneider made unsuitable recommendations, over-concentration of accounts, and failed to supervise.  The claim is currently pending.

In June 2017 a customer claimed that after receiving a 50% return of principal on a real estate private placement investment the investment became worthless.

In July 2016 a customer alleged unauthorized trading, inadequate supervision, and unsuitable investments that took place from June of 2010 through May of 2016 causing $100,000 in damages.  The claim was settled for $60,000.

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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_101456704-300x197According to BrokerCheck records financial advisor Martin Stevens (Stevens), currently associated with Stifel, Nicolaus & Company, Incorporated (Stifel Nicolause), has been subject to seven customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), in August 2017 a customer filed a complaint alleging that Stevens conduct breached his fiduciary duty, negligence, unsuitable investments, violations of Arizona’s Securities Fraud Statute, negligent misrepresentation, and breach of contract among other claims.  The customer seeks $249,000 in damages and the claim is currently pending.

Also in August 2017 another customer filed a complaint alleging unsuitable investments causing $34,719 in damages.  The claim is currently pending.

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shutterstock_57938968-200x300According to BrokerCheck records the CEO and Chief Compliance Officer of Firm Financial West, Gene Valentine (Valentine) has been subject to one customer complaint, three tax liens, and one regulatory action.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Valentine has been accused by FINRA of failing to have supervisory procedures for due diligence on private placement offerings.

FINRA alleged that from October 1, 2008, through June 30, 2015, Financial West’s written supervisory procedures failed to address the firm’s due diligence process for private placements. FINRA found that Financial West’s written supervisory procedures did not describe the process for approving private placement offerings and did not describe how or when to evaluate private placement offerings.  FINRA also found that the firm failed to consistently follow the written procedures that did exist such as failing to document the review as described in the procedures.

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shutterstock_39128059-300x174According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisors Clement Chichester (Chichester) and Brittney Sias (Sias), in October 2017, were terminated by their firm, Western International Securities, Inc. (Western International) based on allegations that they accepted a FINRA sanction.  Chichester and Sias were barred from the industry by FINRA after FINRA requested documents and information and they failed to provide FINRA with the requested documents and information after initially providing partial responses to a previous request in connection with FINRA’s investigation of their alleged receipt of funds from a customer of the firm.

At this time it is unclear the extent and scope of Chichester’s and Sias’ private securities activities.  Chichester CRD lists that he is engaged in insurance as an outside business activity.  The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

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shutterstock_94332400-300x225According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Alonza Barnett (Barnett), in March 2017, was barred from the industry by FINRA after FINRA requested documents and information and he failed to request termination of his suspension within three months of the date of the Notice of Suspension drawing an automatic bar from association with any FINRA member in all capacities.  Previously, Barnett was registered with Ameritas Investment Corp. (Ameritas).

In February 2017 a customer filed a complaint alleging that for a 15 year period Barnett engaged in conversion of funds, breach of fiduciary duty and constructive fraud, and violation of the North Carolina Investment Advisors Act.  The claim appears to involve private securities.  The claim alleged $1,750,000 in damages and is currently pending.

At this time it is unclear the extent and scope of Barnett private securities activities.  Barnett CRD lists that he is engaged in fixed insurance products and operates a d/b/a called Dacthler Wealth Management as an outside business activity.  The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

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shutterstock_19864066-209x300According to BrokerCheck records financial advisor Joseph Rodriguez (Rodriguez), currently associated with Hennion & Walsh, Inc. (Hennion & Walsh), has been subject to four customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Rodriguez has been accused by customers of unsuitable investments among other claims.  Most of the claims appear to be related to municipal bonds or other bond related investments

In June 2017, a customer filed a complaint alleging that Rodriguez recommended certain investment grade municipal bonds between 2009 and 2012 that were unsuitable.  The claim alleges $125,000 in damages and is currently pending.  In May 2016 another customer filed a complaint alleging that there were unsuitable recommendations from 2013 and 2014.  The claim alleged $250,000 in damages and settled.  In October 2015 another customer filed a complaint alleging an unsuitable recommendation causing $56,390 in damages.  The claim later settled.

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shutterstock_85873471-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Leon Rehak (Rehak) has been subject to two customer complaints.  Rehak is currently registered with LPL Financial LLC (LPL Financial).  In November 2016 a customer filed a complaint alleging a number of securities law violations including that the broker made engaged in churning (excessive trading), unauthorized trading, and breach of fiduciary duty among other claims.  The claim alleged $600,000 in damages and is currently pending.

In October 2017, another customer filed a complaint alleging Common Law Fraud, Common Law Negligent Misrepresentation, Breach of Fiduciary Duty, Negligence, Suitability, and Excessive Trading from May 2011 through September 2017.  The claim alleged $499,000 in damages and is currently pending.

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shutterstock_88744093-297x300According to BrokerCheck records financial advisor Victor Sibilla (Sibilla), currently associated with Westpark Capital, Inc. (Westpark Capital), has been subject to 6 customer complaints, one regulatory action, and two civil judgments.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Sibilla has been accused by customers of unsuitable investments, misrepresentations, excessive trading, and misuse of margin among other claims.

In May 2017, a customer filed a complaint alleging that Sibilla was not licensed in the state where he transacted business seeking $108,400 in damages.  The claim is currently pending.  In June 2013 another customer filed a complaint alleging that Sibilla misrepresented that his stock would double claiming $175,000 in damages.  The claim was closed.  In September 2012, a customer alleged excessive trading and unsuitable investments causing $300,000 in damages.  The claim was settled.

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