Articles Tagged with investment fraud attorney

shutterstock_120556300-300x300According to BrokerCheck records financial advisor Thomas Kelly (Kelly), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Kelly concern allegations of unsuitable investments and allegations of unauthorized trading, misrepresentations and negligence mostly in equity products.

In November 2018 a customer complained that Kelly recommended investments that violated the securities laws by recommending unsuitable investments, unauthorized trading, breach of fiduciary duty, and negligence.  The customer alleges $500,000 in damages and the claim is currently pending.

In October 2018 a customer complained that Kelly recommended investments that violated the securities laws including misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $230,000 in damages and is currently pending.

In August 2018 a customer complained that Kelly recommended investments that violated the securities laws including unsuitable investments, misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $750,000 in damages and is currently pending.

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shutterstock_156972491-300x198According to BrokerCheck records financial advisor Peter Bittermann (Bittermann), currently employed by Westminster Financial Securities, Inc. (Westminster Financial) has been subject to three customer complaints, one employment termination for cause, and one regulatory action.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Bittermann’s customer complaints allege that Bittermann made unsuitable recommendations.

In July 2018 the Wisconsin Division of Securities alleged that Bittermann was delinquent on certain taxes causing his registration to be revoked.

In February 2011 RBC Capital Markets Corporation, LLC (RBC) terminated Bittermann over allegations that he sold a security without prior verbal knowledge and consent by the client.

In August 2009 a client complained that Bittermann misrepresented the risks of an investment and it was unsuitable causing $1,619,634 in damages.  The claim was settled for $750,000.

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shutterstock_88744093-297x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor John Buck (Buck), formerly associated with Morgan Stanley in Boston, Massachusetts has been accused by his former firm and barred by FINRA over unapproved securities.

In January 2018 Morgan Stanley terminated Buck stating that there were allegations about the timing and completeness of disclosures to the firm regarding involvement in private investments outside of the firm.

Thereafter, in October 2018 Buck was terminated by FINRA and consented to the sanction that he failed to provide FINRA with requested documents and information in connection with its investigation concerning his potential involvement in certain unapproved private securities transactions.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions.  Buck’s public disclosures only state that he is an investor in Gemini Partners – a venture fund.

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shutterstock_120556300-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Karl Foust (Foust), formerly associated with H.D. Vest Investment Services (HD Vest) in Boca Raton, Florida has been accused by at least seven clients of selling unsuitable investments in Wimbledon Health Partners leading to substantial investor losses..

In July 2018 a customer filed a complaint alleging that Foust recommended Wimbledon Health Partners LLC that was not suitable and were misrepresented to her. The customer alleged $100,000 in damages.  The claim is currently pending.

In March 2018 another customer filed a complaint alleging that Wimbledon Health Partners LLC, were not suitable and were misrepresented to him.  The customer alleged $95,000 in damages.  The claim is currently pending.

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shutterstock_26813263-300x199According to BrokerCheck records former financial advisor Thomas Kelley (Kelley), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints in his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Kelley concern allegations of unsuitable investments.

In November 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable investments, unauthorized trading, and breach of fiduciary duty causing $500,000 in damages.  The complaint is currently pending

In October 2018 a customer filed a complaint alleging that Kelley engaged in misrepresentations, negligence, and breach of fiduciary duty causing $230,000 in damages.  The complaint is currently pending.

In August 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable recommendations, misrepresentations, and breach of fiduciary duty causing $750,000 in damages.  The complaint is currently pending.

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According to BrokerCshutterstock_180968000-300x200heck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Jeffrey Schwebach (Schwebach), formerly associated with Independent Financial Group, LLC (Independent Financial) in Dell Rapids, South Dakota was terminated by the firm.  In June 2018 Schwebach was discharged after the firm claimed that he failed to accurately describe the nature of his outside business activities (OBAs) and also violated firm policy with regard to disclosure of customer complaint.  There are no other public disclosures on Schwebach’s record.

At this time it is unclear the nature or scope of the alleged OBAs and if such activity included private securities transactions.  Schwebach’s public disclosures show that he has disclosed numerous OBAs including The Cartwright Bros, a landlord rental business, 50% owner of Schwebach Financial – a d/b/a company.  In addition, Schwebach has disclosed he is a radio DJ for Backyard Broadcasting, 50% owner of Dells Mini Storage, 20% owner of Schwebach Family Partnership, and instructor for a retirement course, board member of Planning Life, and a radio DJ ofr Midwest Communications, among other disclosures.

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shutterstock_184430498-300x225According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Michael Polyakov (Polyakov) has been subject to three customer complaints and eight financial disclosures.  Polyakov is currently employed by Westpark Capital, Inc. (Westpark Capital).  Many of the customer complaints against Polyakov concern allegations of high frequency trading activity also referred to as churning, unauthorized trading, and unsuitable investments.

In January 2013 a customer filed a complaint alleging unsuitable investments, churning, and excessive trading.  The claim alleged $157,178 in damages and settled.

In March 2010 a customer filed a complaint alleging churning, unauthorized trades, and unsuitable investments claiming $250,000 in damages.  The complaint was settled.

In addition, Polyakov has eight financial disclosures concerning debt compromises.  This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider.  In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

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shutterstock_160350752-300x200According to BrokerCheck records financial advisor Farrukh Kazmi (Kazmi), currently employed by Berthel, Fisher & Company Financial Services, Inc. (Berthel Fisher) has been subject to one customer complaint, two terminations for cause, one financial disclosures, and one regulatory complaint.  According to records kept by The Financial Industry Regulatory Authority (FINRA), in August 2018 Kazmi was subject to a regulatory complaint by FINRA alleging a number of securities laws violations.

The FINRA complaint alleged that Kazmi regularly used instant messaging and text messaging to communicate with his member firm’s customers to conduct securities business and ignored Berthel Fisher’s explicit instruction that he discontinue using instant messaging to communicate with his customers. FINRA also claims that Kazmi did not inform his firm that he used text messaging or instant messaging to conduct securities business, nor did he provide copies of these communications to the firm. The complaint further alleges that Kazmi repeatedly made false statements to Berthel Fisher and to FINRA about using instant messaging to conduct securities business.

FINRA is also claiming that Kazmi exercised discretion on hundreds of occasions when placing trades in the accounts of customers, without prior written authorization from the customers or written approval from his firm. FINRA also alleges that Kazmi is falsely denying exercising discretion in customer accounts in statements to both Berthel Fisher and FINRA.

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shutterstock_146470052-300x205According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Erik Pica (Pica) has been subject to three customer complaints.  Pica is currently registered with Joseph Stone Capital L.L.C. (Joseph Stone).  Many of the customer complaints against Pica concern allegations of high frequency trading activity also referred to as churning, unauthorized trading, unsuitable investments, and speculative investment strategies.

The last customer complaint occurred in May 2018 when a customer alleged unauthorized trading in Rite Aid and Valeant Pharmaceutical leading to $7,613 in damages.  The claim is currently pending.

Also in May 2018 another customer alleged negligent supervision, overconcentration, and unsuitable investments causing $293,000 in damages.  The claim is currently pending.

In March 2018 another customer alleged $500,000 after claiming that Pica engaged in unsuitable investments, churning, and other claims.  The claim is currently pending.

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shutterstock_12144202-300x200According to BrokerCheck records financial advisor Robert Cavanagh (Cavanagh), currently employed by David Lerner Associates, Inc. (David Lerner) has been subject to at least five customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Cavanagh concern allegations of unsuitable investments, breach of fiduciary duty, and fraud.

In July 2018 a customer complained that Cavanagh engaged in unsuitable investments, made misrepresentations, breached his fiduciary duty, was negligent, and committed fraud in connection with Puerto Rico and Rochester Bond Fund.  The customer alleged $100,000 in damages and the claim is currently pending.

In July 2017 a customer alleged unsuitable investments and misrepresentations and omissions of information causing $160,000 in damages.  The claim is currently pending.

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