Articles Tagged with investment fraud lawyer

shutterstock_103681238-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Thomas Sova (Sova), formerly associated with Hornor, Townsend & Kent, Inc. (Hornor Townsend) in Baton Rouge, Louisiana was terminated by his firm concerning allegations that Sova violated firm policies and procedures regarding disclosure of outside business activities relating to the outside sale of an unapproved and unregistered security.  That termination came on the heels of an arbitration complaint filed a couple of months earlier in April 2018.  The customer complaint alleged that Sova sold and unregistered security in May 2016 and seeks $100,000 in damages.  The claim is currently pending.

At this time, the claims against Sova are unclear as to the exact nature and extent of the activity other than that it involves a mortgage investment fraud or real estate security.  Sova has outside business disclosures including Sova Financial Group – his investment d/b/a.  Sova also discloses that he is the owner of rental property.

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shutterstock_103665437-300x300According to BrokerCheck records financial advisor Charles Kenahan (Kenahan), currently employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) has been subject to four customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Kenahan’s customer complaints allege that Kenahan made unsuitable recommendations or engaged in excessive trading – sometimes referred to as churning.

In May 2018 a customer alleged excessive trading and unsuitable investment recommendations from 2012 until 2017. The claim alleged $700,000 in damages and is currently pending.

In March 2018 a customer alleged unsuitable investment recommendations, excessive trading and misrepresentation from February 2012 until December 2017.  The claim is currently pending.

shutterstock_188141822-300x200The securities attorneys at Gana Weinstein LLP are currently investigating Cetera Advisor Networks LLC (Cetera Advisor) broker Jaret Mutter (Mutter). According to BrokerCheck Records, Mutter is currently subject to a pending regulatory matter in which the Virginia State Corporation Commission (VSCC) has sanctioned Mutter for the violation of various securities laws. Mutter has also been subject to seven customer disputes, one of which is still pending.  The majority of these disputes concern the misrepresentation and unsuitable recommendation of investments in Unit Investment Trusts (UITs).

In April 2018, VSCC placed a Special Supervision Order on Mutter due to numerous disclosures and complaints from customers at Cetera Advisor, Mutter’s firm of employment. Consequently, Mutter has been placed under special supervision for a year.

In addition, Mutter has been subject to multiple customer disputes. Most recently, in May 2015, a customer alleged that Mutter misrepresented investments to the customer and placed the customer in investments that were unsuitable to their investment portfolio and objectives. The customer was awarded $50,310 in damages.

shutterstock_7947664-300x200Investment attorneys with our offices are currently investigating previously registered broker Matthew Singer (Singer). According to BrokerCheck Records,  in March 2018, Singer was barred from the financial industry for failing to appear at an on-the-record testimony concerning allegations that he was recommending unsuitable investments to customers while employed at Morgan Stanley.  According to the Financial Industry Regulatory Authority (FINRA), Singer consented to the sanction and bar due to the fact that he refused to appear to the testimony.   For failing to appear for testimony, Singer was in violation of FINRA Rules 8210 and 2010 and automatically barred.

In addition, Singer has been subject to multiple customer complaints. In December 2016, a customer alleged that from May 2015, to January 2016, Singer misrepresented investments and executed unauthorized trades in the customer account regarding option investments. The case was settled at $60,000.

In February 2016, a customer alleged that Singer recommended unsuitable options to the customer.  The customer requested $381,929 in damages.  In October 2015, a customer alleged that from June 2015, Singer recommended highly risky and unsuitable investments to the customer.

shutterstock_173864537-300x200The investment attorneys at Gana Weinstein LLP are currently investigating previously registered broker Bradley Tennison (Tennison). According to BrokerCheck Records, the Financial Industry Regulative Authority (FINRA) barred Tennison indefinitely from the financial industry for failing to appear to an on the record testimony regarding an investigation of Tennison’s outside business activities at Geneos Wealth Management, Inc. (Geneos Wealth Management). In addition, Tennison has been subject to three customer disputes, one of which is still pending. The majority of these disputes involve unsuitable limited partnerships and selling away. Tennison has also been subject to termination from two firms of employment.

In April 2018, a customer alleged that in 2016, Tennison recommended a former client to invest $300,000 in “The Joseph Project”, which he represented to be a 12 month investment with 5 % returns. The customer never received any statements or returns on her principal payment. The customer has requested $300,000 in damages. This dispute is currently still pending.

Subsequently, in April 2018, Tennison was terminated from Geneos Wealth Management for failing to be in compliance with the firm’s policies and regulations regarding outside business activities and selling away.

shutterstock_63635611-300x200The securities attorneys at Gana Weinstein LLP are currently investigating NEXT Financial Group, Inc. (Next Financial) broker Stephen Dellelo (Dellelo).

According to BrokerCheck records, Dellelo is subject to one pending customer complaint concerning unsuitable placements in illiquid investments.

 

In November 2017, a customer alleged that from 2007 to 2017, Dellelo placed the customer into private and illiquid investments that were unsuitable to the customer and resulted in losses of $900,000. This dispute is currently still pending.

shutterstock_177577832-300x300The securities attorneys at Gana Weinstein LLP are investigating claims against Packerland Brokerage Services, Inc. (Packerland Brokerage) broker Edward Davig (Davig).

According to BrokerCheck records, Davig has been subject to six customer complaints, one of which is still pending.  The majority of these customer complaints involve unsuitable recommendations in oil and gas securities.

In April 2018, a customer alleged that Davig recommended the client to invest in unsuitable, illiquid oil and gas Master Limited Partnership investment which generated many losses for the client. The client has requested $500,000 for damages. This dispute is still pending.

shutterstock_128856874-300x200The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker John James (James). According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), in March 2016, James was discharged  by his firm, Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) based on allegations that James was engaging in outside business activities, private investments, and borrowing money from clients without disclosing the activities to the firm.  Subsequently, in September 2016, James was also discharged from Stifel Nicolaus for providing inaccurate information on his employment application (U5) regarding the status of an internal inquiry at his prior firm, Merrill Lynch.

In December 2017, FINRA barred James from the industry after James failed to provide FINRA with requested documents and information regarding these allegations and activities.  FINRA sought documents concerning the circumstances surrounding Jones’s termination from his member firm and of certain outside business activities that James was involved in while registered with the firm. After James refused to show up to an on-the-record testimony regarding these allegations, he was barred from the industry for being in violation of F1NRA Rule 8210, James violates FINRA Rules 8210 and 2010.

In addition, James has been subject to one customer complaint. In May 2009, a customer alleged that James recommended unsuitable investments. The case was settled at $160,000 in damages.

shutterstock_66745735-300x200The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against Sandeep Varma (Varma).  According to BrokerCheck records, Varma has been subject to two regulatory matters in which FINRA sanctioned Varma for various violations of the securities laws. In addition, Varma has been subject to five customer complaints. The majority of these complaints involve the recommendation of unsuitable and misrepresented variable investments including CRTs and life insurance policies.

In January 2018, FINRA found that Varma misrepresented a real-estate planning strategy involving Charitable Remainder Trusts (CRTs) to 70 potential customers by providing misleading claims about the nature of deferred capital gains taxes, risks, and rewards that are involved in CRTs. In addition, Varma recommended that the sale of appreciated assets should be invested into variable annuities and into premiums for an insurance policy. While recommending these investments, Varma failed to disclose that the premium payments for the life insurance policy were dependent on performance of investments in the CRT and that this yielded risk for lapse in the insurance policy. FINRA found that Varma’s positive projection of the performance of investments in the CRT and life insurance policy was exaggerated in a promissory manner because it didn’t disclose the reasonable possibility of negative investment performance. In February 2018, Varma was suspended for 10 days and fined $15,000. Without admitting or denying the findings, Varma consented to the sanctions and to the entry of findings.

Varma has also been subject to numerous customer complaints over the course of his career.  The most recent case was filed in August 2017 and alleged that in 2000, Varma recommended an unsuitable life insurance policy investment to customers. The claim was settled at $350,000.

shutterstock_182371613-300x200The securities attorneys at Gana Weinstein LLP are currently investigating Berthel, Fisher & Company Financial Services, Inc. (Berthel, Fisher & Company) broker Scott Barcomb (Barcomb). According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), Barcomb has been subject to four customer disputes concerning unsuitable variable annuity recommendations and failure to conduct due diligence on private placement investments.  In addition, Barcomb has been subject to one criminal action.

In August 2010, a customer alleged that Barcomb failed to disclose taxes involved in disbursements from a 1035 contract. The case settled for $20,000 in damages.

In June 2010, a customer alleged that Barcomb and his member firm did not properly conduct due diligence on the tenant-in-common (TIC) property that they had recommended to their customers and invested their customers in. This dispute was settled for $200,000.