Articles Tagged with Laidlaw & Company

shutterstock_176351714-300x200According to BrokerCheck records financial advisor Marc Reda (Reda), formerly associated with Spartan Capital Securities, LLC (Spartan Capital), has been subject to eight customer complaints, three employment terminations for cause, one judgment or lien, one regulatory action, and one criminal matter.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Reda has been accused by customers of unsuitable investment advice, breach of fiduciary duty, and unauthorized trading among other claims.

The most recent complaint filed in June 2016 alleging breach of fiduciary duty and unsuitable recommendations causing $100,000 in damages.  The claim has been settled.

In addition, in June 2017 FINRA sanctioned and suspended Reda alleging that Reda exercised discretion in customers’ accounts without written authorization from the customers.  Further, FINRA determined that Reda failed to timely disclose on his Form U4 a federal tax lien filed against him in the amount of $575,101.

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shutterstock_183554579Attorneys at Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Christian Herrera (Herrera) alleging unsuitable investments and unauthorized trading among other claims.  According to brokercheck records Herrera has been subject to five customer complaints, one financial disclosure – a bankruptcy, and one regulatory event.

A customer filed a complaint in October 2013 alleging that the broker made unsuitable recommendations by over-concentrating their leading to $39,229 in losses.  The claim was settled for $14,000.

Brokers in the financial industry have the fundamental responsibility to treat investors fairly.  This obligation includes making only suitable investments for their client.  The suitable analysis has certain requirements that must be met before the recommendation is made.  First, there must be reasonable basis for the recommendation for the investment based upon the broker’s and the firm’s investigation and due diligence.  Common due diligence looks into the investment’s properties including its benefits, risks, tax consequences, the issuer, the likelihood of success or failure of the investment, and other relevant factors.  Second, if there is a reasonable basis to recommend the product to investors the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives.  These factors include the client’s age, investment experience, retirement status, long or short term goals, tax status, or any other relevant factor.

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shutterstock_97819226The securities lawyers of Gana LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against broker Robert Rotunno (Rotunno).  According to BrokerCheck records Rotunno has been subject to at least six customer complaints.  The customer complaints against Rotunno allege securities law violations that including unsuitable investments, churning, and excessive trading among other claims.

The most recent complaint was filed in July 2016 alleging $80,000 in damage stemming from churning and unsuitable investments.  The complaint settled for $20,000.

Rotunno is currently associated with National Securities Corporation (National Securities), a firm recently featured in a study ranking brokerage firms by incidents of misconduct.  According to a study conducted by the Securities Litigation and Consulting Group entitled “How Widespread and Predictable is Stock Broker Misconduct?” the incidents of investor harm at National Securities is extraordinarily high.  The study ranked National Securities as the third worst brokerage firm finding that brokers at the firm had over a 31% misconduct rate.  The study stated that investors should stay away from National Securities “Given their coworkers’ disclosure record as of 2014, 83.7% of the brokers at these six firms would be in the highest risk quintile as defined in the FINRA study and should be avoided by investors. The BrokerCheck reports for most of the brokers at these six firms should prominently display a skull and crossbones warning.”

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shutterstock_140321293The securities lawyers of Gana LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against broker Nathaniel Clay (Clay).  According to BrokerCheck records Clay has been subject to at least six customer complaint and one employment termination for cause.  The customer complaints against Clay allege securities law violations that including unsuitable investments, churning, excessive trading, and unauthorized trading among other claims.

The most recent complaint was filed in December 2015 alleging $513,218 in damage stemming from unauthorized trading, negligence, breach of fiduciary duty, and misrepresentations.  The complaint is still pending.

Clay’s former brokerage firm National Securities Corporation (National Securities) was recently featured in a study ranking brokerage firms by incidents of misconduct.  According to a study conducted by the Securities Litigation and Consulting Group entitled “How Widespread and Predictable is Stock Broker Misconduct?” the incidents of investor harm at National Securities is extraordinarily high.  The study ranked National Securities as the third worst brokerage firm finding that brokers at the firm had over a 31% misconduct rate.  The study stated that investors should stay away from National Securities “Given their coworkers’ disclosure record as of 2014, 83.7% of the brokers at these six firms would be in the highest risk quintile as defined in the FINRA study and should be avoided by investors. The BrokerCheck reports for most of the brokers at these six firms should prominently display a skull and crossbones warning.”

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shutterstock_155271245The securities lawyers of Gana LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against National Securities Corporation (National Securities) broker Jason Wilk (Wilk).  According to BrokerCheck records Wilk has been subject to at least one customer complaint.  The customer complaints against Wilk alleges securities law violations that including unsuitable investments, unauthorized trading, and breach of fiduciary duty among other claims.

In January 2016 a customer filed a complaint alleging $53,532 in damage stemming from unsuitable investment.  The complaint settled.

According to a recent study conducted by the Securities Litigation and Consulting Group entitled “How Widespread and Predictable is Stock Broker Misconduct?” the incidents of investor harm at National Securities is extraordinarily high.  The study ranked National Securities as the third worst brokerage firm finding that brokers at the firm had over a 31% misconduct rate.  The study stated that investors should stay away from National Securities “Given their coworkers’ disclosure record as of 2014, 83.7% of the brokers at these six firms would be in the highest risk quintile as defined in the FINRA study and should be avoided by investors. The BrokerCheck reports for most of the brokers at these six firms should prominently display a skull and crossbones warning.”

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

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shutterstock_106111121The securities lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Matthew Turner (Turner).  According to BrokerCheck records Turner has been subject to at least five customer complaints and one pending bankruptcy.  The customer complaints against Turner allege securities law violations that including unsuitable investments, unauthorized trading, unsuitable use of margin, and churning among other claims.

In July 2014 a customer filed a complaint alleging $40,000 in damage stemming from unsuitable investment recommendations from 2010 through 2012.  The complaint settled.  In November 2012, another customer filed a complaint alleging unsuitable investments causing $450,000.  The claim settled.  In addition, in April 2015, Turner filed for bankruptcy.  Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services.  A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

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shutterstock_171721244The securities fraud lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Kerry Raheb (a/k/a Patrick Raheb) (Raheb). According to BrokerCheck records there are at least 5 customer complaints, two judgments or liens, and one criminal matter involving Raheb. The customer complaints against Raheb allege a number of securities law violations including that the broker made unsuitable investments, misrepresentations, negligence, and churning (excessive trading) among other claims. The most recent customer complaint filed in December 2015 alleged unsuitable investments resulting in losses of $199,001. The claim is still pending. In April 2014, another client filed a complaint alleging unauthorized trading claiming damages of $300,000. The broker has denied the allegations in the complaint and the claim is still pending.

In addition, Raheb has two judgements. One tax lien filed in January 2014 for $64,518 and one civil judgement for $12,024 recorded in February 2013. Substantial judgements and liens on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

As a background, when brokers engage in excessive trading, sometimes referred to as churning, the broker will typical 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. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

shutterstock_102757574According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Robert Yasnis (Yasnis) has been the subject of 3 customer complaints, and 3 regulatory actions. The customer complaints against Yasnis allege securities law violations that claim unauthorized trading among other claims. The most recent complaint was filed in June 2015, and alleged $34,350 in losses due to unauthorized trading in May 2011.

The most recent regulatory action was taken by the state of Florida in 2013, when the state alleged that a material false statement was made on an application for registration resulting in a denial of registration. In 1997, the state of Virginia alleged that Yasnis offered unregistered securities in the state and received a fine. Finally in 1994, the state of Texas revoked Yasnis’ securities license in the state due to allegations that he misled the state concerning the status of registration within the state.

Yasnis entered the securities industry in 1993. From February 2007, until July 2009, Yasnis was associated with Hallmark Investments, Inc. From November 2009, until April 2010, Yasnis was associated with Stephen A. Kohn & Associates, Ltd. Thereafter, from April 2010, until October 2012, Yasnis was associated with Buckman, Buckman & Reid, Inc. From October 2012, until January 2014, Yasnis was associated with Meyers Associates, L.P. Presently, Yasnis is associated with Laidlaw & Company (UK) Ltd. out of the firm’s New York, New York branch office location.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

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shutterstock_178801073According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Joseph Fedorko (Fedorko) has been the subject of an astonishing 16 customer complaints. The customer complaints against Fedorko allege securities law violations that claim churning and excessive trading, unsuitable investments, unauthorized trading, fraud, misrepresentations, and breach of fiduciary duty among other claims. The most recent complaint was filed in March 2014, and alleged $292,771 in losses due to an unsuitable investment strategy from 2011 until 2013. The case settled for $120,000. Another complaint filed in November 2012, alleged $400,000 in damages stemming from trading that began in 2011. Other complaints against Fedorko when combined allege millions in investor losses.

Fedorko entered the securities industry in 1989. From January 2002, until May 2009, Fedorko was associated with with Oppenheimer & Co. Inc. Presently, Fedorko is associated with Laidlaw & Company (UK) Ltd. out of the firm’s Stamford, Connecticut branch office location.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

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shutterstock_182357357According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Michael Capolongo (Capolongo) has been the subject of at least two customer complaints and one criminal matter over the course of his career. Customers have filed complaints against Capolongo alleging securities law violations including that the broker made unsuitable investments and churning among other claims.

An examination of Capolongo’s employment history reveals that Capolongo moves from troubled firm to troubled firm. The pattern of brokers moving in this way is sometimes called “cockroaching” within the industry. See More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities, The Wall Street Journal, (Oct. 4, 2013). In Capolongo’s six year career he has worked at eight different firms returning to one firm on three separate occasions. Many of the firms have been expelled by FINRA including John Thomas Financial which was run by Anastasios “Tommy” Belesis who recently agreed to be banned from the securities industry when the SEC accused him of defrauding investors in two hedge funds. In addition, John Thomas faced allegations of penny-stock fraud by FINRA after the firm reaped more than $100 million in commissions over its six-year history before it closed in July. According to new sources trainees at the firm earned as little as $300 a week to pitch stocks with memorized scripts.

Since 2009 Capolongo has been registered with John Thomas Financial, New Castle Financial Services LLC, EKN Financial Services Inc., National Securities Corporation, and Laidlaw & Company (UK) LTD. Since September 2014, Capolongo has been associated with Rockwell Global Capital LLC out of their Melville, New York office.

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