Articles Tagged with Lincoln Financial

shutterstock_156972491-300x198The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor James Crosson (Crosson), currently employed by Lincoln Financial Securities Corporation (Lincoln Financial) and formerly with Voya Financial Asvisors, Inc. (Voya Financial) has been subject to at least four customer complaints, and one termination for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Crosson’s customer complaints alleges that Crosson recommended unsuitable investments in a stock called Castle Brands (Ticker Symbol: ROX) among other allegations of misconduct relating to the handling of their accounts.

Castle Brands purports to be a developer and international marketer of premium and super premium beverage alcohol brands including rum, whiskey/bourbon, liqueurs, vodka and tequila, which are marketed and sold in the United States, Canada, Europe, Latin America and Asia.  The stock appears to be a risky penny stock with a market capitalization of little more than $200 million.

In July 2019 a customer complained that Crosson violated the securities laws by alleging that the risks associated with purchasing Castle Brands stock was misrepresented and the amount invested in the stock was excessive.  The claim alleges $85,000 in damages and settled for $11,196.

In July 2019 a customer complained that Crosson violated the securities laws by alleging that the risks associated with purchasing Castle Brands stock was misrepresented.  The claim alleges $39,703 in damages and is currently pending.

In April 2019 Crosson was discharged from Voya Financial after the firm alleged that Crosson discussed one customer’s complaint with another customer.

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shutterstock_20354401-300x200The law offices of Gana Weinstein LLP continue to investigate the Massachusetts Securities Division’s enforcement action and administrative complaint against ARO Equity, LLC (ARO Equity), Thomas David Renison (Renison), and Timothy James Allcott (Allcott).  The complaint alleges that ARO Equity is Ponzi-scheme.

Upon information and belief former broker Barry Horowitz (Horowitz) recommended Renison and ARO Equity to his investment and legal clients.  Horowitz was employed by Lincoln Financial Securities Corporation (Lincoln Financial) until August 2018.  At the same time Horowitz worked as an attorney with Nirenstein, Horowitz & Associates, P.C.

In the ARO Equity fraud, the state of Massachusetts claimed that Allcott was the manager of ARO Equity and together with Renison took $5.8 million of investor funds since August 2015.  The complaint alleges that these funds were raised through the sale of unsecured promissory notes promising 8-12% annual returns over three to five-year terms.  The complaint alleges that investors made significant investments from their retirement accounts by transferring qualified retirement assets to a self-directed IRA to invest in ARO Equity.  Despite representations of safety, the complaint alleged that ARO Equity principals have received undisclosed and excessive commission payments and executive compensation for soliciting investments and bears the hallmarks of a Ponzi scheme.  In fact, the complaint claims that ARO Equity has only “invested” approximately half of the money received from investors and lost most of it.

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shutterstock_102757574Our firm’s investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Alan Thomilson (Thomilson) currently associated with Lincoln Financial Securities Corporation (Lincoln Financial) alleging unsuitable recommendations to invest in variable products such as variable annuities, equity indexed annuities, and variable life insurance.  According to brokercheck records Thomilson has been subject to six customer complaints and one criminal matter.

In March 2015 a customer alleged that Thomilson misrepresented a recommendation to replace an existing variable annuity with an equity indexed annuity and that the recommendation was not suitable causing $125,000 in damages.  The claim is currently pending.

Variable annuities and equity indexed annuities are complex financial and insurance products.  In fact, recently the Securities and Exchange Commission (SEC) released a publication entitled: Variable Annuities: What You Should Know encouraging investors to ask questions about the variable annuity before investing.  Essentially, a variable annuity is a contract with an insurance company under which the insurer agrees to make periodic payments to you.  The investor chooses the investments made in the annuity and value of your variable annuity will vary depending on the performance of the investment options chosen.  The primary benefits of variable annuities are the death benefit and tax deferment of investment gains.

Broker Paul A. Thomas (Thomas) formerly with Lincoln Financial Advisors Corp. (Lincoln Financial) was suspended by The Financial Industry Regulatory Authority (FINRA) over allegations that Thomas engaged in unauthorized and/or improper discretionary penny stock trading, engaged in unsuitable penny stock trading, and mismarked the trade tickets for penny stock transactions as unsolicited, when they were solicited trades.

Thomas has been in the securities industry since 2000 and was employed by Lincoln Financial as a registered representative through his termination on October 14, 2011.  Thomas has approximately 15 customer disputes filed against him.  The vast majority of these disputes involve allegations concerning improper penny stock trading.

A “penny stock” is a security issued by a small or micro-cap company having less than $100 million in market capitalization. Penny stocks typically trade at less than $5 per share and are generally quoted on over-the-counter exchanges such as on the OTC Bulletin Board.  The risks of penny stocks include the fact that they may trade infrequently. Thus, it is often difficult to liquidate a penny stock holding once acquired and at the time the investor wants to.  Second, it is often difficult to find accurate quotes for penny stocks.  Consequently, penny stocks often fluctuate wildly day-to-day and investors may lose their whole investment.

The Financial Industry Regulatory Authority (FINRA) barred broker Jerry McGlothlin from associating with any member firm for engaging in outside business activities, engaging in private securities transactions, providing false responses on annual compliance questionnaires, and failing to respond to FINRA requests for information.

Between May 2003, and October 2012, McGlothlin was registered with FINRA through his association with Lincoln Financial Securities Corporation (“Lincoln Financial”) and its predecessor Jefferson Pilot Securities, Inc.  On October 12, 2012, Lincoln Financial filed a Uniform Termination Notice (Form U5) terminating McGlothlin’s registration with the firm.

FINRA alleged that McGlothlin engaged in outside business activities without notifying Lincoln Financial, in violation of NASD Conduct Rules 3030 and 2110, and FINRA Conduct Rules 3270 and 2010.  FINRA alleged that while McGlothlin was employed with Lincoln Financial he engaged in business activities with International Business Law Center, Inc. (IBLC), a/k/a Internet Business Law Services and IBLS Online Education, Inc. (IBLS Online).  Both IBLC and IBLS Online provide internet legal services and learning programs.