Articles Tagged with LPL Financial

shutterstock_24531604-200x300The law offices of Gana Weinstein LLP are currently investigating claims that advisor James Booth (Booth) has taken funds from clients and engaged in certain business activities not approved by his brokerage firm.  Booth, formerly registered with LPL Financial, LLC (LPL Financial) out of Norwalk, Connecticut has left LPL Financial and is under investigation by securities regulators.  In addition, Booth disclosed at least four customer complaints.

Our firm has been contacted by Booth clients who have been informed that certain funds of clients that they believed were invested with Booth could no longer be located.  Upon information and belief, investors have been asked to write out checks to Insurance Trends to invest with Booth and now these funds cannot be located.  If you have had this experience with Booth we encourage you to contact our firm for a free consultation.

Booth’s CRD disclosures state that Booth has an outside business activity called Booth Financial Associates and John M Glover Agency.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling fraudulent securities sales.  Booth’s activities in the sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws.  In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm.  Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

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shutterstock_63635611-300x200The law offices of Gana Weinstein LLP are currently investigating claims that advisor James Bylenga (Bylenga) has engaged in a loan scheme with clients.  Bylenga, formerly registered with LPL Financial LLC (LPL Financial) and operating out of Portage, Michigan, has been accused by a customer of soliciting funds for a loan.  Bylenga operated out of the d/b/a firm The Retirement Wealth Management Group while working for LPL Financial.

In April 2019, FINRA brought an action and found that Bylenga consented to sanctions that he refused to produce documents and information requested by FINRA during the course of an investigation that commenced after his former member firm amended his termination reporting form.  According to FINRA, LPL Financial’s an internal review determined that Bylenga may have received loans from his clients while associated with the firm.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in loan or misappropriation of asset schemes.  The provision of loans, promissory notes, and activities in the sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws.  In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm.  Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

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shutterstock_836360-300x225Advisor Mark Lamkin (Lamkin), currently employed by Calton & Associates, Inc. (Calton & Associates) has been subject to at least three customer complaints and two terminations for cause.  According to a BrokerCheck report some of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In August 2018 Lamkin’s then employer, LPL Financial LLC (LPL) terminated Lamkin claiming that advisor received and/or benefited from loans from firm customers, failed to disclose and inadequately disclosed outside business activities, and personally engaged in and solicited other investors to participate in private investments without obtaining Firm approval.

In January 2019 a customer filed a complaint alleging that Lamkin violated the securities laws by making misrepresentations concerning an annuity product.  The claim is currently pending.

In April 2019 another customer filed a complaint alleging that Lamkin violated the securities laws by making misrepresentations and an unsuitable investment in a REIT security.  The claim is currently pending.

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shutterstock_182053859-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Michael Olinde (Olinde), currently associated with Capital Financial Services, Inc. (Capital Financial), in May 2017, was discharged from his employer LPL Financial LLC (LPL) due to allegations that he violated the firm’s policies regarding outside business activities.  Thereafter, according to Olinde’s BrokerCheck, Olinde has been subject to a FINRA investigation regarding his outside business activity.

Engaging in undisclosed outside business activities represents a risk to brokerage firms that the advisor may be engaging in unmonitored securities related businesses.  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”.

In this case it is unclear what sort of business activities Olinde was engaged in.  However, his disclosures include many businesses including: 1) Olinde Brothers Properties – a commercial building partnership; 2) Olinde Financial Group – his d/b/a for brokerage activity; 3) Olinde Investment Holdings LLC; 4) The Massad Olinde Group; 5) Alpha Consulting Group; 6) Prciniple Matters, LLC – a radio program; 7) Avive Nutraceuticals, LLC – partner and board member; 8) Olinde Management, LLC – resendential properties rentals; 9) K & M Olinde Farms; 10) M202 – real estate business.

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shutterstock_120556300-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Nicholas Radke (Radke), formerly associated with MML Investors Services, LLC (MML Investors) in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Radke consented to the sanction and a bar from the industry because he failed to provide FINRA with requested documents and information in connection with allegations that Radke participated in a private securities transaction without prior approval from his member firm.

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”.

At this time it is unclear the nature and scope of Radke’s activities.  Radke’s disclosures include outside business activities (OBAs).  At this time it is unclear whether the unapproved products involve any of these entities.

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shutterstock_70999552-300x200According to BrokerCheck records financial advisor Charla Kabana (Kabana), formerly employed by SagePoint Financial, Inc. (SagePoint) has been subject to one regulatory action, one one employment termination for cause, and multiple financial disclosures during her career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the regulatory action against Kabana concern allegations over variable annuity sales practices.

In August 2018 Kabana consented to sanctions and to the entry of findings that she failed to provide FINRA with the documents and information requested in connection with its investigation concerning the reasons for her termination including concerns regarding her practices in respect to variable annuity business and related responses to compliance. Because Kabana refused to appear for FINRA and provide on-the-record testimony FINRA automatically barred her from the industry.

In July 2016, LPL Financial LLC (LPL Financial) discharged Kabana claiming that the firm had concerns regarding the Representative’s practices in respect to variable annuity business and related responses to compliance.

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shutterstock_123928846-300x268According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Jon Pariser (Pariser), formerly associated with Independent Financial Group, LLC (Independent Financial) in Pacific Grove, California was sanctioned by FINRA resulting in a bar from the industry.  In October 2018 Pariser consented to the FINRA sanction and an entry of findings that he failed to provide FINRA with requested documents and information related to allegations that he referred some of his customers to an individual who was not registered and who may have recommended or sold potentially unsuitable securities to them.

It is believed that Pariser recommended that his clients invest with Christopher Parris, an unlicensed broker.  At that time Parris has been accused by the SEC of running an investment fraud scheme through First Nationle Solution.  According to an Securities and Exchange Commission (SEC) complaint filed in June 2018, Parris and others orchestrated the First Nationle Solution Ponzi scheme and bilked investors out of over $102 million.  Parris and others have been accused of using brokers like Pariser to liquidate safe or non-fraudulent investments in order to obtain financing of their scheme.

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shutterstock_102217105-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Philip Nalesnik (Nalesnik), formerly associated with LPL Financial, LLC (LPL Financial) in Pottsville, Pennsylvania was terminated by the firm.  In July 2018 Nalesnik was discharged after the firm claimed that he was in violation of firm policy regarding outside business activities and failed to timely and completely respond to firm inquiries.

In addition, Nalesnik has several reported tax liens including a $4,573 lien in September 2017 and a $7,847.61 lien in July 2012.

At this time it is unclear the nature or scope of the alleged OBAs and if such activity included private securities transactions.  Nalesnik’s public disclosures show that he operated Ridgeview Wealth Management a d/b/a entity.  In addition, Nalesnik owned Integrated Insurance Management LLC.

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shutterstock_190371500-300x200Former Thurston Springer Financial (Thurston Springer) advisor Donald Woods (Woods) has been subject to at least five customer complaints and one bankruptcy.  According to a BrokerCheck report many of the customer complaints concern variable annuities or alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In August 2018 Woods filed for bankruptcy.  A broker’s inability to manage their own finances is material information to investors in considering whether or not to use that person for financial advice.  In addition, financial distress may cause an advisor to have a conflict of interest and recommend investments for their own profit rather than their client’s best interests.

The most recent complaint was filed in August 2018 excessive selling of variable annuities, misrepresentations, and failing to disclose material facts.  The complaint alleges $153,554 in damages and is currently pending.

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shutterstock_145368937-300x225According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Suhail Khan (Khan), formerly associated with LPL Financial, LLC. (LPL Financial) in Chicago, Illinois was barred by FINRA.  In August 2017 Khan failed to respond to requests by FINRA for documents and information.

Thereafter, in May 2018 a customer filed a complaint alleging that between 2013 and 2017, the advisor recommended unsuitable, speculative investments in the advisor’s own business, a hedge fund, oil and gas partnerships, and a real estate investment trust and that some of these investments were unregistered securities.

At this time it is unclear the nature or scope of the alleged OBAs and/or private securities transactions that Khan may have been involved in.  Khan’s disclosures state a number of OBAs including Omni Casualty and Property Insurance and SK Associates Financial.

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