LPL Financial

Advisor Suhail Khan Barred by Securities Regulator

October 1, 2018 | by Staff Attorney

According 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.

Advisor Clifton Roberts Discharged Over Undisclosed Business Activity – Investment Attorneys

September 25, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Clifton Roberts (Roberts), formerly associated with LPL Financial LLC (LPL Financial) in Houston, Texas was terminated for cause by LPL Financial in April 2018 after the firm made allegations that Roberts violated of firm policy regarding outside business activities (OBAs).

At this time it is unclear the nature or scope of the alleged OBAs that Roberts was involved in. According to Roberts’ public diclsoures the broker was part of number of OBAs including IDLife, Ursus Wealth Management – a d/b/a entity for his LPL Financial business, Ursus and Company – a real estate management and construction company which Roberts claims is not investment related. In addition, an unnamed business for insurance is listed. It is unknown whether LPL’s claims relate to any of these entities.

FINRA suspends Chelsea Financial Broker George Warner for Filing Inaccurate Client Records

September 4, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP are currently investigating Chelsea Financial Services (Chelsea Financial) broker George Warner (Warner). According to BrokerCheck Records, Warner has been subject to a regulatory matter in which the Financial Industry Regulatory Authority (FINRA) sanctioned Warner for the violation of the securities laws. In addition, Warner has been subject to termination from two firms of employment and a customer complaint.

In November 2014, Warner was permitted to resign from NFP Advisor Services for changing customer documents and information after the clients had signed the documents. In June 2013, Warner was discharged from LPL Financial LLC for getting customer signatures on account transfer forms that were blank.

Subsequently, in April 2017, FINRA found that Warner altered customer documents without customer knowledge or permission on over five occasions in which he included customer liquidity needs, net worth, annual income, alternative investment forms, and an IRA application. By altering the firm’s documents, Warner impeded on the firm’s ability to maintain accurate records. Without admitting or denying the findings, Warner consented to the sanctions and to the entry of findings. Consequently, FINRA imposed a $5,000 fine and 30 day suspension.

In addition, Warner has been subject to a customer dispute. In August 2009. a customer alleged that Warner purchased CIT bonds instead of CITI Corp bonds. The case was settled at $225,000.

FINRA Bars Sanders Spangler for Alleged Unauthorized Trades

July 30, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP have been investigating previously registered broker Sanders Spangler (Spangler). According to BrokerCheck Records kept by the Financial Industry Regulative Authority (FINRA), In February 2017, LPL Financial LLC (LPL Financial) terminated Spangler for executing unauthorized trades in non-discretionary customer accounts. Shortly after, in March 2018, FINRA barred Spangler from financial industry due to Spangler’s failure to appear to an on-the-record testimony regarding the unauthorized trade allegations against Spangler at LPL Financial. By failing to appear to the testimony, Spangler was in violation of FINRA Rules 8210 and 2010. Without admitting or denying the findings, Spangler consented to the sanction and to the entry of findings. However, the extent of which Spangler executed unauthorized trades is still unclear.

Spangler has also been subject to six customer disputes within the past two years. Two of these disputes are still pending.

In March 2018, Spangler’s ex-wife alleged that Spangler was forging her account documents. This dispute is currently still pending.

LPL Financial Broker Stephen Garrett Subject to Customer Complaints

February 22, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against LPL Financial broker Stephen Garrett (Garrett). According to BrokerCheck records, Garret has been subject to two customer complaints.

Most recently, In February 2014, a customer alleged inappropriate investments and options trading in volatile stocks concentrated in the oil and energy sector and inconsistent with customer’s investment objectives. This dispute settled for $62,500.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

Broker Brent Lott under FINRA Investigation

January 23, 2018 | by Staff Attorney

According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), broker Brent Van Lott (Lott) is being investigated for allegedly violating FINRA rules. Lott has also been subject to three customer disputes.

In January 2016, a customer alleged Lott initiated trades without the customer’s written consent. This dispute was settled for $50,000.

In March 2014, a customer alleged that a third party, acting in concert with Lott, forged the customer’s signature on contracts to acquire insurance policies. This dispute is pending.

Brian Royster Barred For Borrowing Client Funds

January 17, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Brian Royster (Royster), formerly associated with HD Vest Investment Services (HD Vest), in November 2017, was barred from the financial industry by FINRA concerning allegations that he borrowed funds from clients. FINRA found that Royster consented to the sanction and findings that he refused to comply with a FINRA request for documents related to its investigation into the circumstances surrounding his termination from HD Vest. FINRA found that HD Vest filed a Form U5 terminating Royster’s registration and stating that he had violated its policy regarding borrowing money from clients.

In addition to the bar Royster has been subject to two customer complaints concerning his variable annuity sales practices.

At this time it is unclear the extent and scope of Royster’s securities violations and outside business activites. The firm’s allegations concern borrowing of funds could be considered a private securities transaction – a practice known in the industry as “selling away”.

FINRA Suspends Kenneth Savino for Selling Away

January 4, 2018 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against Kenneth Savino (Savino).

According to BrokerCheck records, Savino allegedly purchased shares of a security for $100,000 without providing prior notice to his member firm and Savino inaccurately indicated on an annual compliance questionnaire that he had not participated in any private securities transactions. Savino was suspended for 15 days and fined $5,000. Without admitting or denying the findings, Savino consented to the sanctions and the entry of findings.

Savino was discharged from LPL Financial in October 2015 for allegedly entering into a loan transaction with another company, receiving shares of the company in return, with no pre-approval by the firm. Additionally, Savino allegedly made private securities transaction that he did not have pre-approved by the firm. Savino also allegedly introduced a client to a potential outside investment opportunity that was not approved by the firm.

Broker George Warner Sanctioned Over Altering Client Records

December 8, 2017 | by Staff Attorney

According to BrokerCheck records financial advisor George Warner (Warner), currently associated with Chelsea Financial Services (Chelsea Financial), has been subject to one customer complaint, one regulatory action, and two terminations for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), in June 2013, LPL Financial LLC (LPL Financial) terminated Warner for cause alleging that he obtained client signatures on black account transfer forms. Thereafter, Warner was terminated from NFP Advisors Services (NFP Advisors) under similar circumstances. NFP Adviosrs claimed in November 2014 that Warner corrected client documents after the client had signed them.

In April 2017, FINRA sanctioned Warner stated that Warner altered various customer documents on at least five occasions after the documents had already been signed by the customers. FINRA found that Warner corrected or included the customer’s anticipated liquidity needs, net worth, liquid net worth, and/or annual income on new account forms, alternative investment disclosure forms, and an IRA application.

Often times, brokers change client information or have clients sign documents in blank in order to use false information to purchase products that the client is otherwise not qualified to purchase.

Update: Advisor Sonya Camarco Faces New Charges

November 15, 2017 | by Staff Attorney

In early September, we reported that the investment lawyers of Gana Weinstein LLP were investigating allegations by the Securities and Exchange Commission (SEC) finding that Sonya Camarco (Camarco) misappropriated over $2.8 million in investor funds from her clients and customers.

In a separate but parallel action, Colorado state authorities have arrested Camarco on charges that she stole $850,000 from clients. According to news sources, a Colorado grand jury indicted Camarco on six counts of securities fraud and seven counts of theft on September 21. Authorities say Camarco operated her scheme between January 2013 and May 2017. An SEC investigator allegedly traced nearly 130 checks from Camarco’s clients’ accounts to a post office box she controlled. Camarco is accused of using the money to pay her own credit card bills and taxes, and to buy real estate.

LPL terminated Camarco in August 2017 “for depositing third party checks from client accounts into a bank account she controlled and accessing client funds for personal use.”