Articles Tagged with Maxim Group LLC

shutterstock_103610648-300x212The investment fraud lawyers of Gana LLP are examining multiple customer disputes filed with the Financial Industry Regulatory Authority (FINRA) against broker David Silberg (Silberg). According to BrokerCheck, Silberg has a multitude of disclosures concerning: churning, excessive trading, unauthorized trading, unsuitability, and breach of fiduciary duty. His BrokerCheck records also show 2 disclosures concerning an employment separation after allegations.

The most recent customer complaint filed against Silberg occured in August 2016. The customer alleged that Silberg made unsuitable recommendations to the client’s account. Additionally, the broker allegedly misrepresented and omitted material facts regarding an investment in a corporate debt security. The alleged damages were worth $100,000 and the case was settled for $29,750.00.

In November 2009, another customer complaint was filed against Silberg alleging that during his employment at Gunnallen Financial, the broker failed to supervise, engaged in unauthorized trading, and made unsuitable investments to their account. The alleged damages were worth $375,000 and the case was settled for $50,000.

Continue Reading

shutterstock_143179897Gana LLP is investigating claims were brought by securities and exchange commission (SEC) against Matthew Bell (Bell) and Craig Josephberg (Josephberg) in connection with participation in a $300 million securities fraud market manipulation scheme. The SEC brought charges against Abraxas J. Discala (Discala), Marc E. Wexler (Wexler), and Ira Shapiro (Shapiro), for manipulating the stock price of sale of CodeSmart Holdings (OTC: ITEN), Cubed, Inc. (OTC: CRPT), StarStream (OTC: SSET) and The Staffing Group, Ltd. (OTC: TSGL).

According to the complaint, in 2013, Discala and Wexler conspired with Bell and Josephberg, both registered representatives with different brokerage firms, to inflate the price of the stock of CodeSmart. The SEC found that Discala, Wexler, Bell, and Josephberg then profited by selling their shares at inflated values at the expense of Bell’s clients and Josephberg’s customers.

Bell was taken into custody by the FBI and appeared in federal court in San Antonio. In Court, Bell was informed of a 10-count indictment returned in Brooklyn, New York, and was released on bond. Bell has a long history of customer complaints and two firm terminations.

From October 2012, to June 2013, Bell was registered with broker-dealer WFG Investments (WFG). Thereafter, from August 2013 to October 2013, Bell was registered with Securities America. Bell has at least 25 customer complaints filed against him. Some of the complaints relate to unsuitable recommendations to purchase penny stocks including CodeSmart. Other complaints allege inappropriate investments in debt securities, limited partnerships, and direct private placements. In some instances the complaints allege that the trading was unauthorized. In addition, Bell was terminated by WFG for allegedly trying to settle a customer complaint without bringing the complaint to the firm’s attention. Bell was terminated four months later from Securities America for allegedly failing to follow the firm’s procedures concerning private securities transactions.

Continue Reading

shutterstock_184149845In our prior post, our offices, Gana LLP, noted its investigation of the July 17, 2014, claims brought by securities and exchange commission (SEC) against Craig Josephberg in connection with his participation in a $300 million securities fraud market manipulation scheme. The SEC brought charges against Abraxas J. Discala (Discala), Marc E. Wexler (Wexler), Matthew A. Bell (Bell), Craig L. Josephberg (Josephberg), and Ira Shapiro (Shapiro), for manipulating the stock price of four publically traded companies, CodeSmart Holdings, Inc. (CodeSmart), Cubed, StarStream Entertainment Inc., and the Staffing Group, Ltd.

According to the complaint, in 2013, Discala and Wexler conspired with registered representatives Bell and Josephberg to inflate the price of the stock of CodeSmart. The SEC found that Discala, Wexler, Bell, and Josephberg then profited by selling their shares at inflated values at the expense of Bell’s clients and Josephberg’s customers.

Josephberg has a long and troubled regulatory, criminal activity, debts, customer complaints, among a host of other supervisory “red flags” of potential misconduct in the handling of his clients. Josephberg entered the securities industry in 1996. Thereafter, he was associated with eight different firms including Maxim Group LLC, ICM Capital Markets, LTD, vFinance Investments, Inc., Halcyon Cabot Partners, LTD. (Halcoyon), and most recently Meyers Associates, L.P. (Meyers Associates). Indeed, when Josephberg was terminated from Halcoyon he was under investigation by the firm for sales practice violations including the selling of unsuitable securities, unauthorized trades, and securities fraud in connection with the sale of penny stocks including VHGI and Cell Therapeutics.

Continue Reading