Articles Tagged with Morgan Stanley

shutterstock_191231699-300x200The securities attorneys at Gana Weinstein LLP are investigating claims against Wunderlich Securities, Inc. (Wunderlich Securities) broker Derrick Watts (Watts). According to BrokerCheck records, Watts has been subject to a regulatory matter in which the Financial Industry Regulatory Authority (FINRA) sanctioned Watts for various violations of the securities laws including churning, otherwise known as excessive trading.  In March 2016, FINRA found that Watts failed to report his involvement in four unsatisfied civil judgments from 2009 to 2013 on his U4 registration form. Without admitting or denying the findings, Watts consented to the sanctions and the entry of findings. In April 2016, Watts was suspended for three months.

In addition to the FINRA sanctions, Watts has been subject to three customer complaints and two financial disclosures – including filing for bankruptcy and a tax lien.

In February 2016, Watts was discharged for bankruptcy due to failure in a real estate development that he was involved in. Bankruptcies and large tax liens are a potential sign that the advisor has difficulty managing their own finances. FINRA provides this information to the public because it is material for consumers to know whether or not their advisor’s financial situation influences the advisor’s recommendations.

Most recently, in September 2017, a customer alleged that from January 2010 to November 2015, Watts had been excessively trading the customer’s account without customer knowledge or approval.

In February 2016, a customer alleged that from January 2010 to November 2015, Watts was churning a customer’s account without customer knowledge or approval. The client requested $32,914.56 for damages. Continue Reading

shutterstock_66745735-300x200The securities lawyers at Gana Weinstein LLP are investigating a customer complaint against Morgan Stanley broker Theodore Crowley (Crowley).

According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), Theordore Crowley (Crowley) has been subject to a customer complaint.

In June 2012, a customer alleged that from 2008 through 2011, he was charged excessive markups and markdown on the purchase and sale of municipal bonds by Crowley. This dispute settled for $465,000.

In April 2017, the Internal Revenue Service (IRS) filed a tax lien against Crowley for $611,984.42.

The term “securities fraud” covers a range of illegal activities involving the deception of investors or the manipulation of the financial markets. Fraud includes false representations, unauthorized trading, value manipulation, and Ponzi schemes. Investors are protected against fraudulent securities activities by several different civil laws.

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shutterstock_103476707-300x212According to BrokerCheck records financial advisor Jeffrey Wilson (Wilson), employed by Wells Fargo Clearing Services, LLC (Wells Fargo), has been subject to four customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Wilson has been accused by a customers of unsuitable investment advice concerning various investment products including energy stocks that likely include master limited partnerships (MLPs).  The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The most recent claim was filed in August 2017 and alleges that Wilson in or around August 2014, recommended the purchase of unsuitable energy securities. The claim is currently pending.

In May 2016 another customer alleged that Wilson from June 2014 through November 2015 made unsuitable investments in oil and energy investments.  The customer’s claims were settled for $250,000.

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.

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shutterstock_184430645-300x225According to BrokerCheck records, Elaine LaCerte (LaCerte), also known as Elaine Diones and Elaine Diones Helzer, was suspended by the Financial Industry Regulatory Authority (FINRA) in August 2017.

LaCerte was suspended for allegedly engaging in an unsuitable pattern of short-term trading of Unite Investment Trusts (UITs) in over 100 customer accounts. Without admitting or denying the findings, LaCerte consented to the sanctions and the entry of findings. The findings stated that “in connection with these accounts, LaCerte repeatedly recommended that the customers purchase UITs and then sell these products well before their maturity dates. In addition, on more than 100 occasions, LaCerte recommended that her customers use the proceeds from the short-term sale of a UIT to purchase another UIT with identical investment objectives. LaCerte’s recommendations caused the customers to incur unnecessary sales charges, and were unsuitable in view of the frequency and cost of the transactions.” LaCerte has been banned from the industry for six months and was ordered to pay a $5,000 fine.

Moreover, LaCerte has been subject to four customer disputes.

In November 2016, a customer alleged LaCerte misrepresented material facts with respect to the purchase of a municipal bond. This dispute settled for $25,000.

In August 2016, a customer alleged LaCerta recommended unsuitable investments. This dispute settled for $24,464.76.

In July 2016, a customer alleged LaCerta misrepresented material facts with respect to investment risks. This dispute settled for $4,000.

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shutterstock_115971289-269x300According to BrokerCheck records financial advisor William Paynter (Paynter), employed by Wells Fargo Clearing Services, LLC (Wells Fargo), has been subject to two customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Paynter has been accused by a customers of unsuitable investment advice concerning various investment products including energy stocks that likely include master limited partnerships (MLPs).  The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The most recent claim was filed in June 2017 and alleges that Paynter made unsuitable investments from 2013 through 2014.  The customer alleges $500,000 in damages and the claim is currently pending.

In May 2017 another customer alleged that Paynter from 2010 through 2017 made unsuitable investments and over concentration in oil and energy investments.  The claim alleges the broker committed negligence, breach of fiduciary duty, negligent supervision, and breach of contract causing $500,000 in damages.  The claim is currently pending.

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.

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shutterstock_143094109-300x200According to BrokerCheck records financial advisor William Heiden (Heiden), employed by Wedbush Securities Inc. (Wedbush), has been subject to nine customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Heiden has been accused by a customers of unsuitable investment advice concerning various investment products including energy stocks including master limited partnerships (MLPs).  The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The most recent claim was filed in June 2017 and alleges that Heiden, breach his fiduciary duty, committed violation of industry rules, and financial elder abuse causing $855,299.  The customer’s accounts were maintained at the firm from September 2013 to April 2017.  The claim is currently pending.  The broker has stated in defense of the claim that market conditions and the collapse of oil prices in 2014 and 2015, resulted in a loss of value of some stock and bond positions in the customer’s account.

In January 2017 a customer alleged that Heiden, that from March 2012 to February 2016, made unsuitable investments in the client accounts causing $950,718 in damages.  The claim is currently pending.

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shutterstock_171397469-300x228The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against former Morgan Stanley broker Peter Doyle (Doyle).

According to BrokerCheck records, Doyle was terminated from Morgan Stanley in June 2016 for failing to adhere to industry rules and/or firm policies including with regard to the use of trading discretion. Doyle’s failure to appear for FINRA requested on-the-record testimony in connection with its investigation into the conduct that led to his termination led to his bar from the industry. Without admitting or denying the findings, Doyle consented to the sanction and to the entry of findings that he refused to appear.

Before Doyle’s termination, Morgan Stanley was ordered by a FINRA arbitration panel to pay over $8 million in damages in a customer dispute concerning allegations that Doyle made unauthorized trades, failed to disclose fees, and engaged in the financial abuse of an elderly customer.

shutterstock_188606033-300x200According to BrokerCheck records financial advisor Lewis Robinson (Robinson), currently associated with BB&T Securities, LLC (BB&T), has been subject to 10 customer complaints, one regulatory action, and one employment separation for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Robinson has been accused by customers of unsuitable investment advice among other claims.

In August 2017, FINRA found that Robinson settled a customer’s complaint by issuing three checks in the total amount of $12,203.23 to the customer’s wife without the knowledge of his brokerage firm.  FINRA determined that the customer complained on three separate occasions about the amount of commissions that he charged.

In August 2015, Morgan Stanley terminated Robinson for providing unapproved fee reimbursements to a client.

The most recent customer complaint against Robinson was filed in July 2016 and alleged unsuitable investments between 2013 and 2016 causing $104,000 in damages.  The claim was settled for $29,060.

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shutterstock_36343294-300x225According to BrokerCheck records financial advisor David Capin (Capin), currently associated with Summit Brokerage Services, Inc. (Summit), has been subject to nine customer complaints and one employment termination for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Capin has been accused by customers of unsuitable investment advice, misrepresentations, and excessive trading among other claims.

In February 2017 Capin was permitted to resign from Raymond James Financial Services, Inc. (Raymond James) after he admitted to the firm that he had not discussed trades with certain customers prior to the time orders were entered.  This claim appears to concern unauthorized trading.

Two customers have filed claims concerning Capin in 2017 and both have been settled.  Another customer filed a claim in 2016 concerning unsuitable investments and that claim was denied by the firm.

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_123758422-300x200According to BrokerCheck records financial advisor Peter Doyle (Doyle), formerly associated with Morgan Stanley, has been subject to three customer complaints, one employment termination for cause, and one regulatory action.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Doyle has been accused by customers of unsuitable investment advice and unauthorized trading among other claims.

Doyle was barred by FINRA in July 2017 when he refused to appear for FINRA testimony in connection with its investigation into the conduct that led to his termination from Morgan Stanley.  Morgan Stanley had terminated Doyle in June 2016 after it made allegations involving adherence to industry rules and use of trading discretion.  The most recent complaint filed in February 2017 alleged unsuitable recommendations from June 2008 through June 2016.  The claim settled for $600,000.

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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