Articles Tagged with securities fraud

shutterstock_61848763-300x203The 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.

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.

shutterstock_61142644-300x225According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), broker Jeanette Adcock (Adcock) has been sanctioned for allegedly not complying with Illinois Securities Law.

Additionally, Adcock has been subject to three customer disputes in 2017. Moreover, In April 2017, Adcock was “permitted” to resign from Wayne Hummer Investments because she “failed to forward a written customer complaint to her supervisor or compliance department as required.”

In November 2017, a customer alleged that Adcock made misleading statements regarding a risky investment. The customer is requesting $25,000 in damages in this pending dispute.

shutterstock_143685652-300x300The securities attorneys at Gana Weinstein LLP are investigating potential claims against former Capital Securities Management Inc. broker Teryl Trenchard (Trenchard). According to Trenchard’s BrokerCheck records, he was identified in a Financial Industry Regulatory Authority (FINRA) investigation on March 10, 2017. FINRA is examining alleged fraudulent activities of Trenchard.

Trenchard was terminated by Capital Securities Management on March 10, 2017 based upon the FINRA investigation for fraud.

In a pending customer complaint, it has been alleged that Trenchard engaged in misappropriation, forgery, fraud and unauthorized trading in unsuitable transactions between 2005 and 2017. The alleged damages are $1,800,000.

shutterstock_160304408-300x199The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against Broker Tommy Mai (Mai).

According to Mai’s Brokercheck records, he has been sanctioned by FINRA because he allegedly “forged or caused to be forged customers’ signatures on various types of customer account documents including his member firm’s new account forms and non-firm insurance applications. In total, 53 customer account forms were forged, altered, or otherwise improperly signed (i.e., signed when partially completed or blank). The findings also stated that Mai paid to air a television program, on two Los Angeles Vietnamese-language television stations, appeared in every episode of the program and discussed a range of insurance and investment-related topics, without obtaining prior approval from the firm or FINRA prior to airing the program. In addition, the content of the program was, at times, misleading, promissory, and/or unbalanced.” Mai was suspended from FINRA for four months and fined $10,000.

The term “securities fraud” relates to inappropriate and illegal activities. Principally, it relates to investor deception and market maipulation. Fraud can sometimes include the unauthorized trading, false or misleading representations and of course, Ponzi schemes. Many laws protect investors.

shutterstock_185913422-300x200In 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.”

shutterstock_85873471-300x200According to BrokerCheck records financial advisor Michael Keane (Keane), formerly associated with UBS Financial Services Inc. (UBS), has been subject to nine customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Keane has been accused by a customers of unsuitable investment advice concerning various investment products including energy stocks, master limited partnerships (MLPs), and business development companies.  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 October 2017 and alleges that Keane, from February 2011 to September 2017, disregarded instructions by investing in unsuitable high risk energy stocks and MLPs.  The claim is currently pending.

In November 2016 customers alleged that Keane recommended an unsuitable investment strategy in Energy Stocks, MLP’s and Business Development Companies, and further mispresented the risks associated with this investment strategy.  The claim seeks damages of $4,724,136 and is currently pending.

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.

shutterstock_113872627-300x300The financial advisor rating firm Paladin Research & Registry assembled a list of the top 10 investment scams investors are facing today. If you are involved in any of these potential scams, the investment attorneys at Gana Weinstein LLP may be able to help you.

1. Ponzi Schemes

Ponzi schemes came in first-place for having stolen more money than any other type of scam. A Ponzi scheme is a fraudulent investment scam where the scammer promises a high rate of return with little or no risk to investors. Ponzi schemes generate returns for investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. The Ponzi scheme unravels when no more new investors are willing to invest and older investors demand the return of their money. The nature of Ponzi schemes (or pyramid schemes) requires investors (who believe they have a strong investment) to tell friends, family and associates about the investments. The influx of new investors provides scam operators with the assets needed to meet the withdrawal requests of the early investors.

shutterstock_155271245-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Bruce Barber (Barber), in September 2017, was accused by FINRA of engaging in an undisclosed outside business activity by serving as an advisor to the Board of Directors for ABC, LLC (ABC) and being compensated by the company with warrants.  According to FINRA, Barber solicited 15 clients to invest in ABC’s private securities offering.  At this time it unknown the full extent and scope of Barber’s outside business activities.

In February 2017, Barber’s then employer Securities America, Inc. (Securities America) terminated him stating Barber solicited customers to purchase an unapproved securities product and participated in an unapproved outside business activity.

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”.