Articles Tagged with Unauthorized Trading

shutterstock_186180719-300x216The investment lawyers of Gana LLP are investigating the allegations made by The Financial Industry Regulatory Authority (FINRA) against barred broker Clay Hoffman. In June 2016, Hoffman was suspended by FINRA for his alleged failure to respond to FINRA’s request for information. Hoffman was later barred in November 2016 for his alleged failure to respond to multiple requests for documents and information related to an investigation.

Prior to the most recent suspension, Hoffman’s license as a broker was revoked and suspended, according to BrokerCheck. During May 2016, Hoffman alleged failed to pay a $5,000 fine for a previous case, which resulted in the revocation of his license. Additionally, Hoffman’s broker license was suspended during February 2016 due to the findings that allege that Hoffman engaged unauthorized business practices. Allegedly, Hoffman executed discretionary transactions in a customer’s account without any written authorization from the customer or firm.

In April 2015, a customer complaint was filed against Hoffman for alleged misrepresentation, unsuitability, and unauthorized trading. During his employment at SunTrust Investment and Summit Brokerage Services, Hoffman allegedly caused a loss for his client due to the misrepresentation of Mutual Funds. The alleged damages were $234,697.00 and the case settled at $90,000.

shutterstock_61142644-300x225Our firm is investigating customer disclosure claims concerning broker John Nelson Crook (Crook). Crook’s FINRA BrokerCheck record shows several disclosures of allegations concerning churning (excessive trading, unauthorized trading, unsuitability, and breach of fiduciary duty. His BrokerCheck records also show a disclosure concerning an employment separation after allegations.

In July 2015, Crook was discharged from Raymond James & Associates Inc due to the findings that that the financial advisor allegedly did not respond in a timely manner to a supervisory review of trading activity. In addition, Crook allegedly did not provide a legitimate explanation for the trading activity in a certain client’s account, which lead to his termination from the firm in July 2015.

The most recent customer complaint against Crook was received in November 2015.During the period between August 2006 and June 2015, Crook allegedly engaged in excessive and unauthorized trading. Crook allegedly also recommended unsuitable investment products to his client, fraudulently misrepresented, and breached his fiduciary duty. The alleged damages are worth over $4 Million and the case is currently pending.

shutterstock_170949320-300x199Gana LLP’s investment fraud attorneys are looking into multiple customer disputes filed with the Financial Industry Regulatory Authority (FINRA) against broker Rodger James Burskey (Burskey) that led to a regulatory action by FINRA. According to Burskey’s FINRA BrokerCheck records, there are several disclosures on his record pertaining to unauthorized, unsuitable, and excessive trading. Burskey has dealt with an employment separation and was barred by FINRA from the securities industry. In December 2016, Burskey was barred by FINRA from having any registration capacities in the securities industry. He consented to the sanctions and findings of FINRA and refused to appear on the record regarding allegations of making unsuitable recommendations and engage in discretionary trading.

Burskey entered the securities industry in 1985 and was last employed at Voya Financial Advisors, Inc. until November 2015. He was previously registered at:

• US Allianz Securities, Inc. (February 1999 – November 2006)

shutterstock_184149845-300x246The securities lawyers of Gana LLP are following the case against broker Jeffrey Kluge (Kluge) who pleaded guilty to two counts of bank fraud in the state of Minnesota. A plead agreement was filed with the U.S. District Court in Minnesota on March 29, 2017. Kluge entered the securities industry in 1991 and remained with Merrill Lynch, Pierce, Fenner & Smith Inc. for the entirety of his career. Kluge started a scheme to create fraudulent Merrill Lynch account statements to falsely secure collateral for multi-million lines of credit. Kluge was able to carry out this scheme by creating a fake domain name, www.mymerrillonline.com, and fake email address, pledgecontrol@mymerrillonline.com, to send the falsified account statements to Platinum Bank. A false Merrill Lynch identity was used as a cover for the email address. Kluge ran this fraudulent scheme for 15 years, starting in 2001 to November 2016.

In 2001, Kluge received a line of credit for $150,000 from Alliance Bank by putting up municipal bond funds as collateral. These bond funds were substantiated by falsified account statements that hid the fact that the same bonds were already pledged to Merrill Lynch loans previously obtained by Kluge. The outstanding balance of Alliance Bank line of credit was at $6 million in November 2016.

Utilizing the same scheme for Alliance Bank, Kluge was able to secure a $1 million line of credit from Platinum Bank in Minnesota. He procured this line of credit by putting up the same assets used for Merrill Lynch and Alliance Bank.  The Platinum Bank line of credit balance was at $2.7 million as of November 2016.

shutterstock_95416924-300x225The securities lawyers of Gana LLP are investigating customer complaints filed with Financial Industry Regulatory Authority (FINRA) against broker Tracy Rae Turner (Turner). According to BrokerCheck records, Turner has been subject to at least 31 customer complaints, two employment separations for cause, one regulatory, and one financial among other claims during his 22 years of experience. The customer complaints against Turner alleges securities law violations that including unauthorized trading, fraud, breach of contract, negligence, and failure to supervise among other claims.

In a FINRA regulatory action against Turner in November 2016, the agency alleged that he offered and sold interests to investors totaling approximately $4.1 million without giving prior notice to and receiving prior written permission from his member firm. For successfully soliciting these investments, Turner received approximately $270,000 in compensation. A decision was rendered in April 2017 which resulted in barring Turner from FINRA association and fining him for $272, 879.04. The findings of the decision also alleged that Turner created a publically available offering memorandum to market sales of interest in private securities without providing a sound evaluation of investments and included false and misleading statements.

In June 2009, Turner was permitted to resign from his position at CapWest Securities, Inc. for conducting sales in states where he was not registered.

shutterstock_185582-300x225The investment lawyers of Gana LLP are investigating a pending customer complaint filed with the Financial Industry Regulatory Authority (FINRA) against Silvano Rolando Trino (Trino). According to FINRA’s BrokerCheck record for Trino, there are at least 4 disclosures on Trino’s records, all pertaining to customer complaints. The customer complaints against Trino allege unauthorized use of margin, unsuitable trading, and churning.

All brokers who are registered with FINRA are required to disclosure customer complaints and arbitrations, regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings.

The most recent customer complaint against Trino was filed with FINRA in September 2014 alleging unauthorized use of margin, unsuitable trades, and churning. This claim occurred during Trino’s current employment at Northeast Securities, Inc.

shutterstock_188269637-300x200Gana LLP’s securities fraud investigation has uncovered a complaint filed by the Financial Industry Regulatory Authority (FINRA) against broker Gerald O’Halloran (O’Halloran). O’Halloran was  formerly associated with Kovack Securities Inc. The complaint alleges that O’Halloran has been the subject of at least eight customer complaints, two employment separations for cause, and one criminal charge. The customer complaints against O’Halloran is a makeup of allegations of numerous securities law violations, including that O’Halloran engaged in unauthorized trades, misrepresentation, breach of fiduciary duty & breach of contract among other claims.

The most recent complaint against O’Halloran was filed in August 2016, alleging $135,000.00 in damage stemming from violation of trading negligently, misrepresentation, omission of a material fact, breach of fiduciary duty & breach of contract in customer’s account while employed at Credit Suisse Securities. The claim is currently pending.

In 2011 a customer filed a complaint alleging unauthorized trades in the account during February 2011 claiming $14,000.00 in damages. The case was resolved with the customer receiving $27,000.00.

shutterstock_184430498-300x225Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Wendy Feldman (Feldman) currently associated with H. Beck, Inc. (H. Beck) alleging Feldman engaged in a number of securities law violations including that the broker made unsuitable investments and unauthorized trading among other claims.  According to BrokerCheck, Feldman currently has two customer complaints and one employment termination for cause.

In July 2015, a customer brought a complaint against Feldman alleging that between 2011 to 2014 the broker engaged in unauthorized trading, made unsuitable purchases, and failed to disclose fees.  The complaint alleged damages of $5,000,000.  In 2016 an arbitration was held and the customer was awarded $8,606,599 in total.

Shortly after the arbitration award Morgan Stanley terminated Feldman due to allegations involving adherence to industry rules and/or firm policy including with regard to use of trading discretion.

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shutterstock_103681238-300x300Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against David Fagenson (Fagenson) currently associated with Newbridge Securities Corporation (Newbridge) alleging Fagenson engaged in a number of securities law violations including that the broker made unsuitable investments and unauthorized trading among other claims.  According to BrokerCheck, Fagenson currently has nine customer complaints, one criminal matter, two regulatory actions, and one employment termination for cause.

In September 2016 UBS terminated Fagenson after a review found that while on heightened supervision Fagenson violated firm policy by exercising time and price discretion, texting with clients and engaging in short term trading of preferred shares.  Also in September 2016 a customer alleged that from 2013 through 2016 that Fagenson engaged in unauthorized trading and gave stop loss orders that were not entered.  The complaint is currently pending.

In April 2011 Fagenson was sanctioned by the state of Florida for failing to disclose a criminal matter on his record that was required to be disclosed.

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Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Christopher Bond (Bond) currently associated with National Securities Corporation alleging Bond engaged in a number of securities law violations including that the broker made unsuitable investments and unauthorized trading among other claims.  According to BrokerCheck, Bond currently has two customer complaints, three criminal matters, and one judgement / lien.

In October 2016, Bond was charged with criminal mischief in the third degree.  Prior to that, in September 2016 a customer complained that Bond provided unsuitable investment advice resulting in $546,735 in damages.  The claim is currently pending.

In March 2016, a tax lien was filed against Bond for $80,000.  A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

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