Articles Tagged with Worden Capital

shutterstock_174858983-300x216According to BrokerCheck records financial advisor Mark Kolta (Kolta), currently employed by Worden Capital Management LLC (Worden Capital) has been subject to at least 14 customer complaints and one employment termination for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Kolta’s customer complaints allege that Kolta recommended unsuitable securities recommendations in a variety of products including alternative investments, equities, and annuities among other allegations of misconduct in the handling of customer accounts.

In April 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, breach of fiduciary duty, and negligence causing $300,000 damages.  The claim is currently pending.

In March 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, unauthorized trading, and misrepresentations causing $15,000 damages.  The claim is currently pending.

In February 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, breach of fiduciary duty, breach of contract, and negligence concerning non-traded REITs and an annuity causing damages.  The claim is currently pending.

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shutterstock_135103109-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Steven Woods (Woods) has been subject to at least two customer complaints during his career.  Woods is currently employed by Worden Capital Management LLC (Worden Capital) and was formerly registered with Laidlaw & Company (UK) Ltd. (Laidlaw).  The majority of the customer complaints against Woods concern allegations of high frequency trading activity also referred to as churning.

In November 2018 a customer complained that Woods violated the securities laws by alleging that the financial advisor engaged in unauthorized trading, misrepresentation, and unsuitability in 2016 causing $41,607 in damages. The claim is currently pending.

In May 2018 a customer complained that Woods violated the securities laws by alleging that the financial advisor engaged in churning, unauthorized trading, and unsuitability from 2015 through 2017 causing $157,588 in damages. The claim is currently pending.

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shutterstock_36343294-300x225According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) Worden Capital Management LLC (Worden Capital) broker Michael Rosalia (Rosalia) has been subject to six disclosed customer complaints, eight tax liens or judgements, and two financial disclosures including bankruptcy.  Many of the customer complaints against Rosalia allege churning or excessive trading.

In June 2013 Rosalia declared bankruptcy.  Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services.  FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.

In May 2018 a customer filed a complaint alleging Rosalia engaged in churning, improper use of margin, unsuitability and high commissions.  The complaint alleged $503,828 in damages and has been settled.

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shutterstock_184430498The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Sean McCabe (McCabe).  According to BrokerCheck records McCabe has been the subject of at least four customer complaints.  The customer complaints against McCabe allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, and churning (excessive trading) among other claims.

The most recent complaint was filed in March 2016 and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $550,000 in damages.  The complaint is currently pending.  Also in March 2016 another investor filed a similar complaint and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $150,000 in damages.  The complaint is currently pending

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time.  Often times the account will completely “turnover” every month with different securities.  This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades.  Churning is considered a species of securities fraud.  The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions.  A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements.  Certain commonly used measures and ratios used to determine churning help evaluate a churning claim.  These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.