Category: Regulator Disciplinary Actions

SEC and FINRA disciplinary actions.

SwapStar Capital Investor Alert: National Investor Fraud Law Firm KlaymanToskes Investigates New Jersey Investment Advisor Fraud in Light of SEC, CFTC Charges

SwapStar Capital Investor Alert: National Investor Fraud Law Firm KlaymanToskes Investigates New Jersey Investment Advisor Fraud in Light of SEC, CFTC Charges

Investment Losses with SwapStar Capital? KlaymanToskes Investigates Barred New Jersey Investment Adviser and Firm Swapstar Capital National investor fraud law firm is investigating SwapStar Capital in light of the SEC and Commodity and Futures Trading Commission’s actions filed against the firm and Swapnil Rege in October 2020. SwapStar Capital Fraud Investigation On October 26, 2021, the SEC charged a New Jersey-based individual with stealing money from investment advisory clients, and doing so while he was subject to a prior SEC order barring him from being in the investment advisory business. SEC Complaint The SEC’s complaint alleges that that Swapnil J.…

AEGIS CAPITAL INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Investigates Aegis Capital after FINRA Sanctions Aegis Capital and its Melville Branch Manager For Supervisory Violations Costing Investors Millions

AEGIS CAPITAL INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Investigates Aegis Capital after FINRA Sanctions Aegis Capital and its Melville Branch Manager For Supervisory Violations Costing Investors Millions

FINRA sanctions Aegis Capital for $2.8 million including $1.7 million in restitution to customers for excessive and unsuitable trading in Aegis’ customer accounts. The remaining $1.1 million of the sanction represents a fine by FINRA for Aegis’ supervisory violations. FINRA Investigation FINRA investigated and identified Aegis’ failure to design and implement a reasonably effective supervisory system to comply with FINRA’s suitability requirements for the period of July 2014 through December 2018. As such, Aegis failed to recognize potentially excessive and unsuitable trading in customer accounts. Aegis also failed to act on 700 out of 900 exception reports specifically designed to…

RICHARD WESSELT INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Announces Investigation of FINRA Barred Financial Advisor Richard Wesselt

RICHARD WESSELT INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Announces Investigation of FINRA Barred Financial Advisor Richard Wesselt

Financial Advisor Richard Wesselt has been barred by FINRA. FINRA barred financial advisor Richard Wesselt made unsuitable recommendations that did not take into account his customer’s risk tolerance, liquidity needs, and time horizon. In many cases, Richard Wesselt recommended his customers liquidate their tax-deferred retirement accounts causing them to lose the benefit of these types of accounts. Then, he recommended that those same investors use the proceeds from their retirement accounts to purchase variable annuities. Once those new accounts were established, he recommended that the investors take early withdrawals. Richard Wesselt’s recommendations lead to surrender charges, fees, and penalties. Moreover,…

LPL FINANCIAL, LLC MICHAEL HARTLETT INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Announces Investigation after Financial Advisor Michael Hartlett Consents to Suspension and Fine

LPL FINANCIAL, LLC MICHAEL HARTLETT INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Announces Investigation after Financial Advisor Michael Hartlett Consents to Suspension and Fine

Michael Hartlett consents to FINRA suspension and fine for discretionary trading in an investor’s account without prior written authorization in a Letter of Acceptance, Waiver, and Consent. The consent was also based on the submission of false statements in compliance questionnaires from 2018-2020 stating that he was not exercising discretionary trading authority in his customer’s brokerage accounts. According to Michael Hartlett, after joining LPL in 2018, an investor opened three separate accounts. The investor gave verbal authority to Michael Hartlett for him to trade in the investor’s accounts. Michael Hartlett did not disclose this grant of discretionary trading authority to…

JEFFREY DROST RAYMOND JAMES INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Investigates Ex-Raymond James Broker in Light of Potential Unauthorized Borrowing Allegations

JEFFREY DROST RAYMOND JAMES INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Investigates Ex-Raymond James Broker in Light of Potential Unauthorized Borrowing Allegations

Jeffrey Drost Raymond James Investment Losses? Ex-Broker Barred by Securities Industry as FINRA Investigates Potential Unauthorized Borrowing National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (“Jeffrey Drost Raymond James Investigation”) into former Raymond James broker Jeffrey Travis Drost (CRD#4489021, San Antonio, TX) in light of a disciplinary bar disclosed by FINRA. In August 2021, FINRA barred Jeffrey Drost from the securities industry. Jeffrey Drost Raymond James Investigation and August 2021 FINRA AWC According to a FINRA Letter of Acceptance, Waiver and Consent, the financial regulator barred former Raymond James broker for his refusal to produce outstanding information or…

EUGENE MCADAMS JOSEPH STONE INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Investigates Barred Broker in Light of FINRA Suitability Investigation

EUGENE MCADAMS JOSEPH STONE INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Investigates Barred Broker in Light of FINRA Suitability Investigation

Eugene McAdams Joseph Stone Customer? Ex-Joseph Stone Capital, LLC Broker Barred by Securities Industry as FINRA Investigate Suitability Recommendations National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (“Eugene McAdams Joseph Stone Investigation”) into former Joseph Stone Capital, LLC broker Eugene Arthur McAdams in light of a disciplinary bar disclosed by FINRA. In August 2021, FINRA barred Eugene McAdams from the securities industry. The bar relates to Eugene McAdams’s refusal to appear for on-the-record (“OTR”) testimony to FINRA. The OTR testimony relates to FINRA’s investigation into the suitability of McAdam’s recommended securities transactions in customers’ accounts while registered…

Eric Hollifield LPL Financial Investor Alert: FINRA Bars Dacula, Georgia Broker

Eric Hollifield LPL Financial Investor Alert: FINRA Bars Dacula, Georgia Broker

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (“Eric Hollifield LPL Financial Investigation”) into former LPL Financial broker Eric Shea Hollifield (“Eric Hollifield”) in light of a disciplinary bar disclosed by FINRA. In October 2021, FINRA barred Eric Hollifield from the securities industry. The bar follows a customer dispute alleging Eric Hollifield misappropriated $1,240,000 of client funds. Eric Hollifield LPL Financial and the October 2021 FINRA Disciplinary Action According to BrokerCheck, FINRA barred Eric Hollifield for refusing to appear for on-the-record testimony or to produce the documents and information requested pursuant in connection with FINRA’s investigation into…

Jeffrey Dampf PFS Investments, Inc. Investor Alert: FINRA Bars PFS Investments, Inc. Broker

Jeffrey Dampf PFS Investments, Inc. Investor Alert: FINRA Bars PFS Investments, Inc. Broker

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (“Jeffrey Dampf PFS Investments, Inc. Investigation”) into former PFS Investments, Inc. broker Jeffrey Dampf stemming from a disciplinary bar disclosed by FINRA. On October 1, 2021, FINRA barred Jeffrey Dampf for refusing to provide on-the-record testimony or produce documents and information requested by FINRA in connection with its investigation into allegations that Jeffrey Dampf misappropriated funds from elderly individuals. In 2020, Jeffrey Dampf was criminally charged with attempted theft for trying to electronically transfer money from an elderly person, with whom he held power of attorney, for Jeffrey Dampf’s…

David Wells Fifth Third Securities Investor Alert: FINRA Bars Broker Following Resignation, Allegations of Misappropriating Client Funds

David Wells Fifth Third Securities Investor Alert: FINRA Bars Broker Following Resignation, Allegations of Misappropriating Client Funds

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (“David Wells Fifth Third Securities”) into former Fifth Third Securities, Inc. broker David S. Wells in light of a recent disciplinary action disclosed by FINRA. On September 20, 2021, FINRA disclosed in a Letter of Acceptance, Waiver and Consent that it has barred former Fifth Third Securities broker David Wells (Chicago, IL) relating to his refusal to appear for on-the-record testimony and to provide information and documents requested pursuant to FINRA Rule 8210 and 2010. What is a FINRA AWC? According to FINRA Rule 9216, if FINRA’s Department of…

ATTENTION WALTER ALLEN CETERA ADVISORS SUFFIELD CT CUSTOMERS: FINRA Bars Former Cetera Advisors Broker

ATTENTION WALTER ALLEN CETERA ADVISORS SUFFIELD CT CUSTOMERS: FINRA Bars Former Cetera Advisors Broker

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation (“Walter Allen Cetera Advisors Suffield CT Investigation”) into former Cetera Advisors broker Walter Allen in light of a recent disciplinary action disclosed by FINRA. On August 4, 2021, FINRA disclosed in a Letter of Acceptance, Waiver and Consent that it has barred former Cetera Advisors broker Walter Allen (Suffield, Connecticut) relating to his refusal to provide information and documents requested pursuant to FINRA Rule 8210 and 2010. What is a FINRA AWC? According to FINRA Rule 9216, if FINRA’s Department of Enforcement has reason to believe a member or…

FINRA Orders Sanctuary Securities, Inc. to Pay $530K for Non-Traditional ETF Supervisory Failures

FINRA Orders Sanctuary Securities, Inc. to Pay $530K for Non-Traditional ETF Supervisory Failures

FINRA recently disclosed that Sanctuary Securities, Inc. (formerly known as David A. Noyes & Company) agreed to submit a Letter of Acceptance, Waiver and Consent (AWC) relating to its failure to supervise its solicited sales of inverse and leveraged exchange traded funds (Non-Traditional ETFs or NT-ETFs) in that the firm’s supervisory system was not sufficiently tailored to address the unique features and risks of these products. What is a Non-Traditional ETF? Non-traditional ETFs are designed to return a multiple of an underlying index or benchmark, the inverse of that benchmark, or both, over only the course of one trading session—…

FINRA Suspends Former Merrill Lynch Broker Scott Ryland Mathews for Early Rollovers of Unit Investment Trusts

FINRA Suspends Former Merrill Lynch Broker Scott Ryland Mathews for Early Rollovers of Unit Investment Trusts

FINRA recently disclosed that former Merrill Lynch broker Scott Ryland Mathews agreed to a Letter of Acceptance, Waiver and Consent (AWC), Case # 2018060359901, relating to engaging in an unsuitable pattern of early rollovers of Unit Investment Trusts (“UITs”). Because of the long-term nature of UITs, their structure, and their costs, short-term trading of UITs may be unsuitable. As discussed on our recent blog post, FINRA also recently disclosed that Merrill Lynch agreed to an Acceptance, Waiver and Consent (AWC), Case #2017053437701, relating to its failure to establish and maintain a supervisory system that was reasonably designed to achieve compliance…

FINRA Suspends Merrill Lynch Broker Kelly Feehrer for Early Rollovers of Unit Investment Trusts

FINRA Suspends Merrill Lynch Broker Kelly Feehrer for Early Rollovers of Unit Investment Trusts

FINRA recently disclosed that Merrill Lynch broker Kelly Wayne Feehrer agreed to a Letter of Acceptance, Waiver and Consent (AWC), Case # 2018060356501, relating to engaging in an unsuitable pattern of early rollovers of Unit Investment Trusts (“UITs”). Because of the long-term nature of UITs, their structure, and their costs, short-term trading of UITs may be unsuitable. As discussed on our recent blog post, FINRA also recently disclosed that Merrill Lynch agreed to an Acceptance, Waiver and Consent (AWC), Case #2017053437701, relating to its failure to establish and maintain a supervisory system that was reasonably designed to achieve compliance with…

KlaymanToskes Investigates JP Morgan in Light of OCC $250 Million Civil Money Penalty Against JP Morgan Chase Bank, N.A. for Inadequate Supervision of Investment Advisory Business

KlaymanToskes Investigates JP Morgan in Light of OCC $250 Million Civil Money Penalty Against JP Morgan Chase Bank, N.A. for Inadequate Supervision of Investment Advisory Business

On November 24, 2020, the Office of the Comptroller of the Currency (“OCC”) announced it would assess a $250 million civil money penalty against JPMorgan Chase Bank, N.A.  The OCC is responsible for the regulatory oversight of all Commercial Banks, including Bank Holding Companies such as JP Morgan Chase, which has under its umbrella of financial companies, broker dealer JP Morgan.  According to the news release, OCC “intends to initiate civil money penalty proceedings against the Bank pursuant to 12 U.S.C. § 1818(i), through the issuance of a Notice of Assessment of a Civil Money Penalty, for engaging in unsafe…

Another Investor Lawsuit Filed Over Puerto Rico Bonds

Another Investor Lawsuit Filed Over Puerto Rico Bonds

Caribbean News January 16, 2017 SAN JUAN, Puerto Rico — A securities arbitration law firm on Friday filed a claim against UBS Financial Services Inc. of Puerto Rico and UBS Financial Services, Inc. (collectively “UBS”) for $8.5 million. According to the claim, the claimant entrusted assets to UBS with the investment objective of capital preservation. However, UBS ultimately concentrated the account in Puerto Rico government bonds (PRGBs) and its proprietary Puerto Rico closed-end bond funds (UBS PR CEBFs), which are leveraged and concentrated in PRGBs. UBS purchased and held for the claimant PRGBs and UBS PR CEBFs, both of which…

The Securities Arbitration Law Firm of Klayman & Toskes, PA Continues to Investigate UBS V10 Enhanced FX Carry Strategy Notes Following UBS Settlement with SEC for $19.5 Million

Boca Raton, Florida (BUSINESSWIRE) October 14, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.klaymantoskes.com announced today that it continues to investigate UBS Financial Services (UBS) in connection with the sale of senior unsecured notes, issued by affiliated banks of parent company UBS AG (NYSE: UBS). In response to a Securities Exchange Commission (SEC) Cease and Desist Order, UBS AG submitted an Offer of Settlement which included payment of $19.5 million for violations of securities laws related to the issue and sale of senior unsecured notes linked to the V10 Currency Index. According to the SEC,…