Invest in Energy 11 LP, Energy 12 LP, or Spirit of America Fund with David Lerner Associates? KlaymanToskes Continues Investigation

Invest in Energy 11 LP, Energy 12 LP, or Spirit of America Fund with David Lerner Associates? KlaymanToskes Continues Investigation

National securities fraud law firm, KlaymanToskes (“KT”), continues to investigate David Lerner Associates for the unsuitable concentration in proprietary products invested in non-traded Oil & Gas Investments offered exclusively to its clients.  The concentrated investments include Energy 11 LP, Energy Resource 12 LP, and Spirit of America Fund (NASDAQ:SOAEX).  In addition to the precipitous loss in value, most of investors’ interest payments are now considered return of capital. According to securities attorney, Lawrence L. Klayman, “David Lerner Associates recommended proprietary products that were unsuitable for most conservative or retired investors.”  According to the Energy 11 LP and Energy Resource 12 LP Prospectus and the…

Former Aegis Capital Broker Douglas Szempruch Under KlaymanToskes Investigation

Former Aegis Capital Broker Douglas Szempruch Under KlaymanToskes Investigation

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation into former Aegis Capital broker Douglas Szempruch in light of his recent suspension by FINRA. On July 9, 2021, FINRA disclosed that it suspended former Aegis Capital broker Douglas Szempruch relating to him recommending and effecting excessive and unsuitable trading, per a FINRA Letter of Acceptance, Waiver and Consent (AWC), Case # 2017054317401. What is a FINRA AWC? According to FINRA Rule 9216, if FINRA’s Department of Enforcement has reason to believe a member or associated person has committed a violation, and that member or associated person does not…

VXX Investor Through UBS? KlaymanToskes Investigates Firm's VXX Sales Practices in Light of Recent SEC Settled Action

VXX Investor Through UBS? KlaymanToskes Investigates Firm's VXX Sales Practices in Light of Recent SEC Settled Action

Invest with UBS and VXX ETN? The Securities and Exchange Commission recently settled charges against UBS Financial Services Inc. for its failure to supervise relating to sales of iPath S&P 500 VIX Short-Term Futures ETN (“VXX”) in UBS’s Portfolio Management Program (“PMP”). VXX is a volatility linked exchange-traded product. From January 2016 to January 2018, certain financial advisors in UBS’s discretionary Portfolio Management Program purchased and held VXX for their advisory clients for durations that were inconsistent with the purpose of the product, as described in its offering documents, and as described to UBS in a meeting with VXX representatives.…

Adam Belardino, Ex-MML Investors Services Rep., Named In FINRA Complaint

Adam Belardino, Ex-MML Investors Services Rep., Named In FINRA Complaint

FINRA recently named Adam Belardino of New Rochelle as a Respondent in a Complaint. FINRA alleges that Belardino failed to appear for on-the-record testimony. Belardino was employed at Barnum Financial Group in Elmsford, New York from 2007 to March 2019. During that time, Belardino was a registered representative for MML Investors Services, LLC, which is an affiliate of Massachusetts Mutual Life Insurance Co. He was terminated in March 2019 relating to his firm’s investigation into a customer complaint against him. Adam Belardino & FINRA Complaint The Complaint alleges that FINRA began investigating Belardino’s termination from MML Investors Services in April…

FINRA Bars Former Wells Fargo Broker Tyler Rigsbee

FINRA Bars Former Wells Fargo Broker Tyler Rigsbee

FINRA recently disclosed that it barred former Wells Fargo Clearing Services, LLC broker Tyler Rigsbee from associating with any FINRA member in all capacities relating to receiving client funds in his bank account without the clients’ authorization, per a FINRA Letter of Acceptance, Waiver and Consent (AWC), Case # 2021071026301. What is a FINRA AWC? According to FINRA Rule 9216, if FINRA’s Department of Enforcement has reason to believe a member or associated person has committed a violation, and that member or associated person does not dispute the violation, the Department of Enforcement may prepare and request that the member…

ATTENTION ROBINHOOD CUSTOMERS: KlaymanToskes Investigates January 2021 Trading Restrictions on Gamestop

ATTENTION ROBINHOOD CUSTOMERS: KlaymanToskes Investigates January 2021 Trading Restrictions on Gamestop

New York, NY – KlaymanToskes (“KT”), a leading national securities arbitration law firm, announces an investigation on behalf of Robinhood Financial, LLC (“Robinhood”) investors who sustained losses in Gamestop (NYSE: GME) due to trading restrictions imposed by Robinhood in January 2021. On January 28, 2021, Robinhood announced it restricted traders on its platform from opening new positions in several stocks and raised margin requirements on certain securities, including Gamestop. Robinhood stated that the trading restrictions were risk management decisions to protect the brokerage firm and its clearinghouses. After Robinhood announced the trading restrictions, the prices of Gamestop, AMC, Nokia, and…

NOTICE TO ROBINHOOD FINANCIAL LLC INVESTORS - KlaymanToskes is Pursuing Arbitration Claims for Robinhood Trading Restrictions

NOTICE TO ROBINHOOD FINANCIAL LLC INVESTORS - KlaymanToskes is Pursuing Arbitration Claims for Robinhood Trading Restrictions

KlaymanToskes, P.A. (“KT”), a leading national securities arbitration law firm, announces an investigation on behalf of Robinhood Financial, LLC (“Robinhood”) investors who sustained losses in Gamestop (NYSE: GME) and other select securities due to trading restrictions imposed by Robinhood in January 2021. If you have suffered losses due to Robinhood Financial trading restrictions, please fill out our contact form on this page connect with a securities arbitration lawyer. Robinhood and January 2021 Trading Restrictions On January 28, 2021, Robinhood announced it restricted traders on its platform from opening new positions in several stocks and raised margin requirements on certain securities…

Joseph Chu, California Resources Corporation, Denbury Resources and Whiting Petroleum Investigation

Joseph Chu, California Resources Corporation, Denbury Resources and Whiting Petroleum Investigation

KlaymanToskes (“KT”), a national securities law firm, continues to investigate the sales practices of former Merrill Lynch and current RBC Capital Markets broker, Joseph Ijong Chu (“Chu”), concerning his handling of discretionary accounts and concentration in Energy sector securities. The concentrated investments include California Resources Corporation (NYSE: CRC), Denbury Resources, Inc. (NYSE: DEN), and Whiting Petroleum Corporation (NYSE: WLL). These companies declared Chapter 11  bankruptcy in 2020, and have since restructured. According to FINRA BrokerCheck, there are pending FINRA arbitration claims involving Chu’s unsuitable recommendations and/or overconcentration in the Energy sector while employed by Merrill Lynch and/or RBC Capital Markets.…

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…

NOTICE TO CLIENTS OF KEVIN MCCALLUM WITH LPL FINANCIAL: Klayman & Toskes, P.A. Commences Investigation of Former LPL Broker Kevin McCallum in Light of FINRA Suspension

NOTICE TO CLIENTS OF KEVIN MCCALLUM WITH LPL FINANCIAL: Klayman & Toskes, P.A. Commences Investigation of Former LPL Broker Kevin McCallum in Light of FINRA Suspension

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation in light of the recent Letter of Acceptance, Waiver and Consent (No. 2019062569501) submitted by Kevin McCallum (“McCallum”) to FINRA, who worked at LPL Financial (“LPL”) from May 2012 to July 2019. McCallum was also with Cadence Bank during the same time period in Birmingham, Alabama. According to FINRA, from May 2017 through June 2017, McCallum made unsuitable recommendations to 12 customers, resulting in their overconcentration in a high-risk, publicly traded business development company. During the same time period, McCallum sent emails to certain customers about the business development…

NOTICE TO ROBINHOOD FINANCIAL LLC INVESTORS – KlaymanToskes Commences Investigation for Robinhood Financial LLC (“Robinhood”) Investors With Losses in Excess of $100,000 Due to Firm’s Inappropriate Options Trading Approval

NOTICE TO ROBINHOOD FINANCIAL LLC INVESTORS – KlaymanToskes Commences Investigation for Robinhood Financial LLC (“Robinhood”) Investors With Losses in Excess of $100,000 Due to Firm’s Inappropriate Options Trading Approval

KlaymanToskes (“KT”) announces an investigation on behalf of investors who sustained losses in excess of $100,000 from the inappropriate options trading approval from Robinhood Financial LLC (“Robinhood”). On June 30, 2021, the Financial Industry Regulatory Authority (“FINRA”) disclosed  that Robinhood agreed to a Letter of Acceptance, Waiver and Consent relating, in part, to inappropriately approving customers for options trading. Specifically, since Robinhood began offering options in December 2017, the firm relied on flawed computer algorithms with only limited oversight by firm principals, which resulted in inappropriately approving thousands of customers who did not satisfy the firm’s eligibility criteria or whose…

FINRA Fines Independent Financial Group $200,000 for Failure to Supervise Alternative Investment Recommendations

FINRA Fines Independent Financial Group $200,000 for Failure to Supervise Alternative Investment Recommendations

Recently, the Financial Industry Regulatory Authority (FINRA) sanctioned and fined Brokerage Firm, Independent Financial Group (IFG), for the failure to supervise recommended Alternative Investments in Non-traded Real Estate Investment Trusts (REITs) and Structured Notes.  According to FINRA, the Acceptance Waiver and Consent (AWC) agreed to by IFG resulted in a censure, $200,000 fine and required to implement supervisory systems reasonably designed to comply with sales practice rules and regulations related to suitability requirements for alternative investment recommendations. Regulatory Findings According to FINRA investigations, “the representative solicited dozens of customers who were retiring or had retired to liquidate their 401(k) and…

Sigma Financial Corporation Facing $4.5M in Potential Damages in Customer Disputes

Sigma Financial Corporation Facing $4.5M in Potential Damages in Customer Disputes

Sigma Financial Corporation is facing four Financial Industry Regulatory Authority arbitration claims seeking alleged damages of about $4.5 million, according to the firm’s most recent audited financial statement filed with the SEC. Sigma Financial has set aside approximately $652,000 in preparation for the claims, according to the Financial and Operation Combined Uniform Single (FOCUS) Report. What is Sigma Financial Corporation? Sigma Financial Corporation is an Ann Arbor, Michigan-based broker-dealer that is registered with 53 U.S. states and territories. According to its FINRA BrokerCheck, Sigma Financial Corpration has 26 disclosures; eleven (11) of these disclosures are customer disputes and fifteen (15)…

HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Light of Chapter 11 Bankruptcy Filing

HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Light of Chapter 11 Bankruptcy Filing

National investor fraud law firm, KlaymanToskes (“KT”), announces an investigation on behalf of investors in Hospitality Investors Trust (“HIT REIT”), formerly known as American Realty Trust, following the filing for Chapter 11 Bankruptcy Protection in the United States Bankruptcy Court for the District of Delaware (Case No. 21-10831).  Hospitality Investors Trust is classified as a Non-Traded Real Estate Investment Trust (“REIT”) that was touted as offering current income to investors with a conservative to moderate risk tolerance. Non-Traded REITs tend to have high expenses and fees, along with limited liquidity which make this type of investment unsuitable for most investors.…

ATTENTION SPAC INVESTORS: KlaymanToskes Investigates Losses in Excess of $250,000 from Investments in Electric Vehicle Industry Stocks Recommended by Full-Service Brokerage Firms

ATTENTION SPAC INVESTORS: KlaymanToskes Investigates Losses in Excess of $250,000 from Investments in Electric Vehicle Industry Stocks Recommended by Full-Service Brokerage Firms

KlaymanToskes (“KT”) announces an investigation on behalf of investors who sustained losses in excess of $250,000 in Electric Vehicle Industry Stock investments funded through Special Purpose Acquisition Companies (SPACs) Initial Public Offerings (IPOs).  According to the U.S. Securities and Exchange Commission (SEC), a blank check or Special Purchase Acquisition Company (SPAC) is a “development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person. These companies typically involve speculative investments and often fall within the SEC’s definition…

BDC INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Response to Medley Capital  Bankruptcy Filing Attributed to Portfolio Loan Losses Related to the COVID Pandemic

BDC INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Response to Medley Capital Bankruptcy Filing Attributed to Portfolio Loan Losses Related to the COVID Pandemic

KlaymanToskes (“KT”), announces their investigation on behalf of investors into Business Development Companies (“BDCs”), Medley Capital and Sierra Income Corp.  On March 7, 2021, Medley Capital Corp. (NYSE: MCC), a direct subsidiary of Medley Management Inc. (NYSE: MDLY), filed for Bankruptcy Protection in the U.S. Bankruptcy Court for the District of Delaware (Case: 21-10526-KBO).  Medley Management Inc., is an “alternative asset management firm offering yield solutions to retail and institutional investors” that manages Medley Capital and Sierra Income Corp., a non-traded BDC. Business Development Companies invest in loans made to non-public companies that do not have access to the traditional…

BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

On March 7, 2021, Medley Capital Corp. (NYSE: MCC), a direct subsidiary of Medley Management Inc. (NYSE: MDLY), filed for Bankruptcy Protection from creditors – mostly investors.  Medley Management Inc., is an “alternative asset management firm offering yield solutions to retail and institutional investors” through two Business Development Companies (“BDCs”), Medley Capital and Sierra Income Corp., a non-traded BDC. Medley Capital Corp and Sierra Income Corp, invested in non-public companies, under the direction and advice of Medley Management’s affiliate SIC Advisors, LLC.  The two BDCs made loans to non-public companies that did not have access to the traditional publicly traded…