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…

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)…

Unit Investment Trust Early Rollovers at Merrill Lynch Prompt Millions in FINRA Fines

Unit Investment Trust Early Rollovers at Merrill Lynch Prompt Millions in FINRA Fines

FINRA 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 FINRA’s suitability rule as it pertains to 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. What is a Unit Investment Trust? A Unit Investment Trust is a SEC-registered investment company that offers investors shares or “units” in a fixed portfolio of securities in a one-time public offering.…

NORTHSTAR FINANCIAL SERVICES (Bermuda) INVESTMENT RECOVERY: KlaymanToskes Investigates Investor Losses

NORTHSTAR FINANCIAL SERVICES (Bermuda) INVESTMENT RECOVERY: KlaymanToskes Investigates Investor Losses

National investor fraud law firm, KlaymanToskes (“KT”), announces an investigation on behalf of investors in Northstar Financial Services (Bermuda) Ltd. following its recent bankruptcy and order to liquidate by the Bermuda government.   What is Northstar Financial Services (Bermuda) Ltd? Originally created in the 1990s, Northstar Financial Services was a Segregated Accounts Company regulated by the Bermuda Monetary Authority, and touted its fixed and variable annuities products as offering segregated account protection, generous liquidity terms and a variety of commitment periods, as well as the benefits of a Bermuda trust structure. Northstar Financial Services (Bermuda) had an international reach. As of…

Former LPL Financial Advisor Paul McGonigle Investigation

Former LPL Financial Advisor Paul McGonigle Investigation

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation in light of recent criminal charges concerning Paul R. McGonigle (“McGonigle”), who worked at LPL Financial (“LPL”) from February 2018 to June 2019. On June 9, 2021, the Department of Justice (“DOJ”) charged McGonigle with three counts of wire fraud, one count of mail fraud, and one count of aggravated identity theft in connection with defrauding elderly clients and stealing their retirement assets. In November 2020, Financial Industry Regulatory Authority barred McGonigle as a broker for failing to respond to a request for information via an expedited proceeding. According…

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…

LORDSTOWN MOTORS CORP CLASS ACTION ALERT: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Truck Manufacturer

LORDSTOWN MOTORS CORP CLASS ACTION ALERT: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Truck Manufacturer

Boca Raton, Florida — March 22, 2021 — The Securities Law Firm of KlaymanToskes (“KT”) provides a Lordstown Motors Corp. (NASDAQ:RIDE) Alert to shareholders concerning the Class Action Lawsuit (Case 21-CV-00616) filed March 18, 2021 in the United States District Court of the Northern District of Ohio, Youngstown Division, for the class period from August 3, 2020 and March 17, 2021.   Lordstown Motors Corp. is a nascent company with a limited history of operating as manufacturer of Electric Vehicle (EV) trucks.  According to the class action lawsuit, “Throughout the Class Period, Defendants made materially false and misleading statements regarding the…

SEC Charges Broker-Dealers and Investment Advisory Firms for the Sales of Complex Exchange-Traded Products With More than $3 Million Returned to Retail Investors

SEC Charges Broker-Dealers and Investment Advisory Firms for the Sales of Complex Exchange-Traded Products With More than $3 Million Returned to Retail Investors

The securities industry watchdog, the Securities and Exchange Commission (“SC”) filed settled actions against three investment advisory firms and two dually-registered broker-dealer and advisory firms for violations that related to unsuitable sales of complex exchange-traded products (“ETFs”) to retail investors for the period between January 2016 and April 2020. According to SEC, “The actions were filed against American Portfolios Financial Services/American Portfolios Advisors Inc., Benjamin F. Edwards & Company Inc., Royal Alliance Associates Inc., Securities America Advisors Inc., and Summit Financial Group Inc. – will result in the return of over $3 million to harmed investors’.  According to a news release by the SEC on…

ATTENTION CUSTOMERS WITH ACCOUNTS SERVICED BY FINANCIAL ADVISOR JOSEPH IJONG CHU – KlaymanToskes Files FINRA Arbitration Claim against Merrill Lynch and RBC Seeking $1,000,000 on Behalf of Investors

ATTENTION CUSTOMERS WITH ACCOUNTS SERVICED BY FINANCIAL ADVISOR JOSEPH IJONG CHU – KlaymanToskes Files FINRA Arbitration Claim against Merrill Lynch and RBC Seeking $1,000,000 on Behalf of Investors

KlaymanToskes (“KT”) announces that it recently filed a claim for breach of fiduciary duty seeking $1,000,000 against Merrill Lynch (NYSE: BAC) and RBC Capital Markets (“RBC”) on behalf of investors who had discretionary accounts mishandled by Joseph Ijong Chu (“Chu”).  A discretionary account is one that allows an authorized broker, in this case Chu, to buy and sell securities without client consent on each trade and is based on a client consent granting this authorization in writing.  This type of relationship is especially one of trust. According to the claim, the investors gave Chu discretion to invest their hard-earned savings…

ATTENTION EXERCISE AND HOLD STRATEGY INVESTORS WITH EMPLOYER COMPANY STOCK:  KlaymanToskes Commences Investigation into Full-service Brokerage Firms for Mismanagement of Concentrated, Leveraged Positions in Employer Company Stock

ATTENTION EXERCISE AND HOLD STRATEGY INVESTORS WITH EMPLOYER COMPANY STOCK: KlaymanToskes Commences Investigation into Full-service Brokerage Firms for Mismanagement of Concentrated, Leveraged Positions in Employer Company Stock

National investment fraud law firm, KlaymanToskes (“KT”), commences an investigation into full-service brokerage firms for the mismanagement of concentrated, company stock positions accumulated through employer sponsored plans.  The investigation focuses on whether full-service brokerage firm recommendations for an “exercise and hold” strategy represents unsuitable investment advice and a failure to supervise the management of concentrated, leveraged positions in employer company stock. Investment portfolios holding large concentrated stock positions carry significant downside risks, especially when leveraged by a margin loan.  Full-service brokerage firms whose customers hold large concentrated stock positions have a duty to ensure that their customers understand the risks…

GPB CAPITAL INVESTOR ALERT: KlaymanToskes Continues to Investigate and Pursue Millions of Dollars in FINRA Arbitration Claims for Investors

GPB CAPITAL INVESTOR ALERT: KlaymanToskes Continues to Investigate and Pursue Millions of Dollars in FINRA Arbitration Claims for Investors

National investor fraud law firm, KlaymanToskes (“KT”), continues to investigate and pursue FINRA arbitration claims on behalf of investors who were solicited to purchase millions of dollars of private placement securities in GPB Capital Holdings (“GPB”) in the form of notes.  Brokerage firms were required to perform due diligence prior to recommending GPB to their customers and the failure to do so may result in liability.  More than 60 broker-dealers sold GPB funds, including Ascendant Alternative Strategies, LLC, Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp., and Woodbury Financial Services Inc. Investors who have lost more than $100,000…