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…

FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

On January 8, 2021, VALIC Financial Advisors agreed to a Letter of Acceptance, Waiver and Consent (AWC) (Case No. 2018060548501)  which included a Fine of $350,000 by the Financial Industry Financial Authority (FINRA), the securities industry regulator established to protect investors.  According to the agreement with FINRA, VALIC Financial Advisors “consented to the sanctions and to findings that it failed to establish a reasonably designed system and written procedures for the surveillance of rates of variable annuity replacements and for corrective action in the case of inappropriate replacements”.  FINRA also determined. “The procedures also failed to provide guidance as to…

FINRA Suspends Madison Avenue Securities Broker for Mutual Fund Sales Practice Violations

FINRA Suspends Madison Avenue Securities Broker for Mutual Fund Sales Practice Violations

In November 2020, the securities industry watchdog, the Financial Regulatory Industry Authority (“FINRA”) suspended, Vincent Anthony Virga, after an Acceptance, Waiver and Consent (AWC) Order was accepted, (FINRA Case #2019061187801).  According to FINRA, an AWC was issued in which Virga was fined $5,000, suspended from association with any FINRA member in all capacities for one month, and ordered to pay $19,687, plus interest, in restitution to a customer.  The suspension is in effect from December 21, 2020, through January 20, 2021. According to the AWC, “Without admitting or denying the findings, Virga consented to the sanctions and to the entry…

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…

KlaymanToskes Investigates David Lerner Associates Recommended Investments in Proprietary Non-Traded Investments Concentrated in Energy Sector

KlaymanToskes Investigates David Lerner Associates Recommended Investments in Proprietary Non-Traded Investments Concentrated in Energy Sector

National securities fraud law firm, KlaymanToskes (“KT”), announces  its investigation into David Lerner Associates for the unsuitable concentration in proprietary products invested non-traded Oil & Gas Investments offered exclusively to its clients.  The concentrated investments include the Energy 11 LP, Energy Resource 12 LP and Spirit of America Fund (SOAEX).  In addition to the precipitous loss in value, the majority of the interest payments received by investors 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…

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…

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

The securities industry watchdog, the Financial Regulatory Industry Authority (“FINRA”) barred, NPB Financial Group’s, Ex-Broker Cynthia Diane Cowden, for Unsuitable Investment Recommendations to a retired couple and an individual senior investor.  The recommended investments at issue were illiquid non-traded REITs and non-traded closed end funds.  According to FINRA, the barred broker’s recommendations resulted in unsuitable, securities concentration in illiquid securities that exceeded concentration limits established by the California State Regulations designed to protect investors. FINRA required that Cynthia Diane Cowden’s investment advice should have had reasonable basis for her recommendations, based on the investor’s “age, other investments, financial situation and…

ATTENTION HERTZ EMPLOYEES/INVESTORS:  KlaymanToskes Commences Investigation into Damages Sustained in Hertz Stock held with Full-Service Brokerage Firms During Coronavirus Pandemic

ATTENTION HERTZ EMPLOYEES/INVESTORS: KlaymanToskes Commences Investigation into Damages Sustained in Hertz Stock held with Full-Service Brokerage Firms During Coronavirus Pandemic

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by current and former employees and investors of Hertz Global Holdings (NYSE:HTZ) (“Hertz”) who held large, unhedged concentrated positions in Hertz stock and/or received margin calls resulting in the forced sale of stock.  The recent losses were the result of unsuitable advice during the Coronavirus (“COVID-19”) pandemic.  The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of concentrated, leveraged positions in Hertz stock. Investment portfolios holding large, concentrated stock positions carry significant downside risks, especially when leveraged by a margin loan. Full-service brokerage firms…

NOTICE TO ALL NEXT FINANCIAL GROUP, INC. CLIENTS: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation for Failure to Supervise Excessive Trading and Unsuitable Trade Recommendations Resulting in Damages in Excess of $10 Million

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, launches an investigation against Next Financial Group, Inc. (“NEXT”) (CRD #46214) based on its failure to supervise for excessive trading, short-short term mutual fund trading, securities concentration, and elder abuse resulting in damages in excess of $10 million in a customer’s accounts.  The investigation centers around a FINRA arbitration claim K&T is preparing to file against NEXT for failure to supervise its broker in Corpus Christi, Texas.  NEXT was fined $750,000 in December of 2017 for failing to adequately supervise a broker during the same timeframe alleged (2014 and 2015), allowing excessive trading to occur in customer accounts. …

Texas E&P Partners Expelled By FINRA for Misconduct Related to Chestnut Exploration Partners

Texas E&P Partners Expelled By FINRA for Misconduct Related to Chestnut Exploration Partners

Released March 2017 Texas E&P Partners, Inc. fka Chestnut Exploration Partners, Inc. (CRD #127228 , Richardson, Texas) and Mark Allan Plummer (CRD #4608699 Richardson, Texas). The firm was expelled from FINRA® membership. Plummer was barred from association with any FINRA member in any capacity and ordered to pay $ 513,961, plus interest, in restitution to customers. The sanctions were based on findings that Plummer misused customer funds by misusing the portion of a completion assessment (certain assessments that were levied on investors for prospective oil and gas well investments) attributable to a prospective well. The findings stated that Plummer collected…

Broker Barred by FINRA for Excessive Trading in Client IRA Accounts

Broker Barred by FINRA for Excessive Trading in Client IRA Accounts

Released March 2017 Richard Gomez (CRD #4727721, Jackson Heights, New York) submitted an AWC in which he was suspended from association with any FINRA member in any capacity for one year.  In light of Gomez’s financial status, no monetary sanction has been imposed. Without admitting or denying the findings, Gomez consented to the sanction and to the entry of findings that he engaged in several types of misconduct in the Individual Retirement Accounts (IRAs) of three of his member firm’s customers. The findings stated that without obtaining prior written authorization from two of these customers—who are husband and wife and…

NOTICE TO UPS EMPLOYEES/SHAREHOLDERS: Klayman & Toskes, P.A. Files $1,000,000 FINRA Arbitration Claim on Behalf of Retired UPS Employee for Losses Suffered as a result of Merrill Lynch’s Unsuitable Recommendation to Invest in Rampart Strategy

NOTICE TO UPS EMPLOYEES/SHAREHOLDERS: Klayman & Toskes, P.A. Files $1,000,000 FINRA Arbitration Claim on Behalf of Retired UPS Employee for Losses Suffered as a result of Merrill Lynch’s Unsuitable Recommendation to Invest in Rampart Strategy

NEW YORK, March 13, 2017 (GLOBE NEWSWIRE) — The securities arbitration law firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has filed a $1,000,000 FINRA arbitration claim [FINRA Case No. 17-00599] on behalf of retired United Parcel Service (“UPS”) (NYSE: UPS) employee for losses suffered as a result of Merrill Lynch’s unsuitable recommendation to invest in Rampart Strategy. According to K&T, the investigation focuses on Merrill Lynch’s sales practices for customers who acquired UPS stock through UPS’ Employee Stock Purchase Plan or Managers Incentive Program and were advised by Merrill Lynch to implement a covered call strategy on their concentrated…

NOTICE TO MORGAN STANLEY CLIENTS: Klayman & Toskes, P.A. Announces Investigation of Morgan Stanley Following $8 Million in SEC Fines for Exchange Traded Fund Violations

NOTICE TO MORGAN STANLEY CLIENTS: Klayman & Toskes, P.A. Announces Investigation of Morgan Stanley Following $8 Million in SEC Fines for Exchange Traded Fund Violations

New York, NY — February 21, 2017 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A.,(K&T) www.klaymantoskes.com, announces an investigation into sales practice violations by Morgan Stanley (NYSE:MS) following $8 million in fines levied by the Securities Exchange Commission (SEC) related to Exchange Traded Funds (ETFs). On February 14, 2017, the SEC imposed a Cease and Desist Order and Remedial Actions against Morgan Stanley for sales practice violations related to recommended investments in single-inverse ETFs for advisory clients in non-discretionary accounts.  According to Morgan Stanley compliance procedures, recommended investments in single-inverse ETFS had two requirements: Advisory clients were…

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…

NOTICE TO WELLS FARGO BROKERAGE CLIENTS: Klayman & Toskes, P.A.  Launches Investigation into Wells Fargo Advisors’ Envision Investment Analysis Tool, Following $1 Million FINRA Fine for Failing to Supervise Client Presentation Reports

NOTICE TO WELLS FARGO BROKERAGE CLIENTS: Klayman & Toskes, P.A. Launches Investigation into Wells Fargo Advisors’ Envision Investment Analysis Tool, Following $1 Million FINRA Fine for Failing to Supervise Client Presentation Reports

New York, NY  – December 16, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has launched an investigation into Wells Fargo Advisors, a wholly-owned brokerage dealer of Wells Fargo (NYSE:WFC), for Financial Industry Regulatory Authority (FINRA) sales practice violations for failing to supervise client presentation reports, including those generated by the firm’s Envision investment analysis tool. On December 5, FINRA accepted from Wells Fargo Advisors an Acceptance Waiver and Consent for $1 million in fines for “failing to establish a supervisory system reasonably designed to achieve compliance with applicable securities laws and regulations regarding the use and dissemination to customers of…

NOTICE TO MERRILL LYNCH CUSTOMERS – Klayman & Tokses, P.A. Announces Investigation into Merrill Lynch Loan Management Accounts in Light of FINRA Sanctions for $7 Million in Fines and Restitution Regarding US and Puerto Rico Clients

New York, NY – December 1, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announces an investigation into Merrill Lynch, a wholly owned brokerage firm of Bank of America (NYSE:BAC), for Financial Industry Regulatory Authority (FINRA) sales practice violations from its Loan Management Accounts (LMAs) following FINRA regulatory fines.  Yesterday, FINRA accepted from Merrill Lynch an Acceptance Waiver and Consent for $6.25 million in fines and approximately $780,000 in restitution to Puerto Rico customers, for inadequately supervising the use of Merrill Lynch loans for customer accounts.  According to FINRA, Merrill Lynch brokerage accounts received proceeds transferred from LMAs and purchased millions of dollars…

FINRA Fines Broker $219,000 for Private Placement Violations

FINRA Fines Broker $219,000 for Private Placement Violations

Thomas Edward Brenner Jr. (CRD #1489233, Orrville, Ohio) submitted an AWC in which he was assessed a deferred fine of $30,000, suspended from association with any FINRA member in any capacity for 16 months, and ordered to pay deferred disgorgement of commissions of $189,000, plus interest. Without admitting or denying the findings, Brenner consented to the sanctions and to the entry of findings that he engaged in two separate private placements which were rife with supervisory and substantive violations.  The findings stated that in soliciting customers to purchase a private placement offering, Brenner provided customers with a private placement memorandum…

NOTICE TO CURRENT AND FORMER WELLS FARGO EMPLOYEES AND CUSTOMERS – Klayman & Tokses, P.A.  Continues to Investigate Wells Fargo Cross Selling Incentive Programs Following Regulatory Probes

NOTICE TO CURRENT AND FORMER WELLS FARGO EMPLOYEES AND CUSTOMERS – Klayman & Tokses, P.A. Continues to Investigate Wells Fargo Cross Selling Incentive Programs Following Regulatory Probes

New York, NY – November 4, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, continues to inv estigate Wells Fargo (NYSE:WFC) and its broker dealer, Wells Fargo Advisors, for potential Financial Industry Regulatory Authority (FINRA) sales practice violations from its“cross selling” incentive  programs.  Yesterday, Wells Fargo reported in its SEC 10-Q filing, “the United States Department of Justice and the United States Securities and Exchange Commission, and state attorneys general and prosecutors’ offices, as well as Congressional committees, have undertaken formal or informal inquiries, investigations or examinations arising out of certain sales practices of the Company that were the subject of settlements” with regulators for $185 million on September 8, 2016. The federal probes conducted by…

FINRA Fines Eight Firms a Total of $6.2 Million for Supervisory Failures Related to Variable Annuity L-Shares

Released November 2, 2016 WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has fined eight firms, including VOYA Financial Advisors, five broker-dealer subsidiaries of Cetera Financial Group, Kestra Investment Services, LLC, and FTB Advisors, Inc., a total of $6.2 million for failing to supervise sales of variable annuities (VAs). FINRA also ordered five of the firms to pay more than $6 million to customers who purchased L-share variable annuities with potentially incompatible, complex and expensive long-term minimum-income and withdrawal riders. FINRA imposed sanctions against the following firms. VOYA Financial Advisors Inc., of Des Moines, IA, was…

NOTICE TO WELLS FARGO AND MORGAN STANLEY CLIENTS – Klayman & Toskes, P.A. Investigates Cross Selling Incentive Programs Following FINRA Targeted Examination Letter to Brokerage Industry

NOTICE TO WELLS FARGO AND MORGAN STANLEY CLIENTS – Klayman & Toskes, P.A. Investigates Cross Selling Incentive Programs Following FINRA Targeted Examination Letter to Brokerage Industry

New York, NY – October 31, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has opened an industry-wide investigation of brokerage firms into potential Financial Industry Regulatory Authority (FINRA) sales practice violations of “cross selling” incentive programs following targeted examination letter to member firms.  According to FINRA, the Targeted Examination Letter sent is designed to review “cross selling programs” used by brokerage firms for FINRA sales practice rules and regulations.  This investigation follows regulatory actions against Wells Fargo (NYSE:WFC) and Morgan Stanley (NYSE:MS) for “cross selling” programs which violated securities industry regulations. The FINRA…