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…

FINRA Submits Rule to SEC to Protect Against Elderly Financial Fraud

FINRA Submits Rule to SEC to Protect Against Elderly Financial Fraud

The Financial Industry Regulatory Authority (FINRA) has submitted new rule changes for the Securities Exchange Commission (SEC) to approve which is designed to help prevent elder financial fraud.  The proposed rule changes will require brokerage firms to “make reasonable efforts” to obtain contact information for “trusted” individuals who are designated by elderly account holders.  The “trusted” individuals, such as close friends and family members, would be contacted by brokerage firms in the event of suspicious activities related to an elderly person’s investment accounts.  In a recent press release, FINRA proposed changes that would allow brokerage firms to place a temporary…

SEC Bars LPL Financial advisor, Paul Lebel for Churning Client Mutual Fund Investments

SEC Bars LPL Financial advisor, Paul Lebel for Churning Client Mutual Fund Investments

On October 18, 2016, the Securities Exchange Commission (SEC) barred LPL Financial advisor, Paul Lebel for churning and excessively trading mutual funds in customer accounts for the sole purpose of his own personal enrichment.   The excessive trading, also known as “churning” occurred during the period from 2008 to 2014, “during his employment with LPL, he defrauded four customers by churning several of their accounts,” according to the SEC administrative proceeding. According to the SEC which imposed Remedial Sanctions and a Cease and Desist Order which was a Paul Lebel. “In particular, Lebel exercised de facto control over these customers’ accounts…

NOTICE TO WELLS FARGO BROKERAGE CUSTOMERS -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues Wells Fargo Advisors Investigation -- California AG Issues Search Warrant

NOTICE TO WELLS FARGO BROKERAGE CUSTOMERS -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues Wells Fargo Advisors Investigation -- California AG Issues Search Warrant

New York, NY — October 21, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, continues to investigate Wells Fargo Advisors for potential Financial Industry Regulatory Authority (FINRA) sales practice violations following California’s Attorney General Office search warrant which seeks bank customer records, as reported by the Los Angeles Times.  According to public records there is probable cause that Wells Fargo (NYSE:WFC) violated two laws which are felony offenses, fraudulent impersonation and fraudulent use of personal information. The information sought by the warrant concerns Wells Fargo’s fraudulently opened customer accounts through “cross-selling” efforts that resulted…

Wells Fargo Brokerage Customer Alert -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation into Wells Fargo “Cross-Selling” Efforts for Violations of Securities Industry Regulations

Wells Fargo Brokerage Customer Alert -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation into Wells Fargo “Cross-Selling” Efforts for Violations of Securities Industry Regulations

Boca Raton, Florida (Businesswire) – October 10, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has opened an investigation into potential Financial Industry Regulatory Authority (FINRA) sales practice violations by Wells Fargo Advisors and its financial advisors for activities similar to those recently reported in The Charlotte Observer.  According to reports, Wells Fargo (NYSE:WFC) used aggressive “cross-selling” tactics with its bank clients in order to open investment accounts through its brokerage firm, Wells Fargo Advisors.  According to a former bank branch manager, new account goals had minimum sales requirements across all product lines which…

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Investigates Claims of Customer Losses from Concentrated UPS Stock Positions Managed in Merrill Lynch’s Rampart Options Management Service (ROMS) Program

Boca Raton, Florida (GLOBE NEWSWIRE) September 18, 2015 — The securities arbitration law firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announced today that it is investigating Financial Industry Regulatory Authority (FINRA) violations for Merrill Lynch customers with concentrated positions in United Parcel Service (“UPS”) (NYSE: UPS) stock managed in Merrill Lynch’s Rampart Options Management Service (“ROMS”) program. Merrill Lynch offers the ROMS program on a discretionary basis exclusively to high-net-worth clients holding stock positions exceeding $1 million through Rampart Investment Management Company (RIMCO), an independent money manager located in Boston, Massachusetts. According to Merrill Lynch, “The ROMS service can…