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…

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…

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…

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…

NOTICE TO WORKHORSE GROUP SHAREHOLDERS: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Company

NOTICE TO WORKHORSE GROUP SHAREHOLDERS: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Company

Boca Raton, Florida — March 16, 2021 — The Securities Law Firm of KlaymanToskes (“KT”) provides notice to all Workhorse Group, Inc. (NYSE:WKHS) shareholders concerning the Class Action Lawsuit (Case 2:21-cv-02072) filed March 8, 2021 in the United States District Court of the Central District of California, for the class period from July 7, 2020 and February 23, 2021.   Workhorse Group is an Electric Vehicle (EV) stock which represents a highly speculative investment.  According to the class action lawsuit, “Defendants made materially false and/or misleading statements, and failed to disclose that: (1) the Company was merely hoping that USPS…

FINRA Fines Cetera $1 Million for Failure to Supervise Private Securities Transactions in Client Accounts

FINRA Fines Cetera $1 Million for Failure to Supervise Private Securities Transactions in Client Accounts

FINRA recently disclosed that Cetera Advisor Networks LLC, Cetera Advisors, LLC and Cetera Financial Specialists, LLC, (Cetera Firms) agreed to an Acceptance, Waiver and Consent (AWC) Case #2015046716901.  The Cetera Firms were fined $1 million and were ordered to review and revise, their systems, policies and procedures with respect to the supervision of “private securities” transactions in client accounts, for brokers who were dually-registered. According to FINRA, “From January 2011 through December 2018, Networks and Advisors, and from November 2012 through January 2018, Specialists (the relevant time periods) each failed to establish, maintain and enforce a supervisory system and written…

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…

ATTENTION CURRENT AND FORMER UBS CUSTOMERS WITH YES ACCOUNT LOSSES:  KlaymanToskes Continues to Investigate and Pursue Claims to Recover Investment Losses

ATTENTION CURRENT AND FORMER UBS CUSTOMERS WITH YES ACCOUNT LOSSES: KlaymanToskes Continues to Investigate and Pursue Claims to Recover Investment Losses

KlaymanToskes, www.klaymantoskes.com, continues to  investigate and pursue claims to recover investment losses suffered by investors in UBS’s (NYSE:UBS) Yield Enhancement Strategy (“YES”). KT has recently received important information relating to the marketing, offer, and sale of the YES strategy to UBS customers. KT believes that investor claims are meritorious as they relate to the marketing, offer, and sale of the YES strategy, including the sales presentation that was provided to customers. The YES program utilized an options strategy known as the Iron Condor, trading call and put options on the S&P 500. UBS characterized YES as a strategy that would…

ATTENTION INVESTORS AT FULL-SERVICE BROKERAGE FIRMS WITH FINANCIAL ADVISORS:  FINRA Arbitration is the Best Means to Recovering Losses Suffered Due to Market Volatility Caused by COVID-19

ATTENTION INVESTORS AT FULL-SERVICE BROKERAGE FIRMS WITH FINANCIAL ADVISORS: FINRA Arbitration is the Best Means to Recovering Losses Suffered Due to Market Volatility Caused by COVID-19

KlaymanToskes (“KT”), www.klaymantoskes.com, is investigating the damages sustained by investors at full-service brokerage firms who held large, unhedged concentrated positions, margin accounts, unsuitable asset allocations, or had an account that was excessively traded (known as “Churning”) and suffered losses due to the Coronavirus (“COVID-19”) pandemic. Has COVID-19 Caused You to Suffer Losses? Covid-19 has caused significant market volatility as large populations across the world have been quarantined and/or are on lockdown.  Governments are implementing social distancing to combat COVID-19, since there is currently no vaccine or cure.  The increase in volatility has led to widespread losses. What Can I Do…

ATTENTION GOLDMAN SACHS MLP AND ENERGY RENAISSANCE FUND (GER) INVESTORS – KlaymanToskes commences investigation on behalf of GER Investors Who Sustained Losses in Excess of $250,000 as a Result of a Recommendation from their Financial Advisor

ATTENTION GOLDMAN SACHS MLP AND ENERGY RENAISSANCE FUND (GER) INVESTORS – KlaymanToskes commences investigation on behalf of GER Investors Who Sustained Losses in Excess of $250,000 as a Result of a Recommendation from their Financial Advisor

KlaymanToskes (“KT”), https://klaymantoskes.com, announces an investigation on behalf of investors who sustained losses from the purchase of Goldman Sachs MLP and Energy Renaissance (NYSE:GER) (“GER”), a Master Limited Partnership (“MLP”).  GER closed at 33.21 on February 21, 2020, prior to the significant market event that was precipitated by COVID-19.  Yesterday, GER closed at 6.60, post-split adjusted.  This investment may have been marketed and sold to customers who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks. MLPs are investment vehicles available only to the real…

NOTICE TO UBS PUERTO RICO CUSTOMERS: Klayman & Toskes and Carlo Law Offices File $15 Million FINRA Claim Against UBS for Concentration in Puerto Rico Government Bonds and Closed-End Bond Funds in the Wake of Puerto Rico’s Bankruptcy Filing

NOTICE TO UBS PUERTO RICO CUSTOMERS: Klayman & Toskes and Carlo Law Offices File $15 Million FINRA Claim Against UBS for Concentration in Puerto Rico Government Bonds and Closed-End Bond Funds in the Wake of Puerto Rico’s Bankruptcy Filing

San Juan, Puerto Rico.  May 5, 2017 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.sueubspuertorico.com, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a FINRA claim against UBS Financial Services Incorporated of Puerto Rico and UBS Financial Services, Inc. (NYSE: UBS) (collectively “UBS”) for $15 million.  The claim has been filed in the wake of Puerto Rico’s recent bankruptcy filing, which is the largest in U.S. Municipal history. According to the Claim, the Claimant entrusted his retirement assets to UBS with an investment objective of current income and capital preservation.…

FINRA Bars Broker for Excessive Trading in Elderly Customer Accounts

FINRA Bars Broker for Excessive Trading in Elderly Customer Accounts

Released April 2017 Matthew Christopher Maczko (CRD #1888519, Downers Grove, Illinois) submitted an AWC in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Maczko consented to the sanction and to the entry of findings that he engaged in excessive trading in an elderly customer’s accounts. The findings stated that Maczko effectively controlled these accounts, which had an average aggregate value of $3 million. Maczko’s transactions in these accounts generated approximately $581,650 in commissions, $84,270 in other fees, and approximately $397,000 in trading losses. This level of trading was unsuitable…

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

The new Department of Labor (DOL) Fiduciary Rule that was enacted and scheduled to begin this month on April 10th has been postponed 60 days to June 9th.  Brokerage Firms and Financial Advisors are responsible for compliance with the rules as they are now written.  Keeping in mind that the requirements may be modified or eliminated based on the what happens during the 60-day delay. Klayman & Toskes, P.A. is monitoring the developments and will keep investors posted and provide further updates as they become available. Best Interest Contract (BIC) Brokerage firms and financial advisors who recommend investment of retirement funds…

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…

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 UBS PUERTO RICO CUSTOMERS: Klayman & Toskes Files $8.5 Million Suit Against UBS as it Investigates Claims for Over-Concentration in Puerto Rico Government Bonds and Closed-End Bond Funds

NOTICE TO UBS PUERTO RICO CUSTOMERS: Klayman & Toskes Files $8.5 Million Suit Against UBS as it Investigates Claims for Over-Concentration in Puerto Rico Government Bonds and Closed-End Bond Funds

San Juan, Puerto Rico.  January 13, 2017 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.sueubspuertorico.com, together with Carlo Law Offices, P.S.C. located in Puerto Rico, announced today that they filed a claim against UBS Financial Services Incorporated of Puerto Rico and UBS Financial Services, Inc. (NYSE: UBS) (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…