Articles Posted in Failure to Supervise

Broker Jason McBride (CRD #1875972) is a registered broker and investment advisor employed by Presidential Brokerage, Inc. (CRD #28784) of Greenwood Village, CO. He has been with Presidential since 1995. His previous employers include VTR Capital, Inc. (CRD #21404) of New York City, Chatfield Dean & Co., Inc. (CRD #14714)…

Here’s what you need to do now Elder financial fraud continues to be a lucrative scheme in America, which is why seniors and their loved ones always need to keep their guard up. We have previously discussed how to spot fraud and what some financial institutions are doing to prevent…

Alan New has been registered with NYLife Securities LLC in Fort Wayne, IN from 2004 to August 2016. According to his BrokerCheck Report, New has been the subject of five customer complaints in 2018. April 2018. “Plaintiff alleges that material facts and the risks associated with an unregistered investment purchased…

Frank Dietrich was registered with Quest Capital Strategies, Inc. in Lake Forest, California from March 2013 to April 2018, when he was terminated regarding, “Failure to fully disclose outside business activities and sale of unapproved product.”  Dietrich sold Woodbridge notes to multiple investors. Dietrich has been the subject of six…

Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. Mr. Wedbush was allegedly employing a manipulative trading scheme involving over 70 accounts at Wedbush Securities. The trading practice, often referred to as “cherry-picking,”…

Wedbush Securities, Inc. (CRD # 877) is a financial services and investment firm based out of Los Angeles, California. Wedbush currently has three pending regulatory actions against the firm. One such action was initiated by the Securities & Exchange Commission in March 2018. The SEC alleges that Wedbush failed to…

Financial Industry Regulatory Authority (“FINRA”) is the non-governmental organization that regulates stockbrokers and brokerage firms. FINRA rules set out the appropriate conduct for its members.  This includes several rules detailing member firms’ requirement to supervise their brokers and advisers. FINRA Rule 3110 is the main rule discussing supervision. It requires…

Wedbush Securities is facing discipline from the SEC, NYSE, and FINRA for a manipulative trading scheme involving its founder, Edward Wedbush. According to a recent article by InvestmentNews.com, however, all three agencies were well aware of problems within Wedbush for many years, but handed down no real, meaningful punishment to…

The recent arrest of former broker Gary Basralian (CRD #14385) for defrauding two clients of $2.1 million also raises allegations of failure to supervise about his brokerage firm, Royal Alliance Associates (CRD #23131.) According to news reports, Basralian embezzled money from two elderly women and used the funds for his…

Centaurus Financial has been the recipient of multiple FINRA actions, including 11 regulatory events and 8 reported arbitration claims. Not all of these are major issues, but they could be relevant to an investor doing business with Centaurus. The SEC has strict rules about how a broker-dealer operates, runs their…