All Releases

Miami Broker Mikell Simmons Fined and Suspended by FINRA

October 14, 2015 | Silver Law Group

Failure to disclose criminal charges results in $5,000 fine and suspension

During a 15-year career in the securities industry, Miami-based broker Mikell Simmons has seen a total of six disclosure events on his official record, the most recent of which includes a one-month suspension and a $5,000 fine.

According to Simmons’ FINRA BrokerCheck record, the Miami broker, most recently registered with Global Strategic Investments, failed to update his U4 form required by the regulatory body with information pertaining to criminal charges brought against him in February 2013 while he was employed by CP Capital Securities. Per FINRA broker requirements “an individual is under a continuing obligation to amend and update information required by Form U4 as changes occur.” As a result, on June 11, 2015, FINRA handed Simmons a one-month suspension along with a $5,000 fine.

Antonio Costanzo Permanently Barred by FINRA After Alleged Churning in Customer Accounts

October 9, 2015 | Silver Law Group

Broker failed to respond to FINRA information requests after allegations of excessive trading in numerous customer accounts

After 19 years in the securities industry, Antonio Costanzo has received a permanent bar from FINRA from acting in the capacity of a broker or other financial adviser, according to the FINRA website. The sanction, levied in May, came after a 2014 allegation that Costanzo was involved in churning, or excessive trading, in several customers’ accounts while employed at Newport Coast Securities.

Churning is, unfortunately, a common form of stockbroker misconduct in which a financial adviser makes excessive trades in an account in an effort to generate greater commissions without actually benefiting the customer. In fact, the buying and selling activity involved in churning is unsuitable to the investor’s goals and serves no practical purpose to the investor but generates substantial commission for the stockbroker.

Hindsight Is 20/20: Famous Ponzi Schemes and Why They Weren’t Obvious

October 2, 2015 | Silver Law Group

Throughout history, promises of high returns and low risk have lured investors to financial peril

If they only used their brilliance for good and not evil, what a better world we all might live in. Unfortunately, the brilliant businessmen behind some of the most famous Ponzi schemes, both in the past and more recently, chose to use their intelligence to prey upon all of society—from the poor elderly to the rich and famous.

The Man Who Started It All: Charles Ponzi

SEC Alleges Broker William Quigley Schemed to Defraud Investors

October 1, 2015 | Silver Law Group

Quigley and his two brothers are accused of running a fraudulent offering scheme

After a 24-year career in the securities industry checkered with allegations of misconduct and unauthorized trading, broker William Quigley has not only been barred permanently by FINRA, he also faces fraud charges brought by the SEC.

According to the SEC administrative proceeding, the SEC “deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be…instituted” against Quigley. It is alleged that William Quigley, along with his two brothers, Michael Quigley and Brian Quigley misappropriated investor funds from 2003 through 2012.

6 Questions You Must Ask Potential Brokers Before Handing Over Your Money

October 1, 2015 | Silver Law Group

It’s time to start looking beyond low commissions

Maybe you’re a new investor. Maybe you’re looking for a new broker after getting burned. Either way, you’re entitled to know a few things about the person you’ll trust to act as the guiding intermediary between you and securities traded on the market. But what questions will really help you vet this person? What answers are just big red flags? While the following questions are absolute musts, don’t be afraid to ask more and dig deeper. The only brokers who fear your inquiries are those with something to hide.

1. Do you owe me a fiduciary duty?

Samuel Borger Suspended by FINRA for Two Months

September 30, 2015 | Silver Law Group

FINRA did not impose a fine though Borger failed to report outside accounts

After 43 years in the securities industry, Samuel Jacob Borger was hit with a two-month suspension from FINRA on May 29 following allegations that he failed to inform his employing firm of outside accounts over which he had authority, according to FINRA reports.

From November 2003 to April 2014, Borger allegedly failed to disclose his association with several outside accounts to any of his employing firms in that time period. These allegations violate rules under both FINRA and the National Association of Securities Dealers (NASD). He accepted the two-month suspension without admitting or denying the findings, and he submitted a statement regarding his finances and inability to pay a fine, so a fine was not imposed.

Alejandro Torres Barred by FINRA on Conversion Allegations

September 29, 2015 | Silver Law Group

Torres allegedly convinced a client to go into business with him, converted at least $59,600 for his personal use

After five years in the securities industry, Alejandro Ariel Torres has been permanently barred by FINRA on May 11, 2015 following allegations of converting customer money for his personal use. Most recently employed by Global Strategic Investments in Miami, Torres was previously employed by

Wells Fargo, BB&T, Statetrust Investments, Inc., and Edward Jones, all in South Florida.

Oriental Financial Services Fined and Censured by FINRA After Alleged Withholding Information

September 28, 2015 | Silver Law Group

The firm accepted sanctions including $50,000 fine

Oriental Financial Services was recently fined in the conclusion of a FINRA investigation alleging that the corporation withheld documents and information regarding a 2011 customer dispute in FINRA arbitration. Based in Puerto Rico, OFS also works for investors in Florida, Washington, D.C., New Jersey, New York, Texas and Virginia.

In 2011, the firm was involved in a customer dispute claiming a loss of more than $600,000, alleging a conflict of interest, which resulted in OFS being sanctioned by FINRA. The firm neither confirmed nor denied the allegations, but accepted sanctions in the form of a censure and a $50,000 fine.

FINRA Orders UBS Group AB to Pay Puerto Rico Investors $2.5 Million

September 25, 2015 | Silver Law Group

Good news for other investors who have suffered losses in Puerto Rico investments

For the tens of thousands of ordinary investors who have suffered losses due to the financial crisis in Puerto Rico, there is hope. According to an online article on The Wall Street Journal, Financial Industry Regulatory Authority (FINRA) arbitrators ordered UBS Group AG to pay nearly $2.5 million to a couple from San Juan who bought Puerto Rico bond funds through the bank. This legal win is a sign of hope for investors in Puerto Rico municipal-bond funds seeking to recover financial losses through securities arbitration.

UBS brokers allegedly told many investors that Puerto Rico bond funds were a safe investment, when in fact the funds were actually a risky investment due to their structure and investment strategy. In addition, it is alleged that UBS profited by collecting fees on sales and trades of the funds while at the same time the bank ultimately controlled a large part of the market for the funds.

David Ledoux Fined and Suspended by FINRA After Failing to Disclose Liens on His Registration

September 24, 2015 | Silver Law Group

Ledoux failed to report six liens between 2004 and 2012

Boca Raton broker David J. Ledoux faced a suspension and fine in June after allegations that he failed to file an updated Form U4 to reflect six liens in a timely manner, according to FINRA. Ledoux, who has been employed in the security industry since 2004, was permitted to resign from National Securities Corporation after allegedly failing to report liens between 2004 and 2012. He didn’t report four of them until 2014 and two were never disclosed.

This resulted in disciplinary action from FINRA, which levied sanctions against him in the form of a 45-day suspension and $5,000 fine. The first lien, which was civil, was in the amount of $369, but the remaining tax liens amounted to a total of more than $184,000, according to FINRA. According to the disclosures made on his FINRA Broker Check report, he is on an installment plan to repay two of them.