All Releases

Scottsdale Capital Advisors Awaiting FINRA Disciplinary Action After Alleged Scheme

September 11, 2015 | Silver Law Group

The company’s Chief Compliance Officer and President may be implicated in the case

Scottsdale Capital Advisors, an Arizona brokerage firm established in 2001, is pending disciplinary action by FINRA after allegations of inappropriate business conduct by a client, the firm’s compliance officer and the then-president of the firm.

In May, FINRA filed a complaint against the firm as well as individuals John Hurry, Timothy DiBlasi and Mike Cruz in regards to allegations that these individuals and the firm violated FINRA rules by being involved in the sale of more than 74 million unregistered shares of three separate stocks, resulting in proceeds of more than $1.7 million for the customer and $170,000 in commissions for the firm, according to FINRA.

Richard Gomez Allegedly Involved With Fraudulent Company

September 10, 2015 | Silver Law Group

Alleged damages are estimated to be at least $499,000

According to FINRA, in April 2015, Richard Gomez, currently registered with Avenir Financial Group, was named as a respondent to a complaint regarding a fraudulent foreign company called Praetorian whose shares he sold to investors, allegedly causing nearly $500,000 in financial losses.

The complaint alleges that he did not disclose the adverse information available about the company, resulting in his earning at least $14,950 in commissions. Gomez maintains that even though the company was fraudulent does not mean his business activities relating to the company were problematic.

John Hurry May Face FINRA Charges, Sanctions Following Allegations

September 10, 2015 | Silver Law Group

Allegations include sales of millions of unregistered stock shares

John Hurry, a broker investment adviser who has been in the securities industry for 20 years, is pending disciplinary review by FINRA following allegations of his involvement with the illicit sale of more than 74 million unregistered shares through Arizona-based firm Scottsdale Capital Advisors.

In May, FINRA filed a complaint against the firm, Hurry and two of the firm’s higher-ups in regards to allegations that the individuals and the firm violated FINRA rules by selling 74 million unregistered shares of three separate stocks, resulting in proceeds of more than $1.7 million for the customer and $170,000 in commissions for the firm, according to FINRA.

Dalyne Shinneman Barred from Practice after 23 Years in Securities Industry

September 9, 2015 | Silver Law Group

Appealed suspension, but did not cooperate with FINRA investigation

According to the FINRA website, Dalyne L. Shinneman has been barred from the securities industries following a career riddled with disclosures and disputes.

A broker since 1989, Shinneman was most recently employed by Ridgeway & Conger, Inc., before facing suspension in July 2014. FINRA officially barred her in November 2014 after she allegedly requested termination of her suspension but failed to cooperate with further measures in the investigation.

Scott Matthews Barred From FINRA Due to Failure to Disclose Leads

September 8, 2015 | Silver Law Group

Customer disputes led to his discharge from last employer

According to the FINRA BrokerCheck website, Scott Frederick Matthews, a financial adviser for 22 years, led a relatively quiet career before a string of several customer disputes in the past two years.

Prior to June 2013, Matthews had been involved in just two customer disputes, one of which was denied and the other closed without action. But in the last week of that month, everything got a bit messier.

Broker Sylvester King, Jr. Resigns from Wells Fargo Advisors, LLC Concurrent with FINRA Suspension

September 8, 2015 | Silver Law Group

King allegedly concealed loans from the firm, among other violations

Fort Lauderdale-based broker Sylvester King, Jr. found himself in hot water with FINRA in April 2015, according to the BrokerCheck website. So much so that he resigned from his most recent employer, Wells Fargo Advisors, LLC the same day he filed his Acceptance, Waiver and Consent (AWC) letter with FINRA.

According to the AWC letter, while employed by Morgan Stanley in 2009 and lasting through 2012 when employed by Wells Fargo, King allegedly violated FINRA rules in a number of ways. First, he allegedly helped another broker conceal almost $400,000 in loans to three firm customers, and made a $25,000 loan to a customer without his firm’s permission. He was also allegedly involved in an undisclosed private securities transaction that involved eight firm customers investing more than $3 million. Then, on two separate questionnaires, he allegedly provided false information to Morgan Stanley regarding participating in private securities transactions.

SEC Announces Citigroup Affiliates to Pay $180 Million in Hedge Fund Fraud Settlement

September 7, 2015 | Silver Law Group

Affiliates allegedly defrauded traditional bond investors

Following allegations and an investigation by the Securities and Exchange Commission (SEC), two Citigroup affiliates have agreed to pay nearly $180 million to settle charges that they defrauded investors in two hedge funds. The firms are accused of claiming the hedge funds in question were safe, low-risk and appropriate for traditional bond investors, when in fact, the funds were in dire condition.

According to the SEC press release, Citigroup Global Markets Inc. (CGMI) and Citigroup Alternative Investments LLC (CAI) neither admitted to nor denied the SEC’s charges, but agreed to bear all costs of distributing the $180 million in settlement funds to harmed investors.

FINRA Levies $250,000 Fine Against LPL Financial

September 4, 2015 | Silver Law Group

FINRA also orders cease and desist after failure to abide by Massachusetts state regulation on senior financial designations

FINRA fined LPL Financial LLC a total of $250,000 on July 10 after allegations that the firm failed to establish or enforce supervisory procedures that complied with Massachusetts’ regulations. The regulations in question went into effect in 2007 and concern the use of “senior-specific” titles in the securities industry.

The regulation in question states that a broker may only use a title suggesting that he or she is specially trained to work with investors aged 65 or older if the broker has legitimate accreditation recognized by the Secretary of the Commonwealth of Massachusetts.

1st Discount Brokerage, Inc., Mark Miller, Alan Miller Censured and Fined by FINRA

September 4, 2015 | Silver Law Group

Failed to follow Securities Act requirements

Lake Worth, Florida-based 1st Discount Brokerage, Inc along with Naples, Florida-based Alan Miller and Overland Park, Kansas-based Mark Miller are all players in a FINRA disciplinary action, according to the June 2015 FINRA Disciplinary Action Report.

Both Alan Miller and Mark Miller consented to the sanctions and entry of the findings, without admitting or denying the findings, that their firm did not follow appropriate Securities Act requirements when executing sales of large blocks of low-priced securities frequently referred to as penny stocks.

Two South Florida Brokers in the FINRA Spotlight for Making Inappropriate Loans

September 3, 2015 | Silver Law Group

Patrick McGrath and Aaron Parthemer: Separate FINRA complaints for similar violations

In two separate FINRA disciplinary actions, two South Florida investment brokers were found to have made loans to, or borrowed funds from, their firm’s customers without permission. Generally, brokerage firms prohibit stockbrokers from asking clients for personal loans or otherwise soliciting direct investments from a client.

In the case of Fort Lauderdale, Florida-based Aaron Parthemer, his actions have resulted in his being permanently barred by FINRA from the securities industry in any capacity. While Parthemer did not admit to or deny the findings, he consented to the sanction and entry of the findings on several counts. Parthemer was registered with Wells Fargo Advisors, LLC in Fort Lauderdale, Florida.