Churning

Silver Law Group Files FINRA Arbitration Claim Involving Churning Against Two National Broker/Dealers and Financial Advisor Curtis Milakovich

August 26, 2016 | Silver Law Group

The Silver Law Group has filed an arbitration claim before FINRA on behalf of two Florida teachers alleging, among other things, that financial advisor Curtis Milakovich (CRD# 5471527) churned their accounts while two national broker/dealers turned a blind eye.

The claim also alleges that the two national broker/dealers did not follow adequate policies and procedures to address the misconduct and failed to follow up on the red flags that would have alerted them to the misconduct being perpetrated on the clients who lost significant portions of their retirement savings. At times, Milakovich operated as Aspire Wealth Management.

Excessive trading or “churning,” as it is known in the industry, is the act of a broker who excessively and needlessly engages in trading in a client’s account primarily to generate commissions for the broker on each trade without regard for the client’s financial well-being. Churning is an illegal and unethical practice that violates SEC rules and securities laws.

My Financial Advisor is Giving Me the Runaround on My Investments, What Are My Rights?

August 18, 2016 | Silver Law Group

My Financial Advisor is Giving Me the Runaround on My Investments, What Are My Rights? on silverlaw.com

Misconduct is an unfortunate reality of the securities industry, but knowing your rights is imperative to taking swift action when a dispute arises

When it comes to working with financial advisors, it’s essential to know your rights. Many financial advisors do not have the best interests of their clients at heart and are willing to take unethical and illegal actions in order to increase their profits.

Even if your financial advisor is well intentioned, they may be unknowingly violating your rights by not fully informing you of the potential risks of your investments or they may be placing you in investments grossly unsuitable for your financial goals.

Bahram Mirhashemi Facing Allegations of Elder Financial Fraud

August 15, 2016 | Silver Law Group

Bahram Mirhashemi Facing Allegations of Elder Financial Fraud on silverlaw.com

Serious allegations lead to termination at Accelerated Capital Group and permanent bar from FINRA

Silver Law Group is investigating allegations against broker Bahram Mirhashemi for unauthorized trades, unsuitable mutual find switching, churning of customer accounts, fraud, elder financial fraud, and several other serious violations.

Mirhashemi has worked in the financial services industry for 18 years and was employed by several firms during that time period. His most recent position was with Accelerated Capital Group in Irvine, California from September of 2012 through January of 2016.

Allegations of Sales Practice Violations Cloud Broker Kenneth Dlouhy ‘s Record

August 11, 2016 | Silver Law Group

Allegations of Sales Practice Violations Cloud Broker Kenneth Dlouhy ‘s Record on silverlaw.com

FINRA permanently bars Capstone Research Inc. broker from associating with any member firm.

After 22 years in the financial services industry, New Jersey-based broker Kenneth Dlouhy is no longer eligible to associate in any capacity with any FINRA member firm. This permanent suspension comes as a result of Dlouhy’s failure to respond to a FINRA request for information during an investigation.

A closer look at Dlouhy’s BrokerCheck record shows numerous customer disputes dating back to 1998, with the most recent dispute filed in late 2015. Included in many of the disputes are allegations against Dlouhy that include unsuitability, unauthorized trading, misrepresentation, churning, negligence, breach of fiduciary duty, breach of contract and violations of state securities laws. Damage amounts requested against Dlouhy throughout his career exceed $2.2M.

Broker Russell Macke Banned by FINRA After Multiple Complaints, FINRA Actions, and Terminations

March 18, 2016 | Silver Law Group

Broker Russell Macke Banned by FINRA After Multiple Complaints, FINRA Actions, and Terminations on silverlaw.com

Churning, unsuitable investments misconduct and elder fraud among allegations that ended Macke’s career

In October 2015, the Financial Industry Regulatory Authority (FINRA) permanently banned Russell Macke from acting as a broker and from associating with any securities firms. This decision comes after numerous customer complaints, regulatory actions, employment terminations, as well as seven judgments or liens against him. Macke has been accused of churning, investment fraud, unsuitable investments as well as several other charges.

Macke has been registered in the securities industry since 1989. He was most recently registered with B.B. Graham & Company of Orange, CA (between 2012-2015). Other recent registrations include:

Have You Invested Money with William “Billy” Nelson and Lost?

March 16, 2016 | Silver Law Group

Have You Invested Money with William “Billy” Nelson and Lost? on silverlaw.com

Customer disputes, judgments and tax liens checker this New York broker’s record.

William “Billy” Nelson entered the securities industry over 18 years ago and to date has 16 disclosure events reported on his FINRA BrokerCheck record. Allegations against Nelson, currently with Meyers Associates, L.P., include a wide range of transgressions such as:

Unauthorized transactions

Churning, Other Allegations Made Against Broker Michael Doyle

February 18, 2016 | Silver Law Group

Churning, Other Allegations Made Against Broker Michael Doyle on silverlaw.com

After 7 complaints and millions in settlements, Doyle is suspended by FINRA

According to a FINRA BrokerCheck report, Michael Doyle has received complaints from seven clients and was suspended for failing to comply with an arbitration award and to respond to the FINRA’s request to provide information concerning the status of compliance.

The complaints against Doyle date back to March of 1998 when a customer alleged that her account was churned in relation to stock option trades. In addition to this complaint, numerous others would continue to be made against Doyle over the 17 years that followed.

FINRA Permanently Bars NY Broker Rasheed Adams After Allegations of Churning

January 10, 2016 | Silver Law Group

FINRA Permanently Bars NY Broker Rasheed Adams After Allegations of Churning on silverlaw.com

Excessive trading leads to $57K in commissions and $37K in losses for investors, among other allegations

In August of 2015, FINRA permanently banned New York financial advisor Rasheed “Richard” Adams from associating or engaging with any firm associated with FINRA after allegations of excessive trading were filed. Adams also failed to provide required FINRA information and paperwork related to these allegations and his investment activity. Adams allegedly gained a commission of approximately $57,000, while his customers lost approximately $37,000.

According to the FINRA complaint, Mr. Adams worked with Caldwell International Securities between 2011 and 2015, which is when these churning activities were alleged to have occurred. Previously, he was registered with PHD Capital (2010-2011) and E1 Asset Management Inc. (2002-2010). He is not currently registered with any FINRA member firm.

Equinox Securities Company and Staff Charged With Fraud Scheme

December 9, 2015 | Silver Law Group

Equinox Securities Company and Staff Charged With Fraud Scheme on silverlaw.com

The firm, as well as its president and CCO, are charged with alleged churning, excessive trading and unsuitable recommendations

Equinox Securities, as well as President Steven Michael Oliveira and CCO Chris Blaine Palkowitsch, were all charged by the FINRA Department of Enforcement in a specific complaint about allegations of excessive churning of customer accounts and excessive trades, in addition to making unsuitable recommendations for customers.

Churning occurs when a broker repeatedly buys or sells securities in a customer’s account in order to generate commissions from those sales without any benefit to the customer. Purchases that don’t appear directly necessary to the customer’s investment goals may be classified as churning and can lead to a FINRA investigation.

Stifel Nicolaus & Co.’s Michigan Broker Kenneth Hornyak Permanently Barred By FINRA

October 9, 2015 | Silver Law Group

Michigan broker Kenneth Hornyak (“Hornyak”)(CRD# 2990144), was permanently barred by the Financial Industry Regulatory Authority (“FINRA”) and is no longer licensed to act as a broker, or otherwise associate with firms that sell securities to the public. Hornyak is barred from association with any FINRA member in any capacity.

According to FINRA, while employed as a broker at member firm Stifel, Nicolaus & Co., Inc. (“Stifel Nicolaus”), Hornyak exercised discretion in a client’s account without written authorization from the client. In January 2014, Stifel Nicolaus discharged Hornyak based on those allegations for violating firm policy. FINRA further alleged that Hornyak engaged in unauthorized trading and unsuitable short-term trading in Unit Investment Trusts (“UIT”). FINRA requested on-the-record testimony from Hornyak, however, Hornyak refused to comply and failed to appear for that questioning. As a result of his failing to cooperate with an investigation, FINRA permanently barred Hornyak from the financial industry. Hornyak consented to FINRA’s findings while neither admitting nor denying the allegations against him.

Hornyak was employed as a registered representative by Stifel Nicolaus from March 2006 through January 2014. Prior to that, Hornyak was employed in Purchase, New York by Morgan Stanley, Inc., from January 1998 through March 2006. According to FINRA, Hornyak’s CRD shows several customer complaints against him accusing Hornyak of securities violations including excessive trading (“churning”), unsuitable investments and unauthorized trading. He was also the subject of two employment terminations for cause (one as noted above). Furthermore, customers have settled disputes against Hornyak in the amounts of $90,000, $50,000 and $10,000.