Class Action

Broker Justin Amaral Permanently Barred from Securities Industry

October 15, 2015 | Silver Law Group

Failure to provide on-the-record testimony to FINRA results in disciplinary action

After termination from employment with Morgan Stanley in 2014 following allegations surrounding his status as an executor and beneficiary in a client’s estate and his use of discretion in several client accounts, broker Justin Amaral has been permanently barred from the securities industry by FINRA.

According to Amaral’s BrokerCheck record, as of June 2015 the Boston-based broker’s 12 years in the securities industry has ended as a result of his failure to appear for an on-the-record testimony requested by FINRA during the course of an investigation. The requested testimony may be related to the reasons Morgan Stanley terminated Amaral’s employment.

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.

South Florida Broker Brian Michael Berger Permanently Barred by FINRA

October 12, 2015 | Silver Law Group

South Florida Broker Brian Michael Berger Permanently Barred by FINRA on silverlaw.com

Allegations include elder fraud, misappropriation and failure to provide requested information

Following a fifteen-year career in the securities industry, Boca Raton-based financial adviser Brian M. Berger has been permanently barred from the industry due to allegations of funds misappropriation as well as failing to respond to FINRA requests for information.

According to official documents filed with FINRA in July, Berger was the subject of an investigation by FINRA for misappropriating funds from elderly customers while registered with Wells Fargo, LLC and MetLife Securities, Inc. When FINRA requested documentation and information from Berger, along with on-the-record testimony, Berger reportedly refused, resulting in his exile from the industry.

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.

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.

FINRA Cancels Global Arena Capital’s License

September 24, 2015 | Silver Law Group

Cancellation is a direct result of alleged failure to pay fees

Global Arena Capital, a New York firm founded in 1985, was stripped of its license by FINRA on July 20. The license cancellation resulted from the firm’s failure to pay outstanding fees of nearly $50,000 to FINRA, but its previous disclosures in the past several years, specifically in dealing with senior investors, may have negatively impacted the firm’s ultimate fate.

The firm’s bad blood with senior investors was first revealed in July 2014, when a complaint was filed because representatives of the firm allegedly deceived and misled a senior investor by falsely promising high rates of return on a risky investment that they represented as a safe investment. According to FINRA, the bonds the representatives sold the investor were “junk bonds,” which are known to be particularly high risk.

South Florida Broker Ralph Oelbermann Barred by FINRA

September 21, 2015 | Silver Law Group

Record shows customer disputes and failure to respond to FINRA request

FINRA barred Ralph Oelbermann in February after 23 years in the securities industry. According to FINRA’s website, the bar resulted from Oelbermann allegedly failing to respond to FINRA requests for information.

In 2013, Oelbermann was discharged from his employing firm, LPL Financial LLC, for what the firm claimed was unauthorized trading, according to FINRA. Stockbrokers generally cannot make trades in a customer’s account without first seeking the customer’s permission.

Bryan Carnahan Barred From Practice in Securities Industry Following Allegations of Scheme to Defraud Customers

September 17, 2015 | Silver Law Group

Carnahan allegedly converted almost $170,000 in misappropriated customer funds

After 16 years and five disclosure events in the securities industry, Bryan Andrew Carnahan was barred permanently by FINRA on May 1 following allegations that he converted $169,500 in funds from a customer at his firm, The Huntington Investment Company, between September 2013 and March 2015. Prior to being employed by Huntington, Carnahan worked for John Hancock Distributors, Inc., in 1998.

According to FINRA reports, Carnahan transferred the customer’s funds and asked her to write cashier’s checks that were supposedly to be used for an investment. He then allegedly caused the checks to be re-issued fraudulently in the amount of $169,500. It is purported that he then made those checks payable to his own account and to the accounts of other customers who lost money in investments. FINRA reports that at least 13 additional customers were involved in the alleged scheme.

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.