Class Action

Morgan Stanley broker Peter H. Kim Barred for Allegedly Taking Client Funds for Personal Use

September 3, 2015 | Silver Law Group

Kim is permanently barred by FINRA

FINRA Rule 2010 provides that “[a] member, in the conduct of his business, shall observe high standards of commercial honor and just and equitable principles of trade,” and broker Peter Kim was found in violation of it, according to a recent FINRA disciplinary action.

In fact, according to the report, Kim’s acts, practices and conduct constituted such violation of the rule that FINRA permanently barred Kim from acting as a broker or otherwise associating with firms that sell securities to the public.

John Thornes Barred by SEC After Conversion Allegations

September 3, 2015 | Silver Law Group

Alleged conversions include two trusts – one that helped provide Alzheimer’s care and another used to provide scholarships

On August 8, following a 21-year career in the securities industry, John Thomas Thornes has been permanently barred from practicing as a broker by the US Securities and Exchange Commission according to a report published by FINRA.

Thornes was suspended in May for allegedly failing to comply with a prior settlement agreement or award, as well as failure to respond to a FINRA request, according to a FINRA disclosure on Thornes’ broker report.

Neil Buysse Barred by FINRA

September 1, 2015 | Silver Law Group

Permanent action follows a three-month suspension from the securities industry

According to the Financial Industry Regulatory Authority (FINRA), Neil J. Buysse has been permanently barred from practicing within the securities industry following a 2014 suspension.

Buysse was suspended on Dec. 1 following his alleged failure to respond to a FINRA request for information. As of Feb. 10, Buysse has been barred from practicing in any capacity as a broker or as an investment adviser.

Thomas Hogle Barred by FINRA After Alleged Lack of Cooperation With Investigation

September 1, 2015 | Silver Law Group

Allegations concern unsuitable, excessive and unauthorized trades for a 101-year-old customer

After 16 years in the securities industry, FINRA barred Thomas Morley Hogle from acting as a broker or associating with FINRA members in a professional capacity on May 11, according to the FINRA website.

The action comes in the wake of a FINRA investigation into whether Hogle made unsuitable investment recommendations to a 101-year-old customer. According to FINRA documents, FINRA requested documents and information from Hogle in two separate letters. When he did not respond to those requests FINRA staff spoke to him on the phone, at which time Hogle allegedly acknowledged the requests but stated that he would not produce the information requested at any point.

Anthony Diaz Permanently Barred by FINRA for Alleged Unethical Practices

August 31, 2015 | Silver Law Group

Diaz was also fined $10,000 amid allegations of fraud, negligence, unsuitability and misrepresentation

After a 14-year career in the securities industry marred by 44 disclosure events, Anthony Diaz has been permanently barred from acting as a broker and fined $10,000 by FINRA on June 10, 2015. This follows allegations of dishonest and unethical practices, according to FINRA’s report on the matter.

Between December 11, 2014 to May 12, 2015, Diaz was named in 20 customer disputes that are currently pending review by FINRA and one that was settled for $10,000. The amount of damages alleged against Diaz in just those five months total more than $7.3 million. According to the FINRA website, he was working for First Allied Securities, Inc., in Scotrun, Pennsylvania, when the alleged infractions occurred and continued at his subsequent firms.

Blackbook Capital LLC Fined $50,000 by FINRA

August 26, 2015 | Silver Law Group

Firm Allegedly Listed Commissions as “Miscellaneous” or “Additional Fees”

BlackBook Capital, LLC, with headquarters on Wall Street in New York City, has been sanctioned by FINRA for allegedly mischaracterizing and understating commissions charged to its investors, among other charges.

According to the FINRA disclosure, the firm –without admitting or denying the findings – consented to the sanctions and the entry of findings that it charged its customers $60.50 on separate transactions in addition to or in place of a designated commission charge. The charges were allegedly listed as “miscellaneous” or “additional fee,” however a large portion of the charge could not be contributed to a cost or expense incurred by the firm. In short, it was a minimum commission charge.

Alleged Manipulative Trading of Securities Lands Firm and Brokers in FINRA Complaint

August 24, 2015 | Silver Law Group

Meyers Associates, L.P., George Johnson, Joseph Mahalick and Christopher Wynne all named in FINRA complaint

In the June 2015 FINRA Disciplinary Actions report, one firm and three brokers were named in a FINRA complaint alleging numerous violations that include manipulative trading of securities.

According to the complaint, Meyers Associates, L.P., George Johnson, Joseph Mahalick and Christopher Wynne were all named as respondents. The report alleges that Johnson willfully violated SEC rules by soliciting some customers to buy stocks while at the same time soliciting others to sell the same stock, all at inflated prices. As part of this scenario, both Johnson and Wynne allegedly provided firm customers with information regarding the stocks that contained misleading information. The stock was a penny stock called Ice Web, Inc. (OTCBB.IWEB)

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

August 24, 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.

James E. Scott Permanently Barred from Securities Industry by FINRA

August 24, 2015 | Silver Law Group

Barred for allegedly aiding and abetting violation of federal securities law

After 16 years in the securities industry, James E. Scott has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Scott was most recently registered with International Assets Advisory, LLC.

According to the FINRA BrokerCheck website, Scott worked as a long-time sales assistant for an individual broker referred to in the disciplinary action as “RO.” From April 2012 through December 2012, Scott allegedly aided and abetted RO to continue acting as a broker – engaging in the recommendation and sale of securities transactions – in the state of Texas.

Douglas William Finlay Jr. Suspended and Fined by FINRA

August 19, 2015 | Silver Law Group

Allegations include falsifying documents

Douglas William Finlay Jr. is facing an 18-month suspension and fine of more than $15,000 to be paid later, according to FINRA.

According to the disciplinary action documents, Finlay allegedly falsified a customer’s forms by claiming her net worth was more than $1.3 million, when in fact it was about $135,000. On the same form, he allegedly claimed the customer’s income was $150,000 when it was actually $70,000. These alleged falsifications resulted in the firm having inaccurate forms and led to another allegation of recommending an unsuitable transaction.