Class Action

Class Action Suit Against Citigroup Results in $13.5 Million Settlement

August 17, 2015 | Silver Law Group

Bank accused of misleading investors in proprietary alternative investments

A settlement has been reached in a class action against Citigroup, Inc. resulting in a $13.5 million payout by the banking giant. According to Law360, papers filed August 10, 2015 indicate Citigroup allegedly misled investors by allowing them to buy into the bank’s Corporate Special Opportunities fund without disclosing risky debt – debt that resulted in losses over $400 million.

In the October 2012 complaint filed by plaintiffs David Beach and Christopher Kelly, Citigroup is accused of misleading investors about trades made in the debt of ProSeiben, a German media company. According to the suit, Citigroup was to govern the fund, but violated scaling and concentration restrictions on investments.

Lawrence LaBine Under Fire for Alleged Unsuitable Recommendations and More

August 13, 2015 | Silver Law Group

Newbridge securities advisor allegedly has conflict of interest between software company and his clients

According to FINRA, Lawrence Michael LaBine is the subject of a disciplinary action pending against him after an alleged conflict of interest leading to several customer disputes.

In his 29 years in the securities industry, LaBine has had 30 disclosures according to FINRA, many of which are related to his alleged relationship with a sinking software company, leading him to make what clients claimed to be inappropriate recommendations.

Class Action Suit Sheds Light on Alleged NSC Negligence

August 3, 2015 | Silver Law Group

NSC listed as defendant after misinformation allegedly harms investors

A class action lawsuit filed in October 2014 seeks to right the wrongs done to investors when an Australian energy company went public last June. The suit also names National Securities Corporation (NSC), as one of the defendants listed in the suit, which served as the book-writing manager and underwriter of CBD Energy’s public offering.

To set the scene, it is important to have an understanding of the parties involved. CBD Energy (CBDE), a Sydney-based corporation, provides “clean, renewable and cost-effective sources of energy,” according to the suit. CBD Energy went public in June 2014 with 1.81 million shares valued at $4 per share, for a total sum of $7.24 million. This public offering was based primarily on the work done by NSC by preparing the corporation to go public.

Robert Charles Mangold Permanently Barred by FINRA

June 15, 2015 | Silver Law Group

Allegedly provided false information to FINRA during investigation

For Robert Charles Mangold, it seems it is the end of the line in the securities industry. Most recently employed by and registered with LPL Financial, LLC, Mangold is now permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public by FINRA.

How did this happen? Let’s take a look: In June 2013, LPL Financial, LLC terminated Mangold’s registration because he allegedly borrowed $56,000 from two customers – a violation of firm policy. This prompted FINRA to investigate the circumstances of his termination. As part of the investigation, FINRA requested a signed statement in response to the allegations.

Broker Charles D. Johnson Permanently Barred by FINRA

June 9, 2015 | Silver Law Group

His career in securities ends with failure to respond to FINRA request

After only six years in the securities industry, broker Charles Damien Johnson has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. According to the FINRA BrokerCheck website, Johnson failed to respond to a FINRA request for information and was sent a notice of suspension in August of 2014. Since he then failed to request termination of his suspension within three months of the date of notice of his suspension, he was automatically barred from association with any FINRA member in any capacity as of November 10, 2014.

During his career in the industry, Johnson nonetheless worked for at least 10 investment firms in the New York state area. His dates of employment and employers are listed below:

Employment Dates	Employer Name	Employer Location
01/2013 – Present	Laidlaw & Co (UK) Ltd	Melville, NY
06/2012 – 12/2012	Global Arena Capital Corp	New York, NY
07/2010 – 06/2012	National Securities Corp	Huntington, NY
07/2009 – 07/2010	New Castle Financial Services, LLC	Melville, NY
09/2008 – 07/2009	Morgan Wilshire Securities, Inc.	Westbury, NY
10/2007 – 09/2008	National Securities Corp	Huntington, NY
07/2007 – 10/2007	EKN Financial Services, Inc.National Securities Corp	Woodbury, NY
11/2006 – 02/2007	Morgan Wilshire	Woodbury, NY
11/2006 – 02/2007	SW Bach & Co	Port Washington, NY
01/1997 – 10/2006	Argo Financial	Melville, NY

While moving from firm to firm seems to have been voluntary, Johnson’s employment with Global Arena Capital Corp was terminated on December 12, 2012 for “circumvention of firm policy” according to the FINRA BrokerCheck website.

Why are we telling you all of this?

To let you know that, if you’re an investor who suffered financial losses at the hands of Charles D. Johnson, or any other financial advisor, you may be eligible to recover your losses through securities arbitration. The key is to turn to the right securities fraud attorney with proven expertise in recovering lost funds.

At Silver Law Group you’ll find an experienced securities attorney committed to help recover investment losses due to stockbroker misconduct. With lawyers admitted to practice in New York and Florida – representing investors nationwide – you can expect a complimentary consultation and a case handled on a contingent fee basis, meaning you don’t pay legal fees unless Silver Law Group is successful. Contact us today to schedule your free consultation and discuss your legal rights.

Pedro Molina’s Securities Industry Career Ends With FINRA Permanent Suspension

June 2, 2015 | Silver Law Group

Amid claims of unsuitable investment advice, Molina does not respond to requests for information

After not responding to a FINRA request for information, broker Pedro Molina is permanently suspended from the securities industry. According to the FINRA BrokerCheck website, Molina failed to request termination of his suspension from FINRA within three months of the date of his notice of suspension. Therefore, he is permanently barred from association with any FINRA member in any capacity.

While it might seem unusual for a broker not to respond to a FINRA request and allow a permanent suspension to occur, surprisingly, it is not uncommon. In the case of Pedro Molina, it follows a career during which customers’ alleged mismanagement of their investment funds and lack of production of documentation. In fact, in three of the customer complaints against him, customers alleged he gave misleading investment advice and made unsuitable investments in risky Puerto Rican funds. The combined alleged damages equal over $1.2 million dollars. In addition, Molina was “permitted to resign” from Kovack Securities, Inc. in February 2014 after admitting to having borrowed money from clients while with a previous employer.

JPMorgan Chase Settles Investor Class Action Relating to Forex Trading

January 7, 2015 | Silver Law Group

JPMorgan Chase & Co. is the first bank in a multi-defendant class action lawsuit to settle claims relating to allegations that the banks rigged the foreign exchange market. Commonly referred to as the Forex market, over 5 trillion dollars a day is traded as investors rely on the honesty of the marketplace to trade currencies. According to various news reports, Chase has agreed to pay about $100 million under the agreement. A Federal Judge in New York must still approve the settlement. This settlement comes on the heels of a regulatory settlement where JPMorgan agreed to pay $1 billion as part of $4.3 billion in fines paid by six banks to resolve foreign-exchange rate investigations by regulators in the U.S., the U.K. and Switzerland.

Wall Street’s largest banks were some of the largest traders in foreign currency. However, despite the façade of respectability large banks claim, traders allegedly frequently communicated in chat rooms using names such as “The Cartel,” “The Bandits’ Club” and “The Mafia” to share confidential client information and manipulate certain benchmark rates. Investors were harmed by trading at manipulated prices and frequently paying substantial fees, costs and commissions for investors Forex trading activity.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. Our attorneys have represented investors in Forex cases and in NFA arbitrations against registered commodities firms. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Silver Law Group Settles Investor Class Action for $13 Million

June 27, 2014 | Silver Law Group

Silver Law Group settles a Class Action Complaint on behalf of a group of investors which generally alleged Regions Bank assisted U.S. Pension Trust Corp (“USPT”) in the sale of unregistered securities and failed to properly disclose the high fees and costs of the program. Plaintiffs pursued a class action because many investors were located internationally and a class action was an appropriate vehicle to pursue damages. The SEC had previously charged USPT with violating the federal securities laws and entered judgment against USPT in September 2010. Plaintiffs alleged Defendants violated the Florida Securities and Investor Protection Act and aided and abetted the unregistered sale of securities, amongst other claims.

The victims were primarily from Latin America and over 5,000 investors were identified as potential class members. A United States District Court Judge in Miami appointed Silver Law Group and its co-counsel as attorneys to represent the Plaintiffs. The Plaintiffs further alleged Regions advised USPT on the design and content of marketing materials, had a role in drafting documents, participated in sales conventions and was paid as the trustee on USPT trust accounts. The class action ultimately settled for approximately $13 million. The case was reported by the Daily Business Review.

If you have questions about your legal rights, or have been the victim of investment fraud, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or Toll Free at (800) 975-4345.