FINRA Arbitration

LP Customer Compliants

November 16, 2017 | Silver Law Group

The New Jersey Bureau of Securities has levied a large fine against LPL Financial LLC, one of the largest independent broker-dealer in the United States. The $950,000 fine also requires LPL to donate $25,000 to the New Jersey state investor education fund. The Bureau of Securities imposed these judgments against LPL for allegedly conducting unsuitable sales of non-traded real estate investment trusts and business development companies.

The Bureau on its settlement with LPL states; “This substantial settlement with LPL Financial sends a message that the securities industry cannot sell unsuitable investments to clients who are unlikely to be able to bear the financial risks,” said Attorney General Christopher S. Porrino. “The standards governing sales of alternative investments are in place to protect investors, and the Bureau will take action when these standards are ignored.”

Generally, Federal statues regulate suitability standards and limit the sale of certain alternative investments based on a complex calculation that reflects a client’s liquid net worth, or a mixture of a client’s income and net worth and other factors. New Jersey also limits the maximum total ratio of alternative investments held by an individual client’s portfolio to not exceed 10 percent of an investor’s complete portfolio.

Shawn E. Burns, Salomon Financial

October 9, 2017 | Silver Law Group

Shawn E. Burns

CRD# 3138114

Silver Law Group is currently investigating former New York-based Salomon Whitney Financial broker Shawn E. Burns for three pending FINRA arbitrations.

Silver Law Group is investigating former Texas-based IMS Securities, INC broker Jackie D Wadsworth for five pending FINRA arbitrations and a litany of disclosures on her FINRA BrokerCheck report

September 5, 2017 | Silver Law Group

Silver Law Group is investigating former Texas-based IMS Securities, INC (CRD#35567) broker Jackie D Wadsworth (CRD#2342163 ) for five pending FINRA arbitrations and a litany of disclosures on her FINRA BrokerCheck report.

According to Wadworths’s FINRA BrokerCheck report, she has five pending FINRA arbitrations filed in the past that allege unsuitable recommendations, failure to supervise, fraud, breach of duty of loyalty, and negligence for an aggregate amount of over $7.1 million.

FINRA’s BrokerCheck tool is a valuable way to examine a broker’s background. The investor tool discloses FINRA arbitrations that have been settled, are pending or have been denied; bankruptcies, civil judgments and tax liens, employment separations and other discharges, criminal proceedings, and regulatory actions. According to an InvestmentNews report, only about 12 percent of financial advisors have any type of disclosure events on their records.

Are Brokers Allowed to Borrow from Customers?

April 30, 2017 | Silver Law Group

The answer, in most all cases, is “no”

In order to become licensed, one of the things a broker has to do is agree to adhere to the rules and regulations established by the Financial Industry Regulatory Authority (FINRA). One of these rules involves the borrowing of money from clients, and on this matter FINRA is very clear.

Among other stipulations, FINRA Rule 3240 says that unless the person is an immediate family member or a firm has specific written procedures about borrowing and lending, then it constitutes a violation.

Silver Law Group Files Securities Arbitration Claim Relating to California-based Cetera/Investors Capital Corp Broker Daniel B. Vazquez

April 18, 2017 | Silver Law Group

Our firm has filed a complaint against Irvine, California-based Cetera Advisors (CRD# 10299) relating to broker Daniel B. Vazquez Sr. (CRD# 3141463) after FINRA permanently barred Vazquez.

According to Vazquez’s FINRA BrokerCheck report, FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public in June 2016 for failing to respond to a FINRA request for information.

The permanent bar comes just two months after a FINRA arbitration was filed alleging unsuitable recommendations and unauthorized trades which led to portfolio losses.

New York City Broker Francesco Scarso Fined, Suspended, and Ultimately Barred by FINRA

April 5, 2017 | Silver Law Group

Allegations of failing to disclose pertinent tax information led to the sanctions against the former First Standard Financial and Phoenix Financial Services broker

As of November 2016, Francesco Scarso, formerly with First Standard Financial Company LLC and Phoenix (PHX) Financial Services, is no longer allowed to act as a broker. The ruling came down from the Financial Industry Regulatory Authority (FINRA) after Scarso – who was already suspended – failed to contact the agency to supply additional information.

Francesco Scarso began his career in 1996 with J.W. Barclay & Co., Inc. and worked for 12 firms, including these since 2007:

After FINRA’s Ruling, Joel Weiner has been Permanently Barred from the Securities Industry

March 31, 2017 | Silver Law Group

The Boynton Beach broker is alleged to have profited from unsuitable investment recommendations

Joel Weiner is no longer allowed to act as a broker as of December of 2016. It was then that the Financial Industry Regulatory Authority (FINRA) decided to permanently bar him due to serious allegations involving the solicitation of millions of dollars from a client.

FINRA reported that Weiner recommended that his client invest in an outside business that was owned by a representative of his firm, whom Weiner supervised. The business provided loans to small businesses, and the client ended up issuing $2.6 million in loans over several years. Weiner is reported to have earned about $65,000 in finder’s fees as the result of these transactions. In 2014, the business stopped providing loans and asked for repayment of all outstanding loans, but by February of 2015, only half of them had been repaid.

Summit Equities Broker Rembert McNeer is Given a 1-Year Suspension from FINRA

March 15, 2017 | Silver Law Group

Summit Equities Broker Rembert McNeer is Given a 1-Year Suspension from FINRA on silverlaww.com

The Parsippany, New Jersey broker was also hit with a $10,000 fine

Up until recently, Rembert McNeer had a clean record with the Financial Industry Regulatory Authority (FINRA). A broker for over 30 years, McNeer worked for three firms: E.F. Hutton & Company Inc.; G.A. Michele, Inc. in New York City; and Summit Equities, Inc. located in Parsippany, NJ.

But in October of 2016, FINRA found that McNeer failed to supervise the private securities transactions of one of his representatives. McNeer was the representative’s immediate supervisor, as well as the member firm’s chief compliance officer.

Matthew Christopher Maczko Permanently Barred from Practicing as a Broker

March 10, 2017 | Silver Law Group

Matthew Christopher Maczko Permanently Barred from Practicing as a Broker on silverlaw.com

The former Wells Fargo broker was banned after allegations of unsuitable trading for elderly client

On February 9, 2017, Matthew Christopher Maczko was permanently barred by the Financial Industry Regulatory Authority (FINRA) after Maczko consented to the sanction and FINRA’s findings.

FINRA found that between January 2009 and April 2016, Maczko made excessive and unsuitable trades on behalf of his elderly client, now 93 years old. FINRA also reported that Maczko inaccurately testified before FINRA that he had not spoken with other clients, also senior citizens, since his termination. However, telephone records revealed that he had in fact spoken with these clients several times in that period.

New York Broker Christopher Vincent Paul Permanently Barred by FINRA

March 7, 2017 | Silver Law Group

New York Broker Christopher Vincent Paul Permanently Barred by FINRA on silverlaw.com

An assortment of charges, firings, and settlements have followed the broker for the last decade

Christopher Vincent Paul’s 14-year career has come to an end. After failing to give the Financial Industry Regulatory Authority (FINRA) information it was looking for, the agency permanently barred him from acting as a broker.

From May of 2001 to August of 2015, these are the firms with which Paul was associated, all of them in New York: