FINRA Arbitration

Did You Lose Money by Investing with Financial Advisor Rushton Leigh Ardrey?

December 28, 2016 | Silver Law Group

Did You Lose Money by Investing with Financial Advisor Rushton Leigh Ardrey? on silverlaw.com

The Boston-based broker has been permanently barred by FINRA

According to the Financial Industry Regulatory Authority (FINRA), Boston-based broker Rushton Leigh Ardrey failed to respond to the agency’s request for information and has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Since 1995, there have been customer disputes arising from Ardrey’s actions as a broker. A FINRA Disciplinary Action signed off by Ardrey in 2015 indicates that in 1995, he settled with the National Association of Securities Dealers to accept censure, a $20,000 fine, and a 60-day suspension from acting in all capacities, for effecting a series of end-of-day transactions in an attempt to impact the closing prices of securities. He was also placed under Heightened Supervision imposed by the Massachusetts Securities Division due to this matter.

Boston Broker Noel Fleming is Permanently Barred by FINRA

December 28, 2016 | Silver Law Group

Boston Broker Noel Fleming is Permanently Barred by FINRA on silverlaw.com

The Revere Securities LLC broker’s 26-year securities career is over

After 26 years in the securities industry, Noel Fleming has been permanently barred by the Financial Industry Regulatory Authority (FINRA) from acting as a broker or otherwise associating with firms that sell securities to the public.

In December 2015, a customer dispute was recorded on Fleming’s FINRA BrokerCheck report that included allegations of unsuitable investments, violation of Michigan Securities Act, violation of FINRA conduct rules, breach of fiduciary duty/constructive fraud, negligence, negligent supervision and churning, which is excessive trading for the purpose of generating commissions.

FINRA Considers Establishing Fund for Unpaid FINRA Arbitration Awards

November 28, 2016 | Silver Law Group

According to published reports that have been confirmed by a member of the Board of Governors of the Financial Industry Regulatory Authority (FINRA), FINRA is undertaking closed-doors discussions focused on establishing a relief fund that would be used to pay otherwise unpaid FINRA arbitration awards. Such a fund would endeavor to partially solve the problem of investors who obtain arbitration awards against FINRA member firms and brokers, only to find it impossible to collect on those victories. Statistics show that in the most recent year for which data is available, a total of $62 million in awards — approximately one-third of all awards rendered by FINRA arbitration panels — went unpaid. Typically, arbitration awards go unpaid after brokerages and financial advisors declare bankruptcy or are otherwise insolvent, thus rendering hollow the awards entered against them in favor of aggrieved claimants.

Under one plan that has been proposed, FINRA members would pay dues annually into a designated pool (approximately $100 per broker) to help compensate claimants who hold victorious, but uncollectible, arbitration awards. Such a pool would be created and maintained based on the average sum of unpaid claims over the previous five years. All of the money in the fund would be paid out annually.

If FINRA were to establish such a recovery fund, many claimants for whom compensation is currently unattainable would find a viable source of reparation from bankrupt firms and brokers. In addition, the existence of such a fund is expected to bolster investors’ confidence in the arbitration process, as it would prevent the substandard acts of certain FINRA members from going unchecked and would prevent the arbitration process from being a financially fruitless effort for those investors harmed by judgment-proof firms and brokers.

Failure to Comply with FINRA Request Terminates Broker Lance Shaw’s Securities Industry Career

November 21, 2016 | Silver Law Group

Failure to Comply with FINRA Request Terminates Broker Lance Shaw’s Securities Industry Career on silverlaw.com

Allegations against the former Orlando broker include unauthorized trading and misrepresentation, among others.

Lance Shaw performed as a broker in the securities industry over the span of 15 years, however, in May 2016, the Financial Industry Regulatory Authority (FINRA) permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

Over the course of a FINRA investigation into Shaw’s performance in the financial industry, the broker – most recently employed by International Assets Advisory LLC in Orlando, FL – failed to respond to the agency’s request for information. In eight customer disputes, allegations against Shaw included unauthorized trading, improper and excessive trading (otherwise known as churning, an activity that inflates broker commissions), mismanagement, unsuitability, and misrepresentation. Damages requested in these disputes exceed over $600,000.

Wells Fargo Broker Wonnie Lynn Short Permanently Barred by FINRA

November 7, 2016 | Silver Law Group

Wells Fargo Broker Wonnie Lynn Short Permanently Barred by FINRA on silverlaw.com

Allegations against the Nashville broker include failure, as executor of client’s estate, to provide a charitable foundation with its due proceeds

The Financial Industry Regulatory Authority (FINRA) has barred Wonnie Short permanently from acting as a broker or otherwise associating with firms that sell securities to the public. While registered with Wells Fargo in Nashville, TN, Short is reported to have been named executor of a client’s estate. In fact, according to FINRA, Short was to receive two-fifths of the client’s residuary estate.

However, according the same FINRA report, Short’s client designated that 90% of her annuity – valued at the time of her death at $102,000 – would go to a local charitable foundation, and the remaining 10% would go to her estate. As the executor of the estate, Short allegedly received full payment from the annuity, yet did not ensure that the charitable foundation received its portion, valued at approximately $92,000.

FINRA Suspended Broker Edward R. Segur

November 7, 2016 | Silver Law Group

FINRA Suspended Broker Edward R. Segur on silverlaw.com

Allegations against the New York broker include placing orders without a customer’s consent

According to the Financial Industry Regulatory Authority (FINRA), New York broker Edward R. Segur III is alleged to have opened and traded funds in an outside account opened in his wife’s name, in violation of his firm’s written supervisory procedures (WSPs), and to have accepted orders from a customer’s husband without the customer’s consent. Segur was suspended for 30 days, which ended on July 19th, 2016.

Segur currently works at Fordham Financial Management, Inc., where he has been registered since April 2015. Previously, he was employed at Four Points Capital Partners (Nov. to May 2015), Blackwell Capital Markets, Inc. (Oct. 2012 to Nov. 2013), and Rockwell Global Capital, LLC (Apr. 2012 to Oct. 2012), all in New York, among many other prior firms.

FINRA Permanently Bars Gary Eugene Donovan for Stock Manipulation

November 7, 2016 | Silver Law Group

FINRA Permanently Bars Gary Eugene Donovan for Stock Manipulation on silverlaw.com

Donovan was also discharged from SagePoint Financial in Newark, OH

The Financial Industry Regulatory Authority (FINRA) has permanently barred broker Gary Eugene Donovan from acting as a broker or otherwise associating with firms that sell securities to the public. Up until early 2016, Donovan worked as a broker for a number of brokerage firms around the U.S., most recently SagePoint Financial, Inc. in Newark, OH from October 2005 to January 2016.

Donovan was discharged from SagePoint when it was determined by the firm that he had failed to follow their policies covering the interaction of brokers and stock promoters, as well as the sale of unlisted securities relating to Mix 1 Life, Inc. (OTC: MIXX).

Former Boca Raton, Florida-based Raymond James Broker Under Investigation for Discretionary Trading in Non-Discretionary Account

November 3, 2016 | Silver Law Group

Silver Law Group is investigating former Boca Raton, Florida-based Raymond James broker Gregory E. Barr (CRD# 1312703) after being discharged by two different firms in less than three years.

Barr was most recently employed by Raymond James & Associates (CRD# 705), but most of his trouble involves his prior firm, Deutsche Bank Securities Inc. (CRD# 2525).

In May 2014, Deutsche Bank discharged Barr after the he allegedly admitted exercising discretion in non-discretionary accounts.

FINRA Suspends Rafael Moreno for Not Disclosing Outside Business Activity

September 30, 2016 | Silver Law Group

FINRA Suspends Rafael Moreno for Not Disclosing Outside Business Activity on silverlaw.com

In addition to his 30-day suspension, the Florida broker was also fined

In April of this year, Rafael Moreno accepted the sanctions levied against him by the Financial Industry Regulatory Authority (FINRA) for charges related to conducting outside business activity. As a result, the broker was fined and suspended.

First registered with Donaldson, Lufkin & Jenrette Securities Corporation of Jersey City, NJ, Moreno has been employed with Mora Wealth Management LLC in Miami since October of 2012.

Apostolos Nicholas Papadea Fined and Suspended by FINRA

September 29, 2016 | Silver Law Group

Apostolos Nicholas Papadea Fined and Suspended by FINRA on silverlaw.com

Unauthorized trading was one of several charges

Apostolos Nicholas Papadea, who has worked in the brokerage industry since 1969, has come under scrutiny in recent years for a variety of alleged infractions, including making trades without permission from his clients. As a result, he has been fined and suspended by the Financial Industry Regulatory Authority (FINRA).

Papadea has worked for three different companies over the last 13 years, including Wachovia and Wells Fargo in Columbia, SC. Since January of this year, Papadea has been employed with Advisory Services Network in Atlanta, GA.