Articles Posted in FINRA Arbitration

K.C. Ward Financial Broker Craig David Dima Under Investigation by FINRA

January 12, 2017 | Silver Law Group

K.C. Ward Financial Broker Craig David Dima Under Investigation by FINRA on silverlaw.com

Regulatory action is pending against New York financial advisor for unauthorized trading, misrepresentation and omissions, among other allegations

In August 2016, the Financial Industry Regulatory Authority (FINRA) initiated an investigation into allegations against Craig David Dima made by one of his long-standing customers. The complaint alleges that Dima made approximately 41 unauthorized sales of a company’s stock in the account of a senior customer. It also alleges that to conceal this unauthorized trading, Dima made fraudulent misrepresentations and omissions to the customer. In fact, it is alleged that Dima falsely told the customer that the sales were the result of computer issues, human error, or statements to that effect, rather than his unauthorized trades.

The customer, a 72-year old retired employee of Colgate-Palmolive Company (Colgate), worked 28 years for the company and accumulated the stocks throughout her career.

New Jersey Broker David Seigerman is Permanently Barred by FINRA

January 11, 2017 | Silver Law Group

New Jersey Broker David Seigerman is Permanently Barred by FINRA on silverlaw.com

Failure to respond to agency request ends Seigerman’s securities industry career

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

Working as a broker in the securities industry for twenty years, customer complaints about Seigerman’s performance began in 2007. Since then, there have been five customer disputes filed against him, according to his FINRA BrokerCheck report. Damage amounts requested against Seigerman exceed $1.3 million from customers claiming he engaged in unauthorized trading, breach of fiduciary duty, and unsuitability, among other allegations.

FINRA has Permanently Barred LPL Financial Broker Paul Dorion

January 4, 2017 | Silver Law Group

FINRA has Permanently Barred LPL Financial Broker Paul Dorion on silverlaw.com

Churning and aggressive trading were two allegations leveled against the Vermont broker

In July of 2016, the Financial Industry Regulatory Authority (FINRA) sent a letter out to broker Paul Dorion letting him know that he was being suspended due to a number of allegations. Dorion had until October to supply FINRA with more information in order to terminate the suspension, but because he failed to do so, he is now barred permanently from conducting business with any FINRA member.

Over the course of his 32-year career, Dorion worked for three different brokerage firms. In 1983, he began with American Capital Financial Services, INC. before moving on to Nathan & Lewis Securities, INC. in New York City. In 1992, Dorion started working for LPL Financial LLC out of Killington, Vermont.

Michael Siegel Suspended and then Permanently Barred by FINRA

December 29, 2016 | Silver Law Group

Michael Siegel Suspended and then Permanently Barred by FINRA on silverlaw.com

The New Jersey broker faces an assortment of serious allegations

Michael Siegel is no longer allowed to have anything to do with any member firms of the Financial Industry Regulatory Authority (FINRA). First suspended in July of 2016, Siegel was later permanently barred by FINRA for failing to respond to the agency’s request for information.

Beginning with Broadway Financial Investment Securities Corp. in 1989, over the next three decades, Siegel was registered with firms in St. Louis, San Diego, and New York City. Primarily, though, he conducted business out of New Jersey, last working for National Securities Corporation in Edison in May of 2016.

Broker Dawn Bennett Has Suspension Lifted by FINRA

December 29, 2016 | Silver Law Group

Broker Dawn Bennett Has Suspension Lifted by FINRA on silverlaw.com

Though she is not currently licensed, she was last employed as a broker with Western International Securities in Washington, DC

In August of 2016, Dawn Bennett was contacted by the Financial Industry Regulatory Authority (FINRA) with a request for information regarding an “investigation involving potentially serious violations.” Because Bennett didn’t respond, the agency suspended her. Although the suspension was lifted a short time later, the investigation continues.

Most recently, Bennett worked for Western International Securities in Washington, DC from October 2009 to December 2015. Prior to that Bennett has worked for a number of firms, including Royal Alliance Associates in Washington, DC, Legg Mason Wood Walker in Baltimore, and Citigroup Global Markets in New York City.

FINRA Permanently Bars Boca Raton Broker James Ignatowich

December 29, 2016 | Silver Law Group

FINRA Permanently Bars Boca Raton Broker James Ignatowich on silverlaw.com

The Newbridge Securities Corporation broker allegedly provided false information to regulators, among other transgressions

According to the Financial Industry Regulatory Authority (FINRA), Boca Raton broker James Ignatowich is reported to have failed to comply with a Consent Order entered into January 13, 2016 with the State of New Hampshire. As part of the Consent Order, Ignatowich was expected to make payments and file a lien on his personal residence, but he failed to do so. The regulatory agency has permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

In March 2015, the Newbridge Securities Corporation broker was temporarily suspended in New Hampshire for allegedly performing unlawful telemarketing and providing inaccurate and misleading information to the regulator during the investigation.

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.