FINRA Arbitration

Minnesota Broker John Heath Allegedly Steals Funds from a Client’s Annuity

August 26, 2016 | Silver Law Group

Minnesota Broker John Heath Allegedly Steals Funds from a Client’s Annuity on silverlaw.com

FINRA issues permanent bar from securities industry after failing to respond to the allegations and two counts of theft while employed at Independent Financial Group

As of July 2016, Minnesota broker John Vernon Health has been barred by FINRA. His history in the financial services industry dates back to 1993 when he was employed by Gardener Financial Services in Minneapolis. He was also employed by Royal Alliance Associates in New York from April 1993 to July 2001 and by QA3 Financial Group in Minnesota from July 2001 to February 2011.

During his most recent position at Independent Financial Group, Heath was suspended by the FINRA for failing to respond to requests for information regarding a complaint from a client for allegedly stealing funds from an annuity. Because he failed to provide the requested information and request a termination of his suspension, Heath was subsequently permanently barred by FINRA and was terminated by Independent Financial Group in March 2016.

How FINRA’s Handling the Problem of Unpaid Securities Arbitration Awards

August 25, 2016 | Silver Law Group

How FINRA’s Handling the Problem of Unpaid Securities Arbitration Awards on silverlaw.com

Millions of dollars in awards go unpaid by defunct brokerage firms, boiler rooms, and unscrupulous brokers—what is FINRA doing to address this growing issue?

A recent report from the Public Investors Arbitration Bar Association (PIABA) says that 75 awards (approximately one third of all money awarded to clients in FINRA arbitration) during the year 2013 went unpaid.

Unlike many other types of business, brokers and financial advisors are not required to carry insurance, meaning there isn’t another source of assets to pay client awards if the firm’s assets dry up. While most large firms pay arbitration awards as quickly as possible in order to maintain their reputation and avoid further legal action, many smaller firms can’t or don’t pay many of their awards.

FINRA’s New Rule Requires Member Firms’ Websites to Link to BrokerCheck Reports

August 24, 2016 | Silver Law Group

FINRA’s New Rule Requires Member Firms’ Websites to Link to BrokerCheck Reports on silverlaw.com

Financial regulatory authority making it even easier for investors to access broker and firm histories

As of June 6th, 2016, FINRA member firms are required to place a link on their website to their BrokerCheck reports. This gives potential clients and investors more information than ever before about the brokers and firms they’re thinking of investing with.

What is BrokerCheck?

How to Prepare for a FINRA Hearing

August 23, 2016 | Silver Law Group

How to Prepare for a FINRA Hearing on silverlaw.com

If you want to succeed, you may want an excellent attorney, the right paperwork, and, perhaps most importantly, a clear goal in mind for what you want out of FINRA’s dispute resolution process.

Whether you’ve decided to file a FINRA arbitration claim or a request for mediation, adequate preparation is essential to if you want to give yourself the best chance of being awarded the funds you’ve lost through broker fraud or other FINRA sales practice violations.

Preparing for an arbitration hearing

Murphy’s Misconduct

May 6, 2016 | Silver Law Group

Murphy’s Misconduct on silverlaw.com

New Jersey broker Edward T. Murphy permanently barred by FINRA due to multiple allegations of misconduct.

Multiple serious client complaints have plagued Wells Fargo broker, Edward T. Murphy over the last several years and he has now been permanently barred from all securities activity by the Financial Industry Regulatory Authority (FINRA). The ban comes after Murphy failed to request that this suspension be terminated within three months of the date of the notice of the suspension. He also failed to respond to an FINRA request for information. As a result, he is automatically barred from association with any FINRA member in any capacity.

Allegations include negligence, breach of fiduciary duty, fraud and others

Broker William Siegel Discharged by Morgan Stanley and Permanently Barred by FINRA

May 3, 2016 | Silver Law Group

Broker William Siegel Discharged by Morgan Stanley and Permanently Barred by FINRA on ilverlaw.com

Allegations of churning, unsuitability, and questionable exercise of discretion surround barred broker.

William Siegel began his securities industry career in 2001 with Citigroup Global Markets Inc. in New York. Shortly after moving to Morgan Stanley & Co. in 2007, Siegel received his first complaint arising out of the sale of an auction rate security (ARS). The timing of the sale preceded the widespread auction failure and illiquidity that took place in mid-February 2008 and resulted in damages granted in the amount of $500,000.00.

In 2011, another complaint was registered against Siegel alleging churning in the customer’s account. Churning is the term used when a broker excessively trades within a customer account largely to generate commissions, without regard to the customer’s investment objectives.

LPL Financial Broker Eugene Smietana Discharged from Firm and Permanently Barred by FINRA

March 21, 2016 | Silver Law Group

LPL Financial Broker Eugene Smietana Discharged from Firm and Permanently Barred by FINRA on silverlaw.com

Have you invested funds with Eugene Smietana?

For investors who may have utilized the services of LPL Financial LLC broker Eugene Smietana out of Traverse City, Michigan, may have potential claims against LLP.

As of September 2015, FINRA has permanently barred Smietana from acting as a broker or otherwise associating with firms that sell securities to the public.

David Levy, of Titus Rockefeller, LLC, Permanently Barred from Broker Activity After Long Career of Suspicious Activity

March 17, 2016 | Silver Law Group

David Levy, of Titus Rockefeller, LLC, Permanently Barred from Broker Activity After Long Career of Suspicious Activity on silverlaw.com

Financial broker finally barred from FINRA activity after decades of questionable behavior.

After a career plagued by multiple and repeated allegations of breaches of fiduciary duty and unauthorized trading dating back to 1994, David Levy has been permanently barred by FINRA for acting as a broker in any capacity. These final sanctions come as a result of failure to provide FINRA required information; specifically, he did not request termination of his most recent suspension within three months of the date of the suspension. He was permanently barred from all broker activities, effective September 29, 2015.

FINRA’s final action against Levy comes after more than 20 years of serious allegations against him, including churning, misrepresentation, and breach of fiduciary duty. Multiple client disputes total nearly $2 million, however, many of the companies he was affiliated with at the time of the specific allegations settled with clients for much less.

Morgan Stanley Discharges and FINRA Permanently Bars Broker Samuel Wylie Sloane

March 17, 2016 | Silver Law Group

Morgan Stanley Discharges and FINRA Permanently Bars Broker Samuel Wylie Sloane on silverlaw.com

Broker accused of taking $1.8M in trust assets while serving as a trustee.

Samuel Wylie Sloane’s 15-year career in the securities industry ended abruptly in December 2015 when FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

According to the disciplinary action document in Sloane’s FINRA BrokerCheck record, the broker refused to respond to FINRA’s request for documents and information during an investigation. The investigation was initiated following allegations that Sloane converted a customer’s trust assets while serving as a trustee.

Broker Li Lin Hsu Suspended by Request of FINRA

March 16, 2016 | Silver Law Group

Broker Li Lin Hsu Suspended by Request of FINRA on silverlaw.com

Sales practice violations, misconduct and failure to respond to a FINRA request for information lead to suspension

Formerly registered with Ameriprise Financial in California, ex-broker Li-Line Hsu was recently suspended by the Financial Industry Regulatory Authority (FINRA). He was suspended under Rule 9552 which was failure to keep information current or to provide information.

Individuals who are subject to FINRA’s jurisdiction are responsible for providing testimony, data, reports, materials or information that has to be filed with the government agency. Individuals also responsible for keeping their supporting documents and membership applications current.