Investment Fraud

Discharged Morgan Stanley Broker Charles Albert Dixon Is Permanently Barred By FINRA

April 27, 2018 | Silver Law Group

Former broker Charles Albert Dixon, Jr. (CRD# 1660422) has been permanently barred by FINRA after a disciplinary action that was signed and completed on 1/22/2018. He is no longer allowed to work as a broker, associate with another broker or be affiliated with a broker-dealer firm. Dixon was discharged by his employer, Morgan Stanley Smith Barney, LLC (CRD#149777) of Houston, TX. He was registered with Morgan Stanley from 06/01/2009 to 04/17/2017.

Dixon was previously registered as a broker with:

Morgan Stanley & Company, Incorporated (CRD# 8209), Houston, TX, from 04/02/2007 to 06/01/2009

Silver Law Group is Investigating Gary Adkin of Stifel, Nicolaus & Company

April 6, 2018 | Silver Law Group

Gary Adkin (CRD# 3084484) is the subject of a pending customer dispute alleging $1,550,000 in damages. Adkin has been with the Palm Beach, Florida office of Stifel, Nicolaus & Company since 2015. He was previously registered with Barclays Capital, also located in Palm Beach. Silver Law Group is a South Florida-based law firm that handles securities arbitration and investment fraud cases.

In the pending dispute, Claimants allege that Adkin was negligent and failed to exercise responsibility in connection with their account. FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs.

Contact Our Firm if You’ve Invested with Gary Adkin

Wells Fargo Under Investigation for Abuse of Customer 401(k) Accounts

March 2, 2018 | Silver Law Group

Wells Fargo has disclosed a federal investigation into sales practice violations in customer 401(k)s after a whistleblower cited sales problems in customer accounts.

Multiple potential violations are disclosed including improper referrals, excessive fees and undisclosed conflicts of interest. In the current bull market, many investors did not appreciate the fees being charged as their accounts were profitable and fees can be difficult to calculate.

Silver Law Group represents institutional and retail investors in claims for portfolio mismanagement, stockbroker misconduct and investment fraud. If you believe your portfolio was mismanaged, excessively traded or your financial advisor purchased esoteric or high cost alternative investments, call us to discuss your legal rights toll-free (800) 975-4345 or e-mail at SSilver@silverlaw.com.

Scott Silver Participates in the University of Miami School of Law Class Action Forum

February 13, 2018 | Silver Law Group

On December 8, 2017, the University of Miami School of Law held its annual class action forum. Of particular interest was hot topics in class action and mass torts plus a keynote speech from the attorney representing many NFL players in litigation relating to concussions.

Scott Silver is a 1996 graduate of Miami Law School and an active member of the Law School alumni program. In 2016, Silver Law Group was instrumental in helping the University of Miami Investor Rights Clinic receive a $107,000 Cy Pres Award from one of our class actions relating to the U.S. Pension Trust Corp. fraud which resulted in a substantial recovery for our clients.

The Investor Rights Clinic is an important program which teaches students about securities arbitration while helping investors, who may not be able to find counsel, pursue FINRA arbitration claims for securities and investment fraud. Scott Silver is a frequent lecturer at investor rights clinics around the country including University of Miami and Albany Law School in New York.

FINRA Arbitration Claim Filed Against Joseph Weinrich and Moloney Securities Co.

January 11, 2018 | Silver Law Group

The Silver Law Group in collaboration with the Law Firm of David Chase recently filed a FINRA arbitration claim on behalf of a legally blind 86-year old customer against Moloney Securities Co. and its broker, Joseph Weinrich, which alleges counts of unsuitability, unauthorized trading and churning, and seeks the recovery of his investment losses.

The arbitration complaint alleges that, over the course of at least a five-year period, Weinrich made unsuitable investment recommendations, including oil and gas master limited partnerships, inconsistent with his elderly customer’s financial situation and stated investment goals, which caused significant account losses. The complaint further alleges that Weinrich excessively traded or “churned” the account, which was on margin, to improperly generate significant fees and commissions, and engaged in unauthorized trading. Due to Weinrich’s misconduct, and Moloney Securities Co.’s failure to reasonably supervise, as alleged by the complaint, the customer suffered losses of over $450,000, and paid significant commissions and margin interest.

Unauthorized trading occurs when a stockbroker facilitates a transaction without the permission of the customer in a non-discretionary account.

Former Houston, Texas-based Park Avenue Securities Broker Beth Ty Under Investigation Over Selling Away

March 27, 2017 | Silver Law Group

Silver Law Group is investigating former Houston, Texas-based Park Avenue Securities (CRD# 46173) broker Lizabeth Gotuaco Ty (CRD# 4737319) (also known as “Beth Ty”) after FINRA permanently barred her.

According to Ty’s FINRA BrokerCheck report, FINRA permanently barred Ty in May 2016 after she failed to provide documents and information requested by FINRA during the course of an investigation into allegations that she sold unregistered securities. It has been alleged in a pending FINRA claim that Ty recommended that her clients invest in DayStar Funding LP (“Daystar”), which allegedly was outside of Park Avenue’s approved investments.

In July 2015, the Securities and Exchange Commission (the “SEC”) filed a complaint against Frederick Alan Voight, owner and control person of Daystar, and Daystar alleging that it was a Ponzi scheme. In August 2016, Voight settled the SEC charges.

How the SEC Plans to Tackle Fraud and Protect Retail Investors from Unnecessary Risk

March 20, 2017 | Silver Law Group

How the SEC Plans to Tackle Fraud and Protect Retail Investors from Unnecessary Risk on silverlaw.com

The agency plans to get tougher on brokers and firms throughout 2017

The SEC’s Office of Compliance Inspections and Examinations (OCIE) has a new series of goals for 2017. The agency’s department, which is responsible for examining brokers, firms, and financial products to prevent fraudulent activities, identify risks, and inform government policies, has consulted employees throughout the organization to determine its direction for the new year.

Throughout this process, the SEC has focused on three main points of analysis: researching risks for retail investors, looking at risks for retired and elderly investors, and examining overall market risks.

Cetera Investment Services, LLC Sanctioned by FINRA for Failure to Notify of Material Changes to Accounts

January 17, 2017 | Silver Law Group

Cetera Investment Services, LLC (CRD# 15340) entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with FINRA after the regulatory body alleged it failed to notify account owners regarding changes to their account records.

According to the AWC, from October 1, 2008 through November 15, 2013, Cetera failed to mail or otherwise furnish 57,881 notifications to account owners of record regarding changes to their accounts, including, changes in the name of the account holder, address changes and more importantly, investment objective changes in the account. The significance of this that any change in the investment objectives in the account would affect what would be considered a suitable investment.

As part of the AWC, Cetera agreed to a censure and a fine in the amount of $75,000. Since Cetera’s formation in November 2012, it has been subject to nine (9) disclosures on its FINRA BrokerCheck report.

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.

5 Tips for Preventing and Discovering Stockbroker and Investment Fraud

September 2, 2016 | Silver Law Group

5 Tips for Preventing and Discovering Stockbroker and Investment Fraud on silverlaw.com

Frauds can go undetected for years, so what can investors do to prevent, identify, and address this growing issue?

In a financial environment where a uniform fiduciary standard for brokers doesn’t yet exist, it pays for clients to be constantly vigilant for signs of stockbroker and investment fraud. Even when brokers are legally required to act in your best interest, it is still in your best interest to confirm that they are. Sometimes it can take years to detect a problem, so what can you do to spot fraud? How can you confirm that a fraud has occurred? And what do you do when the worst has happened to you?

1. Choose the right broker