Investment Fraud

Silver Law Group Defending Thousands of Investors in an International Fraud Case Against Cryptsy CEO

September 1, 2016 | Silver Law Group

Silver Law Group Defending Thousands of Investors in an International Fraud Case Against Cryptsy CEO on silverlaw.com

Paul Vernon’s former clients say he stole millions from Cryptsy, which traded Bitcoin and other digital currencies, and then fled the country with $8M in investor funds. Now we’re representing them in a class action lawsuit.

Paul Vernon, CEO of Project Investors Inc., which does business as Cryptsy, a Delray Beach-based digital currency exchange, fled to China with $8 million dollars in client money, allege a group of international investors we’re currently representing in class action suit that was certified by U.S. District Judge Kenneth Marra in West Palm Beach on August 24.

In 2015, Vernon notified Cryptsy clients that software problems were causing the company to pause all electronic wallets. That December, he notified them of a phishing scam targeting the site. Plaintiffs alleged that Vernon shut down the exchange and stopped responding to client inquiries in late 2015.

Duluth Broker Kenneth Kolquist Permanently Barred by FINRA

August 22, 2016 | Silver Law Group

Duluth Broker Kenneth Kolquist Permanently Barred by FINRA on silverlaw.com

Cetera financial advisor allegedly engaged in gross negligence, breach of fiduciary duty, fraudulent non-discolsure, fraud, and more

Kenneth Kolquist began his career in the financial services industry in 2006 in Duluth, Minnesota. Since his first position with A Plus Financial Group, he has worked for various firms including Securities America, Financial Network, and most recently for Cetera Advisors Networks, where he worked from 2009 to 2015.

While employed by Cetera, Kolquist was accused of:

7 Telltale Signs of Broker Fraud

August 17, 2016 | Silver Law Group

7 Telltale Signs of Broker Fraud on silverlaw.com

How do I know if my stockbroker has defrauded me?

Stockbrokers and financial advisors have a legal duty to put your financial well-being before their own when they make decisions about your investments. However, some financial professionals aren’t willing to wait until you make money to increase their profits.

According to the Federal Trade Commission, 30.2 million people are defrauded each year for losses that total close to $3 billion. While a significant amount of this is the result of broker fraud, surveys indicate that only 20 to 50 percent of fraud is ever reported.

Connecticut Broker Matthew Woodard Permanently Barred by FINRA

August 16, 2016 | Silver Law Group

Connecticut Broker Matthew Woodard Permanently Barred by FINRA on silverlaw.com

With just three years in the securities industry, Woodard faced allegations of misconduct

Silver Law Group is investigating the misconduct of Matthew Charles Woodard, a broker from Farmington, Connecticut. An inquiry from FINRA was initiated when Woodard was accused of converting funds from a deceased customer’s account. When asked to cooperate with the investigation, he refused to provide documentation and information and was subsequently permanently barred by FINRA.

Employed for just three short years in the financial services industry, Woodard, worked for Metlife Securities, LPL Financial, Proequities, Inc. and most recently with First Allied Securities from February 2015 to October 2015.

Winston Turner Facing Allegations of Variable Annuity Fraud

August 16, 2016 | Silver Law Group

Winston Turner Facing Allegations of Variable Annuity Fraud on silverlaw.com

FINRA initiates investigation into Sarasota broker after multiple customer complaints

Winston Wade Turner, a broker who was most recently registered with Pruco Securities in Sarasota, Florida, is being investigated after FINRA filed a complaint against Turner in regard to numerous customer disputes, including attempting to defraud customers by convincing them to exchange their existing variable annuities and other securities while hiding these exchanges from his firm. His actions caused his clients to incur excessive surrender charges and five of his clients lost approximately $151,000.

According to FINRA, Turner falsified information in relation to the variable annuity transactions and he evaded his firm’s supervisory review process by lying to them about the source of funds in variable annuity purchases. He is also accused of deceptive conduct because he used his personal email addresses as the email address of his customers so that he would receive account notifications instead of his customers. Additionally, he submitted documents bearing forged customer signatures.

Carlton E. Burton’s Short Brokerage Career Ends in Permanent Bar by FINRA

August 9, 2016 | Silver Law Group

Carlton E. Burton’s Short Brokerage Career Ends in Permanent Bar by FINRA on silverlaw.com

Florida-based broker allegedly misappropriated funds while associated with two different member firms.

Carlton E. Burton passed his Series 7 General Securities Representative Exam in October 2014. He passed his Series 66 Uniform Combined State Law Examination in June 2015. And in February 2016, Burton was permanently barred from associating with any FINRA member in any capacity.

The FINRA action results from Burton’s refusal to respond to FINRA’s request for documents and information during an investigation into allegations that he misappropriated assets from the investment advisory firm where he worked.

Utah Broker Thomas E. Andrews Permanently Barred by FINRA

August 8, 2016 | Silver Law Group

Utah Broker Thomas E. Andrews Permanently Barred by FINRA on silverlaw.com

Misappropriation of funds, breach of fiduciary duty, and mismanagement are just a few of the allegations cited

Silver Law Group is investigating Thomas Edward Andrews, a broker who was employed by LPL Financial in Salt Lake City, Utah. Andrews began his career in the financial services industry in October 2002. In 2015, he was terminated after the firm received allegations from clients that he was misappropriating funds, engaging in unauthorized borrowing, mismanaging investments and that he committed breach of fiduciary duty from 2011 through 2015, among others.

He was subsequently suspended and permanently barred by the FINRA after he failed to respond to requests for information regarding his termination and the allegations. According to his BrokerCheck Report, in November 2015, clients of Andrews filed a complaint claiming that he had formed fictitious trusts, provided forged application materials for annuity products and accepted funds from them payable to these trusts.

Michigan-based Firm and Licensed Broker Pocket $11.4 Million in Commissions

August 4, 2016 | Silver Law Group

Michigan-based Firm and Licensed Broker Pocket $11.4 Million in Commissions on silverlaw.com

Alleged misrepresentation of REITs and BDCs by Purshe Kaplan Sterling Investments and Gopi Vungarala to their client, a Native American Tribe, lead to exorbitant commissions to the detriment of the tribe

Purshe Kaplan Sterling Investments and their licensed broker Gopi Vungarala have been named respondents in an FINRA compliant that alleges numerous violations of the securities commission.

A registered and licensed broker for eleven years, Gopi Vungarala is under investigation for repeatedly lying about investments and commissions to his client, a Native American Tribe, for more than three years. According to his BrokerCheck report, Vungarala, as the tribes registered representative and treasury investment manager, convinced his client to invest hundreds of millions of dollars in non-traded REITs and business development companies without revealing that he and his firm received commissions on the sales or that these sales were eligible for volume discounts. Instead, it is alleged that Vungarala kept those discounts in the form of commissions for himself and the firm.

Church Loses $135,000 Due to Alleged Bad Advice From Broker Betsy Marcom

August 4, 2016 | Silver Law Group

Church Loses $135,000 Due to Alleged Bad Advice From Broker Betsy Marcom on silverlaw.com

Broker fined $15,000 and suspended for four months as a result of FINRA investigation

After having damages granted against her in the amount of $135,000 by a customer questioning the suitability of her investments in December 2012, Texas financial advisor Betsy B. Marcom (previously known as Betsy Bratton Perryman) is once again under scrutiny by FINRA.

In a disciplinary action dated November 19, 2015, the Next Financial Group, Inc. financial advisor, Betsy Marcom, accepted and consented (without admitting or denying the findings) to the entry of FINRA findings that stated:

Liam O’Keefe, Fraud Advisors Investigation

August 1, 2016 | Silver Law Group

Liam O’Keefe, Fraud Advisors Investigation on silverlaw.com

FINRA has barred Liam Gerald O’Keefee alleging unauthorized trading, misappropriation of funds, and unsuitable recommendations.

As of October 20, 2015, Liam Gerald O’Keefee has been permanently barred by FINRA. O’Keefee consented to the sanctions and to the findings that he did not provide the information and documents requested by FINRA.

During his 16 years in the securities industry, O’Keefee was most recently employed with Triad Advisors in Danbury, Connecticut from April to October, 2015. For the seven years preceding that, he worked at Merrill Lynch, Pierce, Fenner & Smith in Southbury, Connecticut. He was also employed by Wachovia Securities, Prudential Securities, and Oppenheimer and Company.