sales practice violations

FINRA Broker, Phillip John Bucaro, Fined for Selling Unapproved Annuities

February 3, 2015 | Silver Law Group

Phillip John Bucaro submitted a FINRA AWC in which he was fined $7,500 and suspended from association with any FINRA member in any capacity for four months. Bucaro has been registered with The Leaders Group, Inc. since August 2012. Without admitting or denying the findings, Bucaro consented to the FINRA sanctions and to the entry of findings that he engaged in outside business activities by receiving approximately $203,000 in compensation for selling equity-indexed annuities (EIAs) to customers of his firm. The firm maintained an approved product list that included certain EIAs that the brokerage firm allowed its representatives to sell to customers. However, Bucaro sold EIAs to the firm customers that were not on the firm’s approved product list. Bucaro neglected to give prior or prompt written notice of his engagement in such business activities to the firm. (FINRA Case #2011028635701)

Investors who have suffered losses through the sale of variable annuities and non-traded REITsmay be able recover their losses through arbitration. The attorneys at Silver Law Group are experienced in representing investors in cases against brokerage firms for violations of the sales of these complex or high commission products. We primarily represent investors on a contingent fee basis and, in most cases, we will agree to advance any costs.

FINRA Files Regulatory Charges against Meyers Associates, L.P., Imtiaz A. Khan and Bruce Meyers for Improperly Marketing a Private Placement

January 16, 2015 | Silver Law Group

Meyers Associates, L.P. (CRD# 34171), Imtiaz A. Khan (CRD# 4084250) and Bruce Meyers (CRD# 1045447), of New York, New York, were named respondents in a FINRA complaint alleging that the firm and Meyers engaged in the improper public offering and sale of unregistered securities, in contravention of the Securities Act of 1933. The complaint alleges that through general solicitation, the firm and Meyers marketed an unregistered offering to over 1,000 individuals using boiler-plate emails, without first establishing a substantive relationship with each recipient solicited. In selling the offering, Meyers made exaggerated and unbalanced claims and improper predictions of how the stock would perform and omitted material facts, including full disclosure of the firm’s, Khan’s and Meyers’ ownership interest in the company. The emails did not contain adequate risk disclosures and failed to present a fair view of the investments. The FINRA complaint also alleges that the firm was required to file a private placement memorandum (PPM) for another offering with FINRA at or prior to the first time the document was provided to any prospective investor. The firm failed to do so and did not file the PPM until at least three months after providing the PPM to a prospective investor. Meyers was one of the majority owners of Sign Path Pharma, Inc.

The complaint further alleges that the firm failed to establish and maintain a reasonable system for maintaining accurate books and records. Khan and Meyers caused the firm to record payments in its books and records, including payments for personal expenses improperly. As a result, the firm willfully violated Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-3, 17a-4 and 17a-5 thereunder; NASD Rule 3110; and FINRA Rules 2010 and 4511 by creating and maintaining inaccurate books and records.

In addition, the complaint alleges that the firm failed to establish and maintain a reasonable system, including adequate WSPs, for the review by a registered principal of incoming and outgoing electronic correspondence. The firm did not maintain any documentation that adequately identified the communications reviewed, the reviewers or the dates on which the communications were reviewed. The firm failed to report, and failed to timely report, customer complaints. Most of the complaints were sent to registered representatives via email, and contained allegations of sales practice violations. The firm failed to locate many of these emails through any supervisory review of email communications. The firm also failed to establish, maintain and enforce written supervisory control policies and procedures concerning the transmittal of customer funds and the activities of producing managers. In addition, the firm prepared a deficient NASD Rule 3012 report during 2009. (FINRA Case #2010020954501)

FINRA Suspends Registered Individuals for Violations of FINRA Rules – 2

January 7, 2015 | Silver Law Group

According to FINRA Disciplinary actions for December 2014, the following individuals were suspended from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:

NAME	FORMER EMPLOYERS
Donald L. Baker II	State Farm VP Management Corp.
Deborah Bush	JP Morgan Securities LLC
Deborah Bush	Chase Investment Services Corp.
Todd Alan Cummings	JP Morgan Securities LLC
Todd Alan Cummings	Chase Investment Services Corp.
Richard Edward Ford
David Robert Gray II	Cambridge Investment Research, Inc.
David Robert Gray II	Nathan & Lewis Securities, Inc.
Donald Gammon Hall Jr.	Merrill Lynch, Pierce, Fenner & Smith Inc.
Donald Gammon Hall Jr.	TD Ameritrade, Inc.
Kimberley Ann Jim	JP Morgan Securities LLC
Kimberley Ann Jim	Chase Investment Services Corp.
Patricia Maria Lanigan
Edwin Rafael Mejia	Wells Fargo Advisors, LLC
Scott Newsholme	SII Investments, Inc.
Scott Newsholme	Royal Alliance Associates, Inc
Earthel Dwight Parker	Chase Investment Services Corp.
Uday M. Raval	Karvy, Inc.
Darrell Duane Smith	Multi-Financial Securities Corporation
Darrell Duane Smith	Next Financial Group, Inc.
Shakeel Ahmad Tanveer	Ameriprise Financial Services, Inc.
Shakeel Ahmad Tanveer	IDS Life Insurance Company
Timothy Eugene White	Allstate Financial Services, LLC
Timothy Eugene White	U.S.-Worldwide Financial Services, Inc.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

FINRA Suspends Registered Individuals for Violations of FINRA Rules

January 7, 2015 | Silver Law Group

According to FINRA Disciplinary actions for December, 2014, the following individuals were suspended from FINRA for failing to comply with a FINRA arbitration award or settlement agreement pursuant to FINRA rules:

NAME	FORMER EMPLOYERS
Joshua Robinson Ballinger	Fifth Third Securities, Inc.
	Banc One Securities Corporation
Patrick Ryan Bray	Newbridge Securities Corporation
	UBS Financial Services Inc.
Jason Robert Buscaglia	Merrill Lynch, Pierce, Fenner & Smith Inc.
	Morgan Stanley Smith Barney
Joel William Carlson	Sagepoint Financial, Inc.
	Sunamerica Securities, Inc.
Charles Barnett Davis, Jr.	Peak Brokerage Services, LLC
	Cape Securities Inc.
Turker Ergun	Merrill Lynch, Pierce, Fenner & Smith Inc
	Banc of America Investment Services, Inc .
Derek Ryan Forrest	Morgan Stanley
	Wells Fargo Advisors, LLC
Lauren Gail Ganz	U.S. Bancorp Investments, Inc.
	Raymond James Financial Services, Inc.
Gregory Evan Goldstein	Marguis Financial Services, Inc.
	Benson York Group, Inc.
William Eric Hopkins, Sr.	Wells Fargo Advisors, LLC
	Suntrust Investment Services, Inc.
David Scott Isolano	Max International Broker/Dealer Corp.
	Secwest Securities, Inc.
Matthew Thomas Kane	CCO Investment Services Corp.
	Santander Securities LLC
Florence Rosenthal Klein	American Classic Financial Company
	Gruntal & Co. Inc
Brian Joseph Merrigan	Wells Fargo Advisors, LLC
	Bancwest Investment Services, Inc.
Edward Thomas Murphy	Wells Fargo Advisors Financial Network, LLC
	Morgan Stanley DW Inc.
Gurudeo Sukul Persaud	Money Concepts Capital Corp
Frank Anthony Quatararo, Jr.	Gilford Securities Incorporated
	Wells Fargo Advisors, LLC
Anthony John Salino	Buckman, Buckman & Reid, Inc.
	Mercer Capital Ltd.
Joseph Jared Sanchis	Morgan Stanley
	Wells Fargo Advisors, LLC
Brian Simone	Salomon Whitney LLC
	Banc of America Investment Services, Inc.
Steven John Simone	Salomon Whitney LLC
	Westrock Advisors, Inc.
Jeremy Gerald Tintle	Oppenheimer & Co. Inc.
	Morgan Keegan & Company, Inc.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

FINRA Suspends Registered Individuals for Violations of FINRA Rules – 4

December 30, 2014 | Silver Law Group

According to FINRA Disciplinary actions for November, 2014, the following individuals were suspended from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:

NAME	FORMER EMPLOYERS
Emily Maureen Allred	JP Morgan Securities LLC
Emily Maureen Allred	Chase Investment Services Corp.
Edwin Alvarez	CCO Investment Services Corp.
Edwin Alvarez	MML Investors Services, LLC
Corina Oikam Chan	Metlife Securities Inc.
Jenna Lynn Connett	Morgan Stanley
Jenna Lynn Connett	Citigroup Global Markets Inc.
Karl Robert Dierman	MML Investors Services, LLC
Karl Robert Dierman	Royal Alliance Associates, Inc.
Luis Espinoza
David Jay Homan	Wells Fargo Advisors, LLC
David Jay Homan	UBS Financial Services Inc.
Charles Damien Johnson	Laidlaw & Company (UK) Ltd
Charles Damien Johnson	Global Arena Capital Corp
Jonathan Ellsworth LaBarre	Fifth Third Securities, Inc.
Jonathan Ellsworth LaBarre	Key Investment Services LLC
David Alexander Lange	Lincoln Financial Securities Corp
David Alexander Lange	Raymond James Financial Services, Inc.
Edward Beale McLean IV	First Heartland Capital, Inc.
Edward Beale McLean IV	New England Securities
Lori Ann Monte	Merrill Lynch, Pierce, Fenner & Smith Inc.
Lori Ann Monte	Morgan Stanley DW Inc.
Ashley Platt
Kamil Z. Rak	Country Capital Management Company
German Francisco Rivero-Zerpa	Grenel & Co, LLC
German Francisco Rivero-Zerpa	Avila Capital Markets, Inc.
Jeffery Alan Schumaker	Transamerica Financial Advisors, Inc.
Jeffery Alan Schumaker	Pruco Securities Corporation
Edward Robert Sitton	Morgan Stanley
Edward Robert Sitton	Raymond James & Associates, Inc.
Frederick Paul Skoda	Country Capital Management Company
Kathy Jo Springer-Hesman	Robert W. Baird & Co. Inc.
Kathy Jo Springer-Hesman	Stifel, Nicolaus & Company, Inc.
Tony Edward Tucker, Jr.	EDI Financial, Inc.
Tony Edward Tucker, Jr.	Franklin Financial Services Corp.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

FINRA Hits Newport Coast Securities and Its Representatives with Churning Charges

August 14, 2014 | Silver Law Group

Last week, the Financial Industry Regulatory Authority (FINRA) filed charges against Newport Coast Securities, Inc. (“Newport Coast”) and some of its current and former registered representatives, accusing them of using margin and risky securities to artificially generate huge commissions for themselves while wiping out most of their customers’ investment capital.

Newport Coast, a New York-based broker-dealer, by and through brokers Douglas Leone, Andre LaBarbera, David Levy, Antontio Costanzo, and Donald Bartlet, allegedly churned the accounts of twenty four customers — many of whom are retirees — causing more than $1,000,000 in losses to the investor-clients. “Churning,” as it is known in the industry, is the act of a broker who excessively and needlessly engages in trading in a client’s account primarily to generate commissions for the broker on each trade without regard for the client’s financial well-being. Churning is an illegal and unethical practice that violates SEC rules and securities laws. The brokers are also purported to have created new account forms for their victimized clients that misstated the clients’ net worth, investment experience, and objectives; and two of the brokers (Levy and Costanzo) attempted to dissuade several customers from cooperating with FINRA’s investigation into the matter — all of which was done to cover up the illegality of the brokers’ excessive activity in the client accounts.

According to FINRA, former Newport Coast supervisors Marc Arena and Roman Luckey saw what was transpiring but took no meaningful steps to curtail the misconduct. To the contrary, the firm’s managers, supervisors, and the former President of the company allegedly profited through overrides on the churned accounts.

Silver Law Group Represents 93 year old Victim of Elder Financial Abuse

July 3, 2014 | Silver Law Group

According to the Sun Sentinel, the Palm Beach County Sheriff’s Office has charged Sultaine Valcius of Boynton Beach with fraud after taking $1.4 million from a 93 year-old man that hired her as a medical aide.

The Sun Sentinel reports Sultaine Valcius, 48, is charged with organized scheme to defraud for taking the money from her employer for at least five years. Ms. Valcius requested the money for various reasons, including, nursing school tuition, purchasing a home as an investment property, repairing a home in Haiti that had been destroyed by an earthquake and for general financial assistance due to her husband purportedly losing his job. However, Ms. Valcius was allegedly never enrolled in school, the house that was purchased was used as the primary residence by Ms. Valcius and her husband was never laid off from the job she claimed he had.

Ms. Valcius convinced the elderly gentleman to write her numerous checks ranging from a couple of hundreds of dollars to tens of thousands of dollars from two of his brokerage accounts maintained at two national broker/dealers. However, even if convicted, it is unlikely that Ms. Valcius will have the adequate resources to repay the victim.

Federal Appeals Court Upholds SEC Ban on Broker-Dealer Principal for Failing to Prevent Churning and Excessive Trading

June 19, 2014 | Silver Law Group

In July 2013, the U.S. Securities and Exchange Commission (“SEC”) issued a lifetime ban upon Carl Birkelbach, the founder and principal of Birkelbach Investment Securities (headquartered in Chicago, Illinois), which prevents him from participating in any working capacity in the securities industry. Mr. Birkelbach appealed the SEC’s ban, claiming in part that the SEC exceeded its authority in imposing such a severe penalty upon him. Earlier this month, the U.S. Court of Appeals for the Seventh Circuit in Chicago denied his appeal and upheld the SEC ban, stating that Mr. Birkelbach’s offenses were sufficiently egregious to warrant the sanction imposed by the SEC.

As the head of Birkelbach Investment Securities, Mr. Birkelbach was required to supervise the trading activities of the company’s registered representatives, including William Murphy. According to the SEC, Mr. Murphy engaged for years in unauthorized conduct, steering clients into unsuitable investments, and churning in client accounts — all of which Mr. Birkelbach was purportedly aware of. Despite Mr. Birkelbach’s alleged knowledge of the wrongdoing taking place at his company, he imposed no discipline upon Mr. Murphy, never disapproved of a single trade by Murphy, and never contacted the most egregiously harmed customer to discuss the high volume of trading in the customer’s account. During the years in question, the revenues from Mr. Murphy’s trading in that account, according to SEC calculations, represented nearly 20% of Birkelbach Investment Securities’ total revenue. Even when the Financial Industry Regulatory Authority (FINRA) requested that Mr. Birkelbach place Mr. Murphy on heightened supervision, Mr. Birkelbach failed to comply. As a result, FINRA imposed upon Mr. Birkelbach a punishment that ultimately became a lifetime ban from the securities industry in any capacity, which the SEC subsequently affirmed in its July 2013 ruling.

If you have questions about your legal rights, or have been the victim of investment fraud, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or Toll Free at (800) 975-4345.

FINRA Fines Merrill Lynch $8 Million and Orders it to Repay Over $89 Million to Retirement Accounts for Overcharging for Mutual Funds

June 18, 2014 | Silver Law Group

The Financial Industry Regulatory Authority (FINRA) announced a fine against Merrill Lynch, Pierce, Fenner & Smith, Inc. for $8 million for charging excessive mutual fund sales charges for retirement accounts. FINRA also ordered Merrill Lynch to pay $24.4 million in restitution to damaged customers on top of $64 million Merrill Lynch has already compensated damaged investors. According to the FINRA decision, mutual funds offer several classes of shares, each with different sales charges and fees and many mutual funds waive their initial charges for retirement accounts. However, Merrill Lynch failed to pass these savings on to the investors.

Merrill Lynch’s retail platform frequently offered such discounts to retirement plan accounts and disclosed those waivers in their prospectuses. However, Merrill Lynch failed to frequently pass these savings on to the investors including retirement accounts. Accordingly, about 41,000 small business retirement plan accounts, and approximately 6,800 charities and 403(b) retirement accounts available to ministers and employees of public schools, either paid sales charges when purchasing Class A shares, or purchased other share classes that unnecessarily subjected them to higher ongoing fees and expenses. Incredibly, in 2006, Merrill Lynch learned its small business retirement plan customers were overpaying, but continued to sell them more costly shares and failed to report the issue to FINRA for more than five years.

If you believe your portfolio was improperly managed or was charged excessive fees or costs, Silver Law Group will analyze your portfolio at no charge. Additionally, if you have questions about your legal rights, or have been the victim of investment fraud, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or Toll Free at (800) 975-4345.

Connecticut Securities Regulator Seeks to Bar Meyers Associates from Selling Securities in Connecticut

April 16, 2014 | Silver Law Group

If the Connecticut Department of Banking (the “Department”) has its way, Meyers Associates and its owner, Bruce Meyers, will be barred from selling securities in Connecticut. A February 2014 Order to Cease and Desist issued by the Department, charges Meyers Associates and Bruce Meyers (“Respondents”) with numerous violations of Connecticut securities laws. The Order states the Department’s intent to fine Respondents and revoke their registration to sell securities in Connecticut.

The present charges against Respondents stem from a 2012 examination by the Department, out of which the Department claims to have discovered multiple violations of the Connecticut Uniform Securities Act and FINRA rules. Notably, the Department alleges that Respondents failed to properly supervise employees with known disciplinary histories, violated an order from the Vermont securities regulator, and failed to completely respond to both the Department’s and FINRA’s requests for information and documents.

In seeking fines and revocation of Respondents’ licenses, the Department cites to Meyers Associates’ history of run-ins with the Department over allegations that it employed unregistered agents, offered and sold unregistered securities, engaged in fraud in connection with the sale of securities, engaged in dishonest and unethical practices, violated FINRA conduct rules, and failed to enforce and maintain adequate supervisory procedures. FINRA’s BrokerCheck report for Meyers Associates shows 14 final regulatory events, two pending regulatory events, and nine final arbitrations.