Selling away

SEC Accuses Daniel Vazquez of Running $2 Million Real Estate Investment Fraud

February 5, 2018 | Silver Law Group

Silver Law Group represents many of Mr. Vazquez investors.

The Securities and Exchange Commission is charging Daniel Vazquez and Gilbert Fluetsch of running a home flipping scam that defrauded dozens of investors out of their retirement savings. Vazquez was a registered stockbroker with Cetera Advisors and Investors Capital Corp. from 2011-2015.

According to the SEC, Daniel Vazquez serves as the CEO of Hoplon Financial Group. Through Hoplon, Vazquez created the “New Economic Opportunities Fund,” an entity that purported to buy and flip residential real estate using investor funds.

Former Ameriprise Broker William B. Wyman Under Investigation Over Allegations of Selling Unapproved Investments

June 6, 2017 | Silver Law Group

Silver Law Group is investigating form Palm Bay, Florida-based Ameriprise Financial Services, Inc. (CRD# 6363) broker William B. Wyman (CRD# 4155621) after allegations that he sold away from his employing firm surface.

According to Wyman’s FINRA BrokerCheck report, FINRA barred Wyman in January 2017 after he failed to request termination of his suspension after his suspension period ended. Accordingly, FINRA automatically barred him from associating with any FINRA member in any capacity.

Wyman’s most recent BrokerCheck disclosure is a customer complaint that alleges negligence and that Wyman sold the customer an unapproved investment outside the brokerage firm. The complaint alleges almost $100,000 in damages.

William Upchurch Jr., Former Maryland PFS Investments Broker Under Investigation

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former PFS Investments Inc. (CRD# 10111) broker William Upchurch Jr. (CRD# 1195846) after FINRA permanently barred the broker.

According to Upchurch’s FINRA BrokerCheck report, FINRA permanently barred Upchurch from acting as a broker or otherwise associating with firms that sell securities to the public in July 2016. According to the BrokerCheck report, Upchurch failed to respond to a FINRA request for information.

In September 2015, Upchurch settled a FINRA arbitration for the full amount after the customer alleged she could not locate a $20,000 account Upchurch had established for in 2013.

Former Clearwater, Florida Broker Under Investigation after FINRA Suspension for Unsuitable Recommendations

November 3, 2016 | Silver Law Group

Silver Law Group is investigating former Clearwater, Florida broker Dennis M. Merritt (CRD# 1748115) after FINRA suspended him for four months and his employing firm terminated him for alleged unsuitable recommendations among other things.

In March 2016, FINRA and Merritt entered into an order accepting offer of settlement (the “Order”). The Order accepted the punishment without admitting or denying the allegations in the Complaint.

The Complaint alleged that Merritt invested a total of $115,000 in a speculative investment without providing written notice to his member firm prior to participating in the private securities transactions.

FINRA Permanently Bars Barry Hartman From Securities Activity for Alleged “Selling Away” Activities

February 23, 2016 | Silver Law Group

FINRA Permanently Bars Barry Hartman From Securities Activity for Alleged “Selling Away” Activities Silverlaw.com

Montana financial advisor barred from securities activity for multiple FINRA violations

In a ruling that came in August 2015, the Financial Industry Regulatory Authority (FINRA) permanently barred Barry G. Hartman, formerly of FSC Securities Corporation in Missoula, MT, for allegedly engaging in a practice known in the industry as selling away.

While Hartman was registered with FSC, he also managed his securities business through Rocky Mountain Financial LLC. Multiple prior clients are alleging that Hartman recommended outside investments without the necessary approval from his registered firm.

Cross-selling: Taking Advantage of Customer Loyalty or Good Business Practice?

December 13, 2015 | Silver Law Group

Cross-selling: Taking Advantage of Customer Loyalty or Good Business Practice? on silverlaw.com

Scott Silver speaks to Investment News about the need to monitor a high-pressure industry practice that leaves some financially vulnerable

The practice of cross-selling on Wall Street is under growing scrutiny, especially in the banking and investment world. Cross-selling is suggesting or selling multiple, related products or services from the same financial enterprise to a potential customer. For example, a customer may already have a sizable investment with a large bank and be approached by a customer service representative about making a different and new type of investment with the company, or may be asked to purchase insurance or invest in a retirement plan. In these scenarios, the bank may use its existing positive relationship with a customer to help persuade them to increase their existing investment.

Banks and investment companies maintain that this is a highly effective and fair marketing strategy and that the consumer is being made aware of products and programs that apply to them, and that these connections are often made because of the strong and lasting relationship developed with the customer.

FINRA bars Aegis Capital Corp Broker Malcom Segal from Securities Industry Over Allegations of Outside Business Activities

December 26, 2014 | Silver Law Group

The Financial Industry Regulatory Authority (FINRA) recently barred former Aegis Capital Corp.(Aegis) broker Malcom Segal (Segal) alleging that Segal may have engaged in unauthorized transfers of funds from customer accounts to an outside business activity (a/k/a “selling away“).

Segal was a broker for Aegis from 2011 until July 2014 when he was terminated by Aegis for failing to cooperate with an internal investigation into a customer complaint alleging he made unauthorized wire transfers from a customer’s account. Segal operated from Boynton Beach, Florida and Langhorne, Pennsylvania.

Aegis appears to be distancing itself from Mr. Segal by alleging he was not operating with Aegis’ permission. Frequently referred to as selling away, firms may still be liable for a broker’s actions because it has a duty to properly monitor and supervise its employees.