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Articles Posted in Stockbroker Misconduct

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According to FINRA Disciplinary actions for January 2021, the following individuals were barred 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
  Casey Brougham   Nationwide Securities, LLC
  Nationwide Securities, Inc.
  Derek Edwards   PFS Investments Inc.
  Curt Giacobbe   MML Investors Services, LLC
  NYLife Securities LLC
  Young Ju Kim
  Kevin Lafollette   Nationwide Investment Services Corporation
  Paul McGonigle   LPL Financial LLC
  SII Investments, Inc.
  Naveed Mitha   Suntrust Robinson Humphrey, Inc.
  Jose Montero   J.P. Morgan Securities LLC
  Cleavon Tidball   T. Rowe Price Investment Services, Inc.
  Transamerica Investors Securities Corporation

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Steven Luftschein (Steven Robert Luftschein CRD# 2690117) was recently barred from acting as a broker by the Financial Industry Regulatory Authority (FINRA) following an investigation into allegations that Luftschein violated federal securities laws. Luftschein, who operated in the greater New York area, was registered with Aegis Capital Corp. from 2013-2016, and then with Joseph Stone Capital LLC for the years 2017-2018. FINRA Filed A Disciplinary Complaint In May 2020 In May 2020, the FINRA Department of Enforcement filed a Complaint against Luftschein alleging that “while associated with Aegis Capital Corp. . . . [Luftschein] churned and excessively traded the accounts of three of his Firm customers . . .”.  Specifically, FINRA alleged: Luftschein frequently engaged in unauthorized trading by making purchases and sales of securities without first discussing the transactions with Customers and obtaining their authorization; Luftschein’s churning and excessive trading was unsuitable and caused losses of more than $261,000 in the Customers’ accounts; and Luftschein’s trading in the Customers’ accounts generated gross sales credits and commissions of approximately $136,200, with Luftschein receiving a substantial percentage of this amount. For allegedly engaging in this misconduct, FINRA brought causes of action for (1) Churning in violation of Section 10(b) of the Securities Exchange Act, Rule 10b-5, and FINRA Rules 2020 and 2010, (2) Excessive Trading/Quantitative Unsuitability in violation of FINRA Rules 2111 and 2010, and (3) Unauthorized Trading in violation of FINRA Rule 2010. In January 2021, Luftschein ultimately accepted an offer of settlement wherein he agreed to a bar from association with any FINRA member firm in any capacity.Steven Luftschein (Steven Robert Luftschein CRD# 2690117) was recently barred from acting as a broker by the Financial Industry Regulatory Authority (FINRA) following an investigation into allegations that Luftschein violated federal securities laws. Luftschein, who operated in the greater New York area, was registered with Aegis Capital Corp. from 2013-2016, and then with Joseph Stone Capital LLC for the years 2017-2018. Continue reading ›

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Michael Anthony Tavel (CRD# 4862463) was recently suspended from acting as a broker by the Financial Industry Regulatory Authority. Tavel was registered with broker-dealer LPL Financial LLC from 2004-2019, operating out of Indianapolis, Indiana. Tavel was also providing investment advice through Charter Advisory Corporation, an SEC-registered Investment Adviser, as well as providing tax services and insurance products through Tavel Insurance & Financial Services, LLC. Tavel Consented To 18-Month Suspension And $20,000 Fine According to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), from 2017-2019, Michael Tavel participated in improper private securities transactions, at least one of which Tavel recommended “without having  a reasonable basis to believe that it was suitable.” Specifically, FINRA states the following in its AWC: Tavel agreed to act as a placement agent for a private issuer purportedly in the business of making commercial loans . . . In 2018, the issuer and its chairman were charged by the SEC with fraud and [the investor] lost his entire investment. Tavel agreed to act as a placement agent for an oil-extraction company . . . Tavel received a total of $19,700 in commissions for the transactions. Tavel failed to provide a written disclosure to LPL in connection with any of these investments, which were done away from the firm, and falsely attested to LPL in August 2018 that he had not solicited any unapproved private placements.Michael Anthony Tavel (CRD# 4862463) was recently suspended from acting as a broker by the Financial Industry Regulatory Authority. Tavel was registered with broker-dealer LPL Financial LLC from 2004-2019, operating out of Indianapolis, Indiana. Tavel was also providing investment advice through Charter Advisory Corporation, an SEC-registered Investment Adviser, as well as providing tax services and insurance products through Tavel Insurance & Financial Services, LLC. Continue reading ›

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Sumitro Pal (CRD# 4763364) is a former registered broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of Bethesda, MD, where he was registered from 2009-2018. Pal has worked in the securities industry since 2004. Currently, Pal is the subject of four pending customer disputes, filed between November 2018 and November 2020, which allege damages totaling $1,575,000. Investors’ allegations range from “selling away” to “unsuitability” and “misappropriation of funds for an outside investment.”  The dates of the alleged actions range from October 2007 through September 2018.  Two previous customer disputes were settled for a total of $3,625,000.00. The most recent dispute was filed on 5/4/2018, and alleged, “inter alia, Misappropriation of funds for an outside investment - Oct 2017 to Feb 2018.” This claim was settled for $2,500,000.00.  The earlier claim was filed 9/26/2017 and had similar allegations that “the FA invested his retirement money in high risk corporate bonds including an over-concentration of bonds in the energy sector and also that the FA misrepresented the losses of his investments. 01/01/2013-08/31/2017.” This claim was settled for $112,500.00.Sumitro Pal (CRD# 4763364) is a former registered broker and investment advisor whose last known employer was Morgan Stanley (CRD#:149777) of Bethesda, MD, where he was registered from 2009-2018. Pal has worked in the securities industry since 2004. Continue reading ›

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Nicholas Palumbo (Nicholas R Palumbo CRD:# 1069948, aka “Nicholas Richard Palumbo” And “Nick Palumbo”) is a previously registered broker and investment advisor whose last known employer was Park Avenue Securities LLC (CRD#:46173) of Armonk, NY. His previous employers include Guardian Investor Services Corporation (CRD#:6635 of New York, New York, SMA Equities, Inc. (CRD#:3960), and First Investors Corporation (CRD#:305) He has been in the business since 1983. Palumbo has only one disclosure, his dismissal from Park Avenue Securities on 4/17/2020. He was permitted to resign after an investigation into an unapproved private securities transaction in which he was involved. Furthermore, he also solicited clients for this private transaction.Nicholas Palumbo (Nicholas R Palumbo CRD:# 1069948, aka “Nicholas Richard Palumbo” And “Nick Palumbo”) is a previously registered broker and investment advisor whose last known employer was Park Avenue Securities LLC (CRD#:46173) of Armonk, NY. His previous employers include Guardian Investor Services Corporation (CRD#:6635 of New York, New York, SMA Equities, Inc. (CRD#:3960), and First Investors Corporation (CRD#:305) He has been in the business since 1983. Continue reading ›

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Thomas Fross (Thomas Michael Fross CRD:# 4509874) is a registered broker and investment advisor currently employed with LPL Financial of The Villages, FL. He was previously employed with Securities America, Inc. (CRD#:10205), also of The Villages. He has been in the industry since 2002. Fross is currently the subject of a pending dispute over the sale of a client’s securities, filed on 6/10/2020. In it, the client claims that Fross failed to follow instructions in regards to “unsuitable portfolio changes” from 3/26/20 TO 8/21/20. The client requests damages in the amount of $119,716.05. Fross responds that he denies all allegations, that he discussed everything with the customer, and the changes were made in order to move into more conservative investments.Thomas Fross (Thomas Michael Fross CRD:# 4509874) is a registered broker and investment advisor currently employed with LPL Financial of The Villages, FL. He was previously employed with Securities America, Inc. (CRD#:10205), also of The Villages. He has been in the industry since 2002. Continue reading ›

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Peter Girgis (Peter N. Girgis CRD: 4520444) is a registered broker currently employed with SW Financial (CRD#: 145012) of New York, NY. His previous employers include Worden Capital Management LLC (CRD#:148366) and Legend Securities, Inc. (CRD#:44952, expelled by FINRA, 04/17/2017), also of New York, NY, and Joseph Gunnar & Co. LLC (CRD#:24795) of Staten Island, NY. One other former employer, Brookstone Securities, Inc. (CRD#:13366) of Staten Island, was also expelled by FINRA on 10/09/2012. He has been in the industry since 2002. On 9/15/2020, FINRA filed a note to begin a preliminary determination to recommend disciplinary action against Girgis. This came after an allegation that he engaged in excessive trading and churning as well as recommended an “unsuitable active trading strategy” to his clients. FINRA has not yet taken any further action in the matter. A client dispute filed on 2/21/2017 filed against Peter Girgis alleged churning and excessive commissions on his part. The client requested damages of $21,000, and the firm settled for $4,999.00. The report is based on a notification to FINRA and a request for arbitration. Girgis’ comment indicated that because the amount was under $5,000 and settled prior to arbitration, it was not reportable to FINRA.Peter Girgis (Peter N. Girgis CRD: 4520444) is a registered broker currently employed with SW Financial (CRD#: 145012) of New York, NY. His previous employers include Worden Capital Management LLC (CRD#:148366) and Legend Securities, Inc. (CRD#:44952, expelled by FINRA, 04/17/2017), also of New York, NY, and Joseph Gunnar & Co. LLC (CRD#:24795) of Staten Island, NY. One other former employer, Brookstone Securities, Inc. (CRD#:13366) of Staten Island, was also expelled by FINRA on 10/09/2012. He has been in the industry since 2002. Continue reading ›

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Raymond Ferro (Raymond Anthony Ferro, Jr. CRD#: 1927831) is a former registered broker and investment advisor whose last known employer was Woodbury Financial Services, Inc. (CRD#:421) of Danbury, CT. His previous employers include Next Financial Group, Inc. (CRD#:46214) and LPL Financial Corporation (CRD#:6413), also of Danbury, CT, and Wachovia Securities, LLC (CRD#:19616) of Ossining, NY. He has been in the industry since 1997. Ferro is the subject of six disclosures, including a 2014 tax lien of $15,205.26. The most recent is a client dispute filed on 12/7/2020. The claimants allege that Ferro sold them unsuitable investment products, and they request damages of $600,000. This claim is pending. The next client dispute was filed on 10/26/2020. The client alleges that she gave Ferro a total of 28 personal checks for funds that were intended to be used for “unspecified investments.” The client requests damages in the amount of $140,852.00, and the claim is pending.Raymond Ferro (Raymond Anthony Ferro, Jr. CRD#: 1927831) is a former registered broker and investment advisor whose last known employer was Woodbury Financial Services, Inc. (CRD#:421) of Danbury, CT. His previous employers include Next Financial Group, Inc. (CRD#:46214) and LPL Financial Corporation (CRD#:6413), also of Danbury, CT, and Wachovia Securities, LLC (CRD#:19616) of Ossining, NY. He has been in the industry since 1997. Continue reading ›

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John Krohn (John Michael Krohn CRD#:2722975) is a former registered broker and investment advisor whose last known employer was Principal Securities, Inc. (CRD#:1137) of West Des Moines, IA. He has been in the industry since 1996, when he began at the firm. Krohn is the subject of three client disputes with similar allegations. They first dispute was filed on 2/25/2019, with allegations that he “solicited large investments from them into venture capital companies owned, managed, or controlled at least in part by Krohn.” The client requests damages of $28,000,000.00. The second claim, filed on 2/25/2020, alleges that the firm failed to supervise John Krohn, which included selling away and his outside business activities that caused them to suffer losses. This client requests damages of $1,200,000.00.John Krohn (John Michael Krohn CRD#:2722975) is a former registered broker and investment advisor whose last known employer was Principal Securities, Inc. (CRD#:1137) of West Des Moines, IA. He has been in the industry since 1996, when he began at the firm. Continue reading ›

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Kevin Schaefer (Kevin Joseph Schaefer CRD:# 1286030) is a registered broker and investment advisor currently employed with Wells Fargo Clearing Services, LLC (CRD#: 19616) of San Francisco, CA. His previous employers include Morgan Stanley Smith Barney LLC (CRD#:149777) and UBS Financial Services Inc. (CRD#:8174), both of San Francisco, and Smith Barney Shearson Inc. (CRD#:7059) of New York, NY. He has been in the industry since 1984. Schaefer is the subject of two currently pending disputes. The first, filed on 6/12/2020, alleges “unsuitable investment recommendations and misrepresentations.” The client requests damages of $1,000,000. The second, filed on 6/4/2020, alleges “unsuitable investment recommendations, failure to follow instructions and misrepresentations from 2012 until 2020.”  The client requests damages of $300,000.Kevin Schaefer (Kevin Joseph Schaefer CRD:# 1286030) is a registered broker and investment advisor currently employed with Wells Fargo Clearing Services, LLC (CRD#: 19616) of San Francisco, CA. His previous employers include Morgan Stanley Smith Barney LLC (CRD#:149777) and UBS Financial Services Inc. (CRD#:8174), both of San Francisco, and Smith Barney Shearson Inc. (CRD#:7059) of New York, NY. He has been in the industry since 1984. Continue reading ›

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