Stockbroker Misconduct

Robert Ginsberg, Woodbury Financial, Subject of Two Suitability Claims

November 2, 2018 | Silver Law Group

Robert Scott Ginsberg (CRD #5177531) is a registered broker and investment advisor currently employed with Woodbury Financial Services, Inc. (CRD #421) of Wallingford, CT. He was previously employed by Investors Capital Corp. (CRD #30613), also of Wallingford. He has been in the industry since 2008.

Scottsdale-Capital-Advisors-Awaiting-FINRA-Disciplinary-Action-After-Alleged-Scheme-300x200 Ginsberg is the subject of two disclosures in his record. Both are customer disputes filed in 2017, and are currently pending.

The first was filed on 12/07/2017, alleging “suitability.” No damages are listed, and no other information is available.

FINRA Suspends Francisco Faraco For Forging Signatures

November 2, 2018 | Silver Law Group

Francisco Jose Faraco (CRD #5095972) is a former registered broker and investment advisor whose last employer was Morgan Stanley (CRD #149777) of New York, NY. His previous employers include J.P. Morgan Securities LLC (CRD #79), also of New York, NY, Santander Securities (CRD #41791) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) both of Miami, FL. No other employment information is available, and he is not currently registered with any FINRA member firm. He has been in the industry since 2006.

FINRA-Permanently-Bars-Broker-Richard-McGuire-for-Taking-Funds-and-Forging-Signatures-300x200 Faraco is the subject of three disclosures. Two are for one specific incident.

In January of 2016, Faraco allegedly began assisting an institutional customer obtain a $15M loan from Morgan Stanley Private Bank. In the course of applying, he attempted to keep the process moving after two roadblocks—an expired passport for one individual, and forging two signatures on two assurance documents for collateral. Faraco felt the documents were duplicates. Those signatures were representatives of affiliated companies. The bank approved the loan, and the forgeries were discovered only after one of the affiliates complained.

FINRA Bars Broker Kyusun Kim After Multiple Customer Complaints Of Unsuitability

October 12, 2018 | Silver Law Group

Kyusun Kim (CRD #2864085) is a registered investment advisor and previously registered broker, last employed and registered with Sandlapper Securities, LLC, of San Diego, CA. (He is also known as “Kyu Sun Kim” or “Kenny Kim.”) Kim’s previous employers include Independent Financial Group, LLC (CRD #7717), Lincoln Financial Advisors Corporation (CRD #3978), both also of San Diego, and The Lincoln National Life Insurance Company (CRD #2580) of Fort Wayne, IN. He began in the industry in 1997.

Kim is the subject of 23 customer disputes dating back to 2007. One dispute was denied; nine are pending, and the remaining thirteen are settled, with one settlement rescinded. The total for Kim’s twelve settled cases is $2,995,443. His nine pending complaints include requested damages totaling $2,950,000.

New Jersey Broker Richard Grant Cody May Be Facing Serious Penalties on elderfinancialfraudattorneys.com Between 2008 and 2015, Kim was accused of soliciting the business of individuals who were retired or near retirement age, and recommended that they liquidate their pension plans and 401(k) to invest with him in so-called “alternative investments,” including things like non-traded real estate investment trusts (REITs.) Many of these customers had little or no investment experience, and were unfamiliar with these types of securities. The higher risk involved made them inconsistent with the more conservative objectives. Kim failed to disclose the extra risk involved in many of these securities, and most suffered substantial financial losses.

SEC Charges Broker Jovannie Aquino

October 11, 2018 | Silver Law Group

Jovannie Aquino (CRD #4876661, aka John Aquino) is a former registered broker of New York, NY. Previous employers include Windsor Street Capital (CRD #34171), also in New York City, John Carris Investments LLC (CRD #145767), John Thomas Financial (CRD #40982) and Hallmark Investments, Inc. (CRD #135003) of New York City.

Aquino has worked for a total of 12 brokerages, holds Series 7 and 63 licenses and began working in the industry in 2004. Aquino has two LinkedIn pages that do appear to be updated, and no current employment information is available.

SEC Announces Charges in Massive Telemarketing Boiler Room Scheme Targeting Seniors on elderfinancialfraudattorneys.com On September 7, 2018, the SEC charged Aquino with defrauding customers by engaging in “churning” to generate excessive commissions for himself, in the amount of $930,000. Aquino’s customers lost a total of $881,000. At the time of these allegations, May 2014 through November 2017, Aquino was registered with Meyers Associates, L.P. (now known as Windsor Street Capital.) The SEC complaint also states that in 2015 and 2016, Aquino and an unnamed colleague engaged in cold-calling leads acquired from a publicly available database.

SEC Charges Broker Emil Botvinnik With Excessive Trading, Churning

October 11, 2018 | Silver Law Group

If you watch your brokerage account regularly, you’ll see the various trades and charges that go along with them. But if you’re seeing transactions that you don’t recall authorizing, and you’re spending a lot more money for fees, commissions and other related charges, it’s time to ask questions. Our South Florida FINRA arbitration attorneys can answer those questions.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200 Broker Emil Bottvinnik (CRD #4359481) has been charged by the SEC with doing just that very thing. On September 7, 2018, the SEC charged Botvinnik with excessive trading and “churning,” or frequent, short-term trading. This kind of quick-turnover trading paid more in commissions that a client would make from his or her investment.

The SEC alleges that Bottvinnik opened accounts for at least five individuals, and concealed information about what they would be charged for these frequent tradings. Many of these customers were at or near retirement age, and lost $2.8 million for his clients while making commissions of $3.7 million in “ill-gotten gains.” These tradings are alleged to have taken place while was employed with Meyers Associates L.P. in Miami Beach, Florida, from 06/19/2012 through 11/17/2014. Meyers Associates was expelled by FINRA on 5/29/2018.

Karl Foust Subject Of $1.1M In Customer Disputes With Wimbledon Health Partners Investments

October 5, 2018 | Silver Law Group

Karl Ronald Foust, Jr. (CRD #1010291) is a formerly registered broker and investment advisor who was last registered with H.D. Vest Investment Services (CRD #13686) of Boca Raton, FL. His previous employers include Gunnallen Financial, Inc. (CRD #17609) of Delray Beach, FL, Thomas James Associates, Inc. (CRD #15609) and Apple Financial Corporation (CRD #10375). No current employment information is available. He has been in the industry since 1981.

Richard-Gomez-Allegedly-Involved-With-Fraudulent-Company-1024x681-300x200 Foust currently has seven disclosures on his record, all customer disputes, one of which was closed without action. These customer disputes were all filed in the period between June 2017 and July 2018.

All of these disputes (including the closed case) are currently listed as “pending.” The common thread through each of these claims is Foust’s recommendations of the client’s investments in Wimbledon Health Partners, LLC, and failing to disclose his own involvement with the firm, a conflict of interest. Payments promised were not made to clients, and total damages of these claims comes to $1,198483.34.

FINRA Bars Broker Taek Chong After Allegations of $2M Commission Overpayment

September 13, 2018 | Silver Law Group

Taek Man Chong (CRD #1551743) is a previously registered broker and investment advisor who was last registered with Raymond James Financial Services, Inc. (CRD #6694) of Mercer Island, WA. His previous employers include Deutsche Bank Securities Inc. (CRD #2525) and SG Cowen Securities Corporation (CRD #7616) of New York, NY, and A. G. Edwards & Sons, Inc. (CRD #4) of St. Louis, MO. No current employment information is available. He has been in the industry since 1986.

Broker-William-Hutchinson-Barred-by-FINRA-300x200 Two customer disputes were filed in May of 2018, both alleging overpayment of commissions, totaling $2,010,939.01. These disputes are currently listed as “pending.” According to FINRA documentation, Chong was under review for these disputes, which were related to large, institutional trades, and his registration with Raymond James was voluntarily terminated on May 22, 2018. He is not currently associated with any FINRA-member firm.

FINRA began an investigation, and sent a letter to Chong on May 25, 2018, requesting information related to the disputes. On June 19, 2018, Chong responded through counsel that he would not provide the requested information to FINRA at any time. FINRA issued an Acceptance, Waiver & Consent (AWC) letter, in which Chong neither admitted nor denied findings, and signed on June 22, 2018. FINRA subsequently barred Chong indefinitely, and in all capacities, effective June 28, 2018.

FINRA Bars Broker William Downing, Allegations of $1M Excess Trading

September 13, 2018 | Silver Law Group

William Downing (CRD #1529382) is a former registered broker and investment advisor who was last registered with Coastal Equities, Inc. (CRD #23769) of Wimberly, TX. He was previously employed with J.W. Cole Financial, Inc. (CRD #124583), also of Wimberly, as well as Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) and Wells Fargo Advisors, LLC (CRD #19616), both of Austin, TX. No current employment information is available. He began in the industry in 1986.

FINRA barred Downing after he failed to respond to a request for information. He was previously suspended, but did not respond to request termination of his suspension within the three-month time frame. He was indefinitely barred on 08/20/2018. No additional information is available.

Boca-Raton-Oppenheimer-Employees-Settle-SEC-Investigation-300x208 Downing is also the subject of a customer dispute, filed on 07/05/2018. In it, the client alleges that Downing “between 2013 and 2018. . .excessively traded client’s account.” Requested damages are $1M, but no additional details are available. It is not known if this case is related to the FINRA action that let to Downing ultimately being barred indefinitely.

FINRA Issues a Suspension for Network 1 Financial Services Wills Henriquez

September 13, 2018 | Silver Law Group

Wills Schneider Henriquez (CRD #1872198) is a previously registered broker who was last employed by Network 1 Financial Securities Inc. (CRD #13577) of Brooklyn, NY. His previous employers include Newport Coast Securities, Inc. (CRD #16944), also of Brooklyn, and Legend Securities, Inc., (CRD #44952) of New York, NY. These two firms, along with Success Trade Securities, Inc. (CRD #46027), where Henriquez was previously registered, have been expelled by FINRA. No current employment information is available. He has been in the industry since 1993.

Former Alexander Capital, L.P. Broker Peyton Nelson Jackson is No Longer Registered in the Securities Industry on elderfinancialfraudattorneys.com FINRA suspended Henriquez in all capacities, effective 7/2/2018 through 08/15/2018, and fined him $7,500 for effecting discretionary transactions in multiple customer accounts. These transactions were conducted without written consent from the customers, as well as without written authorization from the firm.

A number of transactions were marked “unsolicited,” when in fact, they were solicited. This caused a compliance issue with Network 1, who now had inaccurate customer transaction records. This activity took place between May 2013 through May 2017. Henriquez also mismarked 32 tickets from March 2016 through March 2017, violating FINRA Rules 4511 and 2010.

FINRA Hands Satya Brata Shaw Six-Month Suspension and $10K Fine

September 13, 2018 | Silver Law Group

Satya Brata Shaw (CRD #1229175) is a former registered broker and investment advisor last employed by Center Street Securities, Inc. (CRD #26898) of Wesley Chapel, FL, until November of 2016. His previous employers include Madison Avenue Securities, Inc. (CRD #23224) and AXA Advisors, LLC (CRD #6627) of Tampa, FL and MONY Securities Corporation (CRD #4386) of New York, NY. No current employment information is available. He has been in the industry since 1984.

Business Ventures and Suspension

Shaw was recently fined $10,000 and suspended by FINRA for six months, effective 08/07/2018 for numerous violations, including: