Stockbroker Misconduct

Former Broker Peter Orlando Accused Of Improperly Obtaining Control Of Client’s Affairs

June 28, 2018 | Silver Law Group

Peter Orlando (CRD #1142715) is a former registered broker, last employed with SCF Securities, Inc. (CRD #47275) of Fall River, MA. Previous employers include MetLife Securities (CRD #14251), Morgan Stanley (CRD #149777 and #8209), and Investors Capital Group (CRD #30613) He has been in the industry since 1983. His current employer and employment status is unknown.

Orlando is the subject of a regulatory disciplinary action involving one of his clients. From August through September of 2014, Orlando allegedly obtained control of the financial affairs of an elderly widow (named “DW” in the complaint.) He became the primary beneficiary and executor of her will, with his wife as the contingent beneficiary. He obtained two powers of attorney (POA), one for health and one known as a “durable POA.”

It is against MetLife’s policies for a representative to become involved in a client’s financial affairs, except in the case of family members. There is no indication that the client was also a family member. In addition to a opening a joint account with Orlando, the client also changed her will, closed two bank accounts in favor of the joint one, and gave him two powers of attorney. Orlando never notified the firm that he was acting as her personal representative in her affairs.

FINRA Bars Broker John Greg Schmidt After Misappropriation Allegations

June 28, 2018 | Silver Law Group

John Greg Schmidt (CRD #708094) is a former registered stockbroker and investment advisor whose last known employer was Wells Fargo Advisors Financial Network, LLC (CRD #11025) in Dayton, OH. He is also known as “Greg Schmidt” or “John Gregory Schmidt.”

His previous employers include Stifel, Nicolaus & Company, Incorporated (CRD #793), also of Dayton, OH; First Union Securities, Inc. (CRD #19616) of St. Louis, MO; and First Union Capital Markets Corp. (CRD #6124) of Charlotte, NC. Schmidt began his industry career in 1980, but is not currently registered with any FINRA broker.

Schmidt is currently the subject of several disclosures:

FINRA Permanently Bars Kimberly Pine Kitts After Allegations

June 22, 2018 | Silver Law Group

Kimberly Pine Kitts (CRD #2768200) is a previously registered broker and investment advisor, last employed with Royal Alliance Associates Inc., (CRD #23131) from 2004 through 2017. In the industry since 1993, she was previously employed with ING Financial Partners, Inc. (CRD #2882) in Des Moines, IA, and Forum Fund Services, LLC (CRD #46106) in Portland, ME, among others.

Kitts was discharged from Royal Alliance on 11/15/2017 when the firm received a letter from the attorney of one of her clients. This letter alleged “conversion or misappropriation of funds” on Kitts’ part.

On 12/8/2017, FINRA requested information from Kitts regarding her termination from Royal Alliance. She failed to respond to the request, and was suspended for three months. When she failed to request her suspension to be ended, FINRA permanently barred Kitts, effective 03/12/2018. Kitts is not allowed to have any association with any FINRA member in any capacity.

Jeffrey Hawley and Wells Fargo

June 22, 2018 | Silver Law Group

A current client dispute relating to Jeffrey Hawley (CRD #1131302) has been filed against Wells Fargo. Hawley is a registered broker currently with Wells Fargo Clearing Services, LLC (CRD #19616). Hawley is also a registered investment advisor with the same company.

The customer dispute centers on Puerto Rican bonds, which were popular to sell to investors for their high returns. When the island declared bankruptcy in May of 2017, many investors accounts decreased dramatically.

The client alleges that Hawley recommended purchasing these bonds in 2012, and to “thereafter hold the bonds.” The case is currently listed as pending.

Broker Adam Goodman Subject of FINRA Arbitration Claims

June 22, 2018 | Silver Law Group

Adam Goodman (CRD #2263780) is a currently registered broker and investment advisor employed by Stoever, Glass & Company Inc. (CRD #7031) of Boca Raton, FL.

His previous employers include Herbert J. Sims & Co. Inc. (CRD #3420) and Wien Securities Corp. (CRD #10467.) He has been in the industry since 1994 moving from H.J. Sims to Stoever in 2018.

Goodman has three customer disputes in his career, with the most recent filed on April 3, 2018. The customer alleges “high pressure sales,” unsuitable investments, fraud and negligence, and is requesting damages in the amount of $25,000.

Broker Lee Robert Donais Subject Of $200K Dispute

June 21, 2018 | Silver Law Group

Lee Robert Donais (CRD #2347440) was a registered broker with SCF Securities, Inc. (CRD #47275) of Lighthouse Point, FL, since 2012 through May 2018. His previous employers include Brookstone Securities, Inc. (CRD #13366), brokersXpress LLC (CRD #127081, now defunct), and LPL Financial Corporation (CRD #6413), also of Lighthouse Point, Florida. Donais has been in the industry since 1993.

On 4/17/2018 a client filed a complaint against Donais alleging “unsuitable investment recommendations,” and has requested damages of $200,000. This dispute is currently pending.

Donais has two employment separations. The first, from brokersXpress on 5/10/12, was due to Donais signing a customer’s name to a form for an IRA withdrawal. The customer, he claimed, requested Donais’ signature on the form because he was on travel and didn’t have access to a fax machine or other equipment to submit his own signature. Since the customer was enroute to a property closing in North Carolina, the transaction was necessary for the anticipated closing on May 10, 2012. When contacted by a company representative inquiring about the signature, he admitted signing the form at the customer’s request.

Keith D’Agostino

June 21, 2018 | Silver Law Group

Broker Keith Michael D’Agostino (CRD #2837860, also spelled “Dagostino”) is currently registered with Aegis Capital Corporation (CRD #15007) in Melville, NY since 2014. He has been in financial services since 2002.

D’Agostino’s most recent complaint was filed on May 11, 2017, with the client alleging “poor performance.” The client requested damages of $170,000 and Aegis settled this dispute for $92,000.

His only prior dispute was filed on August 12, 2013, while working for Stifel, Nicolaus & Company, Incorporated (CRD #793). The client alleged that D’Agostino engaged in “breach of fiduciary duty, negligence, common law fraud, violation of Florida law, and unjust enrichment.” The time frame for these allegations was June 2010 through January 2013. The client requested damages of $725,000, the company settled for $220,000.

FINRA Examines Claim Against Aegis Broker James Mariani For Negligence

June 21, 2018 | Silver Law Group

James J. Mariani (CRD #2932631) is a currently registered broker with Aegis Capital Corp. (CRD #15007) of Bayside, New York. He has been with Aegis for less than one year. His previous employers include:

National Securities Corporation (CRD #7569) of Mineola, NY
First Montauk Securities Corp. (CRD #13755) of Port Washington, NY

Broker David Schmerber Subject of Customer Dispute

June 21, 2018 | Silver Law Group

David Schmerber (CRD #2093918) is a currently registered broker and investment advisor with Cetera Advisors of Centerville, OH. He has been in the industry since 1990. His previous employers include:

LPL Financial LLC (CRD #6413)
Smith Barney Inc. (CRD #7059)

Former Broker James Pettit Barred By FINRA

June 21, 2018 | Silver Law Group

Former broker James Albert Pettit (CRD #733916), formerly of Ameriprise Financial Services, Inc. (CRD #6363), was barred by FINRA on 3/26/2018. This is the result of failing to comply with an arbitration award, and providing proof of the compliance. The bar is indefinite, and in all capacities until the award is paid.

Pettit is the subject of two FINRA regulatory actions and one by the state of Connecticut.

Pettit’s former employers include: