Stockbroker Misconduct

FINRA Investigates Broker Matthew Eckstein For Fraud

June 20, 2018 | Silver Law Group

Matthew Evan Eckstein (CRD #2997245) was a registered broker with Sisk Investment Services, Inc. (CRD #19406) of Syossett, NY. He has been with Sisk since 2015. Eckstein was previously employed by Gould, Ambroson & Associates Ltd. (CRD #17412) of Garden City, NY. Our New York securities arbitration lawyers are representing investors in claims against Eckstein’s former employers.

Eckstein is currently the subject of a FINRA disciplinary complaint, filed on 04/27/2018. Multiple fraud allegations against Eckstein were filed by four of his customers. The facts of the case, based on FINRA records, include:

Eckstein recommended and sold these securities to four of his clients, all of whom were over 50, and had conservative portfolios. One of them was unemployed, two were still employed, one of whom was retiring, and the other sold her home and invested some of the proceeds. The fourth was retired on disability after a car accident, and invested her case settlement with him.

NYSE Brings Action Against Edward Wedbush and Wedbush Securities

June 8, 2018 | Silver Law Group

Wedbush Securities is in hot water with the SEC, FINRA, and the New York Stock Exchange for a scheme involving its owner and founder, Edward Wedbush. Mr. Wedbush was allegedly employing a manipulative trading scheme involving over 70 accounts at Wedbush Securities. The trading practice, often referred to as “cherry-picking,” occurs when “traders choose to allocate the best performing trades to their own or preferred accounts.”

According to the NYSE’s complaint, Mr. Wedbush’s scheme involved instructing an employee to execute trades in a general account, and then he would later allocate the trades to various accounts that he controlled. No other employees at the firm were permitted to make these “post-execution allocations.” Mr. Wedbush also executed these trades on a separate trading platform that was not used by other traders at the firm.

The firm allowed Mr. Wedbush to exercise this discretion and had no procedures in place to ensure that the allocations were not made for improper purposes, like steering the more profitable trades into Mr. Wedbush’s controlled accounts. NYSE alleges this lack of supervision violated both SEC and NYSE rules. The firm failed to establish and maintain adequate written supervisory procedures, and failed to retain adequate books and records. The firm’s Co-Chief Compliance Officer even raised concerns over Mr. Wedbush’s trading activity, yet the firm still “took no meaningful action.”

Silver Law Group is Investigating Timary Delorme of Wedbush Morgan Securities

June 8, 2018 | Silver Law Group

Timary Delorme (CRD #736418) was the subject of a March 2018 regulatory action by the Securities & Exchange Commission. Delorme was employed at the Los Angeles branch of Wedbush Morgan for over 40 years.

In the recent regulatory action, the SEC found that Delorme violated federal securities laws stemming from her involvement in a manipulative trading scheme at Wedbush Morgan. The SEC ordered Delorme to cease and desist from further violating any more federal securities laws as well as barred her from association with any securities broker or investment adviser.

Delorme has also been the subject of a recent FINRA customer dispute alleging $250,000 in damages. In the pending dispute, the Claimant alleges fraud, breach of fiduciary duty, and breach of contract on the part of Delorme. In a past dispute from 2012, a Claimant alleged that Delorme engaged in fraud, deceit, material misrepresentation, and extortion, among other claims, in connection with the Claimant’s account. The Claimant alleged $750,000 in damages as a result of Delorme’s misconduct.

Royal Alliance Associates Arbitration Lawyer

June 1, 2018 | Silver Law Group

The recent arrest of former broker Gary Basralian (CRD #14385) for defrauding two clients of $2.1 million also raises allegations of failure to supervise about his brokerage firm, Royal Alliance Associates (CRD #23131.) According to news reports, Basralian embezzled money from two elderly women and used the funds for his own expenses. When the discrepancies were discovered, the elderly victims’ attorney notified both the FBI and DOJ. Both agencies took immediate action, and Basralian was arrested May 23, 2018 on charges of wire and investment adviser fraud. He could face as much as 25 years in prison.

The stockbroker in question allegedly deliberately sought out vulnerable victims who might not notice that he was stealing funds directly from their accounts. Basralian is, himself, 70 years of age—so he likely embezzled from his contemporaries. When the law firm representing the two victims contacted Royal Alliance, Basralian was not immediately terminated, but allowed to resign. He signed a FINRA agreement and was barred from being a broker or affiliated with any broker firms.

But what about the brokerage firm, Royal Alliance, that failed to stop him? And why didn’t Royal Alliance notice or stop Basralian’s unethical activities over a ten-year period? Allegations against Royal Alliance in this case include inadequate supervision of brokers and lax anti-money laundering compliance that allowed this to not only happen, but continue. But this is not the first time Royal Alliance has been host to broker misbehavior, with several instances of “failure to supervise” kinds of sanctions.

Broker Gary Basralian Barred, Arrested After Allegations Of Using Client’s Moneys For His Own Expenses

June 1, 2018 | Silver Law Group

FINRA has barred former broker Gary Basralian (CRD# 14385) after allegations of stealing more than $2 million from two clients and using the money to pay his personal expenses. He is charged with two counts of wire fraud and one count of investment adviser fraud. His last employer was Royal Alliance Associates, Inc. (CRD# 23131) of Maplewood, NJ, from 11/19/1989 through 12/20/2017.

His previous employment record includes (locations not available):

Integrated Resources Equity Corporation (CRD# 6403), from 07/18/1984 through 11/19/1989

FINRA Bars Stifel Nicolaus Broker John M. James After Refusing To Testify

June 1, 2018 | Silver Law Group

Former broker John M. James (CRD #4609872) has been barred after failing to provide on-the-record testimony involving allegations from a previous employer. His refusal put him in violation of FINRA Rules 8210 and 2010.

James was last employed with Stifel, Nicolaus & Company, Incorporated (CRD#:793) Of Golden Valley, MN. James was previously employed with:

Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) of Wayzata, MN, from 06/16/2006 to 03/24/2016

Silver Law Group is Investigating Lawrence Hagedorn of Ascend Financial Services, Inc.

May 31, 2018 | Silver Law Group

Lawrence Hagedorn is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity. Lawrence Hagedorn was registered with O.N. Equity Sales Company.

Contact Our Firm if You’ve Invested with Lawrence Hagedorn

If you invested with Lawrence Hagedorn and believe you have lost money due to his misconduct, you may be able to file a claim to recover your losses through FINRA arbitration. For a free evaluation of your potential case by as securities attorney, please contact Silver Law Group.

Silver Law Group is Investigating Larry Wolfe of Herbert J. Sims & Co., Inc.

May 31, 2018 | Silver Law Group

Larry Wolfe is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

Wolfe consented to the sanctions and to the entry of findings that he exercised discretion in the accounts of customers, by submitting sell orders to sell one particular security in each customer account without obtaining prior written authorization from the customers or written approval of the accounts as discretionary from his member firm.

Contact Our Firm if You’ve Invested with Larry Wolfe

Silver Law Group is Investigating Marcus Parker of Wells Fargo Clearing Services, LLC

May 30, 2018 | Silver Law Group

Marcus Parker was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Parker consented to the sanction and to the entry of findings that he refused to respond to FINRA’s requests for documents and information in connection with its investigation of Parker’s termination from his member firm. The findings stated that according to the firm’s Uniform Termination Notice for Securities Industry Registration (Form U5) filing, it terminated Parker’s registration for his failure to appear for an interview and be questioned about misappropriations from client accounts.

Contact Our Firm if You’ve Invested with Marcus Parker

If you invested with Marcus Parker or Wells Fargo and believe you have lost money due to his misconduct, you may be able to file a claim to recover your losses through FINRA arbitration. For a free evaluation of your potential case by as securities attorney, please contact Silver Law Group. FINRA or securities arbitration can be a fast way to recover investment losses.

Silver Law Group is Investigating Jeffrey Palish of Wells Fargo Clearing Services, LLC for Elder Financial Fraud

May 30, 2018 | Silver Law Group

Jeffrey Palish was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Palish, a former Wells Fargo stockbroker, consented to the sanction and to the entry of findings that over approximately three years, he converted more than $180,000 for his personal use from an elderly customer by accepting the money with no intent or ability to repay the customer.

Contact Our Firm if You’ve Invested with Jeffrey Palish

If you invested with Jeffrey Palish and believe you have lost money due to his misconduct, you may be able to file a claim to recover your losses through FINRA arbitration. For a free evaluation of your potential case by as securities attorney, please contact Silver Law Group. Our attorneys have extensive experience with elder financial fraud and representing victims of elder investment fraud.