Stockbroker Misconduct

FINRA Suspends Broker Jeffrey Paul Dragon For Excessive UIT Trading

May 4, 2018 | Silver Law Group

FINRA has suspended broker Jeffrey Paul Dragon (CRD# 1874038) for 21 months and sanctioned him $50,000 in relation to a series of customer complaints. He has since been subjected to a second customer dispute after being terminated.

Dragon was last employed by Berthel Fisher & Company Financial Services, Inc. (CRD# 13609) of Burlington, MA, from 03/02/2007 to 09/23/2016, when Berthel terminated his registration and employment.

His previous employers include:

Palm Beach Broker Gary Edward Adkin Subject of Negligence Claim

May 4, 2018 | Silver Law Group

Palm Beach, Florida-based Gary Edward Adkin (CRD# 3084484) is currently registered as a broker and investment advisor employed by Stifel, Nicolaus & Company, Incorporated (CRD# 793.) Adkin has been with the firm since 12/4/2015, and was previously employed by Barclay’s and Lehman Brothers. In addition to his current registration with Stifel, Nicolaus & Company, he is also currently registered with Barclay’s Capital since 9/2008. He was previously registered with Lehman Brothers, Inc., from 10/2004 through 9/2008.

Adkin is currently the subject of a customer dispute during his tenure with his current firm, with pending arbitration at FINRA. The clients have alleged that Adkin was “negligent, and failed to exercise responsibility with regard to the account.” The claim was filed with FINRA, and the client is requesting $1,550,000 in damages. Process was served on 12/8/2017.

Contact Our Firm if You’ve Invested with Gary Adkin

FINRA Investigates Jason Eric Zwibel In $2.6m Customer Dispute

May 3, 2018 | Silver Law Group

Jason Eric Zwibel (CRD# 2460258, aka, Jay Bell Zwibel) is a registered broker and investment advisor with Garden State Securities (CRD# 10083) in Wellington, FL. He has been with Garden State since 1/22/2010. He has worked as a broker since 1994, and previously worked for:

GunnAllen Financial, Inc. (CRD# 17609), Wellington, FL, from 06/22/2007 through 02/02/2010
Brookstreet Securities Corporation (CRD#14667), West Palm Beach, FL, from 08/24/1999 through 06/26/2007

Silver Law Group is Investigating Logan Burch Phillips, Jr. of Raymond James & Associates

May 3, 2018 | Silver Law Group

Silver Law Group is currently looking into customer allegations against Logan Burch Phillips, Jr. (CRD #1248589.) Phillips is a previously registered broker who last worked as a broker for Raymond James & Associates (CRD #705) in Jackson MS, from 2013 to 2016. He was previously employed by Morgan Keegan & Company, Inc. (CRD #4161, also in Jackson, MS) from 1990 through 2013, and by Scharff & Jones, Inc. (CRD# 745, no location listed) from 1974 through 1990. He is not currently registered as a broker, investment advisor or other financial services professional, and no current employment information is available.

Since 2009, Phillips has been the subject of nine customer disputes that were settled or withdrawn, with one denial. Two recent disputes were filed in 2017 and are currently pending.

The first dispute was filed on June 27, 2017, and included activity from June 2004 through October of 2017, and include allegations of “Fraud, Concealment, Unsuitability, Breach of Contract, Negligence, Gross Negligence, Bad Faith and Violations of SEC and FINRA Rules. Date of Activity: 6/2004 thru 6/2013.” The claimants have requested damages of $800,000.

Silver Law Group is Investigating Scott William Palmer of Janney Montgomery Scott, LLC

May 3, 2018 | Silver Law Group

Silver Law Group is currently investigating former financial advisor and broker Scott William Palmer (CRD #817586) after multiple customer disputes. His last employer was Janney Montgomery Scott, LLC (CRD# 463) of Hackensack, NJ, from 03/02/2007 to 06/13/2017. Palmer is not currently registered as a broker or investment advisor, and no record of current employment is available.

Palmer was previously employed with:

Citigroup Global Markets, Inc. (CRD# 7059) in Ridgewood, NJ, from 06/22/1994 through 02/01/2007

Silver Law Group is Investigating Edward Vincent Mirabella, Jr. of National Securities Corporation

May 3, 2018 | Silver Law Group

Silver Law Group is investigating former broker Edward Vincent Mirabella, Jr. (CRD #2843670) for multiple customer complaints. His last known employer was National Securities Corporation in their Edison, NJ location (CRD #7569), from 08/24/2009 to 05/13/2016.

Mirabella was previously employed with:

Aura Financial Services (CRD #42822) in Islandia, NY, from 03/27/2008 – 07/01/2009

Silver Law Group is Investigating Richard Shotz of Wells Fargo

May 1, 2018 | Silver Law Group

Richard Shotz (CRD# 1681893) has been with Wells Fargo in Daytona Beach, Florida since 2016. He was recently terminated from Wells Fargo due to a FINRA regulatory action against him in which Shotz was suspended for four months and ordered to pay fines. FINRA found that Shotz engaged in an unsuitable pattern of trading involving unit investment trusts (UITs) in his customers’ accounts. Shotz repeatedly recommended that his customers sell their UITs before their maturity dates; this caused the customers to incur unnecessary sales charges in their accounts.

Shotz has also been the subject of several customer disputes. In one settled claim from 2009, the Claimant alleged that Shotz placed him in unsuitable investments involving exchange traded funds (ETFs). In another settled dispute from 2003, the Claimant brought a claim regarding possible misrepresentations made in connection with Claimant’s life insurance policy; the case settled for over $15,000.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

Silver Law Group is Investigating Melvin Case of LPL Financial

May 1, 2018 | Silver Law Group

Melvin Case (CRD# 2393464) has been with LPL Financial in Jacksonville, Florida since 2008. In 2017, he was discharged from the firm in relation to a 2016 felony criminal charge in Duval County Circuit Court. Case pled guilty to exploitation of an aged adult and was sentenced to two years of probation. According to LPL Financial, Case was converting this elderly individual’s funds for his own personal benefit. This guilty plea also led FINRA to bring a regulatory action against Case in January 2018. FINRA found that Case failed to timely disclose his felony charge and guilty plea to the agency; he was suspended for six months and ordered to pay a $5,000 fine.

Case has also been the subject of several customer disputes. In 2017, one of Case’s customers brought a claim alleging Case made misrepresentations and poor recommendations in connection with the customer’s purchase of variable annuities. In another dispute from 2004, a Claimant similarly alleged that Pruco Securities (Case’s former employer) and Case made unsuitable recommendations and misrepresentations in connection with insurance products purchased by the Claimant. That case settled for $100,000, with Case responsible for paying two-thirds of the settlement.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

Silver Law Group is Investigating Kimberly Kitts of Royal Alliance Associates

May 1, 2018 | Silver Law Group

Kimberly Kitts (CRD# 2768200) has been with Royal Alliance Associates in Palmer, Massachusetts since 2004. In a regulatory action from 2017, FINRA found that Kitts failed to respond to a FINRA request for information. Kitts also failed to request termination of her earlier suspension within the allotted time. As a result, FINRA permanently barred Kitts from being associated with any FINRA member firm. Kitts was also discharged from Royal Alliance Associates in 2017. The firm terminated Kitts after receiving correspondence from her client’s attorney alleging that Kitts converted or misappropriated the client’s funds.

Kitts has also been the subject of several customer disputes. In one dispute pending from 2017, the Claimant also alleges that Kitts converted or misappropriated the Claimant’s funds. In addition to this claim, Kitts has three other complaints against her that eventually were closed or dismissed. These complaints included allegations such as unsuitability and non-compliance with client requests.

FINRA requires that its members refrain from engaging in fraudulent or deceptive practices with their clients. FINRA also requires its members to only charge their clients a reasonable fee for services.

Silver Law Group is Investigating Kevin Graetz of Paulson Investment Company

May 1, 2018 | Silver Law Group

Kevin Graetz (CRD# 1935982) has been with Paulson Investment Company since 2013. In a regulatory action from 2016, FINRA found that Graetz willfully failed to timely disclose tax liens against him. Graetz owes over $1,000,000 in unpaid taxes to both the IRS and the State of Connecticut. As a result of this violation, FINRA fined Graetz $10,000 and suspended him for six months. In a separate regulatory action from 2017, FINRA found that Graetz failed to respond to a FINRA request for information. Graetz also failed to request termination of his earlier suspension within the allotted time. FINRA permanently barred Graetz from being associated with any FINRA member firm due to this violation.

Graetz has also been the subject of several customer disputes. In one pending dispute from 2017, the customer alleges fraud and unjust enrichment in connection with the sale of promissory notes; the customer alleges damages of $1,000,000. Graetz was ultimately terminated from Paulson Investment Company as a result of this customer complaint. In a settled complaint from 2005, the customer alleged that Graetz purchased an unsuitably large amount of stock in his account. In another settled complaint from 2003, a customer alleged that Graetz generally mishandled the customer’s account; the case settled for $75,000.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires its members to “observe high standards of commercial honor and just and equitable principles of trade.”