Stockbroker Misconduct

Silver Law Group is Investigating Minish Joe Hede of Paulson Investment Company

May 1, 2018 | Silver Law Group

Minish Joe Hede (CRD# 2389098) has been with Paulson Investment Company since 2013. In a regulatory action from 2017, FINRA found that Hede failed to respond to a FINRA request for information. Hede also failed to request termination of his earlier suspension within the allotted time. As a result, FINRA permanently barred Hede from being associated with any FINRA member firm. Hede was also discharged from Paulson Investment Company in 2017. The firm terminated Hede after a customer filed a complaint alleging negligence, fraud, and unjust enrichment. The firm also stated that Hede failed to comply with its internal investigation into the matter.

Hede has also been the subject of several customer disputes. In one dispute pending from 2017, the Claimant alleges fraud and unjust enrichment in connection with the sale of promissory notes; the Claimant alleges damages of $1,000,000. In another complaint from 1999, the Claimant alleged unauthorized use of margin trading by Hede. The case settled for over $6,000.

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 Benjamin Aibel of Wunderlich Securities

May 1, 2018 | Silver Law Group

Benjamin Aibel (CRD# 1994) has been with the Memphis, Tennessee branch of Wunderlich Securities since 2012. In a regulatory action from 2017, FINRA found that Aibel failed to respond to a FINRA request for information. Aibel also failed to request termination of his earlier suspension within the allotted time. As a result, FINRA permanently barred Aibel from being associated with any FINRA member firm.

In addition to this regulatory action, Aibel has also been the subject of several customer disputes. In one dispute settled in 2016, the Claimant alleged over $600,000 in damages stemming from Aibel’s breach of fiduciary duty, negligence, unauthorized trading, and unsuitable recommendations. In three different customer disputes from 2002, the Claimants all alleged that Aibel misrepresented a corporate bond to Claimants; each claim occurred while Aibel was employed by Salomon Smith Barney, Inc. In a final claim from 2002, the Claimant alleged that Aibel provided unsuitable recommendations and engaged in churning in Claimant’s account; that claim settled for over $80,000.

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.

FINRA Bans Broker Michael Alan Siegel After Repeated Complaints and Investigations

April 27, 2018 | Silver Law Group

FINRA has barred Michael Alan Siegel (CRD# 1950871) from “acting as a broker or otherwise associating with a broker-dealer firm.” Siegel was a previously registered broker and investment advisor and worked in the financial services industry since 1992. His last registered place of employment was with National Securities Corporation of Edison, NJ (CRD# 7569), from 04/21/2014 through 05/13/2016

Siegel’s previous work history includes 13 investment companies:

Concorde Investment Services (CRD# 151604), in Parsippany, NJ from 09/19/2013 through 04/22/2014

Discharged Morgan Stanley Broker Charles Albert Dixon Is Permanently Barred By FINRA

April 27, 2018 | Silver Law Group

Former broker Charles Albert Dixon, Jr. (CRD# 1660422) has been permanently barred by FINRA after a disciplinary action that was signed and completed on 1/22/2018. He is no longer allowed to work as a broker, associate with another broker or be affiliated with a broker-dealer firm. Dixon was discharged by his employer, Morgan Stanley Smith Barney, LLC (CRD#149777) of Houston, TX. He was registered with Morgan Stanley from 06/01/2009 to 04/17/2017.

Dixon was previously registered as a broker with:

Morgan Stanley & Company, Incorporated (CRD# 8209), Houston, TX, from 04/02/2007 to 06/01/2009

Colorado Investigates California-Based Peter Gerhard Klaas For High Risk Trading, Seeking License Revocation

April 13, 2018 | Silver Law Group

Peter Gerhard Klaas (CRD# 2381681) is currently registered as a broker and investment advisor, and is employed at El Segundo, CA-based Cetera Advisor Networks since 05/2017. He is registered with Cetera in both Murray, UT and Las Vegas, NV, and licensed in Arizona, Idaho, Nevada and Utah.

Klaas was previously employed with Allegis Investment Services (05/2014-03/2017,) Signator Financial Services (04/2011-06/2014), and LPL Financial (09-2007-05/2011.)

The Colorado Division of Securities is currently investigating broker Klaas for along with broker Heath Bowen (CRD# 4824684) for putting advisory clients in high-risk and complex option trades that said clients didn’t understand. CDS is not requesting monetary damages in this pending investigation, but is asking for the revocation of Klaas’ licensure. This investigation began while Klaas was employed with Allegis.

Silver Law Group is Investigating Gary Adkin of Stifel, Nicolaus & Company

April 6, 2018 | Silver Law Group

Gary Adkin (CRD# 3084484) is the subject of a pending customer dispute alleging $1,550,000 in damages. Adkin has been with the Palm Beach, Florida office of Stifel, Nicolaus & Company since 2015. He was previously registered with Barclays Capital, also located in Palm Beach. Silver Law Group is a South Florida-based law firm that handles securities arbitration and investment fraud cases.

In the pending dispute, Claimants allege that Adkin was negligent and failed to exercise responsibility in connection with their account. 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.

Contact Our Firm if You’ve Invested with Gary Adkin

SEC Investigation Of Morgan Stanley And Puerto Rico Bond Investments

April 6, 2018 | Silver Law Group

When Hurricane Maria landed in Puerto Rico, it caused devastation to the island’s infrastructure, crops, homes and power grid that will take many years to repair. But the damages to Puerto Rico include losses in municipal bonds and the mutual funds that hold them, which were close to default even before the storm.

While the island still struggles to recover, it wasn’t the first catastrophic event to hit the island territory. In 2014, Puerto Rico was already headed for a severe financial crisis, with bond sales from Morgan Stanley brokers as the catalysts.

Morgan Stanley and Barclay’s were responsible for underwriting the island’s $3.5 billion sale in March 2014. This sale was the last major issue by Puerto Rico before declaring bankruptcy on May 3, 2017, for a debt restructuring amounting to $3.8 trillion. The island’s debt stood at $70 million, and it needed to restructure pensions of $49 million. This municipal bankruptcy was even bigger than the city of Detroit’s 2013 restructuring of $18 billion.

Silver Law Group is Investigating Christopher Bennett of Hilliard Lyons

March 6, 2018 | Silver Law Group

A Financial Industry Regulatory Authority (FINRA) arbitration panel awarded a customer of Christopher Bennett of Hillard Lyons damages of $445,000 after the claimant alleged Bennett engaged in breach of fiduciary duty, unauthorized trading, suitability, churning, misrepresentation, omission of facts, common law negligence, fraud, failure to supervise, common law negligent supervision and violation of Kentucky statutes, regulations and FINRA rules. The causes of action related to losses to the client’s qualified and non-qualified retirement accounts. The investor alleges Mr. Bennett executed transactions in her accounts without authorization, allocated her assets in an unsuitable manner for someone her age and with her investment objectives without discussing the risk associated with such re-allocation, and engaged in excessive trading in her accounts. A brokerage firm has a duty to supervise a stockbroker for compliance with the securities laws and internal firm rules and regulations.

Christopher Duke Bennett is currently registered with J.J.B. Hilliard, W.L. Lyons in Louisville, Kentucky, and has been since December 1995. He has six customer disputes against him, three of which are currently pending.

Contact Our Firm if You’ve Invested with Christopher Bennett

Silver Law Group is Investigating Patrick Maddren of Laidlaw & Company

March 6, 2018 | Silver Law Group

Laidlaw & Company financial advisor Patrick Maddren (CRD# 4665903) is the subject of a customer complaint for excessive trading and commissions. Maddren has been registered with Westpark Capital, Inc. in Fort Lauderdale, Florida since August 2017. Previously, he was registered with Laidlaw & Company in Fort Lauderdale, Florida from 2017 to September 2017. A recent customer arbitration claim was settled for $295,000. A brokerage firm has a duty to supervise its stockbrokers and prevent excessive trading or commissions. If a firm fails to properly supervise a financial advisor or otherwise mismanage a portfolio, an investor may have legal rights.

Contact Our Firm if You’ve Invested with Patrick Maddren

If you invested with Patrick Maddren 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 William Harrison of Stifel Nicolas & Company

March 5, 2018 | Silver Law Group

Stifel Nicolaus & Company broker/adviser William Harrison is involved in a pending customer dispute. William Harrison has spent 29 years in the securities industry and has been registered with Stifel Nicolaus & Company in Boca Raton, Florida since 2009. Palm Beach County is home to a large retirement community and FINRA arbitration claims are generally heard in FINRA’s Boca Raton office.

In January 2018, an arbitration claim was filed alleging William Harrison, while employed at Stifel Nicolaus & Company, committed common law fraud, negligently misrepresented material facts, breached his fiduciary duty, and acted negligently in connection to investments in common and preferred stock. The customer is seeking $100,000 in damages in the pending complaint.

Contact Our Firm if You’ve Invested with William Harrison