Stockbroker Misconduct

Stockbroker Thomas Tedeschi and Broker-Dealer Aegis Capital Corp. are the Subject of Multiple Securities Arbitration Claims Against Them for Churning

May 14, 2015 | Silver Law Group

According to FINRA, Thomas Tedeschi has recently been named in a securities arbitration lawsuit against him and his former employer, Aegis Capital Corp., for making unsuitable investments, unauthorized trades, misrepresentations and excessive trading (churning), among other claims. The assertions against him involve speculative securities that include penny stocks and Exchange Traded Notes. Mr. Tedeschi is required by law to only recommend or engage in transactions that are suitable to their individual client, and not to excessively trade in their accounts. This type of trading may be considered stockbroker misconduct called churning. The excessive buying and selling is done for the purpose of generating commissions for the broker, and not to benefit the client. In fact, it almost always results in enormous losses to the client.

Thomas Tedeschi began his stockbroker career in 1994 and has been employed by 17 different brokerage firms since then, seven of which have been expelled from the brokerage industry by FINRA for violations of the law and misconduct. It is quite a shocking record. Additionally, Aegis Capital Corp. has many claims against it, including 17 final regulatory violations that were filed by FINRA, NASDAQ Stock Market, and other regulatory bodies, for such violations as market manipulation, excessive buying and selling of illicit microcap stocks, failure to supervise and failure to disclose, late trade reporting, and other violations of NASD Rules and Texas Securities Acts as well. There is one regulatory violation claim currently pending. Aegis Capital Corp has also been fined on numerous occasions and has been suspended in the past from acting as a market maker.

If you invested money with Thomas Tedeschi or Aegis Capital Corp. and suffered losses, you may be entitled to recover some or all of those investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak with an experienced attorney and to find out how we may be able to help you regain some or all of your investment losses. Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful in your lawsuit.

FINRA Bars Herbert Kaye for Executing Trades without Prior Authorization

February 3, 2015 | Silver Law Group

Herbert Leonard Kaye, of Delray Beach, Florida, submitted an AWC in which he was assessed a deferred fine of $25,000, which includes disgorgement of $11,000 of commissions received, and suspended from association with any FINRA member in any capacity for four months. Kaye was registered with First Allied Securities in Boca Raton, Florida from 2008-2013. Without admitting or denying the findings, Kaye consented to the sanctions and to the entry of findings that he entered discretionary trades in equities and ETFs in a customer’s account without the customer’s prior written authorization. Kaye’s member firm’s written policies and procedures prohibited registered representatives from exercising discretion in customer accounts except in certain, limited circumstances that did not apply to the customer’s account. The trades generated almost $175,000 in gross commissions and fees. Accordingly, it appears that Kaye may have executed some trades simply to generate additional fees or commissions. This is typically referred to as churning.

The findings also stated that Kaye recommended his customer invest $1.1 million in a gold and precious minerals fund that was not suitable for her in light of her moderate risk tolerance, investment objective of growth and income, desire to avoid market fluctuations, the concentrated nature of the investment and her age. Kaye received $11,000 in gross commissions for the investment. Cases involving precious metals have become prevalent as advisors recommend gold and other metals to their clients.

If you invested money with Herbert Leonard Kaye, you may be entitled to recover some of you investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.

FINRA Bars David Gabai for Market Manipulation

February 3, 2015 | Silver Law Group

David Lawrence Gabai, of West Hills, California, submitted a FINRA AWC in which he was barred from association with any FINRA member in any capacity. Gabai was registered with LPL Financial Corporation until 2010. Mr. Gabai then briefly worked for Comerica Securities. Gabai consented to the sanction and to the entry of findings that he held significant quantities of shares in a security in his personal brokerage accounts, and used deceptive, fraudulent, and manipulative devices and schemes involving the trading of the security. The findings stated that through the use of his personal and other brokerage accounts, Gabai engaged in pre-arranged trading and wash sales, in an attempt to create a false or misleading appearance of active trading relating to the market for the security and pump up the price of the security. Among other things, Gabai’s misconduct enabled him to avoid margin calls in his personal brokerage accounts avoiding sales of the stock. Gabai effected trades that set the closing and opening price of the security. In some of these instances, Gabai and another registered representative effected matched trades between the brokerage accounts of Gabai’s customers and the brokerage accounts of the other registered representative’s customers to give the appearance of a more active market. The matched orders were typically effected at prices that were equal to or higher than the prior trade price for the shares pushing the price higher.

The findings also included that Gabai effected pairs of wash trades in the security that took place within his personal brokerage accounts or between his personal brokerage accounts. The wash trades did not involve any change in beneficial ownership and Gabai effected them to create a false or misleading appearance of active trading relating to the market for the security and to manipulate the security’s price. As a result of his conduct, Gabai willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Gabai also caused the publication or circulation of reports of non-bona fide purchases or sales of the security. (FINRA Case #2009017402501)

If you invested money with David Lawrence Gabai, you may be entitled to recover some of you investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.

FINRA Bars Mark Foster from Securities Industry

February 3, 2015 | Silver Law Group

Mark Foster, of Pasadena, California, was barred from association with any FINRA member in any capacity. Foster worked for Stern Fisher Edwards, Inc. until May 2012. The sanction was based on findings that Foster failed to respond to requests from FINRA for information and documents and to appear and provide on-the-record testimony regarding allegations that he misappropriated more than $2 million in customer funds. Stern Fisher allegedly paid a customer $625,000 to settle the claim. (FINRA Case #2014039867601)

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Silver Law Group is Investigating Financial Advisor Anthony Fisher

February 3, 2015 | Silver Law Group

Anthony Fisher was a financial advisor with Morgan Stanley from 2003 through April 2009. He subsequently worked at Stifel, Nicolaus and Company. Mr. Fisher was suspended by FINRA in November 2014 for failing to pay an arbitration award. However, over the last decade, Mr. Fisher’s employers have been the subject of multiple customer FINRA arbitration claims relating to Mr. Fisher. In response to a FINRA request for information, Mr. Fisher failed to respond to FINRA or otherwise cooperate in FINRA’s investigation.

In December 2014, Stifel, Nicolaus & Company settled a case brought by one of Mr. Fisher’s former clients for $500,000 relating to allegations of fraud and unsuitable recommendations.

Stifel, Nicolaus & Company has been the recent subject of several FINRA arbitration claims relating to the sale of promissory notes and other equities. Mr. Fishers’ full CRD can be viewed here.

FINRA Bars Timothy Landrum for Possible Misappropriation of Client Funds

January 28, 2015 | Silver Law Group

Timothy Landrum, of Atlanta, Georgia, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Landrum consented to the sanction and to the entry of findings that he failed to provide FINRA with on-the-record testimony in connection with an investigation into allegations that he misappropriated funds from the accounts of multiple bank clients. (FINRA Case #2014041267001)

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

FINRA Bars Registered Individuals for Violations of FINRA Rules

January 20, 2015 | Silver Law Group

According to FINRA Disciplinary actions for December, 2014, the following individuals were barred from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:

NAME	FORMER EMPLOYERS
Bryan Wayne Anderson	Pruco Securities, LLC
Bryan Wayne Anderson	Metlife Securities Inc.
Byron Ray Claflin	Pruco Securities, LLC
Courtney Lamant Crusoe
William Stanley David	Edward Jones
Tauber Lawrence Emmings	Cambridge Investment Research, Inc.
Tauber Lawrence Emmings	Gunnallen Financial, Inc.
Michael Melvin Frazier	Princor Financial Services Corporation
Michael Melvin Frazier	The Prudential Insurance Company of America
Arsen A. Gaboyan	JP Morgan Securities LLC
Arsen A. Gaboyan	Chase Investment Services Corp.
William Joseph Gaspar	Harbour Investments, Inc.
William Joseph Gaspar	Allied Beacon Partners, Inc.
Theresa Rene Harfoot	Fidelity Brokerage Services LLC
Akshay Balakrishna Hegde	National Securities Corporation
Akshay Balakrishna Hegde	VFinance Investments, Inc.
Erik Lawrence Hockenberry	LPL Financial LLC
Erik Lawrence Hockenberry	Ameriprise Financial Services, Inc.
Jeffrey Einer Lewis	HD Vest Investment Services
Patricia S. Miller	Investors Capital Corp.
Patricia S. Miller	Janney Montgomery Scott LLC
James Ward Noble	Terminus Securities, LLC
Devlin Wayne Osburn	Unionbanc Investment Services, LLC
Devlin Wayne Osburn	LPL Financial LLC
Stephen Eldridge Ridgely II	Ameriprise Financial Services, Inc.
Stephen Eldridge Ridgely II	Merrill Lynch, Pierce, Fenner & Smith Incorporated
Andrea Sanchez	NSM Securities, Inc.
Andrea Sanchez	Max International Broker/Dealer Corp.
Monica L. Smith
Hope Renee Thomas	Invest Financial Corporation
Hope Renee Thomas	1784 Investor Services, Inc.
Julia Luisa Volkman	Northwestern Mutual Investment Services, LLC

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Stephen Eldridge Ridgely, II Barred from Securities Industry

January 16, 2015 | Silver Law Group

Silver Law Group is investigating Stephen Eldridge Ridgely, II who was suspended by FINRA for failing to respond to FINRA requests for information.

Mr. Ridgely was registered with Ameriprise Financial Services, Inc.’s Plantation, Florida office from September 2012 through March 2014. Prior to that time, he was registered with Merrill Lynch’s Coral Springs, Florida office.

According to Mr. Ridgely’s BrokerCheck Report, he was the subject of a FINRA arbitration claim alleging unauthorized transactions which settled in August 2014. In November 2013, Merrill Lynch settled another claim involving Mr. Ridgely for $745,000 relating to claims alleging unauthorized trading, unsuitable investments and excessive trading.

Chapin Davis Settles Claims Relating to Structured Notes

January 16, 2015 | Silver Law Group

Chapin Davis, Inc., of Baltimore, Maryland, submitted an AWC in which the firm was censured and fined by FINRA $35,000. Without admitting or denying the findings, Chapin Davis agreed to the sanctions and to the findings in connection with the sale of structured products, the firm’s supervisory system and WSPs were inadequate. The findings stated that the firm sold approximately $24.5 million in structured notes and Federal Deposit Insurance Corporation (FDIC) insured structured certificates of deposit (CDs) to retail customers. The firm did not have a system or WSPs for evaluating and conducting due diligence on the products, including determining risks and suitability issues, as applicable, and for approving the products. The firm offered limited training on the products, and its WSPs did not specifically address the products or provide guidance or restrictions unique to the products, including assessment or consideration of customer-specific suitability, as applicable. In addition, the firm did not sufficiently review transactions in the products, including monitoring of accounts for overconcentration of the products. (FINRA Case #2012030601701)

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Stockbroker Patricia Miller Terminated for Allegedly Misappropriating Customer Funds

January 16, 2015 | Silver Law Group

Patricia Miller was associated with Investors Capital Corp from July 2010 until Investors Capital Corp fired her in May 2014. In October 2014, FINRA suspended her in all capacities from any FINRA firm for her failure to cooperate in a FINRA investigation. Investors Capital Corp is now facing multiple arbitration claims relating to Ms. Miller’s alleged misappropriation from multiple customers and Ms. Miller is facing criminal charges relating to her handling of client funds.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.