Unsuitable Investment Advice

Silver Law Group is investigating former Memphis, Tennessee -based Wunderlich Securities Inc broker David K Mallett over allegations that Mallett excessively traded customers’ accounts and made unsuitable recommendations.

September 5, 2017 | Silver Law Group

Silver Law Group is investigating former Memphis, Tennessee-based Wunderlich Securities Inc. (CRD#2543) broker David K. Mallett (CRD#5145838) over allegations that Mallett excessively traded customers’ accounts and made unsuitable recommendations.

According to Mallett’s FINRA BrokerCheck report, a customer filed a complaint in October of 2016 against Mallett alleging churning in the customer’s account and further that he made unsuitable recommendations. Further, the customer alleges that Mallett’s employing firm, Wunderlich Securities (CRD#2543), failed to supervise Mallett.

Wunderlich has employed Mallett from June 2016 to present day at its Memphis.

Complaint Filed against Morgan Stanley based on Puerto Rico Municipal Bonds

July 26, 2017 | Silver Law Group

Silver Law Group has filed a complaint on behalf of a family group of investors against Morgan Stanley (CRD# 149777) and financial advisor Angel E. Aquino-Velez (CRD# 2687333) for unsuitable recommendations and concentration of client accounts in Puerto Rico municipal bonds. The allegations against Morgan Stanley and Aquino include unsuitable investment recommendations, failure to diversify, breach of fiduciary duty, and failure to supervise.

Claimants all had accounts with Morgan Stanley managed by Aquino. With a risk profile of conservative to moderate risk and investment goals of retirement, the statement of claim alleges that Aquino concentrated the accounts in Puerto Rico municipal bonds.

The Claimants placed their trust in the hands of their financial advisor hoping to achieve their financial goals but instead Aquino pushed the investments in Puerto Rico debt misrepresenting the risks associated with the bonds. This left the claimants overexposed to the risks of the Puerto Rican economy which was known to be in financial difficulty at the time. With the downgrade and subsequent default by Puerto Rico on its debt the Claimants suffered extensive losses due to the strategy.

Christopher P. Anthony, Formerly of Rhodes Securities, Under Investigation for a $2 Million Customer Dispute

June 6, 2017 | Silver Law Group

Silver Law Group is investigating former Texas-based Rhodes Securities, Inc. (CRD# 19610) broker Christopher P. Anthony (CRD# 1157930) after a customer filed a $2 million FINRA arbitration against him.

According to Anthony’s FINRA BrokerCheck report, a customer filed a FINRA arbitration complaint in January 2017 against Anthony alleging breach of fiduciary duty, negligence, breach of contract and damages in the amount of $2 million.

Another customer dispute was filed in August 2016 alleging unsuitable investments, churning, failure to supervise between the early 2014 to Spring 2015. The complaint alleges $100,000.00 in damages.

Transamerica Financial Advisors Broker Harry C. Bennett Barred in Connection Unsuitability Investigation

February 27, 2017 | Silver Law Group

Silver Law Group is investigating former Michigan-based Transamerica Financial Advisors, Inc. (CRD# 16164) broker Harry C. Bennett (CRD# 2395555) after FINRA permanently barred the broker in connection with an investigation alleging excessive commissions and unsuitability.

According to Bennett’s FINRA BrokerCheck report, FINRA permanently barred Bennett from selling securities to the public in November 2016. FINRA barred Bennett when, according to his BrokerCheck report, Bennett failed to appear for on-the-record testimony requested by FINRA in connection with an investigation involving allegations that he may have engaged in sales practice violations by charging excessive commissions and recommending unsuitable transactions to his customers.

FINRA’s findings state that Bennett’s refusal to appear for the on-record testimony prevented FINRA from reaching a determination as to whether the alleged unsuitable recommendations and excessive commission charges violations occurred.

Former VSR Financial Broker John H. Towers Under Investigation for 46 BrokerCheck Disclosures

January 17, 2017 | Silver Law Group

Silver Law Group is investigating former Plano, Texas-based VSR Financial Services, Inc. (CRD# 14503) broker John H. Towers (CRD# 700221) due to an extraordinarily high amount of FINRA BrokerCheck disclosures alleging unsuitable recommendations and negligence.

According to John H. Towers FINRA BrokerCheck report, Towers has 46 misconduct disclosures, most of which are FINRA arbitrations. All the FINRA arbitrations allege that Towers recommended unsuitable investments and many allege overconcentration, and all but five of the disclosures have come in the last five years.

This is an extraordinary amount of FINRA BrokerCheck disclosures. While one or two complaints over a long period of time in the industry is not unheard of, the complaints Towers has amassed over a short period of time is concerning. Out of the 46, 42 are FINRA arbitrations and 35 of those have settled.

Former Clearwater, Florida Broker Under Investigation after FINRA Suspension for Unsuitable Recommendations

November 3, 2016 | Silver Law Group

Silver Law Group is investigating former Clearwater, Florida broker Dennis M. Merritt (CRD# 1748115) after FINRA suspended him for four months and his employing firm terminated him for alleged unsuitable recommendations among other things.

In March 2016, FINRA and Merritt entered into an order accepting offer of settlement (the “Order”). The Order accepted the punishment without admitting or denying the allegations in the Complaint.

The Complaint alleged that Merritt invested a total of $115,000 in a speculative investment without providing written notice to his member firm prior to participating in the private securities transactions.

Former Miami, Florida-based Broker Under Investigation for Unsuitable Recommendations

August 26, 2016 | Silver Law Group

Former Dakota Securities International (“Dakota”) broker Christopher R. Mcnamee (CRD# 4271195) is under investigation for recommending unsuitable investments to his customers.

The Financial Industry Regulatory Authority (“FINRA”) arbitration complaint, according to Mcnamee’s FINRA BrokerCheck report, alleges damages in the amount of $1 million. Aside from unsuitable recommendations, the FINRA arbitration complaint alleges the use of excessive margin.

Mcnamee has an additional BrokerCheck report disclosure alleging unsuitable investment recommendations as well. The dispute was settled in March 2015 for $50,000.

Meyers Associates Broker Matthew Siliato Under Investigation for Pending Suitability and Breach of Fiduciary Duty Claims

August 16, 2016 | Silver Law Group

Silver Law Group is investigating Meyers Associates broker Matthew A. Siliato (CRD# 5062153) for recent allegations that he recommended clients unsuitable investments.

Siliato’s Financial Industry Regulatory Authority (“FINRA”) BrokerCheck report indicates that the broker has nine misconduct disclosures.

Siliato’s most recent complaint was filed on June 23, 2016. The customer dispute alleges unsuitable recommendations and damages in the amount of $250,000. The complaint is currently pending.

Lawrence LaBine Under Fire for Alleged Unsuitable Recommendations and More

August 13, 2015 | Silver Law Group

Newbridge securities advisor allegedly has conflict of interest between software company and his clients

According to FINRA, Lawrence Michael LaBine is the subject of a disciplinary action pending against him after an alleged conflict of interest leading to several customer disputes.

In his 29 years in the securities industry, LaBine has had 30 disclosures according to FINRA, many of which are related to his alleged relationship with a sinking software company, leading him to make what clients claimed to be inappropriate recommendations.

AlphaBridge Capital Management Charged By SEC for Fraudulent Fund Valuation Scheme

August 5, 2015 | Silver Law Group

Hedge fund firm owners agree to $5 million combined settlement

On June 1, 2015 the Securities and Exchange Commission charged Greenwich, Connecticut-based AlphaBridge Capital Management and its two owners with fraudulently inflating the prices of securities in funds they managed. These inflated valuations caused the funds to pay higher management and performance fees to AlphaBridge.

According to the SEC news release, AlphaBridge Capital Management and its owners – Thomas T. Kutzen and Michael J. Carino – “told investors and its auditor that it obtained independent price quotes from broker-dealers for certain unlisted, thinly-traded residential mortgage-backed securities.” In fact, what the firm did was give “internally-derived valuations to broker-dealers to pass off as their own.”