Unsuitable Investment Advice

Katherine Nishnic

February 19, 2019 | Silver Law Group

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224-300x224 Katherine Greer Nishnic (CRD #2499553, a/k/a Katherine Greer Martinson, Katherine Diane Nishnic, Katherine G. Nishnic) is a currently registered broker employed with Centaurus Financial, Inc. (CRD #30833) of Lexington, SC. Her previous employers include J.P. Turner & Company, L.L.C. (CRD #43177), Gunnallen Financial, Inc (CRD #17609) and First Allied Securities, Inc. (CRD #32444), also of Lexington, SC. She has been in the industry since 1994.

Nishnic is the subject of three disclosures, all recent customer disputes. The first was filed on 11/18/2018, alleging that Nishnic made unsuitable recommendations as well as “other allegations” that were not disclosed. The client is asking for damages of $100,000. Nishnic denies the allegations, and indicates that this may be a client’s family creating the dispute. This case is currently “pending.”

The next customer dispute was filed on 8/21/2017, alleging that the products sold to the client while she and her late husband were customers of Nishnic’s at a different brokerage were unsuitable. This client requests damages of $95,000. Nishnic also denies these allegations. The case was ultimately closed without any action.

Scott Kaup

February 8, 2019 | Silver Law Group

Scott Vincent Kaup (CRD #1002907) is a registered broker and investment advisor currently employed with Summit Brokerage Services, Inc. (CRD #34643) of Stuart, NE. His previous employers include VSR Financial Services, Inc. (CRD #14503), also of Stuart, NE and American General Securities Incorporated (CRD #13626) of Phoenix, AZ. He has been in the business since 1981.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-300x200 Kaup has two disclosures on his record. The first one, filed on 7/13/2018, alleges “unsuitable investment recommendations, material misrepresentations and omissions, and supervisory due diligence failures.” The client is requesting damages of $2,600,000.00. No additional information is available.

The second dispute was filed on 4/25/2016. This claim alleges that Kaup, from 3/30/2001 to 6/14/2010, breached his fiduciary duty, violated common law fraud regulations, made unsuitable recommendations for investments and committed negligence. The claim was settled for $173,000. Kaup denied all claims.

New Customer Disputes For Broker Cindy Chiellini Total $348K In Damages

February 8, 2019 | Silver Law Group

Back in August, we told you about broker Cindy Lucille Porto Chiellini (CRD #1015592) who had three customer disputes on file in her record. Chiellini is still employed with Centaurus Financial, Inc. (CRD #30833) of Lexington, SC.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-300x200 Since our last report, four customers have filed additional disputes against Chiellini for various complaints and allegations. All four are currently listed as “pending,” and Chiellini denies the allegations in all four disputes.

The most recent dispute was filed on 9/12/2018, with the customers alleging that their investments were “inappropriate and unsuitable based on their investment objectives.” The clients are requesting damages of $150,000.

Two Customer Disputes Filed Against Wenjinn James Chang Worth $125K

February 8, 2019 | Silver Law Group

Wenjinn James Chang (CRD #4536266) is a registered broker and investment advisor currently employed with Independent Financial Group, LLC (CRD #7717) of Rockville, MD. His previous employers include Ameritas Investment Corp. (CRD #14869), also of Rockville, AXA Advisors, LLC (CRD #6627) of New York, NY, and PFS INVESTMENTS INC. (CRD #10111) of Duluth, GA. He has been in the industry since 2002.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 Two customer disputes were filed this year against Chang. The most recent was filed on 10/15/2018, requesting damages of $50,000. The customer alleges that Chang over-concentrated in non-traded REITS that were unsuitable and caused losses to the account. Chang denies the allegations, and the firm plans to defend the claim.

His prior dispute was filed on 9/11/2018, alleging that Chang “failed to advise of the risks of the investments made and that the Claimant has suffered losses as a result of the investments made.” Although the client requested damages of $75,000, the firm settled the claim for $10,000 to avoid the costs of litigation. The firm also stated that the settlement was neither an admission of guilt or liability, and there were no facts to support the allegations.

Disgraced Broker Kyusun Kim Terminated By Sandlapper

February 6, 2019 | Silver Law Group

Back in October, we told you about Kyusun Kim (CRD #2864085), a broker who was barred by FINRA after it was discovered he approached individuals who were near or at retirement age, and urged them to liquidate their pensions to invest in “alternative investments.” These investments included risky, non-traded real estate investment trusts (REITs.)

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224-300x224 BrokerCheck now reports that Sandlapper Wealth Management, LLC has discharged him from their employment as of 8/31/2018 after he was barred by FINRA.

The allegations against Kim included wrongful conduct, breaches of fiduciary duty, contract and conduct, violations of securities laws, fraud, financial elder abuse, negligent misrepresentation, inappropriate investments and unsuitable recommendations, as well as one allegation of forged signatures.

Justin Lopez Subject of Two Customer Disputes totaling over $5M

February 6, 2019 | Silver Law Group

Justin William Lopez (CRD #5162263) is a currently registered broker employed with J.P. Morgan Securities LLC (CRD #79) of Mineola, NY. His previous employers are Craig Scott Capital, LLC (CRD #155924, expelled by FINRA on 9/7/2017), Brookstone Securities, Inc. (CRD #13366, expelled by FINRA on 10/9/2012), both of Uniondale, NY, and JHS Capital Advisors, Inc. (CRD #112097) of Tampa, FL. He has been in the industry since 2006.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200-300x200 Lopez has two customer disputes in his FINRA record, the first of which was filed on 7/13/2018, alleging “unauthorized, unsuitable and excessive trading regarding the Equity Listed and Equity OTC investments.” This client requests damages of $5,563,792.00.

The second disclosure, filed on 5/09/2017, has similar allegations of “suitability and excessive trading regarding equity OTC and equity listed investments.” This client requests damages of $55,855.00.

Silver Law Group Files FINRA Arbitration Claim Against Arete Wealth Management

February 5, 2019 | Silver Law Group

Silver Law Group filed a claim against Arete Wealth Management, LLC alleging Arete’s broker recommended numerous unsuitable non-traded REITs and leveraged ETNs and ETFs to our elderly client.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 According to the FINRA arbitration complaint, the elderly Claimant entrusted the entirety of her retirement portfolio to Arete Wealth Management and its broker. The broker proceeded to recommend the senior Claimant invest approximately half a million dollars in various illiquid, non-traded REITs. Among other non-traded REITs, the Arete Wealth Management broker recommended the Claimant invest in American Finance Trust, Hospitality Investors Trust, benefit Partners Realty Trust, and FS Energy and Power Fund, according to the FINRA arbitration complaint.

In addition to Arete Wealth Management’s unsuitable recommendations to invest in non-traded REITs, the Arete Wealth Management broker also invested the elderly Claimant’s brokerage account in risky investments such as leveraged ETFs and ETNs, according to the securities arbitration claim. These leveraged ETFs and ETNs are typically meant to be held for no more than one day. The FINRA arbitration complaint alleges the Arete Wealth Management broker held them for far longer than one day – in some cases months. Claimant, according to the securities arbitration claim, lost a significant amount of money in her Arete Wealth Management brokerage accounts.

FINRA Bars LPL Broker Suhail Khan After $775K Dispute

February 1, 2019 | Silver Law Group

Suhail Saleem Khan (CRD #3168241) is a former registered broker and investment advisor who was last employed with LPL Financial LLC (CRD #6413) of Chicago, IL. His previous employers include Vision (CRD #47927) and U.S. Financial Investments, Inc. (CRD #120804), also of Chicago. No current employment information is available. He began in the industry in 1999.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224-300x224 Khan was barred by FINRA after he refused to answer a request for information from them. He was barred in all capacities, and from associating with a FINRA member in any capacity, effective 11/17/2017. Khan did not request a termination of his suspension within 3 months, so he was indefinitely barred from the industry, and remains so to this day.

On 5/25/2018, a customer filed a dispute alleging that from 2013 through 2017, Khan made “unsuitable, speculative investments” in his own hedge fund business, as well as one REIT and an oil & gas business. The customer also alleged that some of the investments contained unregistered securities, and has requested damages of $775,000.00. The case is currently listed as “pending.”

Peter Malis Client Awarded $1.1M Settlement After Churning Allegations

January 31, 2019 | Silver Law Group

Peter Michael Malis (CRD #317892) is a registered broker and investment advisor currently employed with Wells Fargo Clearing Services, LLC (CRD #19616) of Woodland Hills, CA. His previous employers include Prudential Securities Incorporated (CRD #7471) of New York, NY, Bache Halsey Stuart Inc. (CRD #7238) and Paine, Webber, Jackson & Curtis Incorporated (CRD #640). He has been in the industry since 1969.

Antonio-Costanzo-Permanently-Barred-by-FINRA-After-Alleged-Churning-in-Customer-Accounts-300x202 According to CRD records, Malis has five disclosures on his record, all customer disputes. The most recent was filed on 12/7/2017, alleging unsuitable investments and that he never discussed any transactions with the client during the time period 2/13/2006 through 12/31/2016. This claim was denied.

The next claim was filed on 09/13/2016, alleging excessive and unsuitable unauthorized trading, churning, and unsuitable account portfolio management from April 2002 through 2015. This claim went to arbitration and settled on May 2, 2017 for $1,100,000.00. Malis did not contribute to this settlement amount.

Broker Bryon Martinsen Accused Of Misrepresentation By Client

January 31, 2019 | Silver Law Group

Bryon Edwin Martinsen (CRD #1621649) is a registered broker and investment advisor currently employed with Centaurus Financial, Inc. (CRD #30833) of Northport, NY. His previous employers are AXA Advisors, LLC (CRD #6627) and The Equitable Life Assurance Society Of The United States (CRD #4039), both of New York, NY. He has been in the industry since 1987.

Martinsen has a total of eight disclosures on his record dating back to 1999, when he was discharged from AXA Advisors for engaging in outside business activities. He had previously been advised to end these business activities.

My-Financial-Advisor-is-Giving-Me-the-Runaround-on-My-Investments-What-Are-My-Rights-300x200 His most recent disclosure was filed on 6/25/2018. This customer disclosure is currently pending, and includes allegations of “unsuitable investments, misrepresentations, and omission of material risks, in connection with the sale of various investments.” The client has requested damages of $231,244.71. Martinsen denies the allegations.