Unsuitable Investment Advice

More Customer Complaints Against Sean Brady, Claims Of $12.5M In Damages

January 24, 2019 | Silver Law Group

In August, we told you about former broker Sean Brady (CRD #4365173) who was recently barred by FINRA and discharged by his employer, First Allied Securities, Inc. (CRD #32444) of St. Louis, MO.

Allegations-of-Sales-Practice-Violations-Cloud-Broker-Kenneth-Dlouhy-‘s-Record-300x200 Since our last report, eight more customer disputes were recently filed against Brady, between 6/28/2018 and 07/03/2018. All these cases are pending, and the total of requested damages is an eye-watering $12,575,730.49.

Like the previous disclosures, these clients allege that Brady used the same practices, including:

FINRA Bans Charles Bloom

January 24, 2019 | Silver Law Group

Charles Lewis Bloom (CRD #4144108) is a former registered broker last employed by Chelsea Financial Services (CRD #47770) of Royal Palm Beach, FL. His previous employers include International Assets Advisory, LLC (CRD #10645) and IAA Financial LLC (CRD #6578) of West Palm Beach, FL, and U.S. Brokerage, Inc. (CRD #39307) of Wellington, FL. No current employment information is available. He has been in the industry since 2000.

FINRA began an investigation into Bloom’s trading practices in October of 2017 after allegations of unsuitable trading in at least three customer accounts. FINRA then requested Bloom to appear to give on-the-record testimony to FINRA regarding the investigation. He declined, and stated in a phone call that he would not give testimony at any time. On 7/17/2018, after signing an Acceptance, Waiver & Consent (AWC) letter, Bloom was indefinitely barred by FINRA effective immediately.

Are-or-Were-Unsuitable-Non-Traded-REITs-in-Your-Portfolio-300x224 Shortly after the FINRA action, a customer dispute was filed on 11/8/2017, alleging that Bloom misrepresented and made unsuitable recommendations with regard to a REIT (real estate investment trust.) The case is currently “pending,” and the damages requested are $99,326.84.

Client Accuses Broker Ralph Bianchi Of Recommending Unsuitable Puerto Rican Bonds

January 24, 2019 | Silver Law Group

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.com Ralph Adams Bianchi (CRD #1513063) is a previously registered broker whose last known employer was Wells Fargo Clearing Services, LLC (CRD #19616) of Flemington, NJ. His previous employers include The GMS Group, LLC (CRD #8000) of Livingston, NJ, and Moore & Schley, Cameron & Co. (CRD #6917). No current employment information is available. He began in the industry in 1986.

Bianchi has one disclosure on his record, a customer dispute filed on 01/19/2018. In it, the claimants allege that Bianchi made unsuitable investments in the Puerto Rican bond market. These recommendations were made between 2013 and 2017, when the Puerto Rico bond market found itself in a severe crisis. After the island was later devastated by Hurricane Maria, the financial market collapsed.

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.

Broker Ralph Byer Of Merrill Lynch Has Seven Disclosures

January 22, 2019 | Silver Law Group

Ralph Michael Byer (CRD #1038411) is a registered broker and investment advisor currently employed with Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) of Plantation, Florida, where he has been since 1982.

Churning-1024x683-300x200 Byer has a total of seven disclosures, all of them customer disputes. The most recent was filed on 06/19/2018, alleging “excessive trading, unsuitable investment recommendations and misrepresentation from 1990 until 2018.” This case is currently pending.

His next previous dispute, filed on 02/03/2014, alleged misrepresentation involving a life insurance policy purchased in June of 1987. This claim was denied. However, the next dispute, filed on 01/27/2009, was settled for $7,000. The client alleged “unsuitable investment recommendations,” and requested damages of $100,000.

Broker Dexter Thomas Dies Leaving $9.2M In Customer Claims

January 22, 2019 | Silver Law Group

Dexter Leroy Thomas (CRD #1074222) is a formerly registered broker and investment advisor who was last employed with United Planners’ Financial Services Of America A Limited Partner (CRD #20804) of Dallas, TX. His previous employers include LPL Financial LLC (CRD #6413), National Planning Corporation (CRD #29604) and Invest Financial Corporation (CRD #12984), all of Dallas. He began in the industry in 1983, and passed away on August 4, 2018.

FINRA-Permanently-Bars-Barry-Hartman-From-Securities-Activity-for-Alleged-“Selling-Away”-Activities-300x209 Two days before his death, United Planners discharged Thomas after he revealed to the firm that he had engaged in “selling away,” privately borrowing money and making investment arrangements with several individuals outside of the firm’s auspices. Many of these individuals later became customers of United Planners. Thomas revealed that he conducted these transactions without notifying the firm, and the firm promptly terminated his employment.

The first of a total of fifteen claims was filed on 7/31/2018, just two days before his discharge from United Planners. The last claim was filed on 9/23/2018. These claims alleged either “unsuitable investments” or detailing monies borrowed but not returned without the firm’s knowledge or approval. Of the fifteen claims listed in BrokerCheck, eight request financial damages from $22,000 to $8.1 million, for a total of $9,260,000. These claims are all listed as “pending.”

Christopher Sinkula Subject Of Customer Disputes Totaling $3.7M

January 22, 2019 | Silver Law Group

Christopher David Sinkula (CRD #2001512) is a currently registered broker and investment advisor who is currently employed with Janney Montgomery Scott LLC (CRD #463) of Stuart, FL. His previous employers include Citigroup Global Markets Inc. (CRD #7059), also of Stuart, A. G. Edwards & Sons, Inc. (CRD #4) of St. Louis, MO and Blinder, Robinson & Co., Inc. (CRD #5096.) He has been in the industry since 1989.

Lawrence-LaBine-Under-Fire-for-Alleged-Unsuitable-Recommendations-and-More-300x200 Sinkula is the subject of eleven disclosures, all customer disputes dating back to 1997. Three of these disputes were filed in 2018, and all three include “unsuitable investments” in their accounts. The disputes were filed on 8/1/2018, 4/23/2018 and 4/18/2018. The damages requested for these three claims totals $3,700,000, and all three are currently pending.

Two nearly identical customer disputes were filed on 10/13/2017 and 7/14/2017, alleging that Sinkula “made unsuitable investments in his account by creating a high concentration in energy stocks.” Both requested damages of $100,000, but were settled for $$24,750 and $22,900, respectively, and settled “in the interest of client relations and to avoid potentially lengthy and costly litigation.” Previous customer disputes are listed as “denied.”

National Securities Corporation Stockbroker Ronald Rothchild

January 18, 2019 | Silver Law Group

Ronald Harris Rothchild (CRD #4491932) is a registered broker and investment advisor currently employed with National Securities Corporation (CRD #7569 of Melville, NY.) His previous employers include Raymond James Financial Services, Inc. (CRD #6694) of Garden City, NY, Wells Fargo Advisors, LLC (CRD #19616) of Melville, NY, and David Lerner Associates, Inc. (CRD #5397) of Syosett, NY. He has been in the industry since 2002.

David-Sullivan-Accused-of-Excessive-Trading-on-More-Than-One-Occasion-300x200 Rothchild is the subject of eight disclosures, the most recent of which was a customer dispute filed on 7/30/2018. In it, the client alleges “breach of contract, negligence, unsuitability, breach of fiduciary duty.” Damages requested are $100,000. This case is listed as “pending.”

Two previous customer disputes have been settled. The first, filed on 3/28/2018, alleges that from 7/26/2011 through 4/11/2016, Rothchild misrepresented certain investments that were unsuitable for her objectives. The client also alleges that her risk tolerance and investment objectives were incorrectly documented on her updated account paperwork. This customer requested damages of $149,236.86, and the case was settled for $75,000.

FINRA Bars Broker Jackie Wadsworth

January 17, 2019 | Silver Law Group

Jackie Divono Wadsworth (CRD #2342163) is a former registered broker and currently registered investment advisor whose last employer was IMS SECURITIES, INC. (CRD #35567) of Houston, TX. She worked for IMS since 1994, and the firm was expelled by FINRA on 9/04/2018. Previously, she worked for Retirement Investment Group (CRD #7421), also of Houston. She has been in the industry since 1993.

National Securities Corporation: Frequent Customer Disputes with FINRA on silverlaw.com In 2017, Wadsworth was involved in a customer dispute involving multiple claimants while at IMS Securities. In it, the claimants alleged that “a non-party under the supervision of Respondents induced Claimants to invest in unsuitable, high-risk, illiquid investments, including United Mortgage Trust (“UMT”), United Development Funding II (“UDF II”), and United Development Funding III (“UDF III”).” These allegations also included “aiding and abetting fraud, aiding and abetting breach of fiduciary duty, civil conspiracy, civil RICO, civil RICO conspiracy, and negligent supervision.” Filed on 6/7/2017, the arbitration was completed on 11/8/2018, awarding a total of $963,836.00 to the claimants.

Following this award, Wadsworth failed to respond to an information request from FINRA, causing a suspension on 8/3/2018. She did not request her suspension to be terminated, and is now barred from any association in any capacity with any FINRA member.

Cory Bataan of Emoire Asset Management Company

January 15, 2019 | Silver Law Group

Cory Bataan (CRD #2755223) has been employed with Emoire Asset Management Company since April 2008. Previous employment includes Empire Asset Management Company from April 2008 to August 2012, Ameritas Investment Corp. from December 2007 to April 2008 and Joseph Stevens & Company, Inc. from October 1996 to July 2001.

According to the FINRA BrokerCheck, there have been complaints against Mr Bataan.

Churning-Other-Allegations-Made-Against-Broker-Michael-Doyle-300x200 In 2015, while employed by Aegis Capital Corp., Claimant alleges unsuitable recommendations and excessive fees & commissions. Complaint was settled for $25,000.00.

Nick Son of Aegis Capital Corp

January 15, 2019 | Silver Law Group

Nick Son (CRD #1178523) has been employed with Aegis Capital Corp since August 2014 and was also registered with Aegis from March 2010 to April 2011. Previous employment includes Alexander Capital, L.P. from March 2012 to August 2014, WTS Proprietary trading Group LLC from December 2011 to June 2012, Gunnallen Financial, Inc. form July 2002 to March 2010, Investprivate, Inc. from June 2001 to July 2002, Josephthal & Co., Inc. from July 1998 to May 2001, JW Charles Securities, Inc. from May 1997 to August 1997, Whale Securities Co., L.P. from September 1996 to May 1997 and State Capital Markets Corporation from December 1995 to September 1996.

According to the FINRA BrokerCheck, there have been complaints against Nick Son.

Margin-Account-Guidelines-300x200 In 1996, while employed by State Capital Markets Corporation, Client alleges the stock offering from Cable and Fun Tyme were not registered in Texas; The sale of non-registered stock is a violation of Texas State securities Act 7A and is therefore illegal. Complaint was settled for $14,500.00.