Securities Arbitration Lawyers Blog

Broker Dana Davis Subject Of Customer Disputes, Excessive Trading

September 11, 2018 | Silver Law Group

Dana H. Davis (CRD #1707708) is a currently registered broker currently employed by Newbridge Securities Corporation (CRD #104065) of New York, NY. His previous employers include First Montauk Securities Corp. (CRD #13755) of Hauppage, NY, Global Capital Securities Corporation (CRD #16184) of Englewood, CO, and Gilford Securities Incorporated (CRD #8076) of New York, NY. He has been in the industry since 1989.

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations on elderfinancialfraudattorneys.com Davis’ most recent customer dispute was filed on 01/08/2018. In it, the customer alleges that Davis engaged in “misrepresentation, unsuitable and excessive trading, negligent supervision and breach of fiduciary duty.” The customer requests damages of $250,000. This case is currently listed as “pending.”

A previous complaint, filed on 10/10/2007, alleged that Davis engaged in churning, unauthorized trading, fraud, breach of fiduciary duty, among other things. The client requested $150,000 in damages, and the case was settled for $75,000. A broker’s comment states Davis was discharged as part of the settlement.

Broker Patrick Maddren

September 11, 2018 | Silver Law Group

Patrick Maddren (CRD #4665903) is a currently registered broker with Westpark Capital, Inc. (CRD #39914) of Fort Lauderdale, FL. His previous employers include Laidlaw & Company (UK) LTD. (CRD #119037), also of Fort Lauderdale, Dawson James Securities, Inc. (CRD #130645) of Boca Raton, FL, and Prestige Financial Center, Inc. (CRD #30407) of New York, NY. Two of his previous employers, Prestige and Sky Capital LLC (CRD #114657) of New York, were expelled by FINRA. He has been in the industry since 2004.

New-York-Broker-Gregory-Flemming-Suspended-by-FINRA-300x200 A customer dispute filed on 3/31/2016 alleges that Maddren “Failure to follow instructions, material misrepresentations and omissions, excessive trading and commissions, unauthorized trading, unsuitable recommendations, breach of contract. The customer requested damages of $1,000,000.00, and the case was settled for $295,000. Maddren denies the allegations, and was not named in the arbitration.

Maddren is the subject of four disclosures. Two of these are tax liens—one filed on 08/14/2012, for $75,630.00, and one filed on 06/26/2012 for $225,256.80. In the second disclosure, it is noted that Maddren was unaware of these liens and was made aware by his accountant. He is taking steps to remedy the liens.

Securities Arbitration Lawyer v. a Non-Attorney Representative?

September 11, 2018 | Silver Law Group

If you’ve been investing for even a short while, you may have been contacted by someone claiming that you were “cheated” out of money or otherwise wronged by your broker. This company can help you get your money back that you are rightfully entitled to, they say.

Non-attorney representatives have been the subject of numerous recent news stories about how they fail to adequately represent investors in arbitration.

If you were to work with a law firm like Silver Law Group, you would be entering into a payment agreement commonly known as a “contingency fee arrangement.” In other words, your legal fee would be contingent on representing you, and winning your case. You would generally have no out-of-pocket expenses. A percentage of your settlement would be the fee you pay for the work on your case.

Scott Silver Quoted In Investment News Article On Woodbridge SEC Charges

September 7, 2018 | Silver Law Group

Silver Law Group Managing Partner Scott Silver was again quoted in Investment News regarding the new charges by the SEC against the alleged real estate investment company Woodbridge.

“I think these types of investments are a massive problem, and it’s bigger than people give credence to,” Mr. Silver said. “Look at the ads in the back of the newspaper, or go to retirement conferences in South Florida. Companies there are pitching investments untethered to the stock market that are not securities.”

Ponzi-Schemes2-300x150 Much like the recent bankruptcy of 1^st Global, Woodbridge was found to be operating a huge Ponzi scheme worth approximately $1.2 billion (and is also located in Florida.) At the center of this operation are individuals acting as brokers and investment advisors. Many of these unregistered salespeople are former brokers and advisors who have been barred by FINRA after a customer complaint, employment separation or other unresolved administrative issue.

Silver Law Group Featured In Investment News On 1st Global Capital Bankruptcy

September 7, 2018 | Silver Law Group

Attorney Scott Silver was quoted in an article from Investment News regarding the recent bankruptcy filing by small business merchant service company 1^st Global Capital, and a sister company, 1 West Capital.

Good News about Elder Financial Fraud? on elderfinancialfraudattorneys.com Prior to the bankruptcy, the SEC and the US Attorney’s office in the Southern District of Florida opened similar investigations into the companies. Court documents indicate that the companies used “independent sales organizations, underwriters and other funding agents” to find and secure investors. Once the investigations began, the company could no longer raise capital, and filed for Chapter 11 bankruptcy to protect assets and continue the business. (Another company called 1^st Global, located in Dallas, is unrelated.)

Mr. Silver notes that the 1^st Global case is “eerily similar” to a prior case, a Ponzi scheme by a company called Woodbridge. That company was charged in December, as well as its founder, Robert Shapiro. That scheme was worth $1.2 billion, and targeted 8,400 investors. Mr. Silver sees 1^st Capital as “following the Woodbridge model,” using unregistered brokers nationwide to sell to investors. It’s clear, Mr. Silver says, that investors, who are mostly mom-and-pop, will not be receiving any distributions. They’ve been left without the promised income, and wondering how much of their principal will be lost in the bankruptcy.

Former Boston, Massachusetts-based Morgan Stanley Brokers Under Investigation for Allegedly Stealing Almost Half a Million from Elderly Client

September 7, 2018 | Silver Law Group

Silver Law Group is investigating claims against former Boston, Massachusetts-based Morgan Stanley brokers James Polese (CRD# 2636427) and Cornelius Peterson (CRD# 5769919) after FINRA barred both of them for allegedly stealing $450,000 from an elderly client.

Both Boston, Massachusetts brokers were charged by the Securities and Exchange Commission (the “SEC”) in January 2018 and agreed to plead guilty to the charges conspiracy, advisor fraud and bank fraud.

The SEC alleges in its complaint that Polese and Peterson misappropriated money from their Morgan Stanley customers starting in 2014. According to the SEC, Polese and Peterson fraudulently misappropriated $350,000 in March 2016 from an elderly customer. Polese and Peterson used a portion of the money to make investments in their own names, and directed a larger portion to Polese’s personal bank account. Then, according to the SEC, from March through May 2017, Polese made numerous unauthorized transactions from the same elderly customer’s account totaling approximately $93,000 to pay Polese’s credit card and college tuition expenses for Polese’s children.

Silver Law Group and Law Firm of David R. Chase File Case Against Independent Financial Group for Selling Away

September 7, 2018 | Silver Law Group

Silver Law Group and The Law Firm of David R. Chase filed a FINRA arbitration claim against Independent Financial Group, a securities firm, after its broker improperly recommended the services of an individual who the SEC claims was engaged in a Ponzi scheme.

The statement of claim alleges the Claimant was the client of Independent Financial Group and its broker, Jon Pariser (CRD# 2755015). In or around June 2017, Pariser informed Claimant that he was retiring and that he had a capable and skilled professional who he could recommend to take over — Christopher A. Parris, an unlicensed securities broker.

Pariser allegedly told the Claimant that Parris came highly-recommended and could be trusted, despite the fact that Parris had been suspended by FINRA less than two (2) years prior. The Claimant, according to the statement of claim, was unaware of this fact and relied upon Pariser’s professional opinion.

FINRA Bars Broker Herbert Voss, Jr. After Allegations of Unauthorized Trading

September 5, 2018 | Silver Law Group

South-Florida-Broker-Brian-Michael-Berger-Permanently-Barred-by-FINRA-1024x683-300x200 Herbert Voss, Jr. (CRD #1014475) is a previously registered broker and investment advisor, whose was last registered with StockCross Financial Services, Inc. (CRD #6670) of Beverly Hills, CA. His previous employers include UBS Financial Services Inc. (CRD #8174), also of Beverly Hills, and Waterhouse Securities, Inc. (CRD #7870). No current employment information is available. He has been in the industry since 1982.

FINRA began investigating Voss after allegations that he engaged in unauthorized trading in a customer’s account. After FINRA sent Voss a letter on 4/25/2018 requesting on-the-record testimony in the investigation, his counsel responded that Voss declined the request to testify at any time. Voss was then barred in all capacities by FINRA from associating with any associated brokerage, effective 5/23/2018. StockCross then discharged Voss from his employment.

Voss’ most recent customer complaint was filed on 12/15/2017, alleging “Poor Performance, Fiduciary Breach and Failure to Supervise.” Damages requested total $550,000. Voss’ response was that the facts are being discussed by counsel for both parties. The case is currently listed as “pending.”

FINRA Bars Former Raymond James Broker Stephen Murray After Allegations, Tax Lien

September 5, 2018 | Silver Law Group

Stephen Allen Murray (CRD #343722) is a former registered broker and investment advisor who was last employed by Raymond James & Associates, Inc. (CRD #705) of Palm Beach Gardens, FL. He was previously employed by Morgan Keegan & Company, Inc. (CRD #4161) of Jupiter, FL and First Financial Equity Corporation (CRD #16507) of Scottsdale, AZ. No current employment information is available. He began in the industry since 1973.

Murray is the subject of 10 different disclosures, dating back to 1982. The most recent, a regulatory action, occurred after he failed to respond to a FINRA request for information. Three letters were issued regarding the suspension, and Murray did not respond to any of them. He became permanently barred from associating with any FINRA representative as of 8/7/2018. No additional information is available.

The next disclosure was filed on 05/26/2017, a customer dispute alleging “churning, unauthorized trading; negligence, violation of FINRA rules . . .breach of contract, and breach of fiduciary duty. Activity date is: 6/2010 thru 4/2017.” The customer requested damages of $100,000, and the case was settled for $60,000.

Laidlaw Broker Paul Prestia Barred By FINRA After $160K In Tax Liens

September 5, 2018 | Silver Law Group

Paul Joseph Prestia (CRD #4477149) is a former registered broker whose last employer was Laidlaw & Company (UK) Ltd. (CRD #119037) of Melville, NY. His previous employers include Network 1 Financial Securities Inc. (CRD #13577) of Huntington Station NY and MidAmerica Financial Services, Inc. (CRD #47351.) No current employment information is available. He began in the industry in 2003.

Thomas-Hogle-Barred-by-FINRA-After-Alleged-Lack-of-Cooperation-With-Investigation-300x200 Prestia has been barred by FINRA in all capacities after he failed to respond to a request for information. After receiving a Notice of Suspension and Suspension from Association letters dated April 25, 2018, and May 21, 2018, and failing to respond three months after his suspension FINRA barred him indefinitely.

Prior to the FINRA action, Prestia’s other disclosures are four tax liens: