Securities Arbitration Lawyers Blog

Silver Law Group is Investigating Alan New of NYLife Securities LLC

June 29, 2018 | Silver Law Group

Alan New has been registered with NYLife Securities LLC in Fort Wayne, IN from 2004 to August 2016.

According to his BrokerCheck Report, New has been the subject of five customer complaints in 2018.

April 2018. “Plaintiff alleges that material facts and the risks associated with an unregistered investment purchased in Woodbridge Mortgage Investment Fund in December 2013 were not disclosed. Claimant seeks recovery of damages in the amount of at least $400,000.00.” The customer is seeking $400,000 in damages and the case is currently pending.

Silver Law Group is Investigating Frank Dietrich of Quest Capital Strategies, Inc.

June 29, 2018 | Silver Law Group

Frank Dietrich was registered with Quest Capital Strategies, Inc. in Lake Forest, California from March 2013 to April 2018, when he was terminated regarding, “Failure to fully disclose outside business activities and sale of unapproved product.” Dietrich sold Woodbridge notes to multiple investors.

Dietrich has been the subject of six customer complaints between 2013 and 2018, according to his CRD report. The complaints include:

April 2018: Client states that she purchased a Woodbridge Wealth Promissory Note through Frank Dietrich in January of 2017, outside of Quest Capital Strategies. The customer is seeking $200,000 in damages and the case is currently pending.

Silver Law Group is Investigating David Ridenour of Wells Fargo Clearing Services

June 29, 2018 | Silver Law Group

David Ridenour has been registered with Wells Fargo in Edmond, Oklahoma since 2012. He previously worked for Morgan Stanley Smith Barney.

Financial Industry Regulatory Authority (FINRA) CRD records show that Oklahoma-based Wells Fargo Clearing Services broker/adviser David Ridenour has received resolved or pending customer disputes.

According to his BrokerCheck report, he has received one customer complaint, one pending customer complaint, and one customer complaint that was closed.

FINRA Bars Broker Christopher Hibbard After Separation from Merrill Lynch

June 28, 2018 | Silver Law Group

Christopher Lee Hibbard (CRD #3176484) is a previously registered broker and investment advisor who has been barred from association with any FINRA-associated broker. His most recent employer was Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #7691) of Louisville, KY, from 07/16/2010 through 01/26/2018. His previous employers include Morgan Keegan & Company, Inc. (CRD #4161), also of Louisville, and A. G. Edwards & Sons, Inc. (CRD #4) of St. Louis, MO. He has been in the industry since 1999.

Hibbard was discharged from Merrill Lynch on 01/08/2018, after allegations of “unauthorized transactions and theft.” His registration was officially terminated on 01/26/2018. As a result, FINRA conducted an inquiry and requested information from him, to which Hibbard failed to respond. As of 05/10/2018, FINRA permanently barred Hibbard from associating with any FINRA member in any capacity.

Additionally, the US Attorney’s Office in the Western District of Kentucky is investigating allegations of Hibbard’s unauthorized use of client funds during his tenure at Merrill, Lynch.

Broker Craig Blattner Suspended By FINRA

June 28, 2018 | Silver Law Group

Craig Dean Blattner (CRD #1590301) is a previously registered Florida broker and investment advisor. His last employer of record is Cetera Advisors LLC (CRD #10299) of Longwood, FL; his employment was terminated on 2/28/2018. He is not currently registered with any FINRA affiliated firm, and no other recent employment information is available. His previous employers include Investors Capital Corp. (CRD #30613) of Longwood, FL which merged with Cetera in September of 2016, Gunnallen Financial, Inc. (CRD #17609) of Orlando FL, and First Montauk Securities Corp. (CRD #13755) of Red Bank, NJ.

On or about 03/20/2018, Blattner was suspended by FINRA for 15 days after an inquiry into his business practices. He allegedly personally handled a customer complaint without notifying his employer.

In April of 2013, two longtime clients who had a joint account complained, both orally and in writing, about their account’s loss of $75,000. Blattner was supposed to disclose this complaint to his company at the time, ICC, and report it on his Form U4. Instead, Blattner wrote the clients a personal check for $15,000, instructing them to open a new account to deposit the check. The customers did so, and were told by Blattner that the check was to generate trading profits to replace the losses from their joint account. Failing to notify his employer of these complaints, and handling it away from the firm, is a violation of FINRA rule 2010.

State of Arkansas Bars Worden Capital’s Yousuf Saljooki For Five Years

June 28, 2018 | Silver Law Group

Yousuf Saljooki (CRD #5045123, a/k/a “Joe Saljooki”) is a former registered broker with Worden Capital Management LLC (CRD #148366) of Melville, NY. His previous employers include SW Financial (CRD #145012), Legend Securities, Inc. (CRD #44952, expelled) and Tryco Securities, Inc. (CRD #104025), among others. No current employment information is available. He has been in the industry since 2006.

Saljooki has had two employment separations in less than a year, in part, due to a ban by the state of Arkansas. During the application process, Saljooki failed to disclose an outstanding 2016 federal tax lien of $227,859. The state denied his application, and he was banned for five years. First, SW Financial, then Worden discharged him after the denial. He is not currently registered with any FINRA-affiliated broker.

Two previous disclosures in 2018 include customer disputes with almost identical allegations of churning and unsuitability, as well as breach of contract/fiduciary duty and unauthorized trading. The two disputes have requested damages totaling over $1.5 million. Both cases are pending.

Former Broker Peter Orlando Accused Of Improperly Obtaining Control Of Client’s Affairs

June 28, 2018 | Silver Law Group

Peter Orlando (CRD #1142715) is a former registered broker, last employed with SCF Securities, Inc. (CRD #47275) of Fall River, MA. Previous employers include MetLife Securities (CRD #14251), Morgan Stanley (CRD #149777 and #8209), and Investors Capital Group (CRD #30613) He has been in the industry since 1983. His current employer and employment status is unknown.

Orlando is the subject of a regulatory disciplinary action involving one of his clients. From August through September of 2014, Orlando allegedly obtained control of the financial affairs of an elderly widow (named “DW” in the complaint.) He became the primary beneficiary and executor of her will, with his wife as the contingent beneficiary. He obtained two powers of attorney (POA), one for health and one known as a “durable POA.”

It is against MetLife’s policies for a representative to become involved in a client’s financial affairs, except in the case of family members. There is no indication that the client was also a family member. In addition to a opening a joint account with Orlando, the client also changed her will, closed two bank accounts in favor of the joint one, and gave him two powers of attorney. Orlando never notified the firm that he was acting as her personal representative in her affairs.

Insurance Agent James E. Hocker Charged In $1.27 Million Ponzi Scheme

June 28, 2018 | Silver Law Group

On the heels of a Ponzi scheme that cheated investors out of $102 million, the SEC has charged a former insurance broker with defrauding inexperienced retail investors. James Hocker, aged 48, of Bellefonte, Pennsylvania has been charged with defrauding 25 investors of $1.27 million for non-existent securities. He operated his own insurance agency out of his home, James E. Hocker & Associates, selling insurance and annuities as an unregistered entity.

Hocker’s tactic was different—he sold them insurance first to gain their trust, then offered these customers non-existent “investment securities.” He was licensed to sell insurance and annuities, but not securities.

Promising “guaranteed returns” of 10% to 30%, Hocker told these customers that he would invest their money into the S&P 500 and other unspecified investments. However, the monies he collected were deposited in bank accounts he controlled, and investors were not informed that they were his. Hocker used the money to pay bills, tax liens, and spousal support to his ex-wife. He also spent the monies on restaurants and casinos.

FINRA Bars Broker John Greg Schmidt After Misappropriation Allegations

June 28, 2018 | Silver Law Group

John Greg Schmidt (CRD #708094) is a former registered stockbroker and investment advisor whose last known employer was Wells Fargo Advisors Financial Network, LLC (CRD #11025) in Dayton, OH. He is also known as “Greg Schmidt” or “John Gregory Schmidt.”

His previous employers include Stifel, Nicolaus & Company, Incorporated (CRD #793), also of Dayton, OH; First Union Securities, Inc. (CRD #19616) of St. Louis, MO; and First Union Capital Markets Corp. (CRD #6124) of Charlotte, NC. Schmidt began his industry career in 1980, but is not currently registered with any FINRA broker.

Schmidt is currently the subject of several disclosures:

National Securities Corporation and Restoration Robotics, Inc. Subject of Class Action

June 28, 2018 | Silver Law Group

A class action has been filed against Restoration Robotics, Inc. (“HAIR”), National Securities Corporation (“National Securities”) and others. The complaint alleges that Restoration Robotics negligently issued untrue statements of material facts in, and omitted to state material facts required to be started from, the prospectus issued in connection with the Initial Public Offering (“IPO”). At the time of the IPO, Restoration Robotics sold approximately 4 million shares at a price of $7.00 per share. Restoration Robotics stock has dropped dramatically trading under $3.00 a share on June 22, 2018.

National Securities served as an underwriter for the Company’s IPO agreeing to purchase 2,145,000 shares of the Company common stock, exclusive any over-allotment option. National Securities previously served as Restoration Robotics investment banker raising several million dollars in a Reg D offering in 2016. According to the complaint, National Securities collected fees from commissions and discounts in excess of $1,100,000 in the IPO.

According to the class action complaint, Restoration Robotics was incorporated in 2002 under the laws of the State of Delaware. At the time of the IPO, the Company also had three wholly-owned subsidiaries: (i) Restoration Robotics, Inc. Limited, (ii) Restoration Robotics Europe Limited, Incorporated, and (iii) Restoration Robotics Korea Yuhan Hoesa, Incorporated.