Securities Arbitration Lawyers Blog

Silver Law Group is Investigating Scott William Palmer of Janney Montgomery Scott, LLC

May 3, 2018 | Silver Law Group

Silver Law Group is currently investigating former financial advisor and broker Scott William Palmer (CRD #817586) after multiple customer disputes. His last employer was Janney Montgomery Scott, LLC (CRD# 463) of Hackensack, NJ, from 03/02/2007 to 06/13/2017. Palmer is not currently registered as a broker or investment advisor, and no record of current employment is available.

Palmer was previously employed with:

Citigroup Global Markets, Inc. (CRD# 7059) in Ridgewood, NJ, from 06/22/1994 through 02/01/2007

Silver Law Group is Investigating Edward Vincent Mirabella, Jr. of National Securities Corporation

May 3, 2018 | Silver Law Group

Silver Law Group is investigating former broker Edward Vincent Mirabella, Jr. (CRD #2843670) for multiple customer complaints. His last known employer was National Securities Corporation in their Edison, NJ location (CRD #7569), from 08/24/2009 to 05/13/2016.

Mirabella was previously employed with:

Aura Financial Services (CRD #42822) in Islandia, NY, from 03/27/2008 – 07/01/2009

Silver Law Group is Investigating Richard Shotz of Wells Fargo

May 1, 2018 | Silver Law Group

Richard Shotz (CRD# 1681893) has been with Wells Fargo in Daytona Beach, Florida since 2016. He was recently terminated from Wells Fargo due to a FINRA regulatory action against him in which Shotz was suspended for four months and ordered to pay fines. FINRA found that Shotz engaged in an unsuitable pattern of trading involving unit investment trusts (UITs) in his customers’ accounts. Shotz repeatedly recommended that his customers sell their UITs before their maturity dates; this caused the customers to incur unnecessary sales charges in their accounts.

Shotz has also been the subject of several customer disputes. In one settled claim from 2009, the Claimant alleged that Shotz placed him in unsuitable investments involving exchange traded funds (ETFs). In another settled dispute from 2003, the Claimant brought a claim regarding possible misrepresentations made in connection with Claimant’s life insurance policy; the case settled for over $15,000.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

Silver Law Group is Investigating Melvin Case of LPL Financial

May 1, 2018 | Silver Law Group

Melvin Case (CRD# 2393464) has been with LPL Financial in Jacksonville, Florida since 2008. In 2017, he was discharged from the firm in relation to a 2016 felony criminal charge in Duval County Circuit Court. Case pled guilty to exploitation of an aged adult and was sentenced to two years of probation. According to LPL Financial, Case was converting this elderly individual’s funds for his own personal benefit. This guilty plea also led FINRA to bring a regulatory action against Case in January 2018. FINRA found that Case failed to timely disclose his felony charge and guilty plea to the agency; he was suspended for six months and ordered to pay a $5,000 fine.

Case has also been the subject of several customer disputes. In 2017, one of Case’s customers brought a claim alleging Case made misrepresentations and poor recommendations in connection with the customer’s purchase of variable annuities. In another dispute from 2004, a Claimant similarly alleged that Pruco Securities (Case’s former employer) and Case made unsuitable recommendations and misrepresentations in connection with insurance products purchased by the Claimant. That case settled for $100,000, with Case responsible for paying two-thirds of the settlement.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

Silver Law Group is Investigating Kimberly Kitts of Royal Alliance Associates

May 1, 2018 | Silver Law Group

Kimberly Kitts (CRD# 2768200) has been with Royal Alliance Associates in Palmer, Massachusetts since 2004. In a regulatory action from 2017, FINRA found that Kitts failed to respond to a FINRA request for information. Kitts also failed to request termination of her earlier suspension within the allotted time. As a result, FINRA permanently barred Kitts from being associated with any FINRA member firm. Kitts was also discharged from Royal Alliance Associates in 2017. The firm terminated Kitts after receiving correspondence from her client’s attorney alleging that Kitts converted or misappropriated the client’s funds.

Kitts has also been the subject of several customer disputes. In one dispute pending from 2017, the Claimant also alleges that Kitts converted or misappropriated the Claimant’s funds. In addition to this claim, Kitts has three other complaints against her that eventually were closed or dismissed. These complaints included allegations such as unsuitability and non-compliance with client requests.

FINRA requires that its members refrain from engaging in fraudulent or deceptive practices with their clients. FINRA also requires its members to only charge their clients a reasonable fee for services.

Silver Law Group is Investigating Kevin Graetz of Paulson Investment Company

May 1, 2018 | Silver Law Group

Kevin Graetz (CRD# 1935982) has been with Paulson Investment Company since 2013. In a regulatory action from 2016, FINRA found that Graetz willfully failed to timely disclose tax liens against him. Graetz owes over $1,000,000 in unpaid taxes to both the IRS and the State of Connecticut. As a result of this violation, FINRA fined Graetz $10,000 and suspended him for six months. In a separate regulatory action from 2017, FINRA found that Graetz failed to respond to a FINRA request for information. Graetz also failed to request termination of his earlier suspension within the allotted time. FINRA permanently barred Graetz from being associated with any FINRA member firm due to this violation.

Graetz has also been the subject of several customer disputes. In one pending dispute from 2017, the customer alleges fraud and unjust enrichment in connection with the sale of promissory notes; the customer alleges damages of $1,000,000. Graetz was ultimately terminated from Paulson Investment Company as a result of this customer complaint. In a settled complaint from 2005, the customer alleged that Graetz purchased an unsuitably large amount of stock in his account. In another settled complaint from 2003, a customer alleged that Graetz generally mishandled the customer’s account; the case settled for $75,000.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires its members to “observe high standards of commercial honor and just and equitable principles of trade.”

Silver Law Group is Investigating Minish Joe Hede of Paulson Investment Company

May 1, 2018 | Silver Law Group

Minish Joe Hede (CRD# 2389098) has been with Paulson Investment Company since 2013. In a regulatory action from 2017, FINRA found that Hede failed to respond to a FINRA request for information. Hede also failed to request termination of his earlier suspension within the allotted time. As a result, FINRA permanently barred Hede from being associated with any FINRA member firm. Hede was also discharged from Paulson Investment Company in 2017. The firm terminated Hede after a customer filed a complaint alleging negligence, fraud, and unjust enrichment. The firm also stated that Hede failed to comply with its internal investigation into the matter.

Hede has also been the subject of several customer disputes. In one dispute pending from 2017, the Claimant alleges fraud and unjust enrichment in connection with the sale of promissory notes; the Claimant alleges damages of $1,000,000. In another complaint from 1999, the Claimant alleged unauthorized use of margin trading by Hede. The case settled for over $6,000.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

Silver Law Group is Investigating Benjamin Aibel of Wunderlich Securities

May 1, 2018 | Silver Law Group

Benjamin Aibel (CRD# 1994) has been with the Memphis, Tennessee branch of Wunderlich Securities since 2012. In a regulatory action from 2017, FINRA found that Aibel failed to respond to a FINRA request for information. Aibel also failed to request termination of his earlier suspension within the allotted time. As a result, FINRA permanently barred Aibel from being associated with any FINRA member firm.

In addition to this regulatory action, Aibel has also been the subject of several customer disputes. In one dispute settled in 2016, the Claimant alleged over $600,000 in damages stemming from Aibel’s breach of fiduciary duty, negligence, unauthorized trading, and unsuitable recommendations. In three different customer disputes from 2002, the Claimants all alleged that Aibel misrepresented a corporate bond to Claimants; each claim occurred while Aibel was employed by Salomon Smith Barney, Inc. In a final claim from 2002, the Claimant alleged that Aibel provided unsuitable recommendations and engaged in churning in Claimant’s account; that claim settled for over $80,000.

FINRA requires its members to “have a reasonable basis to believe that a recommended transaction or investment strategy” is suitable for a customer given their individual needs. FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.

FINRA Bans Broker Michael Alan Siegel After Repeated Complaints and Investigations

April 27, 2018 | Silver Law Group

FINRA has barred Michael Alan Siegel (CRD# 1950871) from “acting as a broker or otherwise associating with a broker-dealer firm.” Siegel was a previously registered broker and investment advisor and worked in the financial services industry since 1992. His last registered place of employment was with National Securities Corporation of Edison, NJ (CRD# 7569), from 04/21/2014 through 05/13/2016

Siegel’s previous work history includes 13 investment companies:

Concorde Investment Services (CRD# 151604), in Parsippany, NJ from 09/19/2013 through 04/22/2014

Discharged Morgan Stanley Broker Charles Albert Dixon Is Permanently Barred By FINRA

April 27, 2018 | Silver Law Group

Former broker Charles Albert Dixon, Jr. (CRD# 1660422) has been permanently barred by FINRA after a disciplinary action that was signed and completed on 1/22/2018. He is no longer allowed to work as a broker, associate with another broker or be affiliated with a broker-dealer firm. Dixon was discharged by his employer, Morgan Stanley Smith Barney, LLC (CRD#149777) of Houston, TX. He was registered with Morgan Stanley from 06/01/2009 to 04/17/2017.

Dixon was previously registered as a broker with:

Morgan Stanley & Company, Incorporated (CRD# 8209), Houston, TX, from 04/02/2007 to 06/01/2009