Securities Arbitration Lawyers Blog

Angel Aquino of Morgan Stanley Claims for Puerto Rico Bonds

February 27, 2018 | Silver Law Group

Investment broker Angel Edgardo Aquino-Velez (CRD#: 2687333) is no longer working as a broker, according to FINRA. Velez was previously registered as a broker, with the last place of employment listed as Morgan Stanley (CRD# 149777). His name is also listed as “Angel Edgardo Aquino,” “Angel E AquinoVelez” and, “Angel Edgardo AquinoVelez.” Velez worked for Morgan Stanley from 2010 through 2017, for Merrill Lynch from 2006 through 2009, and UBS Financial Services, Inc./UBS Financial Services, Inc. of Puerto Rico from 2000 through 2006. Since leaving Morgan Stanley in 2017, Velez is not listed as working as a broker, or in any financial services capacity requiring registration.

Silver Law Group represents other investors in claims against Morgan Stanley relating to Angel Aquino. Since 2001, Velez has had a number of customer disputes have been filed against him. Many were settled by Merrill Lynch during his tenure of employment. FINRA arbitration claims filed during Velez’s tenure at Morgan Stanley are still open, with the most recent involving “unsuitability with respect to Puerto Rico investments,” from 2013 to 2017, among other things (“inter alia.”) No money damages are specified in the latest dispute, but previous disputes dating back to July of 2016 have a combined outstanding total of $17,559,000. Morgan Stanley agreed to pay one customer dispute the amount of $80,000, resolving a securities arbitration of “unsuitability with respect to the Puerto Rico closed-end fund investment – 2012 to 2013.” Customer complaints include “unsuitability” and “misrepresentation” in relation to investments Velez was involved with.

Contact Our Firm if You’ve Invested with Angel Aquino

Christopher Robert Hickman, formerly of Cetera Advisors, LLC.

February 27, 2018 | Silver Law Group

FINRA suspended Christopher Robert Hickman in June of 2017 for six months. This suspension is a result of Hickman’s violations of NASD Rule 2310, and FINRA Rules 2111 and 2010, regarding the unsuitable trading of Unit Investment Trusts, or “UITs.” Hickman neither denied nor confirmed the findings, and consented to the sanctions, which included a five-month suspension and a fine of $5,000, and included customer restitution of $115,989.75 (with interest.) Hickman was in the Delray Beach, Florida office of Cetera.

Hickman recommended these UITs to his customers and sell them within a year of purchase. The UITs in question had a 24-month maturity, and come with significant up-front charges, up to 3.95%. The average holding period for his customers was 136 days. After their sale, Hickman again recommended his customers purchase the same types of UITs with the proceeds and sell them after less than a year, repeating the process. Six of his customers suffered losses of approximately $115,989.75.

During his tenure at Cetera Advisors, LLC., Hickman was also the subject of several customer disputes, most of which were settled, and one denied. The last customer dispute, in April of 2017, involved “breach of fiduciary duty, violation of FINRA rules, negligence, breach of contract, and elder abuse,” and was settled for $15,000.

LJM Preservation and Growth Fund (LJMIX) Securities Lawsuit Investigation

February 13, 2018 | Silver Law Group

Silver Law Group is investigating investor claims for possible securities laws violations of LJM Preservation and Growth Fund (Stock Symbol: LJMIX).

The LJM Preservation and Growth Fund (“LJMIX”) is a mutual fund that is marketed and sold with the investment goal of preserving capital even in down markets. The mutual fund, allegedly, attempts to preserve its investors’ capital by using put option spreads as a form of mitigation risk.

The once-$800 million fund lost more than 80 percent of its value between February 2-7, 2018. On February 8, 2018, LJMIX announced that it would not be accepting new investments into the mutual fund. According to a letter published by the mutual fund, LJMIX liquidated all its open positions and the mutual fund currently only holds cash.

Scott Silver Participates in the University of Miami School of Law Class Action Forum

February 13, 2018 | Silver Law Group

On December 8, 2017, the University of Miami School of Law held its annual class action forum. Of particular interest was hot topics in class action and mass torts plus a keynote speech from the attorney representing many NFL players in litigation relating to concussions.

Scott Silver is a 1996 graduate of Miami Law School and an active member of the Law School alumni program. In 2016, Silver Law Group was instrumental in helping the University of Miami Investor Rights Clinic receive a $107,000 Cy Pres Award from one of our class actions relating to the U.S. Pension Trust Corp. fraud which resulted in a substantial recovery for our clients.

The Investor Rights Clinic is an important program which teaches students about securities arbitration while helping investors, who may not be able to find counsel, pursue FINRA arbitration claims for securities and investment fraud. Scott Silver is a frequent lecturer at investor rights clinics around the country including University of Miami and Albany Law School in New York.

James Randall Clay is Under Investigation by FINRA

February 8, 2018 | Silver Law Group

The former broker reportedly never disclosed a real estate venture that was worth $1 million

James Randall Clay was notified by the Financial Industry Regulatory Authority (FINRA) in October of last year that he was the respondent in a complaint. The allegations against him involve an elderly client, a large real estate deal, and a possible misappropriation of funds.

The events that led to the complaint began when Clay allegedly decided to buy 49 rental properties for $1 million from a client of his firm, who at the time was 86 years old. The client reportedly also agreed to finance Clay’s purchase and give him a loan for $500,000 to make repairs and upgrades to the properties.

Silver Law Group Files FINRA Arbitration Claim Alleging Excessive use of Margin, High Commissions and Elder Financial Fraud on behalf of an Unsophisticated Retiree

February 7, 2018 | Silver Law Group

Silver Law Group, a law firm specializing in securities and investment fraud, has filed a securities arbitration claim with FINRA on behalf of an elderly investor alleging stockbroker misconduct and the unsuitable use of margin and excessive trading.

FINRA recently issued investor guidance highlighting “Purchasing on Margin, Risks Involved with Trading in a Margin Account.” FINRA describes the risks including the following:

You can lose more funds than you deposit in the margin account;

Silver Law Group Investigates Garden State Securities, Inc. Broker Jason Eric Zwibel for Potential Securities Violations

February 7, 2018 | Silver Law Group

Silver Law Group is investigating claims against Garden State Securities, Inc. (“Garden State”) broker Jason E. Zwibel (“Zwibel”) for possible unsuitable investment recommendations. Zwibel is currently employed by the Garden State office located in Wellington, Florida.

A recent customer dispute filed with the Financial Industry Regulatory Authority (“FINRA”) against Zwibel alleges damages of $2,670,750.00 for unsuitable investments, negligence, and breach of fiduciary duty.

Registered brokers like Jason Zwibel are regulated by federal securities laws and FINRA rules and standards. The suitability of a particular investment is governed by FINRA Rules and require a broker to have “a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable” based upon the investment profile of the customer meaning specifically: the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance.

Silver Law Group is Investigating Claims Against Former Legend Equities Corp. Broker Walter J. Marino for Alleged Unsuitable Recommendations and Charging Excessive Commissions in Customer Accounts

February 7, 2018 | Silver Law Group

Silver Law Group is investigating former Legend Equities Corp. (“Legend”) broker Walter Joseph Marino (“Marino”) for allegations of unsuitable recommendations and charging excessive commissions and fees in customer accounts. Marino was employed by Legend’s Palm Beach Gardens, Florida office prior to his termination in July 2015.

The Financial Industry Regulatory Authority (“FINRA”) suspended Marino on 10/16/2017 for a 1-year period ending 10/15/2018 after Marino, without admitting or denying the findings, consented to FINRA’s findings that he had recommended unsuitable exchanges of variable annuity products to two customers without having a reasonable basis for recommending the transactions while at Legend Equities Corp. The transactions were found to benefit Marino and caused substantial harm to the customers.

In addition, in order to evade supervision, the complaint alleged that Marino lied to Legend about the source of the money used to purchase the new annuity. Instead of stating the new annuity was replacing another annuity, Marino stated on company documents that the purchases were paid for with a check.

Three Individuals Charged by the SEC for Defrauding Elderly Clients

February 6, 2018 | Silver Law Group

Allegations include the misappropriation of more than $2.6 million, much of it through a penny stock scheme

Elder financial fraud continues to be a serious problem in the U.S., but the Securities and Exchange Commission (SEC) is making attempts to protect senior investors. One way the agency is doing this is by increasing penalties for repeat offenders.

Recently, the SEC charged Joseph A. Rubbo and Angela Beckcom Rubbo Monaco of Coral Springs, FL, with defrauding 11 investors, most of whom were elderly. Their penny stock scheme involved getting people to invest in Rubbo and Monaco’s entertainment company called “VIP,” as well as the Spongebuddy, a sponge/glove cleaning product.

TD Ameritrade and Sheaff Brock Investment Advisors, LLC

February 6, 2018 | Silver Law Group

Contact Us If You Have Lost Money Investing with Sheaff Brock Investment Advisors, LLC

Silver Law Group is investigating potential FINRA arbitration claims against TD Ameritrade on behalf of investors who suffered investment losses with Sheaff Brock in stock options as a result of investments managed by Sheaff Brock.

A class action alleges TD Ameritrade customers utilized the investment advisory services of Sheaff Brock through TD Ameritrade’s AdvisorDirect program and suffered significant losses in a risky put income options strategy.