Securities Arbitration Lawyers Blog

Woodbridge Group of Companies’s CEO and President Robert Shapiro Pleads the Fifth in SEC Investigation Over $1 Billion Fraud

November 22, 2017 | Silver Law Group

CEO and President of Woodbridge Group of Companies (“Woodbridge Group”) Robert Shapiro is allegedly invoking his Fifth Amendment right to remain silent after the SEC has made repeated requests for documents from him and Woodbridge Group.

The SEC’s Subpoena for Documents Against Woodbridge Group

The SEC first launched an investigation into Woodbridge Group in November 2016. The SEC was looking into the “offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchases and sale of securities.”

LP Customer Compliants

November 16, 2017 | Silver Law Group

The New Jersey Bureau of Securities has levied a large fine against LPL Financial LLC, one of the largest independent broker-dealer in the United States. The $950,000 fine also requires LPL to donate $25,000 to the New Jersey state investor education fund. The Bureau of Securities imposed these judgments against LPL for allegedly conducting unsuitable sales of non-traded real estate investment trusts and business development companies.

The Bureau on its settlement with LPL states; “This substantial settlement with LPL Financial sends a message that the securities industry cannot sell unsuitable investments to clients who are unlikely to be able to bear the financial risks,” said Attorney General Christopher S. Porrino. “The standards governing sales of alternative investments are in place to protect investors, and the Bureau will take action when these standards are ignored.”

Generally, Federal statues regulate suitability standards and limit the sale of certain alternative investments based on a complex calculation that reflects a client’s liquid net worth, or a mixture of a client’s income and net worth and other factors. New Jersey also limits the maximum total ratio of alternative investments held by an individual client’s portfolio to not exceed 10 percent of an investor’s complete portfolio.

Shreveport, LA-based Raymond James & Associates Discharges Broker James Edward Lyons

November 13, 2017 | Silver Law Group

Allegations of unauthorized trading surround Lyon’s discharge from member firm

After 34 years in the securities industry, former Raymond James & Associates broker James Edward Lyons is no longer registered with the Financial Industry Regulatory Authority (FINRA). According to his FINRA BrokerCheck report, Raymond James & Associates discharged Lyons in April 2017 due to allegations of unauthorized trading.

Unauthorized trading occurs when a broker purchases or sells securities in a non-discretionary customer account without prior customer authorization, and it is a FINRA sales practice violation. It occurs in accounts in which a customer has not received prior written discretionary authority from the customer to make transactions in the account.

James Vincent Marino : Elder Financial Fraud Alert

November 10, 2017 | Silver Law Group

The Edward Jones broker is permanently barred following allegations of accepting gifts from clients, along with using client credit cards

In August 2017, the Financial Industry Regulatory Authority (FINRA) indefinitely barred James Vincent Marino from acting as a broker or otherwise associating with firms that sell securities to the public.

Marino’s one and only employer for his three-year securities industry career, Edward Jones in Pompano Beach, FL, discharged the broker in October 2016 alleging, “Without prior notice to or approval from the Firm, Mr. Marino accepted gifts totaling approximately $20,500 from a Firm client. In addition, he was authorized to use the same client’s credit card and used that card for his benefit in the amount of approximately $6,700.”

SEC Files Complaint Against Matthew C. Griffin and William D. Griffin Over Alleged Misrepresentations Concerning Payson Petroleum Offerings

November 3, 2017 | Silver Law Group

Our attorneys are investigating Matthew C. Griffin and William D. Griffin after the SEC alleged the Griffins made misrepresentations concerning Bartonville, Texas-based Payson Petroluem, Inc. offerings.

The SEC Files a Complaint Against Matthew and William Griffin

In November 2016, the SEC filed a complaint against the Griffins, who are brothers. According to the complaint, Matthew Griffin was the founder, sole owner, president, and CEO of Payson Petroleum, Inc. His brother, William Griffin, was Payson Petroleum’s Chief Administrative Officer and a member of the board of directors.

Payson Petroleum, based in Bartonville Texas, and its Private Offerings Under Investigation After Payson Companies Declare Bankruptcy

November 3, 2017 | Silver Law Group

Our attorneys are investigating Bartonville, Texas-based Payson Petroleum, Inc. and Payson Operating, LLC after the two companies declared bankruptcies, leaving unsecured investors holding over $20 million in losses.

Payson Petroleum and Payson Operating Files for Bankruptcy

Payson Petroleum and Payson Operating filed for chapter 7 bankruptcy in June 2016. The bankruptcy was later converted to a chapter 11 bankruptcy. According to the bankruptcy trustee, neither Payson Petroleum nor Payson Operating will have the funds to pay its unsecured creditors after administrative expenses are paid.

James E. Lyons, Raymond James

November 3, 2017 | Silver Law Group

James E Lyons

CRD#1020397

Silver Law Group is investigating former Shreveport, LA-based Raymond James broker James E Lyons after a client filed a FINRA complaint alleging unauthorized trading. This complaint alleged damages of $1,200,000

Michael P. Mctigue, Newbridge Securities

November 2, 2017 | Silver Law Group

Michael P Mctigue

CRD#3031287

Silver Law Group is investigating former Boca Raton, Florida-based Newbridge Securities Corp broker Michael P Mctigue. Following his voluntary resignation from his firm and allegations of churning and excessive trading.

Richard S. Botkin, Morgan Stanley

November 2, 2017 | Silver Law Group

Richard S. Botkin

CRD# 1571729

Silver Law Group is investigating Former Roseville, California-Morgan Stanley broker Richard S. Botkin after a allegations of outside business activity and illicit private placement investments.

The Elder Abuse Prevention and Prosecution Act

October 31, 2017 | Silver Law Group

On October 18, a new law went into effect that could be extremely beneficial to older investors. The Elder Abuse Prevention and Prosecution Act is a “multi-pronged approach to prevent elder abuse, protect victims, and prosecute perpetrators of elder abuse crimes.”

Immediately put in place are investigation and prosecution requirements for the Department of Justice (DOJ) in regard to crimes of elder abuse. Specifically, the new law will target telemarketing and email fraud designed to “induce investment for financial profit, participation in a business opportunity, or commitment to a loan.”

If someone is convicted of telemarketing or email fraud that targeted someone over the age of 55, they will be subjected to extra criminal penalties along with a mandatory forfeiture. The bill has also added health care fraud to the list of offenses that come with enhanced penalties.