Securities Arbitration Lawyers Blog

Registered Individuals Suspended in July 2017 by FINRA for Failing to Comply with FINRA Rules

November 29, 2017 | Silver Law Group

According to FINRA Disciplinary actions for July 2017, the following individuals were suspended from FINRA for failing to comply with a FINRA arbitration award or settlement agreement pursuant to FINRA rules:

NAME	FORMER EMPLOYERS


Thomas Michael DiLello, Jr.	LPL Financial LLC
	Atlantic Capital Advisors
Niaz Elmazi	Global Arena Capital Corp
	HFP Capital Markets LLC
James Benjamin Fellus	Spencer-Winston Securities Corporation
	Nexlend Capital Partners
Nancy Putnam Griffith	Wells Fargo Advisors, LLC
	Edward Jones
Brian Joseph Hagerman	Global Arena Capital Corp
	Equities Trading Corp
Justin Linwood Hendrick	Suntrust Investment Services, Inc.
	First Citizens Investor Services, Inc.
Robert Joseph Kerrigan, Sr.	First Financial Equity Corporation
	Personal Wealth Mgmt Group, Inc.
Brent Morgan Porges	Meyers Associates, LP
	Newbridge Securities Corporation
Scott Paul Strochak	Morgan Stanley
	Merrill Lynch, Pierce, Fenner & Smith Inc.

Silver Law Group represents investors in securities and investment fraud cases through FINRA arbitration or court. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide in securities arbitration to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

FINRA Bars Registered Individuals in July 2017 for Failure to Comply with FINRA Rules

November 29, 2017 | Silver Law Group

According to FINRA Disciplinary actions for July 2017, the following individuals were barred from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules:

NAME	FORMER EMPLOYERS
Ricardo Alonzo, Jr.
Jared Cody Artho	JP Morgan Securities LLC
Michael W. Benjamin	State Farm VP Management Corp
David William Beutler	Wells Fargo Advisors, LLC
David William Beutler	Prudential Securities Inc
Amanda Yvetter Burnett	Invest Financial Corporation
Joni Carrera
Charles Maxwell Cox	Wells Fargo Advisors, LLC
Charles Maxwell Cox	Chase Investment Services Corp
Aryton Pierce Haddad	TD Ameritrade, Inc.
Aryton Pierce Haddad	E*Trade Securities LLC
Scott William Hartman	Morgan Stanley
Scott William Hartman	Encore Financial Advisors, LLC
Chad Daniel Hornaday	AXA Advisors, LLC
Chad Daniel Hornaday	National Planning Corporation
John James Joseph Labrie	JP Morgan Securities LLC
John James Joseph Labrie	Chase Investment Services Corp
Derek James Longmuir	Advisors Asset Management, Inc.
Derek James Longmuir	First Trust Portfolios LP
Elijah Robert Maldonado	JP Morgan Securities LLC
Elijah Robert Maldonado	Chase Investment Services Corp.
David K. Mallet	Wunderlich Securities, Inc.
David K. Mallet	Stephens Inc.
Raymond Edward Martin
Richard Muzquiz Jr.	JP Morgan Securities LLC
Richard Muzquiz Jr.	Chase Investment Services Corp
Andrew Michael Pritchard	Pruco Securities, LLC
Michael Jason Ripper	International Assets Advisory, LLC
Michael Jason Ripper	LPL Financial LLC
Teresita Santos Santos	Transamerica Financial Advisors, Inc.
Teresita Santos Santos	World Group Securities, Inc.
Bimal Kishore Shah	Independent Financial Group, LLC
Bimal Kishore Shah	WRP Investments Inc.
Cory Ward Taylor	Ameriprise Financial Services, Inc.
Cory Ward Taylor	IDS Life Insurance Company
Nathan Robert Trodahl	State Farm VP Management Corp.
Xin Wang	JP Morgan Securities LLC
Daniel L. Waters	Fidelity Brokerage Services LLC
Sherman Marcel White	Wayne Hummer Investments LLC
Sherman Marcel White	US Bancorp Investments, Inc.
Brian Scot Winchester	Securities America, Inc.
Brian Scot Winchester	Sunset Financial Services, Inc.
Matthew Edward Witkowski	Vanguard Marketing Corporation
Matthew Edward Witkowski	Edward Jones
William Brian Wyman	Ameriprise Financial Services, Inc.
William Brian Wyman	Royal Alliance Associates, Inc.
James Seokhoon Yoon	JP Morgan Securities LLC

Silver Law Group represents investors in securities and investment fraud cases through FINRA arbitration or court. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide in securities arbitration to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

The Woodbridge Group of Companies is Under Investigation by the SEC

November 28, 2017 | Silver Law Group

The organization may have violated the anti-fraud provisions of federal securities laws after raising $1 billion from investors

Since November of 2016, the Securities and Exchange Commission (SEC) has been looking into the Woodbridge Group of Companies, based in Sherman Oaks, California. The real estate investment company – which owns or controls 235 limited liability companies (LLCs) around the U.S. – could be involved in the improper sale of securities, says the government agency.

In August, all 235 LLCs received subpoenas in an attempt by the SEC to get information about a variety of things, including managers and members, as well as payments that have been made to Woodbridge. The deadline to produce relevant documents was the end of August, but the SEC filing states that they did not get a sufficient response. Now the SEC is seeking a federal order to get the LLCs to comply. The emails accounts of executives and salespeople are also being sought.

Woodbridge Wealth is Not Registered with the SEC or FINRA

November 28, 2017 | Silver Law Group

Woodbridge Wealth promotes itself as a division of Woodbridge Group of Companies and advertises as a company with a focus on “wealth creation” claiming “Woodbridge Wealth is among the most innovative financial companies in the U.S. From its base in Sherman Oaks, California, it helps countless clients realize strong returns with lower-risk products without the burden of long-term commitments.”

The promise of lower-risk investments with strong returns has helped Woodbridge Wealth and its related companies raise over $1 billion from investors nationwide. However, recent SEC filings and other state action have raised concerns that Woodbridge Wealth may have violated the federal securities laws by selling unregistered securities or violating the anti-fraud provisions of the federal securities laws.

SEC Filings Concerning Woodbridge Wealth

Woodbridge Group of Companies Principal Robert Shapiro Takes the 5th Amendment

November 28, 2017 | Silver Law Group

Robert Shapiro, president and CEO of Woodbridge Group of Companies (“Woodbridge”), has reportedly refused to answer questions from the Securities and Exchange Commission (“SEC”) relating to its investigation of Woodbridge’s business practices.

In a letter to the SEC, filed in federal court papers, Mr. Shapiro’s lawyer writes, “Upon consideration of the SEC’s investigative subpoenas and a review with counsel of the individual rights afforded by the United States Constitution, Mr. Shapiro will rely on his constitutional privilege to refuse to be a witness against himself.”

This disclosure occurs on the heels of a related SEC action against Woodbridge for the production of documents including e-mails and corporate documents relating to dozens of companies. According to the SEC, Woodbridge has raised over $1 billion from thousands of investors nationwide and is now under investigation for possible violations of the securities laws including anti-fraud violations.

Woodbridge Group of Companies Under SEC Investigation

November 28, 2017 | Silver Law Group

The SEC is investigating Woodbridge Group of Companies’ (“Woodbridge”) business practices.

According to a recent SEC application and supporting papers filed in federal court in Miami, Florida, the SEC is investigating whether Woodbridge and others have violated or are violating the antifraud, broker-dealer, or securities registration provisions of the federal securities laws in connection with Woodbridge’s receipt of more than $1 billion of investor funds from thousands of investors nationwide.

As part of the SEC’s ongoing investigation, on January 31, 2017, agency staff in the SEC’s Miami Regional Office served Woodbridge with a subpoena seeking, among other documents, the production of electronic communications that the company maintained relating to Woodbridge’s business operations. The SEC’s application alleges that although Woodbridge was required to produce these documents to the SEC, Woodbridge has failed to produce relevant communications in response to the subpoena, including those of three high-level Woodbridge officials.

FINRA Reports Brokers Nas Adel Allan and Gregory Anastos Made Unsuitable Recommendations

November 23, 2017 | Silver Law Group

The two brokers are reported to have engaged in short-term trading that resulted in significant losses for their clients

Two brokers who worked for Windsor Street Capital, LP (also doing business as Meyers Associates, L.P.) are facing serious allegations. According to the Financial Industry Regulatory Authority (FINRA), Nas Adel Allan and Gregory Anastos are alleged to have made unsuitable investment recommendations to an elderly husband and wife, which resulted in the loss of substantial funds.

The complaint alleges that Allan and Anastos repeatedly recommended that their clients engage in short-term trading of a single security that their clients held for more than 35 years. Not only did this reportedly lead to a loss of money, but it generated almost $100,000 in commissions for the two brokers. FINRA states that “Allan’s recommendations were unsuitable in light of customers’ investment profile, lacked an economic rationale, and resulted in unwarranted losses and tax liabilities for them.”

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.