Securities Arbitration Lawyers Blog

Timothy David Ballard First Suspended and Now Permanently Barred by FINRA

September 22, 2017 | Silver Law Group

Outside business activities involving elderly clients cost him his career

As of April 2017, Timothy David Ballard is no longer allowed to act as a broker or have anything to do with firms that sell securities to the public. It was then that he was permanently barred by the Financial Industry Regulatory Authority (FINRA).

Ballard had three months to appeal a suspension from FINRA, but because he failed to do so, the agency had no choice but to bar him. The suspension and subsequent barring were related to Ballard’s outside business activity. For a year, Ballard worked at Sunrise Senior Living in Danville, CA, while reportedly also selling securities to residents of the center through his firm, Securities America, Inc. out of Livermore, CA.

SEC Announces Charges in Massive Telemarketing Boiler Room Scheme Targeting Seniors

September 18, 2017 | Silver Law Group

A Long Island-based cold-calling scam allegedly stole more than $10 million from clients

The Securities and Exchange Commission (SEC) recently brought charges against 13 defendants who allegedly operated two cold-calling investment scams in Long Island, NY. According to the complaint, the companies involved defrauded investors out of more than $10 million. The firms’ salespeople reportedly convinced clients to purchase a number of penny stocks while making a wide variety of outlandish and misleading claims about the investments themselves.

The telemarketing scam reportedly operated by artificially inflating the prices of penny stocks

Elder Financial Fraud Has an Impact on the Financial Well-Being of Caregivers

September 7, 2017 | Silver Law Group

A new study from Allianz Life Insurance Company of North America offers tips on how to protect yourself and your loved ones against financial abuse

Elder financial abuse affects not only the elderly victims, but those who care them as well. According to a recent study by Allianz Life Insurance Company of North America, the average financial loss of elderly victims was $36,000; and this financial impact often resulted in “financial ruin.” What’s more, the financial impact on active and potential caregivers equaled an average cost of $36,000 as well, given the necessity to compensate for a loved one’s loss. Elder financial fraud clearly has a far-reaching impact beyond its senior victims.

The cost of caregiving

Broker Leon Vaccarelli Has Been Charged with Fraud by the SEC

September 5, 2017 | Silver Law Group

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The former Connecticut broker allegedly stole over $1 million from elderly clients

On August 31, Leon Vaccarelli and Lux Financial Services were charged by the Securities and Exchange Commission (SEC) with defrauding at least nine clients, several of which were elderly. According to the SEC, Vaccarelli told the clients that he would be investing their money in conventional brokerage accounts, but what he actually did was have them write checks payable to him. He reportedly then used that money to pay for personal expenses.

The SEC says that over a five-year period, Vaccarelli defrauded his clients of more than $1 million, with a large portion of that total coming from the sale of over $450,000 in securities that were in a trust intended for the care of a beneficiary.

Protecting an Elderly Parent from Financial Abuse from another family member.

September 5, 2017 | Silver Law Group

Often, it’s family members taking advantage of the elderly and their finances

It’s “eyes wide open” when it comes to elder financial fraud. While we may think that those who prey upon the elderly are professional criminals scheming ways to take advantage of people, the sad truth is that often, it’s a family member doing the scheming. A recent study by Merrill Lynch estimated that 70 percent of all elder financial fraud cases involved relatives.

Of course, most family members actively protect their loved ones, but anyone caring for the elderly needs to be aware of the possibilities. Elder fraud perpetrated by family members shows itself in subtle ways, such as changes in whom the senior individual considers a core influencer or decision maker, as well as changes in the senior’s wishes for gifting or investing.

Silver Law Group is investigating former Melbourne, FL-Morgan Stanley broker Anthony J. Verzi

September 5, 2017 | Silver Law Group

Silver Law Group is investigating former Melbourne, FL-Morgan Stanley (CRD#149777) broker Anthony J. Verzi (CRD# 1186572) after FINRA permanently barred Verzi for refusing to appear for an on the record testimony related to an investigation into unsuitable trading.

According to Verzi’s FINRA BrokerCheck report, a customer filed a FINRA arbitration in December 2016 alleging unsuitable unit investment trusts who’s only purpose was to generate commissions for the broker. This complaint led to a FINRA investigation in which he failed to appear for on-the-record testimony, at which time FINRA permanently barred him.

Morgan Stanley (CRD#149777) employed Verzi as a broker dealer from June 2009 until August 2016. Verzi operated out of Morgan Stanley’s Melbourne, Florida branch.

Silver Law Group is analyzing claims of unauthorized trading and unsuitable investments by former Delray Beach, Florida based Cetera Advisors LLC broker Christopher R. Hickman

September 5, 2017 | Silver Law Group

Silver Law Group is analyzing claims of unauthorized trading and unsuitable investments by former Delray Beach, Florida based Cetera Advisors LLC (CRD#10299) broker Christopher R. Hickman (CRD# 3267599). The complaints allege that Hickman recommended unsuitable trades and investments and carried out unauthorized trades over the course of many years.

According to Hickman’s FINRA BrokerCheck report, FINRA suspended and fined Hickman in July 2017 for five months and fined him $5,000. On multiple occasions throughout his career, clients have alleged losses to due to unauthorized trading and unsuitability. The earliest FINRA reported incident was in November of 2007 up until the most recent event in July of 2017.

Hickman was employed and registered by Cetera Advisors LLC from September of 2009 until July of 2015. Previously he was employed by Banc Of America Investment Services (CRD#16361) from 2006 to 2009.

Silver Law Group is investigating former Memphis, Tennessee -based Wunderlich Securities Inc broker David K Mallett over allegations that Mallett excessively traded customers’ accounts and made unsuitable recommendations.

September 5, 2017 | Silver Law Group

Silver Law Group is investigating former Memphis, Tennessee-based Wunderlich Securities Inc. (CRD#2543) broker David K. Mallett (CRD#5145838) over allegations that Mallett excessively traded customers’ accounts and made unsuitable recommendations.

According to Mallett’s FINRA BrokerCheck report, a customer filed a complaint in October of 2016 against Mallett alleging churning in the customer’s account and further that he made unsuitable recommendations. Further, the customer alleges that Mallett’s employing firm, Wunderlich Securities (CRD#2543), failed to supervise Mallett.

Wunderlich has employed Mallett from June 2016 to present day at its Memphis.

Silver Law Group is investigating former Texas-based IMS Securities, INC broker Jackie D Wadsworth for five pending FINRA arbitrations and a litany of disclosures on her FINRA BrokerCheck report

September 5, 2017 | Silver Law Group

Silver Law Group is investigating former Texas-based IMS Securities, INC (CRD#35567) broker Jackie D Wadsworth (CRD#2342163 ) for five pending FINRA arbitrations and a litany of disclosures on her FINRA BrokerCheck report.

According to Wadworths’s FINRA BrokerCheck report, she has five pending FINRA arbitrations filed in the past that allege unsuitable recommendations, failure to supervise, fraud, breach of duty of loyalty, and negligence for an aggregate amount of over $7.1 million.

FINRA’s BrokerCheck tool is a valuable way to examine a broker’s background. The investor tool discloses FINRA arbitrations that have been settled, are pending or have been denied; bankruptcies, civil judgments and tax liens, employment separations and other discharges, criminal proceedings, and regulatory actions. According to an InvestmentNews report, only about 12 percent of financial advisors have any type of disclosure events on their records.

What’s Being Done to Stop Elder Financial Abuse?

September 1, 2017 | Silver Law Group

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Learn about the new initiatives – and tech – that can keep you and your loved ones protected

Elder fraud is in the news a lot, but something is finally being done to help combat this growing problem. Many banks and brokerage firms are now beginning to take measures to keep their older customers protected. However, brokerage firms will frequently protect themselves to avoid lawsuits. If you feel that a stockbroker has abused your trust, counsel should be sought to try and recover damages.

Wells Fargo Advisors has been examining the issue for over a decade, and in 2010 the company started tracking cases of elder financial fraud. Then they were getting an average of about 30 every month. But four years later, that number climbed to almost 100. And now? It’s about twice that.