Securities Arbitration Lawyers Blog

Former Cetera Advisors Broker Abraham Heimann Faces Several Complaints

October 4, 2017 | Silver Law Group

Since the beginning of 2017, he’s been involved in numerous customer disputes

For the time being, Abraham Heimann is not working as a broker. He started at Cetera Advisors LLC out of Alpharetta, Georgia, in June of 2013, but his employment there ended in early 2016. And even though he has not been in the securities industry for over a year, he is currently facing many serious allegations.

The first customer dispute came in January. Among other things, Heimann was charged with unsuitability, unauthorized trading, and breach of contract stemming from an account he managed from 2009 to 2013. The customer is seeking over $876,000 in damages.

Former Edward Jones Broker Steven Olejniczak Discharged, Suspended, and Fined

October 2, 2017 | Silver Law Group

The West Des Moines broker is under suspicion of elder financial fraud surrounding agreement with 76-year old customer.

According to the Financial Industry Regulatory Authority (FINRA), Steven Anthony Olejniczak was discharged from his employment with Edward Jones in West Des Moines, IA in May 2016 for failing to report to the firm that he was named as a beneficiary of a non-related client’s Transfer on Death account.

More recently, in May 2017, Olejniczak’s BrokerCheck report shows that the broker not only allegedly failed to comply with his member firm’s policies and procedures requiring him to notify the firm of his designation as beneficiary (while he continued to service the account), but that he also failed to notify the firm that the customer had also named Olejniczak’s wife as the beneficiary of 90 percent of the assets in another firm account.

Cetera Advisor Networks, LLC

September 30, 2017 | Silver Law Group

Founded in 1983, Cetera Advisor Networks, LLC (CRD# 13572) is one of the largest independently managed brokerage firm in the U.S. Based in El Segundo, California, the company has a network of 10 broker-dealer firms consisting of nearly 10,000 advisors.

Cetera was originally created under the name of Financial Network Investment Corporation (FNIC). FNIC was sold to Aetna Financial Services in 1997; three years later, Aetna was acquired by ING Group. The firm – along with two other ING Group firms – was bought by Lightyear Capital, where it was renamed Cetera Financial Group.

In 2014, Lightyear sold Cetera for $1.15 billion to RCS Capital Corporation, which was partially owned by Nicholas Schorsch. Schorsch and his companies became infamous for the many BDCs and REITs they sponsored.

An Investigation into David Wesley Wells Results in a Permanent Bar from the Securities Industry

September 30, 2017 | Silver Law Group

An Investigation into David Wesley Wells Results in a Permanent Bar from the Securities Industry on elderfinancialfraudattorneys.com

The former Mid Atlantic broker was accused of violating his duty as a trustee

Earlier this year, the Financial Industry Regulatory Authority (FINRA) began investigating David Wesley Wells due to allegations that he misappropriated funds from at least one client. When Wells refused to give FINRA the information it needed, the agency permanently barred him. This means that he can no longer have anything to do with firms that sell securities.

Wells began his brokerage career in 1999 when he went to work for Mid Atlantic Capital Corporation in Hanover, Pennsylvania. In 2002, while still with Mid Atlantic, he also began working for Counsel Trust Group, and independent contractor office. It was a Counsel customer who charged him with misappropriation. According to FINRA’s BrokerCheck report, when Mid Atlantic discovered the allegations against Wells, he was terminated.

V. Cullen Kempson III Fined and Suspended by FINRA

September 30, 2017 | Silver Law Group

The New Jersey broker is alleged to have committed elder financial fraud

V. Cullen Kempson III (also known as Voigt C. Kempson) was fined and suspended earlier this year by the Financial Industry Regulatory Authority (FINRA). The agency discovered and reported that he had made trades in the account of a deceased customer.

Kempson wouldn’t admit or deny the findings, but he agreed to the 30-day suspension and $5,000 fine. Although he is now able to act as a broker again, he’ll need to find a new firm, as his most recent employer – Commonwealth Financial Network of Sparta, NJ – fired him when it learned about these reports.

Silver Law Group announces FINRA Arbitration filing against former Morgan Stanley Broker Angel E. Aquino-Velez

September 29, 2017 | Silver Law Group

Silver Law Group is investigating claims against Miami-based stockbroker Angel E. Aquino-Velez. According to FINRA records, Mr. Aquino is no longer registered with Morgan Stanley. Aquino’s FINRA BrokerCheck record shows (11) total Customer Disputes with (3) of those disputes still pending resolution. The pending claims allege unsuitability and misrepresentation with respect to municipal bond investments primarily relating to Puerto Rico. The damages being sought in the 3 pending complaints total over $6.9 million.

Silver Law Group has filed on behalf of a customer a securities arbitration claim against Aquino and Morgan Stanley alleging the customer lost several million dollars in Puerto Rico municipal bonds because of Morgan Stanley’s negligence. The allegations against Morgan Stanley and Aquino include unsuitable investment recommendations, failure to diversify, and failure to supervise based on investments in Puerto Rico municipal bonds.

For aggrieved investors, brokers and brokerage firms are required to recommend suitable investments and abide by other securities rules. In some cases with Puerto Rican bonds, these brokers and brokerage firms have failed to make reasonable recommendations among other forms of misconduct.

Darnell Anthony Deans Receives a Permanent Bar from FINRA

September 22, 2017 | Silver Law Group

After numerous allegations, his 23-year career has come to an end

The Financial Industry Regulatory Authority (FINRA) has permanently barred Darnell Anthony Deans from the securities industry. The agency’s final ruling came after years of sanctions, suspensions, and fines related to a charge that he borrowed money from clients.

In 2015, FINRA discovered that Deans had three federal tax liens totaling about $250,000 and reported that he borrowed money from elderly clients in order to pay his debt. He allegedly did this without getting permission from his firm and, when questioned, he lied about his actions. If his clients did not know they were lending him money or he lied about what it would be used for, this could constitute elder financial fraud.

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