Securities Arbitration Lawyers Blog

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.

State Attorneys General Working to Stop Elder Fraud

September 1, 2017 | Silver Law Group

What they’re doing to fight this ‘silent epidemic’

One in 10. That’s an estimate of how many people 65 and older suffer some form of abuse, be it physical, financial, or otherwise. And it is likely that the numbers are much worse than that, as only about one in 24 cases of elder abuse is ever reported.

Fortunately, efforts are being made to tackle this growing problem. Derek Schmidt, Kansas Attorney General and president of the National Association of Attorneys General (NAAG), is planning to collaborate with the other 55 AGs around the U.S. The goal will be to share information and figure out ways to stop the abuse.

FINRA Permanently Bars Former Janney Montgomery Scott, LLC Broker David Aaron Seigerman

August 31, 2017 | Silver Law Group

Failure to respond to regulatory agency requests ends the securities industry career of this New Jersey-based broker

According to the Financial Industry Regulatory Authority (FINRA), David Aaron Seigerman failed to respond to the agency’s requests for information concerning his compliance with arbitration awards or settlement agreements with his customers.

In two separate complaints, Seigerman’s customers filed claims against the broker for allegedly executing unauthorized transactions within their accounts, failing to follow instructions, and breach of fiduciary duty. Allegations against Seigerman also include “selling away,” which is when a broker recommends outside investments that are not authorized by his member firm.

Former Alexander Capital, L.P. Broker Peyton Nelson Jackson is No Longer Registered in the Securities Industry

August 31, 2017 | Silver Law Group

The New York-based broker is under investigation for alleged unsuitability, negligence, and financial fraud, among numerous other charges.

During the course of a Financial Industry Regulatory Authority (FINRA) investigation into his potential misconduct as a securities broker, Peyton Nelson Jackson reportedly failed to provide information to the regulatory agency. The investigation was prompted by allegations made by several former customers who complained that Jackson and his former member firms violated numerous industry rules. While this investigation continues, Jackson’s status is considered “Previously Registered,” which means he is not currently licensed to act as a broker or investment adviser.

According to his FINRA BrokerCheck report, Jackson’s 25-year career included 15 disclosures (a disclosure includes any customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings, or any civil or criminal proceedings in which the broker was involved), including two regulatory actions. In May 2016, Jackson was suspended in all capacities from the securities industry for a period of six months and was fined $20,000 for allegedly failing to disclose that he performed business outside his member firm’s knowledge.