Securities Arbitration Lawyers Blog

April 2017 FINRA Disciplinary Actions Suspend Registered Individuals for Failing to Comply with FINRA Rules

May 8, 2017 | Silver Law Group

According to FINRA Disciplinary actions for April 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
Adam Christopher Boynton	Morgan Stanley
	Wells Fargo Advisors, LLC
Olori Dennis Hamilton	Woodstock Financial Group, Inc.
	Blackbook Capital LLC
Jeffrey G. Lyon	Joseph Gunnar & Co. LLC
	Charles Vista LLC
Daniel Keenan Michelman	Rothschild Lieberman LLC
	PHX Financial, Inc.
Anthony Minerva	Richard James & Associates, Inc.
	J.D. Nicholas & Associates, Inc.
Russell Leo Sadler	Independent Financial Group, LLC
	Cambridge Investment Research, Inc.
Philip Jameson Staff	Ameriprise Financial Services, Inc.
	Wells Fargo Advisors, LLC
Scott Paul Strochak	Morgan Stanley
	Merrill Lynch, Pierce, Fenner & Smith Inc.
Donald Lee Watson Jr.	The Jeffrey Matthews Financial Group, LLC
	Stifel, Nicolaus & Company , Inc.
Patrick Justin White, Sr.	Laidlaw & Company (UK) Ltd.
	Blackbook Capital 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.

Registered Individuals Barred by FINRA in April 2017 for Failure to Follow FINRA Rules

May 8, 2017 | Silver Law Group

According to FINRA Disciplinary actions for April 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
Roberto Omar Bastardo	Wells Fargo Advisors, LLC
Christopher John Calandrino	Joseph Stone Capital LLC
Christopher John Calandrino	Cape Securities Inc
Kathy Campos
Dawn Deshean Davenport	J.P Morgan Securities LLC
Louis Vincent Fontanella Jr.	Allstate Financial Services, LLC
Louis Vincent Fontanella Jr.	David Lerner Associates, Inc.
Wanda L. Gilmer
Sherman Lee Greer	LPL Financial LLC
Sherman Lee Greer	UVest Financial Services Group, Inc.
John Francis Hart	WFG Investments, Inc
John Francis Hart	Questar Capital Corporation
Raul Enrique Jacobs	T2 Asset Management, LLC
Raul Enrique Jacobs	Waddell & Reed
Kyle Ryan Kurtz	Thrivent Investment Management Inc.
Kyle Ryan Kurtz	Thrivent Financial for Lutherans
Adela Ovadia Levy
Derrick Joseph Luttrell	Merrill Lynch, Pierce, Fenner & Smith Inc.
Derrick Joseph Luttrell	Charles Schwab & Co., Inc.
Destina Mantar	Goldman, Sachs & Co.
Roxanna Andrea Marin	Wells Fargo Advisors, LLC
Wesley Marion Oler IV	LPL Financial LLC
Wesley Marion Oler IV	Epic Retirement Services Consulting
Richard Byron Raff	Infinex Investments, Inc.
Richard Byron Raff	M&F Bank/Uvest Financial Services
Francesco Anthony Scarso	First Standard Financial Company LLC
Francesco Anthony Scarso	PHX Financial, 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.

Contingency Fee Attorneys

May 4, 2017 | Silver Law Group

When you give someone money to invest for you, you expect that they will do what is best for you and your situation. You’re counting on their financial knowledge and experience and that they will make the right decisions. In addition to your hard-earned money, you are giving them your trust.

This is why when that trust is broken, it can be devastating, especially if it hurts you and your family financially. Unfortunately, fraud or mismanagement can and does happen in the financial services industry. In some cases, an overzealous broker or firm may not explicitly mean any harm, but in others, the harm is clearly intentional.

Because any type of investment comes with a certain amount of risk, often investors don’t know that anything improper may have taken place when they’ve lost money. But in some cases, the broker or brokerage firm is at fault and violates financial industry regulations, and all parties should be held responsible.

FINRA Suspends Broker John Valliades After Allegations of Purchasing Investments Without Sufficient Authorization

May 2, 2017 | Silver Law Group

Valliades was also routinely accused of churning by former customers

According to the Financial Industry Regulatory Authority (FINRA), New York Broker John Valliades was involved in a regulatory dispute that occurred while he was employed with Petersen Investments, Inc., in New York, NY. FINRA also reports that Valliades “consented to sanctions and to the entry of findings that he exercised discretion in three customers” accounts without obtaining prior written authorization from customers.

The findings stated that while Valliades and his customers spoke and agreed upon investments for the customers’ accounts, he exercised time and price discretion in executing transactions on dates when he had not spoken with the clients. As a result, Valliades was suspended for 20 days from working in any capacity in the securities industry and fined $5,000.

Home Visits: We Can Come to You

May 1, 2017 | Silver Law Group

Unfortunately, some brokers and financial advisors devise ways to charge additional commissions, take unnecessary investment risks, or even defraud their clients. And one of the most egregious varieties of fraud or other improper financial activity involves taking advantage of older individuals, some of whom are not privy to information that is withheld by a financial adviser, and others who may have diminished mental capacity.

Although it’s common in the U.S., elder financial fraud frequently goes unreported. In many cases, this is because the person lacks information, is unaware of their rights, or does not know that there are mechanisms to potentially recover lost funds and hold brokers and financial advisers accountable. It’s also possible that an individual may be unable to travel, or he or she is simply uncomfortable giving too many details over the phone.

The Silver Law Group wants to help. If you have been the victim of elder financial fraud, we will gladly send an attorney to your home to discuss the situation. We’ll go over your options and discuss what steps to take next.

Texas-based Broker Patrick Perales Permanently Barred by FINRA

May 1, 2017 | Silver Law Group

Broker failed to respond to agency following discharge from Wells Fargo Advisors, LLC after allegations related to his status as Power of Attorney for a client

In August 2016, the Financial Regulatory Authority (FINRA) permanently barred former Wells Fargo Advisors, LLC broker Patrick Perales from participating as a broker or otherwise associating with firms that sell securities to the public. The regulatory action is a result of Perales’ failure to respond to FINRA’s requests for documents and information related to an investigation surrounding why his then employer, Wells Fargo Advisors, LLC discharged him earlier in 2016.

According to his FINRA BrokerCheck report, Wells Fargo Advisors terminated Perales’ employment in January 2016 “for reasons unrelated to the business of Wells Fargo Advisors, LLC. Banker acted as a paid POA (Power of Attorney) for a bank client without disclosing and obtaining approval to serve as POA for a client.” While the bank client admitted giving Perales Power of Attorney over his account and paying Perales to assist him with his business needs, the client also alleged that money was missing from his account. A violation of this trust could represent Power of Attorney fraud.

Are Brokers Allowed to Borrow from Customers?

April 30, 2017 | Silver Law Group

The answer, in most all cases, is “no”

In order to become licensed, one of the things a broker has to do is agree to adhere to the rules and regulations established by the Financial Industry Regulatory Authority (FINRA). One of these rules involves the borrowing of money from clients, and on this matter FINRA is very clear.

Among other stipulations, FINRA Rule 3240 says that unless the person is an immediate family member or a firm has specific written procedures about borrowing and lending, then it constitutes a violation.

Barry F. Connell, Formerly of Morgan Stanley, Under Investigation Over Allegations that he Stole From Clients

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former New Jersey-based Morgan Stanley (CRD# 149777) broker Barry F. Connell (CRD# 3070984) over SEC allegations that he stole money from his customers.

According to the SEC complaint, Connell misappropriated approximately $5 million from Morgan Stanley clients from December 2015 through November 2016. Allegedly, Connell carried out the scheme primarily by moving funds between certain client accounts and issuing wire transfers and checks from the accounts to third parties for his benefit. Over the course of approximately eleven (11) months, Connell made 100 unauthorized transactions, according to the SEC complaint.

According to Connell’s FINRA BrokerCheck report, Morgan Stanley discharged Connell in November 2016 after the allegations surfaced.

Former Morgan Stanley Broker Hilary J. Zimmerman Under Investigation Over Unauthorized Trading Allegations

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Mississippi-based Morgan Stanley (CRD# 149777) broker Hilary J. Zimmerman (CRD# 2191841) over unauthorized trading allegations.

According to Zimmerman’s FINRA BrokerCheck report, Zimmerman is the subject of seven (7) disclosures. Out of the seven disclosures, Zimmerman has had three (3) settled on his behalf and one (1) in which a FINRA arbitration panel found in favor of the claimants.

In 2010, multiple claimants alleged Zimmerman excessively traded their accounts in unsuitable transactions, and the FINRA arbitration panel awarded over $387,000 to the claimants.

Brett S. Murphy, Boca Raton, Florida-based Revere Securities Broker Under Investigation Over Allegations of Churning in Unit Investment Trusts

April 26, 2017 | Silver Law Group

Silver Law Group is investigating Boca Raton, Florida-based Revere Securities LLC (CRD# 14178) broker Brett S. Murphy (CRD# 2434384) over allegations that Murphy excessively traded unit investment trusts (“UITs”) in a customer’s account.

According to Scott’s FINRA BrokerCheck report, a customer filed a complaint against Scott alleging Scott churned the customer’s account in UITs and that the UITs were unsuitable. Further, the customer alleges that Scott’s employing firm, Oppenheimer & Co. Inc. (CRD# 249) as well as Revere Securities, failed to supervise Scott.

Oppenheimer employed Scott from July 2011 to March 2015 at its Palm Beach Gardens, Florida locations. Scott then moved further south to Revere Securities in Boca Raton, Florida where he is currently employed.