Securities Arbitration Lawyers Blog

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.

Jed E. Tinder, Former Montana-based Western International Securities Broker Under Investigation

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Montana-based Western International Securities, Inc. (CRD# 39262) broker Jed E. Tinder (CRD# 1013144) over allegations of unsuitability, recklessness and negligence.

According to Tinder’s FINRA BrokerCheck report, Tinder currently has three (3) pending FINRA arbitration complaints. The first, filed in September 2015, alleges unsuitable recommendations and damages in the amount of $1.2 million. The second, filed in July 2016, alleges unsuitability and damages in the amount of $187,000. The third, filed in August 2016, alleges recklessness, negligence and damages in the amount of over $181,000.

In 2006, though denied, a customer filed a complaint involving variable annuities and equity-indexed annuities.

Marcos Yanez, former LPL Financial Broker Under Investigation Over Variable Annuities Misrepresentation Allegations

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Dallas, Texas-based LPL Financial LLC (CRD# 6413) broker Marcos Yanez (CRD# 5353857) over allegations that Yanez misrepresented certain aspects in the sale of a variable life insurance policy amidst other allegations.

According to Yanez’s FINRA BrokerCheck report, a customer filed a complaint against Yanez in March 2017. The FINRA arbitration complaint alleges misrepresentations in the sale of a variable life insurance policy, and that Yanez advised the customer to take out a margin loan in order to loan money to the advisor.

LPL Financial employed Yanez from December 2011 to March 2016 at its Dallas, Texas branch. According to Yanez’s detailed CRD report, Yanez operated under the moniker Staib Wealth Management from February 2014 until the name changed to Silver Sail Wealth Advisors in February 2015. Yanez is no longer registered with FINRA.

California Broker Kelly Althar Receives Permanent Ban from FINRA after Elder Fraud Case

April 20, 2017 | Silver Law Group

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The broker is reported to have made risky investments that lost a client most of her retirement savings

Early in 2017, the Financial Industry Regulatory Authority (FINRA) permanently banned Kelly Althar from acting as a broker. This action was the result of several allegations, including excessive trading, unsuitable recommendations, and possible elder financial fraud.

A 10-year veteran of the securities industry, Althar worked for these six firms, starting in 1995:

Elder Financial News Roundup: Daniel H. Glick and Investment Professionals Inc.

April 20, 2017 | Silver Law Group

Chicago investment advisor Daniel H. Glick. accused of stealing millions from elderly clients

In late March, the SEC won a temporary restraining order and asset freeze against Chicago, Illinois broker Daniel H. Glick. Glick – along with his firm, Financial Management Strategies Inc. – was accused of taking money from elderly clients and utilizing it for personal use, including spending it on a Mercedes. To cover up his actions, he is reported to have then created false account statements that exaggerated investment amounts and overstated the cash available.

The SEC had previously sued Glick, and in late March, U.S. District Judge Virginia M. Kendall signed an order freezing his personal assets and those of FMS, along with his other company, Glick Accounting Services Inc.

How FINRA is Addressing Elder Financial Fraud

April 20, 2017 | Silver Law Group

As Americans get older, FINRA regulations hope to prevent many people from becoming victims of investment fraud

Nearly 20% of all Americans 65 and older have, at one time or another, become the victim of elder financial fraud – and with this age group one of the most rapidly-growing segments of the U.S. population, regulatory agencies like FINRA have decided they need to take new steps to combat the problem.

Senior’s growing segment of U.S. wealth makes them a ripe target for unethical brokers and financial advisors

What Constitutes Elder Financial Fraud?

April 19, 2017 | Silver Law Group

An explanation of Florida’s statute

It’s an unfortunate fact, but often people are not treated very well as they age. And due to ailments, disabilities, or reduced cognition, the elderly are especially vulnerable to being taken advantage of. In many circumstances, this has to do with money, and frequently a financial professional is involved.

When someone hires a broker, they expect him or her to look out for their best interests. However, sometimes brokers think about themselves and their own financial situation before either their clients or professional regulations and ethics, and as a result, they commit elder financial fraud.

Bank-Based Brokerage Firm Fined $100,000 for Selling Senior Citizens Unsuitable Securities

April 18, 2017 | Silver Law Group

Investment Professionals, Inc. had been previously investigated for using high-pressure tactics on elderly clients in Massachusetts

A San Antonio-based investment firm operating in Massachusetts was recently fined $100,000 for selling seniors unsuitable investments. The firm, Investment Professionals, Inc., (IPI) which operates out of community banks throughout the state, had been the subject of an investigation by the Massachusetts Securities Division.

Financial advisors and the firms that supervise them have a duty to know their clients and their investment goals, and only recommend investments that are suitable for their financial situation. Unsuitable investment advice violates securities industry regulations, and recommending unsuitable, risky investments to elderly clients may be considered a form of elder financial exploitation. Unfortunately, this was not the first official state investigation of IPI’s marketing and sales methods.

Silver Law Group Files Securities Arbitration Claim Relating to California-based Cetera/Investors Capital Corp Broker Daniel B. Vazquez

April 18, 2017 | Silver Law Group

Our firm has filed a complaint against Irvine, California-based Cetera Advisors (CRD# 10299) relating to broker Daniel B. Vazquez Sr. (CRD# 3141463) after FINRA permanently barred Vazquez.

According to Vazquez’s FINRA BrokerCheck report, FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public in June 2016 for failing to respond to a FINRA request for information.

The permanent bar comes just two months after a FINRA arbitration was filed alleging unsuitable recommendations and unauthorized trades which led to portfolio losses.