Securities Arbitration Lawyers Blog

Cetera Subsidiaries Ordered to Pay More Than $6 Million for Variable Annuities Violations

January 17, 2017 | Silver Law Group

The Financial Industry Regulatory Authority (“FINRA”) fined eight firms, including VOYA Financial Advisors (CRD# 2882) (“VOYA”) and five broker-dealer subsidiaries of Cetera Financial Group (Cetera Advisor Networks LLC (CRD# 13572)), for failing to supervise sales of variable annuities (VAs). The eight firms are required to pay a fine of $6.2 million in total.

The eight firms and the respective fines are as follow: VOYA, fined $2.75 million; Cetera Advisor Networks, fined $750,000; Cetera Financial Specialists LLC (CRD# 10358), fined $350,000; First Allied Securities, Inc. (CRD# 32444), fined $950,000; Summit Brokerage Services, Inc. (CRD# 34643), fined $500,000; VSR Financial Services, Inc. (CRD# 14503), fined $400,000; Kestra Investment Services, LLC (CRD# 42046), fined $475,000; and FTB Advisors, Inc. (CRD# 17117), fined $250,000.

Cetera Financial Group owns Cetera Financial Specialists, Cetera Advisor Networks, First Allied, Summit, and VSR. For more information on Cetera, visit our firm’s background page on the broker-dealer and its subsidiaries.

Former VSR Financial Broker John H. Towers Under Investigation for 46 BrokerCheck Disclosures

January 17, 2017 | Silver Law Group

Silver Law Group is investigating former Plano, Texas-based VSR Financial Services, Inc. (CRD# 14503) broker John H. Towers (CRD# 700221) due to an extraordinarily high amount of FINRA BrokerCheck disclosures alleging unsuitable recommendations and negligence.

According to John H. Towers FINRA BrokerCheck report, Towers has 46 misconduct disclosures, most of which are FINRA arbitrations. All the FINRA arbitrations allege that Towers recommended unsuitable investments and many allege overconcentration, and all but five of the disclosures have come in the last five years.

This is an extraordinary amount of FINRA BrokerCheck disclosures. While one or two complaints over a long period of time in the industry is not unheard of, the complaints Towers has amassed over a short period of time is concerning. Out of the 46, 42 are FINRA arbitrations and 35 of those have settled.

Summit Brokerage Services Broker Keith A. Bradley Under Investigation for Unsuitable Recommendations and Negligence Allegations

January 17, 2017 | Silver Law Group

Silver Law Group is investigating Houston, Texas-based Summit Brokerage Services, Inc. (CRD# 34643) broker Keith A. Bradley (CRD# 868141) after a customer filed a FINRA arbitration alleging unsuitable recommendations and negligence.

According to Bradley’s FINRA BrokerCheck report, a customer filed a FINRA arbitration against Bradley in July 2016 alleging unsuitable investments, negligence, and $100,000 in damages.

In addition to the FINRA arbitration filing, Bradley has four other disclosures on his FINRA BrokerCheck report. The other four are all tax liens accrued in separate cases. His first came in 1989 and is for an unspecified amount. His second tax lien was in 1999 in the amount of $109,000. His third came three years later in 2002 in an amount of $108,000. His most recent tax lien was in 2011 in the amount of $400,000.

L-Share Violations has 5 Cetera Financial Group Firms Paying Almost $3 Million in Fines

January 14, 2017 | Silver Law Group

On November, 2016, FINRA announced fines against five (5) Cetera Financial Group brokerage firm subsidiaries in an amount of $2.95 million for supervisory failures related to variable annuity L-shares.

FINRA fined the following Cetera Financial Group-related firms:

Cetera Advisor Networks LLC (CRD# 13572) of El Segundo, CA, was fined $750,000.

K.C. Ward Financial Broker Craig David Dima Under Investigation by FINRA

January 12, 2017 | Silver Law Group

K.C. Ward Financial Broker Craig David Dima Under Investigation by FINRA on silverlaw.com

Regulatory action is pending against New York financial advisor for unauthorized trading, misrepresentation and omissions, among other allegations

In August 2016, the Financial Industry Regulatory Authority (FINRA) initiated an investigation into allegations against Craig David Dima made by one of his long-standing customers. The complaint alleges that Dima made approximately 41 unauthorized sales of a company’s stock in the account of a senior customer. It also alleges that to conceal this unauthorized trading, Dima made fraudulent misrepresentations and omissions to the customer. In fact, it is alleged that Dima falsely told the customer that the sales were the result of computer issues, human error, or statements to that effect, rather than his unauthorized trades.

The customer, a 72-year old retired employee of Colgate-Palmolive Company (Colgate), worked 28 years for the company and accumulated the stocks throughout her career.

President and CEO Leigh Garber Suspended by FINRA

January 12, 2017 | Silver Law Group

President and CEO Leigh Garber Suspended by FINRA on silverlaw.com

It was the New Woodstock, NY executive’s second suspension in 10 months

In October, Leigh Garber received a three-month suspension from the Financial Industry Regulatory Authority (FINRA). It was the second time in 2016 that she was penalized by the agency.

An 18-year veteran of the securities industry, Garber first began with IBN Financial Services, Inc. in Liverpool, NY. She then proceeded to work for several firms in New Woodstock, NY, before starting at National Securities Corporation in November of 2015.

New Jersey Broker David Seigerman is Permanently Barred by FINRA

January 11, 2017 | Silver Law Group

New Jersey Broker David Seigerman is Permanently Barred by FINRA on silverlaw.com

Failure to respond to agency request ends Seigerman’s securities industry career

According to the Financial Industry Regulatory Authority (FINRA), New Jersey-based broker David Seigerman failed to respond to the agency’s request for information and a result has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Working as a broker in the securities industry for twenty years, customer complaints about Seigerman’s performance began in 2007. Since then, there have been five customer disputes filed against him, according to his FINRA BrokerCheck report. Damage amounts requested against Seigerman exceed $1.3 million from customers claiming he engaged in unauthorized trading, breach of fiduciary duty, and unsuitability, among other allegations.

Boston Investment Partners Broker Richard Cody Charged with Defrauding Retirees

January 6, 2017 | Silver Law Group

The SEC is investigating a crime that goes back more than a decade

In December of 2016, the Securities and Exchange Commission (SEC) filed a complaint in Boston’s federal court against broker Richard Cody. The complaint charged Cody with defrauding at least three of his retired clients. He was registered as a broker with Concorde Investment Services, but conducted business as Boston Investment Partners.

The SEC alleges that over a 12-year span, Cody concealed from those clients that their retirement accounts had suffered losses, and that he led them to believe that their investments were maintaining value and that they were living off income from them.

Former Wells Fargo Broker Under Investigation After FINRA Suspended Him For to Unauthorized Trading Allegations

January 5, 2017 | Silver Law Group

Silver Law Group is investigating former Wells Fargo Advisors, LLC (CRD# 19616) broker Robert T. Tuffy (CRD# 1201052) after FINRA barred him over unauthorized trading allegations.

According to Tuffy’s FINRA BrokerCheck report, FINRA suspended him in July 2016 for executing six trades in two accounts of a customer prior to receiving the customer’s authorization. FINRA and Tuffy entered into an Acceptance, Waiver & Consent (“AWC”) memorializing the sanction.

The suspension follows a termination of employment by Wells Fargo in October 2015, according to the BrokerCheck report.

FINRA Arbitration Awards Risk Going Unpaid in the Face of Closing Brokerage Firms

January 5, 2017 | Silver Law Group

Scott L. Silver, Managing partner of Silver Law Group was recently sourced in an InvestmentNews article discussing the issue of unpaid FINRA arbitration awards for brokerage firms that are going out of business.

According to the InvesmentNews report, FINRA reported that the number of brokerage firms open for business today is 13 percent less than were opened in 2011. These closing firms are obviously not the one making big dollars for their customers or else they’d still be in business, and that poses a problem for many aggrieved investors seeking retribution for securities misconduct and fraud.

Sometimes, the FINRA arbitration awards simply go unpaid.