Securities Arbitration Lawyers Blog

Alejandro Torres Barred by FINRA on Conversion Allegations

September 29, 2015 | Silver Law Group

Torres allegedly convinced a client to go into business with him, converted at least $59,600 for his personal use

After five years in the securities industry, Alejandro Ariel Torres has been permanently barred by FINRA on May 11, 2015 following allegations of converting customer money for his personal use. Most recently employed by Global Strategic Investments in Miami, Torres was previously employed by

Wells Fargo, BB&T, Statetrust Investments, Inc., and Edward Jones, all in South Florida.

Oriental Financial Services Fined and Censured by FINRA After Alleged Withholding Information

September 28, 2015 | Silver Law Group

The firm accepted sanctions including $50,000 fine

Oriental Financial Services was recently fined in the conclusion of a FINRA investigation alleging that the corporation withheld documents and information regarding a 2011 customer dispute in FINRA arbitration. Based in Puerto Rico, OFS also works for investors in Florida, Washington, D.C., New Jersey, New York, Texas and Virginia.

In 2011, the firm was involved in a customer dispute claiming a loss of more than $600,000, alleging a conflict of interest, which resulted in OFS being sanctioned by FINRA. The firm neither confirmed nor denied the allegations, but accepted sanctions in the form of a censure and a $50,000 fine.

Elder Fraud on the Rise in South Florida

September 26, 2015 | Silver Law Group

Elder Fraud on the Rise in South Florida on silverlaw.com

The Sunshine State may not be so sunny for seniors—here’s how to protect yourself and your loved ones from the unscrupulous and duplicitous

A running joke in sitcoms, movies, and even real life is that of retirees moving to South Florida to retire. Everyone dreams of sunny skies, beautiful beaches and trees that stay green all year long, right? But for targets of elder financial abuse, that dream can quickly become a nightmare.

According to Investment News, every day 10,000 of our 77 million baby boomers turn 65, officially making them senior citizens. That demographic is not the only thing that’s growing rapidly, however. Elder financial abuse is also on the rise.

FINRA Orders UBS Group AB to Pay Puerto Rico Investors $2.5 Million

September 25, 2015 | Silver Law Group

Good news for other investors who have suffered losses in Puerto Rico investments

For the tens of thousands of ordinary investors who have suffered losses due to the financial crisis in Puerto Rico, there is hope. According to an online article on The Wall Street Journal, Financial Industry Regulatory Authority (FINRA) arbitrators ordered UBS Group AG to pay nearly $2.5 million to a couple from San Juan who bought Puerto Rico bond funds through the bank. This legal win is a sign of hope for investors in Puerto Rico municipal-bond funds seeking to recover financial losses through securities arbitration.

UBS brokers allegedly told many investors that Puerto Rico bond funds were a safe investment, when in fact the funds were actually a risky investment due to their structure and investment strategy. In addition, it is alleged that UBS profited by collecting fees on sales and trades of the funds while at the same time the bank ultimately controlled a large part of the market for the funds.

Will the 2015 Market Break Cause FINRA Claims to Rise?

September 24, 2015 | Silver Law Group

Securities arbitration cases may increase due to margin calls made on behalf of ill-advised investors

According to the Securities Industry and Financial Markets Association (SIFMA) “Dashboard” publication for the week ending August 21, the 52-week range for the Dow was low. This break in the market, as well as the disappearing gains over the last year, drive the question: will investors suffer unnecessary losses due to excessive margin, overconcentration or other stockbroker negligence.

This remains to be seen. However, the practice of buying on margin—in short, borrowing money from a broker to purchase stock—could have a direct impact on brokers and brokerage firms. Many of these investors were encouraged to trade or sell speculative or low-priced securities through margin accounts. We have already received several calls from investors who were encouraged by cold callers to open accounts only to suffer losses.

FINRA Cancels Global Arena Capital’s License

September 24, 2015 | Silver Law Group

Cancellation is a direct result of alleged failure to pay fees

Global Arena Capital, a New York firm founded in 1985, was stripped of its license by FINRA on July 20. The license cancellation resulted from the firm’s failure to pay outstanding fees of nearly $50,000 to FINRA, but its previous disclosures in the past several years, specifically in dealing with senior investors, may have negatively impacted the firm’s ultimate fate.

The firm’s bad blood with senior investors was first revealed in July 2014, when a complaint was filed because representatives of the firm allegedly deceived and misled a senior investor by falsely promising high rates of return on a risky investment that they represented as a safe investment. According to FINRA, the bonds the representatives sold the investor were “junk bonds,” which are known to be particularly high risk.

David Ledoux Fined and Suspended by FINRA After Failing to Disclose Liens on His Registration

September 24, 2015 | Silver Law Group

Ledoux failed to report six liens between 2004 and 2012

Boca Raton broker David J. Ledoux faced a suspension and fine in June after allegations that he failed to file an updated Form U4 to reflect six liens in a timely manner, according to FINRA. Ledoux, who has been employed in the security industry since 2004, was permitted to resign from National Securities Corporation after allegedly failing to report liens between 2004 and 2012. He didn’t report four of them until 2014 and two were never disclosed.

This resulted in disciplinary action from FINRA, which levied sanctions against him in the form of a 45-day suspension and $5,000 fine. The first lien, which was civil, was in the amount of $369, but the remaining tax liens amounted to a total of more than $184,000, according to FINRA. According to the disclosures made on his FINRA Broker Check report, he is on an installment plan to repay two of them.

Former Morgan Stanley Employees File Suit Alleging Violations of the SEC Whistleblower Protections

September 23, 2015 | Silver Law Group

Couple launches $20 million retaliatory-firing suit against the firm

A husband and wife who were formerly employed by Morgan Stanley launched a $20 million suit against the firm Monday, alleging that it violated whistleblower protection laws by terminating their employment after they made complaints to supervisors about unfair practices occurring at the firm.

Jaime Feldman-Boland and James Boland filed the suit in New York federal court after both were fired in August and October 2011, respectively, due to what the firm considered “poor performance,” according to the complaint.

Securities Industry Lingo May Interfere With Financial Advising

September 22, 2015 | Silver Law Group

Study finds investors are more willing to invest in what they understand

Imagine going somewhere people are supposed to help you, where you’re assured you will be in good hands. Imagine arriving there and realizing everyone speaks a language that’s completely foreign to you. According to a study conducted by Invesco Ltd. in partnership with a firm specializing in language strategy, this hypothetical situation may be similar to how investors feel when meeting with brokers about alternative investments. Brokerage firms have created billions in proprietary products to sell to Main Street. Now, they need a good marketing company to convince the average retail investor that this is what they want to invest in.

The yearlong study, titled The Power of Alternatives, found that certain buzzwords that are generally accepted in the industry, such as “alternative investments” and “derivatives,” may overwhelm investors and turn them off to potentially beneficial investments. According to the Wall Street Journal, only 23 percent of investors would prefer to invest in “liquid alternatives,” while 77 percent chose “alternative mutual funds that are bought and sold like any other fund,” despite the fact that both options mean the same thing.

South Florida Broker Ralph Oelbermann Barred by FINRA

September 21, 2015 | Silver Law Group

Record shows customer disputes and failure to respond to FINRA request

FINRA barred Ralph Oelbermann in February after 23 years in the securities industry. According to FINRA’s website, the bar resulted from Oelbermann allegedly failing to respond to FINRA requests for information.

In 2013, Oelbermann was discharged from his employing firm, LPL Financial LLC, for what the firm claimed was unauthorized trading, according to FINRA. Stockbrokers generally cannot make trades in a customer’s account without first seeking the customer’s permission.