Securities Arbitration Lawyers Blog

Two South Florida Brokers in the FINRA Spotlight for Making Inappropriate Loans

September 3, 2015 | Silver Law Group

Patrick McGrath and Aaron Parthemer: Separate FINRA complaints for similar violations

In two separate FINRA disciplinary actions, two South Florida investment brokers were found to have made loans to, or borrowed funds from, their firm’s customers without permission. Generally, brokerage firms prohibit stockbrokers from asking clients for personal loans or otherwise soliciting direct investments from a client.

In the case of Fort Lauderdale, Florida-based Aaron Parthemer, his actions have resulted in his being permanently barred by FINRA from the securities industry in any capacity. While Parthemer did not admit to or deny the findings, he consented to the sanction and entry of the findings on several counts. Parthemer was registered with Wells Fargo Advisors, LLC in Fort Lauderdale, Florida.

Thomas Hogle Barred by FINRA After Alleged Lack of Cooperation With Investigation

September 1, 2015 | Silver Law Group

Allegations concern unsuitable, excessive and unauthorized trades for a 101-year-old customer

After 16 years in the securities industry, FINRA barred Thomas Morley Hogle from acting as a broker or associating with FINRA members in a professional capacity on May 11, according to the FINRA website.

The action comes in the wake of a FINRA investigation into whether Hogle made unsuitable investment recommendations to a 101-year-old customer. According to FINRA documents, FINRA requested documents and information from Hogle in two separate letters. When he did not respond to those requests FINRA staff spoke to him on the phone, at which time Hogle allegedly acknowledged the requests but stated that he would not produce the information requested at any point.

Neil Buysse Barred by FINRA

September 1, 2015 | Silver Law Group

Permanent action follows a three-month suspension from the securities industry

According to the Financial Industry Regulatory Authority (FINRA), Neil J. Buysse has been permanently barred from practicing within the securities industry following a 2014 suspension.

Buysse was suspended on Dec. 1 following his alleged failure to respond to a FINRA request for information. As of Feb. 10, Buysse has been barred from practicing in any capacity as a broker or as an investment adviser.

Anthony Diaz Permanently Barred by FINRA for Alleged Unethical Practices

August 31, 2015 | Silver Law Group

Diaz was also fined $10,000 amid allegations of fraud, negligence, unsuitability and misrepresentation

After a 14-year career in the securities industry marred by 44 disclosure events, Anthony Diaz has been permanently barred from acting as a broker and fined $10,000 by FINRA on June 10, 2015. This follows allegations of dishonest and unethical practices, according to FINRA’s report on the matter.

Between December 11, 2014 to May 12, 2015, Diaz was named in 20 customer disputes that are currently pending review by FINRA and one that was settled for $10,000. The amount of damages alleged against Diaz in just those five months total more than $7.3 million. According to the FINRA website, he was working for First Allied Securities, Inc., in Scotrun, Pennsylvania, when the alleged infractions occurred and continued at his subsequent firms.

Cetera Broker Alex P. Anderson Permanently Barred by FINRA

August 28, 2015 | Silver Law Group

Ohio broker Alex P. Anderson (CRD# 4243107) was permanently barred by FINRA in April 2015, for converting customer funds for his own use and benefit, in violation of FINRA Rules 2510 and 2010. According to the Letter of Acceptance Waiver and Consent, Anderson was appointed Power of Attorney over a 94 year-old customer of his, which gave Anderson broad authority over the customer’s financial affairs. Between May 21, 2014 and November 14, 2014, Anderson issued nine checks totaling $75,500 from the client’s bank account and deposited them into a bank account under Anderson’s control, for his own use and benefit. Due to these acts, Anderson violated FINRA Rules 2150(a) and 2010 and was permanently barred from the association with any FINRA member in any capacity. Anderson was registered with FINRA member firm Cetera Financial Specialists LLC from June 2004 through December 2014, and Hochman and Baker Securities Inc. of Stamford CT, from January 2002 through August 2004.

Many brokerage firms prohibit financial advisors from serving as trustees of clients’ trust accounts or executors of clients’ trust and estate plans. Financial advisors are generally prohibited from serving as power of attorney for elderly clients or managing money separate from investors’ accounts.

If you invested money with Alex P. Anderson or his firms and suffered losses, you may be entitled to recover some or all of those investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak with an experienced attorney and to find out how we may be able to help you regain some or all of your losses. Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful in your lawsuit.

FINRA Files Cease and Desist Order Against Avenir Financial Group, CEO Michael Clements, and Registered Representative Karim Ibrahim for Fraud Against Elderly Investors

August 27, 2015 | Silver Law Group

The Financial Industry Regulatory Authority (“FINRA”) announced on April 27th that Avenir Financial Group (“Avenir”), its CEO Michael Clements (“Clements”), and registered representative Karim Ibrahim a/k/a Chris Allen (“Ibrahim”), consented to an order halting further fraudulent sales of equity interests in the firm and promissory notes, pending a hearing on fraud charges related to the same offerings. The sales occurred from October 2013 through April 2015, and were often to elderly customers of the firm. According to FINRA, Avenir sold to several elderly investors including a 92 year-old customer who invested $250,000 for an equity interest in the firm, while Clements and Ibrahim falsely represented how the funds would be used, materially omitting and failing to disclose the firm’s financial difficulties, and thus willfully violated the Securities Exchange Act and FINRA rules. The misrepresentations and omissions that allegedly misled the elderly client included the fact that Avenir was in dire financial condition, as well as that he overpaid for his shares as compared to earlier investors.

Avenir is a New York, NY based full service broker-dealer. According to FINRA, during its 3-year operation as a FINRA member firm, Avenir and its branch offices raised over $730,000 in 16 issuances of equity or promissory notes, and most of the sales of equity and promissory notes were to elderly customers of the firm.

FINRA obtained the Cease and Desist Order based on its concern for ongoing customer harm and depletion of investor assets, prior to completion of a formal disciplinary proceeding against the firm and these individuals. Under FINRA rules, the individuals and firms named in a complaint can file a response and request a hearing before a FINRA disciplinary panel. Possible sanctions include a fine, and order to pay restitution, censure, suspension or bar from the securities industry. The issuance of the disciplinary complaint represents the initiation of a formal proceeding by FINRA, in which findings as to the allegations in the complaint have not been made, and does not represent a decision as to any of the allegations contained in the complaint.

Blackbook Capital LLC Fined $50,000 by FINRA

August 26, 2015 | Silver Law Group

Firm Allegedly Listed Commissions as “Miscellaneous” or “Additional Fees”

BlackBook Capital, LLC, with headquarters on Wall Street in New York City, has been sanctioned by FINRA for allegedly mischaracterizing and understating commissions charged to its investors, among other charges.

According to the FINRA disclosure, the firm –without admitting or denying the findings – consented to the sanctions and the entry of findings that it charged its customers $60.50 on separate transactions in addition to or in place of a designated commission charge. The charges were allegedly listed as “miscellaneous” or “additional fee,” however a large portion of the charge could not be contributed to a cost or expense incurred by the firm. In short, it was a minimum commission charge.

New York Trident Partners Broker and CCO William Michael Quigley Permanently Barred by FINRA

August 26, 2015 | Silver Law Group

New York broker and Chief Compliance Officer of Trident Partners Ltd., William Michael Quigley (CRD# 1968265), was permanently barred by FINRA commencing on June 23, 2015, for failing to respond to a FINRA request for information, pursuant to FINRA Rule 9552(d). Quigley is barred from association with any FINRA member in any capacity. Quigley failed to request termination of his suspension within 3 months of the date of his Notice of Suspension, and therefore, was automatically barred by FINRA (FINRA Rule 9552(h)).

Additionally, on May 28, 2015, the Securities & Exchange Commission filed an indictment against Quigley alleging that he and his 2 brothers, Michael and Brian Quigley, participated in a fraudulent offering scheme from at least 2003 to 2012, while he was Chief Compliance Officer at Trident Partners Ltd., a brokerage firm in Woodbury, New York. The SEC alleges misappropriation of funds by the 3 brothers, as well as conspiracy to commit wire fraud and money laundering conspiracy in connection with a fraudulent investment scheme. “Quigley and his co-conspirators allegedly engaged in a coordinated and sophisticated scheme built on lies and deceit to defraud overseas investors,” stated Acting United States Attorney Kelly Currie, for the Eastern District of New York.

William Michael Quigley was registered with Trident Partners Ltd. from October 2007 through September 2014, and was employed by Joseph Stevens and Co. from October 2005 through September 2007.

Puerto Rico’s Debt Crisis Hits Home With Local Investors

August 26, 2015 | Silver Law Group

Promises of safe bond investments result in lost nest eggs

High returns and tax-free income and a government that could not default on its debt. If you think that sounds like a pretty sound investment, so did many who bought Puerto Rico bonds and leveraged bond funds sold by Swiss bank UBS.

According to a recent article in the New York Times, “Puerto Rico officials now say the government cannot afford to pay its $72 million in debt.” And, for the first time since the island became a United States protectorate 117 years ago, the government defaulted on a bond payment.

Randy Bostick Permanently Barred from Securities Industry

August 26, 2015 | Silver Law Group

This final action follows two previously disclosed customer disputes

Randy Bostick was barred from the securities industry following a suspension for failing to respond to a FINRA request for information.

According to the FINRA website, Bostick, who was most recently employed by Janney Montgomery Scott LLC at the time of his suspension, has two prior disclosures regarding customer disputes in his 14 years of practice in the industry.