Securities Arbitration Lawyers Blog

SEC Charges Florida based DFRF Enterprises, LLC with Operating $15 Million Gold Mining Ponzi Scheme Targeting Spanish and Portuguese-speaking Investors

July 17, 2015 | Silver Law Group

The U.S. Securities and Exchange Commission (SEC) has charged Orlando, Florida-based DFRF Enterprises, LLC, its owner, and several of its promoters with operating a $15 million pyramid and Ponzi scheme falsely promising over 1,400 investors in Spanish and Portuguese-speaking communities in Massachusetts, Florida, and elsewhere interests in non-existent gold mines in Brazil and Africa. DFRF Enterprises, LLC (a Florida-based company), DFRF Enterprises LLC (a Massachusetts-based company) (collectively “DFRF”), company owner Daniel Fernandes Rojo Filho (of Winter Garden, FL), and investment promoters Wanderley M. Dalman (Revere, MA), Gaspar C. Jesus (Malden, MA), Eduardo N. DaSilva (Orlando, FL), Heriberto C. Perez-Valdes (Miami, FL), Jeffrey A. Feldman (Boca Raton, FL), and Romildo DaCunha (Brazil) were charged with multiple violations of federal securities laws in a Complaint filed in Massachusetts federal court. The SEC is seeking injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and civil monetary penalties.

According to the SEC, DFRF claimed to operate more than 50 gold mines in Brazil and Africa that collectively produced 13-16 tons of gold monthly, realized a return of over 100% on each kilogram it produced, and controlled gold reserves valued at approximately $1.4 trillion. The sales pitch also claimed, among other things, that DFRF donated 25% of its profits to African charities and that investors could realize a 15% monthly return — an annual return of nearly 200%. DFRF purportedly promised investors that their investments were fully insured and promised investors that with the company’s stock allegedly set to become publicly traded, each investor would have the ability to convert his/her membership interests into stock options at approximately $15.00 per share. When recently questioned about the status of the stock, Filho allegedly claimed that the “value” of the stock had already surpassed $64 per share.

However, according to the SEC: “There are no gold mines, no gold reserves, or no gold operations. DFRF bank documents indicate that none of the investors’ money has been used to conduct gold mining, and DFRF has received no proceeds from gold mining operations.” Instead, the SEC has charged that the company’s revenue came solely from selling membership interests to investors, not from mining gold; and that to keep the fraud afloat, commissions were paid to earlier investors using new investors’ funds in typical a Ponzi-like fashion. In the SEC lawsuit, Filho is accused of siphoning more than $6 million for his own personal lavish lifestyle that included a fleet of luxury automobiles.

Alex Makarovsky Recently Sanctioned by FINRA

July 16, 2015 | Silver Law Group

In the news again.

According to the FINRA website, Alex Makarovsky is once again in the hot seat for allegedly violating FINRA By-Laws and SEC rules. Makarovsky was most recently registered with Blackbook Capital, LLC.

Let’s go back a few years to build some context on his history. In 2010, while associated with Avenir Financial Group, Makarovsky allegedly made unauthorized trades in a client’s account. As a result, Makarovsky’s State of Indiana license was suspended for five years. In addition he and his firm had to pay a civil penalty and restitution to two customers.

Michael McGregor Suspended for 45 Days, Fined $5000

July 15, 2015 | Silver Law Group

Currently employed by and registered with Blackbook Capital, LLC

Since 1997, Michael Anthony McGregor has been registered with FINRA as a General Securities Representative (GSR). Through the years, McGregor has been subject to judgments and liens that have not been properly reported. By not reporting them, Michael McGregor is in violation of FINRA’s By-Laws and now he’s facing FINRA sanctions.

In March 2015, Michael McGregor was handed a 45-day suspension and fined $5,000 by FINRA for allegedly failing to amend and timely amend his FINRA registration to reflect unsatisfied judgments and liens he received. Without admitting or denying the findings, McGregor consented to the sanctions and to the entry of the findings.

Broker Robert Tricarico Permanently Barred from Securities Industry

July 14, 2015 | Silver Law Group

Alleged mismanagement of funds and failure to provide documentation to FINRA lead to Industry Bar

FINRA had questions for Robert Tricarico, Tricarico did not provide the information requested. And now Robert Tricarico is permanently barred from associating with any FINRA member in any capacity. That means he is barred from the securities industry forever.

To fill in the background, here are the details:

FINRA Bars Wesley C. Smith

July 13, 2015 | Silver Law Group

Earlier this year, the Financial Industry Regulatory Authority (FINRA) barred Wesley Smith from working for any FINRA member. The broker had been previously registered with Edward Jones from January of 2008 to September of 2014. According to the CRD, Mr. Smith had not passed any principal/supervisory exams, but had passed one general industry/product exam and one state securities law exam. Mr. Smith has five customer disputes that have been resolved, and one pending.

Following FINRA Notice of Suspension and Suspension from Association letters dated November 4, 2014 and December 1, 2014, FINRA, pursuant to Rule 9552(H), barred Mr. Smith from any association with any FINRA member in any capacity. Specifically, the bar resulted due to Mr. Smith’s failure to request termination of his suspension within three months of the date of the Notice of Suspension. While notice of it occurred on November 4^th, Mr. Smith’s actual suspension began on November 28, 2014. A failure to make a request to end a suspension results in an automatic expulsion or bar from association with FINRA. The sanction was officially ordered on February 9, 2015.

Operated by FINRA, the CRD is the central licensing and registration system for the U.S. securities industry and its regulators. It contains the registration records of over 6,500 registered broker-dealers. Additionally, the CRD contains the qualification, employment and disclosure histories of more than 650,000 active registered individuals. Access to the Web CRD is for entitled members only. In order to gain access, firms must go through the entitlement process administered by FINRA.

FINRA Terminates Brokers’ Licenses in June 2015

July 13, 2015 | Silver Law Group

According to FINRA Disciplinary actions for June 2015, 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
Jason Wade Cox	Edward Jones
Dillon M. Edwards	Princor Financial Services Corporation
Gino Arturo Fortis	H.D. Vest Investment Services
Gino Arturo Fortis	Foresters Equity Services, Inc.
Herbert Andrew Hood Jr.	Valic Financial Advisors, Inc.
Herbert Andrew Hood Jr.	Merrill Lynch, Pierce, Fenner & Smith Inc.
Rodney Bryan Howell	Transamerica Financial Advisors, Inc.
Melissa Diana Powell
Tina Lynn Reed	Merrill Lynch, Pierce, Fenner & Smith Inc.
Tina Lynn Reed	Wachovia Securities, LLC
Lynn Marie Schmidt	Meritus Financial Group, Inc.
Lynn Marie Schmidt	Rise, Inc.
Mark I. Stark	LPL Financial LLC
Mark I. Stark	Five Star Investment Services, Inc.
Peter Yao	Morgan Stanley
Peter Yao	Merrill Lynch, Pierce, Fenner & Smith Inc.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide 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.

Brokers’ Licenses Revoked by FINRA in June 2015

July 13, 2015 | Silver Law Group

According to FINRA Disciplinary actions for June 2015, the following individuals’ licenses were revoked for failure to pay fines and/or costs to FINRA pursuant to FINRA rules:

NAME	FORMER EMPLOYERS
Frank E. Brickell	World Trade Financial Corporation
Frank E. Brickell	Ameritrade
Rodney Preston Michel	World Trade Financial Corporation
Rodney Preston Michel	Del Mar Financial Services, Inc.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide 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.

FINRA Suspends Registered Individuals for Violations of FINRA Rules in June 2015

July 13, 2015 | Silver Law Group

According to FINRA Disciplinary actions for June 2015, the following individuals were suspended 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
Frank Carmen Aquila	Legend Equities Corporation
Frank Carmen Aquila	Legend Capital Corporation
Modesto Biney	Wells Fargo Advisors, LLC
Thomas Howard Caniford	LPL Financial LLC
Thomas Howard Caniford	M Holdings Securities, Inc.
Andrew M. Carter	LPL Financial LLC
Andrew M. Carter	NYLIfe Securities LLC
Fernando Diaz	JP Morgan Securities LLC
Fernando Diaz	Chase Investment Services Corp
Jordan Hart
Steven J. Hiles	NYLife Securities LLC
Erroll Constantine Hyde	H.D. Vest Investment Services
Erroll Constantine Hyde	Advantage Capital Corporation
Dolores Marie Jones
Ariana Grace Kaiser	ING Financial Partners, Inc.
Anthony Uzoma Ogbonna	JP Morgan Securities LLC
Anthony Uzoma Ogbonna	Chase Investment Services Corp
Bernard Popilevsky	JP Morgan Securities LLC
Bernard Popilevsky	Chase Investment Services Corp
Christina Powers
William Michael Quigley	Trident Partners Ltd
William Michael Quigley	Joseph Stevens & Company, Inc.
Michael Joseph Quinn	Independent Financial Group, LLC
Michael Joseph Quinn	LPL Financial LLC
Robert John Sprott	Securities Service Network, Inc.
Robert John Sprott	Walnut Street Securities, Inc.
Daniel Kunihiko Tamaki	NYLife Securities LLC
Mary V. Tropeano

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide 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.

FINRA Suspends Brokers for Failing to Comply with FINRA Rules in June 2015

July 13, 2015 | Silver Law Group

According to FINRA Disciplinary actions for June 2015, 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
Candius J. Bannister	Morgan Stanley
	Edward Jones
Michael Sean Cain	Morgan Stanley Smith Barney
	Morgan Keegan & Company, Inc.
John Paul Cech	Morgan Stanley
	Charles Schwab & Co., Inc.
Daniel Joseph Crowley	Rochdale Securities LLC
	Hoenig & Co., Inc.
Brendan Perry Frank	Morgan Stanley
	Citigroup Global Markets Inc.
Peter H. Kim	Morgan Stanley
	Wachovia Securities, LLC
Joshua T. Krieg	Merrill Lynch, Pierce, Fenner & Smith Inc.
	Morgan Stanley &Co., Inc.
William Russell Makepeace IV	USAA Financial Advisors, Inc.
	UBS Financial Services, Inc.
Donald James McBirney	Sterne, Agee & Leach, Inc.
	Oppenheimer & Co. Inc.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide 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.

Widow of HSN Founder Files Suit against Morgan Stanley

July 8, 2015 | Silver Law Group

Morgan Stanley has found itself on the wrong end of a Florida FINRA arbitration for claimed damages of $400 million. Lynnda Speer, the widow of Home Shopping Network (HSN) co-founder Roy M. Speer, filed the claim against Morgan Stanley and one of its branch managers and investment advisers. Due to its size, the firm acknowledged the claim in a disclosure in its annual financial report filed with the Securities and Exchange Commission (SEC) in March.

In addition to being the widow of Mr. Speer, Ms. Speer is the personal representative of his estate. In her claim, filed with the Financial Industry Regulatory Authority (FINRA), she alleges excessive trading, negligent supervision, and unjust enrichment. According to a SEC filing, the claims also include that Morgan Stanley and the adviser, working out of Palm Harbor, Florida, engaged in the unauthorized use of discretion and abused their fiduciary duty.

After helping to create the popular HSN, it was estimated by Forbes that Mr. Speer was worth $775 million in 2002. Before passing away in 2012, Mr. Speer suffered from “significant diminished capacity” during the later years of his life. It is alleged that during the final five years of his life, his adviser, Ami Forte, and the firm conducted roughly 12,000 unauthorized trades, which generated around $40 million in commissions. Also named in the suit is the Morgan Stanley branch manager, Terry McCoy.