Securities Arbitration Lawyers Blog

Morgan Stanley Investigated for Securities Recommendations

March 26, 2015 | Silver Law Group

As discussed in last week’s Silver Law Group blog, Cobalt International and Seadrill Limited, two oil and gas publicly traded companies, are now defendants in class action lawsuits. The separate, but similar, suits allege that investors lost significant sums of money by relying on misleading information and SEC filings from each company.

Investigation Reveals Possibility of Inappropriate Investment Advice

It is believed that unsuitable and inappropriate advice from stock brokers and financial representatives who recommended the purchase of these companies contributed to losses suffered by investors. The Silver Law Group is currently investigating the role that the Morgan Stanley’s registered financial representatives may have played in investors’ losses.

Oppenheimer Hit With $20 Million in Fines

March 26, 2015 | Silver Law Group

Oppenheimer and Co. is an investment bank and full-service investment firm offering financial advisory services, capital market services, wealth management, investment banking, and related products and services worldwide. In late January, the Securities and Exchange Commission (SEC) charged Oppenheimer and Co. with violating federal securities laws by improperly selling penny stocks in unregistered offerings on behalf of customers.

Penny Stocks 101

“Penny stocks” are common shares of small public companies that trade at comparatively low prices per share. More specifically, the SEC defines a penny stock as a “security that trades below $5.00 per share, is not listed on a national exchange, and fails to meet other specific criteria.”

State of Florida Charges Four Computer Support Companies in Ruthless Fraud Scheme

March 17, 2015 | Silver Law Group

The Office of the Attorney General of the State of Florida has filed a series of complaints alleging that four South Florida companies — (1) ASAP Tech Help LLP, (2) E-Racer Tech LLC, (3) Protech Support LLC d/b/a Rapid Tech Support, and (4) Techfix USA LLC d/b/a Smart Support and First Class Tech Support — engaged in a ruthless telemarketing scheme through which each company allegedly marketed deceptive computer software and tech support services to consumers that were little more than false promises aimed at bilking consumers of millions of dollars.

According to the lawsuits, each company used software — such as pop-up ads warning of viruses or other malware — designed to trick consumers into thinking that there were problems with their home and office computers. The software directed consumers to call the companies, which then subjected those consumers to high-pressure deceptive sales pitches for tech support products and services to fix their non-existent computer problems. By preying upon consumers’ lack of technical knowledge, the companies were able to convince consumers that their computers were fraught with viruses and a multitude of computer errors for which those consumers purportedly needed security software and tech support services that typically cost between $99 and $600. In all, the companies were able convince numerous consumers that the non-existent problems actually did exist, and each company made huge profits in the process.

In November 2014, Florida’s Attorney General and the Federal Trade Commission obtained temporary restraining orders against two other South Florida-based tech companies (Inbound Call Experts LLC d/b/a Advanced Tech Support and Advanced Tech Supportco LLC) with similar deceptive schemes marketing and selling computer support services and software. The Attorney General now believes that some of the newly-charged scammers are former employees of the companies named in the November lawsuits.

Legal Recourse May be Available to Investors Hurt by Cobalt International and Seadrill Limited Stock Declines

February 19, 2015 | Silver Law Group

The recent and sharp decline of oil prices has been the source of joy for consumers at the gas pump. Unfortunately, many investors have been experiencing the opposite emotions as the price of many oil and gas related stocks have plummeted. Two of these companies are Cobalt International Energy, Inc. and Seadrill Limited. Cobalt is an international oil exploration company that has seen its stock price drop by well-over 50% since this time last year. Similarly, Seadrill is a separate offshore drilling company that has similarly seen its share prices fall by 72% in the past six months. Seadrill shareholders also saw their dividends suspended.

Losses Rooted in Violations?

The losses suffered by investors in Cobalt and Seadrill were exacerbated by alleged violations of misconduct and SEC violations by both entities. Among other misconduct, Cobalt has been accused of making false and misleading statements to investors, issuing equally false press releases, and filing misleading filings with the SEC. A number of the allegation center around statements by Cobalt regarding its access to Angolan wells and related unethical business practices.

Silver Law Group is Investigating Financial Advisor Anthony Fisher

February 3, 2015 | Silver Law Group

Anthony Fisher was a financial advisor with Morgan Stanley from 2003 through April 2009. He subsequently worked at Stifel, Nicolaus and Company. Mr. Fisher was suspended by FINRA in November 2014 for failing to pay an arbitration award. However, over the last decade, Mr. Fisher’s employers have been the subject of multiple customer FINRA arbitration claims relating to Mr. Fisher. In response to a FINRA request for information, Mr. Fisher failed to respond to FINRA or otherwise cooperate in FINRA’s investigation.

In December 2014, Stifel, Nicolaus & Company settled a case brought by one of Mr. Fisher’s former clients for $500,000 relating to allegations of fraud and unsuitable recommendations.

Stifel, Nicolaus & Company has been the recent subject of several FINRA arbitration claims relating to the sale of promissory notes and other equities. Mr. Fishers’ full CRD can be viewed here.

FINRA Bars Mark Foster from Securities Industry

February 3, 2015 | Silver Law Group

Mark Foster, of Pasadena, California, was barred from association with any FINRA member in any capacity. Foster worked for Stern Fisher Edwards, Inc. until May 2012. The sanction was based on findings that Foster failed to respond to requests from FINRA for information and documents and to appear and provide on-the-record testimony regarding allegations that he misappropriated more than $2 million in customer funds. Stern Fisher allegedly paid a customer $625,000 to settle the claim. (FINRA Case #2014039867601)

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 Bars Ismail Elmas for Theft of Client Funds

February 3, 2015 | Silver Law Group

Ismail Elmas, of Virginia, submitted an AWC in which he was barred from association with any FINRA member in any capacity. Elmas was registered with CUNA Brokerage Services, Inc. from 2007 through 2013. He subsequently worked for CUSO Financial Services, L.P. until August 2014. Without admitting or denying the findings, Elmas consented to the sanction and to the entry of findings that he failed to provide documents and information FINRA had requested in connection with an investigation into allegations that he converted client funds for personal use and participated in an unauthorized outside business activity. (FINRA Case 2014042148801) Mr. Elmas was discharged by CUSO because he allegedly engaged in an improper outside business activity. CUSO also claims it is cooperating with a client where a variable annuity was improperly surrendered.

If you invested money with Ismail Elmas, you may be entitled to recover some of your investment losses. Please call our securities law firm toll free at (800) 975-4345 to speak to an attorney to find out how we may be able to help you recover some of your investment losses.

SunTrust Investment Services, Inc. Fined by FINRA for Improper Assessment of Investment Advisory Fees

February 3, 2015 | Silver Law Group

SunTrust Investment Services, Inc. submitted an AWC in which the firm was censured and fined $80,000. SunTrust consented to the sanctions, without admitting liability, and to the entry of findings that it failed to establish a supervisory system reasonably designed to monitor the proper assessment of fees charged to certain investment advisory customers. The findings stated that the firm overcharged investment advisory fees to customers enrolled in one of the firm’s investment advisory programs. These overcharges resulted from the installation of new fee-engine software by the firm’s clearing firm that, without the firm’s knowledge, failed to correctly bundle certain asset classes for the purpose of calculating breakpoint discounts for fees. The firm failed to discover the investment advisory fee overcharges for a period of approximately two-and-a-half years. The firm also failed to conduct adequate periodic reviews to ensure that the proper fees were assessed for certain investment advisory accounts. (FINRA Case #2011029668001)

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 Broker, Phillip John Bucaro, Fined for Selling Unapproved Annuities

February 3, 2015 | Silver Law Group

Phillip John Bucaro submitted a FINRA AWC in which he was fined $7,500 and suspended from association with any FINRA member in any capacity for four months. Bucaro has been registered with The Leaders Group, Inc. since August 2012. Without admitting or denying the findings, Bucaro consented to the FINRA sanctions and to the entry of findings that he engaged in outside business activities by receiving approximately $203,000 in compensation for selling equity-indexed annuities (EIAs) to customers of his firm. The firm maintained an approved product list that included certain EIAs that the brokerage firm allowed its representatives to sell to customers. However, Bucaro sold EIAs to the firm customers that were not on the firm’s approved product list. Bucaro neglected to give prior or prompt written notice of his engagement in such business activities to the firm. (FINRA Case #2011028635701)

Investors who have suffered losses through the sale of variable annuities and non-traded REITsmay be able recover their losses through arbitration. The attorneys at Silver Law Group are experienced in representing investors in cases against brokerage firms for violations of the sales of these complex or high commission products. We primarily represent investors on a contingent fee basis and, in most cases, we will agree to advance any costs.

Thomas Neil Charbonneau Barred by FINRA for Selling Penny Stocks

February 3, 2015 | Silver Law Group

Thomas Neil Charbonneau, of Minnesota, submitted a FINRA AWC in which he was barred from association with any FINRA member in any capacity. Charbonneau was registered with Feltl and Company from March 2005 through October 2010. Charbonneau then joined Berthel Fisher & Company. Without admitting or denying the findings, Charbonneau consented to the sanction and to the entry of findings that he sold over 1.5 million shares of a speculative penny stock he owned, generating approximately $400,000, while he solicited and sold the same speculative penny stock to his clients without disclosing that he was selling his own proprietary holdings. Charbonneau’s conduct in failing to disclose his stock sales to his customers clearly prevented them from making an informed investment decision. The findings also stated that Charbonneau caused a customer to sign and initial in blank investment-related member firm documents pertaining to a potential investment in a REIT in contravention of his firm’s prohibition against such conduct. (FINRA Case #2010024882201)

Silver Law Group represents defrauded investors in FINRA arbitration claims for losses due to Wall Street malfeasance or stockbroker misconduct. We are currently investigating Thomas Neil Charbonneau and trading activity relating to penny stocks and the possibility of assisting any investors with the recovery of any losses they may have suffered. We primarily handle cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients. Any investors that believe they lost any money as a result of Mr. Charbonneau’s alleged improper sale of penny stocks may contact the securities and investment fraud attorneys at Silver Law Group for a free, no-obligation evaluation of their recovery options, at (800) 975-4345.