Securities Arbitration Lawyers Blog

FINRA Head: SEC Should Lead in Development of Fiduciary Standard

June 8, 2015 | Silver Law Group

Recently, the head of the Financial Industry Regulatory Authority (FINRA) told a congressional panel that the Securities and Exchange Commission (SEC) should take the lead in the development of a uniform fiduciary duty for broker-dealers and investment advisors. Currently, both the SEC and the Department Labor (DOL) are, independently, developing a uniform standard for stockbrokers and investment advisors.

Uniform Fiduciary Duty

Before the House of Representatives Financial Services subcommittee, Richard Ketchum, FINRA’s chairman and chief executive, stated that he supports the development of a standard that securities professionals act in the client’s best interest, regardless of whether they are a broker or investment advisor. Further, Ketchum stated that he believes that the SEC should be in charge of the development of this standard, while promising FINRA would provide assistance in this endeavor.

Pedro Molina’s Securities Industry Career Ends With FINRA Permanent Suspension

June 2, 2015 | Silver Law Group

Amid claims of unsuitable investment advice, Molina does not respond to requests for information

After not responding to a FINRA request for information, broker Pedro Molina is permanently suspended from the securities industry. According to the FINRA BrokerCheck website, Molina failed to request termination of his suspension from FINRA within three months of the date of his notice of suspension. Therefore, he is permanently barred from association with any FINRA member in any capacity.

While it might seem unusual for a broker not to respond to a FINRA request and allow a permanent suspension to occur, surprisingly, it is not uncommon. In the case of Pedro Molina, it follows a career during which customers’ alleged mismanagement of their investment funds and lack of production of documentation. In fact, in three of the customer complaints against him, customers alleged he gave misleading investment advice and made unsuitable investments in risky Puerto Rican funds. The combined alleged damages equal over $1.2 million dollars. In addition, Molina was “permitted to resign” from Kovack Securities, Inc. in February 2014 after admitting to having borrowed money from clients while with a previous employer.

Silver Law Group Files Securities Arbitration Case Against Dawson James

May 29, 2015 | Silver Law Group

The Silver Law Group has filed a securities arbitration claim before the Financial Industry Regulatory Authority (“FINRA”) on behalf of a family and a family business from South America alleging, among other things, that Dawson James failed to properly supervise one of its registered representatives, permitted an unsuitable investment strategy to be utilized and permitted the family’s investment accounts to be excessively traded for the purposes of generating huge commissions for itself and its registered representatives while wiping out most of their customers’ investment capital in a very short period of time.

Excessive trading or “churning,” as it is known in the industry, is the act of a broker who excessively and needlessly engages in trading in a client’s account primarily to generate commissions for the broker on each trade without regard for the client’s financial well-being. Churning is an illegal and unethical practice that violates SEC rules and securities laws.

Dawson James Securities markets itself as a full service investment firm specializing in complex healthcare, biotechnology, technology, and clean-tech sectors. Headquartered in Boca Raton, Florida, the firm has been in operation since 2002. Dawson James has been the subject of several regulatory investigations, some which resulted in disciplinary actions by regulators. For example, FINRA recently censured and fined Dawson James $75,000 for failing to provide adequate supervisory procedures. FINRA found that during the review period the firm failed to investigate numerous “red flags” relating to the activities of one registered representative. Dawson James also failed to enforce its written supervisory procedures which specified that all electronic correspondence is reviewed on a daily basis. The firm has also been the subject of several customer FINRA arbitration claims.

Brokers Suspended by FINRA in May 2015 for Failing to Comply with FINRA Award or Settlement Agreement

May 26, 2015 | Silver Law Group

According to FINRA Disciplinary actions for May 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
Jinesh Pravin Brahmbhatt	Success Trade Securities, Inc.
Jinesh Pravin Brahmbhatt	LPL Financial Corporation
Patrick Ryan Bray	Newbridge Securities Corporation
Patrick Ryan Bray	UBS Financial Services Inc.
Douglas Walter Campbell Jr.	Wedbush Securities Inc.
Douglas Walter Campbell Jr.	Brookstreet Securities Corporation
Andrew Joseph Donofrio	Garden State Securities, Inc.
Andrew Joseph Donofrio	Wells Fargo Advisors, LLC
Anthony Frank Giuliano III	EKN Financial Services, Inc.
Anthony Frank Giuliano III	John Thomas Financial
Greg James Hilliard	Toussaint Capital Partners, LLC
Greg James Hilliard	Oppenheimer & Co. Inc.
Brendon John Lyden	Oppenheimer & Co. Inc.
Brendon John Lyden	UBS Financial Services Inc.
Wilhelm Nash	UBS Financial Services Inc.
Wilhelm Nash	Credit Suisse Securities (USA) LLC
Alexander Walter Swanson

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.

SEC and FINRA Holding Compliance Program for Broker-Dealers

May 20, 2015 | Silver Law Group

Later this summer the Securities and Exchange Commission (SEC) and the Financial Industry National Regulatory Authority (FINRA) will jointly hold a National Compliance Outreach Program for Broker-Dealers. This one-day program is designed for compliance, audit, and risk officers of broker-dealer firms and frequently highlights areas of concern to FINRA.

Details of the Program

The program was created with the intention that it will provide regulators and industry professionals an open forum for discussion related to compliance practices. In addition, the program helps to facilitate the exchanging of ideas related to effective and efficient compliance structures.

FINRA Terminates Brokers’ Licenses in May 2015

May 20, 2015 | Silver Law Group

According to FINRA Disciplinary actions for May 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
Charles Eric Brown
Omar Campos	LPL Financial LLC
Omar Campos	Chase Investment Services Corp
Marie Elizabeth Cantu	Citigroup Global Markets Inc.
Marie Elizabeth Cantu	Citicorp Investment Services
James Arthur Champi	J.P. Morgan Securities LLC
James Arthur Champi	Chase Investment Services Corp.
Joseph Edmund Flores DeMeneses Jr.	COR Clearing LLC
Joseph Edmund Flores DeMeneses Jr.	Direct Access Partners LLC
Elon Isreal Henek	Sunstreet Securities, LLC
Elon Isreal Henek	EJ Sterling Inc.
Jonele Inise Hinton
Jeremy Shawn Hixson	U.S. Bancorp Investments, Inc.
Jeremy Shawn Hixson	Firstmerit Financial Services, Inc.
Mark Joy Lane	Cetera Advisor Networks LLC
Mark Joy Lane	Walnut Street Securities, Inc.
Salim Lyazidi	Kovack Securities Inc.
Salim Lyazidi	JHS Capital Advisors, LLC
Scott Frederick Matthews	Key Investment Services LLC
Scott Frederick Matthews	Ameriprise Financial Services, Inc.
Chadrick Alan Moss	Wells Fargo Advisors, LLC
Paul Avery Nicholls Jr.	MML Investors Services, LLC
Paul Avery Nicholls Jr.	Investment Professionals, Inc.
Jason Charles Parker	LPL Financial LLC
Jason Charles Parker	Edward Jones
Jane Linda Taylor	H.D. Vest Investment Services
Daniel L. Valdes	Suntrust Investment 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.

Stockbroker Thomas Tedeschi and Broker-Dealer Aegis Capital Corp. are the Subject of Multiple Securities Arbitration Claims Against Them for Churning

May 14, 2015 | Silver Law Group

According to FINRA, Thomas Tedeschi has recently been named in a securities arbitration lawsuit against him and his former employer, Aegis Capital Corp., for making unsuitable investments, unauthorized trades, misrepresentations and excessive trading (churning), among other claims. The assertions against him involve speculative securities that include penny stocks and Exchange Traded Notes. Mr. Tedeschi is required by law to only recommend or engage in transactions that are suitable to their individual client, and not to excessively trade in their accounts. This type of trading may be considered stockbroker misconduct called churning. The excessive buying and selling is done for the purpose of generating commissions for the broker, and not to benefit the client. In fact, it almost always results in enormous losses to the client.

Thomas Tedeschi began his stockbroker career in 1994 and has been employed by 17 different brokerage firms since then, seven of which have been expelled from the brokerage industry by FINRA for violations of the law and misconduct. It is quite a shocking record. Additionally, Aegis Capital Corp. has many claims against it, including 17 final regulatory violations that were filed by FINRA, NASDAQ Stock Market, and other regulatory bodies, for such violations as market manipulation, excessive buying and selling of illicit microcap stocks, failure to supervise and failure to disclose, late trade reporting, and other violations of NASD Rules and Texas Securities Acts as well. There is one regulatory violation claim currently pending. Aegis Capital Corp has also been fined on numerous occasions and has been suspended in the past from acting as a market maker.

If you invested money with Thomas Tedeschi or Aegis Capital Corp. 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 investment 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.

SEC Announces Fraud Charges against eCareer Holdings, Inc. and Brokers Dean Esposito of Boca Raton, FL, Joseph Devito of Brooklyn, NY and Frederick Birks of Orlando, FL

May 4, 2015 | Silver Law Group

The Securities and Exchange Commission (“SEC”) halted a microcap scheme in South Florida that included three boiler room stockbrokers trying to conceal the fact that they were barred from the securities industry. The stockbrokers’ investment scheme included the financial exploitation of the elderly, as well as the concealment of their disciplinary histories. Brokers Dean Esposito, Joseph Devito, and Frederick Birks, cold called investors, including many elderly, ages 85 to 98 years old, and defrauded them into purchasing unregistered stock shares of eCareer Holdings, Inc. The CEO of eCareer Holdings, Inc., Joseph Azzata of Boca Raton, FL, knowingly hired the 3 barred brokers and their sales agents, while allegedly perpetrating the fraud on investors.

“We allege that senior citizens and other investors were falsely told that purchasing eCareer stock was a good, profitable investment,” stated Eric Bustillo, Director of the SEC’s Miami Regional Office. “Concealed from these investors were the exorbitant fees being paid to sales agents as well as the disciplinary histories of Esposito, DeVito, and Birks.” That being, according to the SEC’s complaint filed in the U.S. District Court for the Southern District of Florida, these brokers were the subjects of a prior SEC enforcement action that resulted in them being barred from acting as a broker or dealer or participating in any offering of a penny stock, such as eCareer’s stock.

The SEC alleges that eCareer, Azzata, Esposito, Devito and Birks fraudulently raised more than $11 million in funds from more than 400 investors since August 2010, and that $3.5 million of that amount was for undisclosed exorbitant fees. The SEC seeks disgorgement of ill-gotten gains, prejudgment interest, and financial penalties among other relief for investors. The SEC’s request for a temporary restraining order was granted as well as an asset freeze. The SEC also suspended the trading in shares of eCareer Holdings.

FINRA Terminates Brokers’ Licenses in March 2015

April 30, 2015 | Silver Law Group

According to FINRA Disciplinary actions for March 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
Enver Rahman Alijaj	Avenir Financial Group
Enver Rahman Alijaj	Legend Securities, Inc.
Benjamin Robert Byruch	HFP Capital Markets LLC
Todd Alan Cummings	J.P. Morgan Securities LLC
Todd Alan Cummings	Chase Investment Services Corp.
Jesse Joseph Holovacko	Merrill Lynch, Pierce, Fenner & Smith Inc.
Jesse Joseph Holovacko	UBS Financial Services Inc.
Edwin Rafael Mejia	Wells Fargo Advisors, LLC
Augustine Ogheneochuko Olobia	Capital One Sharebuilder, Inc.
Augustine Ogheneochuko Olobia	Charles Schwab & Co., Inc.
Engjell Pasha	Newbridge Securities Corporation
Engjell Pasha	J.P. Turner & Company, LLC
Kenneth Lee Severinsen	Rockwell Global Capital LLC
Kenneth Lee Severinsen	Brookstone Securities, Inc.
Gary Clark Steciuk	Capital Synergy Partners
Gary Clark Steciuk	Financial West Group
Timothy Eugene White	Allstate Financial Services, LLC
Timothy Eugene White	U.S.-Worldwide 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

April 30, 2015 | Silver Law Group

According to FINRA Disciplinary actions for March 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
Charles Eric Brown
Omar Campos	LPL Financial LLC
Omar Campos	Chase Investment Services Corp.
Joseph Edmund Flores De Meneses Jr.	Cor Clearing LLC
Joseph Edmund Flores De Meneses Jr.	Direct Access Partners LLC
Dillon M. Edwards	Princor Financial Services Corporation
Bethanne Haight
Elon Israel Henek	Sunstreet Securities, LLC
Elon Israel Henek	EJ Sterling Inc
Jonele Inise Hinton
Jeremy Shawn Hixson	U.S. Bancorp Investments, Inc.
Jeremy Shawn Hixson	FirstMerit Financial Services, Inc
Katherine Farber Lapidoth	Wells Fargo Advisors, LLC
Katherine Farber Lapidoth	Morgan Stanley Smith Barney
Scott Frederick Matthews	Key Investment Services LLC
Scott Frederick Matthews	Ameriprise Financial Services, Inc.
Chadrick Alan Moss	Wells Fargo Advisors, LLC
Jason Charles Parker	LPL Financial LLC
Jason Charles Parker	Edward Jones
Melissa Diana Powell
Daniel L. Valdes	Suntrust Investment 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.