Securities Arbitration Lawyers Blog

Stephen Eldridge Ridgely, II Barred from Securities Industry

January 16, 2015 | Silver Law Group

Silver Law Group is investigating Stephen Eldridge Ridgely, II who was suspended by FINRA for failing to respond to FINRA requests for information.

Mr. Ridgely was registered with Ameriprise Financial Services, Inc.’s Plantation, Florida office from September 2012 through March 2014. Prior to that time, he was registered with Merrill Lynch’s Coral Springs, Florida office.

According to Mr. Ridgely’s BrokerCheck Report, he was the subject of a FINRA arbitration claim alleging unauthorized transactions which settled in August 2014. In November 2013, Merrill Lynch settled another claim involving Mr. Ridgely for $745,000 relating to claims alleging unauthorized trading, unsuitable investments and excessive trading.

FINRA Files a Complaint against Peter Michael Terlecky III for Improper Variable Annuity Sales

January 16, 2015 | Silver Law Group

Peter Michael Terlecky III, of Grand Island, New York, was named a respondent in a FINRA complaint alleging that he circumvented his member firm’s supervisory and compliance procedures by concealing and failing to process variable annuity purchase transactions totaling approximately $2.3 million as annuity replacement trades, even though each purchase was funded by the sale of a fixed or variable annuity. Mr. Terlecky was registered with Princor Financial Services from 1992 through August 2011 and is currently registered with MML Investors Services, LLC. The complaint alleges that Terlecky concealed the variable annuity replacements from his firm’s supervisory review by structuring them as separate trades through a two-step process, rather than through annuity exchanges. Terlecky accomplished this by transferring the sale proceeds from the replaced annuity to a firm brokerage (money market) account and then, after waiting a short period, usually seven days or less, used the funds in the brokerage account to purchase the new variable annuity. Terlecky prepared and submitted new account forms and annuity documents to the firm for each of the variable annuity replacements containing numerous misrepresentations and items of false information that further disguised the true nature of these transactions. Terlecky earned greater commissions and avoided supervisory scrutiny by circumventing firm procedures and concealing the annuity replacements. Conversely, the customers allegedly suffered harm as a result of this misconduct by, among other things, being deprived of receiving firm-mandated disclosures of material facts regarding annuity replacements and the opportunity of performing a meaningful comparison between the annuities they were selling and those they were considering for purchase, and, in some instances, unnecessarily incurring new seven year surrender periods with their replacement variable annuities. (FINRA Case #2011029089201)

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.

FINRA Files Regulatory Charges against Meyers Associates, L.P., Imtiaz A. Khan and Bruce Meyers for Improperly Marketing a Private Placement

January 16, 2015 | Silver Law Group

Meyers Associates, L.P. (CRD# 34171), Imtiaz A. Khan (CRD# 4084250) and Bruce Meyers (CRD# 1045447), of New York, New York, were named respondents in a FINRA complaint alleging that the firm and Meyers engaged in the improper public offering and sale of unregistered securities, in contravention of the Securities Act of 1933. The complaint alleges that through general solicitation, the firm and Meyers marketed an unregistered offering to over 1,000 individuals using boiler-plate emails, without first establishing a substantive relationship with each recipient solicited. In selling the offering, Meyers made exaggerated and unbalanced claims and improper predictions of how the stock would perform and omitted material facts, including full disclosure of the firm’s, Khan’s and Meyers’ ownership interest in the company. The emails did not contain adequate risk disclosures and failed to present a fair view of the investments. The FINRA complaint also alleges that the firm was required to file a private placement memorandum (PPM) for another offering with FINRA at or prior to the first time the document was provided to any prospective investor. The firm failed to do so and did not file the PPM until at least three months after providing the PPM to a prospective investor. Meyers was one of the majority owners of Sign Path Pharma, Inc.

The complaint further alleges that the firm failed to establish and maintain a reasonable system for maintaining accurate books and records. Khan and Meyers caused the firm to record payments in its books and records, including payments for personal expenses improperly. As a result, the firm willfully violated Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-3, 17a-4 and 17a-5 thereunder; NASD Rule 3110; and FINRA Rules 2010 and 4511 by creating and maintaining inaccurate books and records.

In addition, the complaint alleges that the firm failed to establish and maintain a reasonable system, including adequate WSPs, for the review by a registered principal of incoming and outgoing electronic correspondence. The firm did not maintain any documentation that adequately identified the communications reviewed, the reviewers or the dates on which the communications were reviewed. The firm failed to report, and failed to timely report, customer complaints. Most of the complaints were sent to registered representatives via email, and contained allegations of sales practice violations. The firm failed to locate many of these emails through any supervisory review of email communications. The firm also failed to establish, maintain and enforce written supervisory control policies and procedures concerning the transmittal of customer funds and the activities of producing managers. In addition, the firm prepared a deficient NASD Rule 3012 report during 2009. (FINRA Case #2010020954501)

FINRA Files Disciplinary Charges against Global Strategic Investments, LLC

January 14, 2015 | Silver Law Group

Global Strategic Investments, LLC, of Miami, Florida, was named a respondent in a FINRA complaint alleging that it failed to investigate or report, where appropriate, unusual activity related to bond transactions and subsequent money transfers relating to a new business line. The FINRA complaint alleges that the firm launched a new business line that was immediately successful, facilitating currency exchanges through the liquidation of over $650 million worth of Venezuelan bonds for correspondent accounts of foreign financial institutions located in high-risk jurisdictions, Venezuela and Curacao. The firm failed to establish supervisory policies and procedures that can be reasonably expected to detect and cause the reporting of transactions required under the law and failed to establish and implement policies, procedures, and internal controls reasonably designed to achieve compliance with the Bank Secrecy Act. The firm failed to identify red flags associated with the Venezuelan bond accounts, its two largest customers, and their anticipated activity, and failed to adjust its procedures to account for the high-risk nature of this new endeavor. Instead, the firm primarily relied upon its new clients’ representations about the legitimacy of the transactions without further reasonable risk-based review to corroborate such representations. The firm’s over-reliance upon the client’s representations led to failures to detect red flags that should have required additional due diligence on the part of the firm. The firm did not have a sufficient infrastructure (policies, systems and procedures) to adequately monitor this business. The firm was or should have been aware of numerous red flags related to its customers’ Venezuelan bond liquidations. (FINRA Case #2011025676501)

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 Files Disciplinary Charges against Jonathan A. Francis

January 14, 2015 | Silver Law Group

Jonathan A. Francis, of Brooklyn, New York, was named a respondent in a FINRA complaint alleging that he assisted third parties who improperly took over $200,000 in cash from customers’ accounts without the customers’ knowledge or consent. Jonathan Francis was previously registered with J.P. Morgan Securities, LLC. The complaint alleges that Francis issued automatic teller machine (ATM) cards in six dead customer’s accounts and an ATM card for the account of a customer who subsequently complained of an unauthorized withdrawal of funds from his account. Francis knew that the distribution of the unauthorized ATM cards was part of an overall scheme to convert funds from bank customers. Francis resigned from the bank and his firm before they could interview him about it hindering their investigation. The complaint also alleges that Francis failed to respond fully to FINRA’s requests for documents and information, and failed to appear for his continued on-the-record testimony. (FINRA Case #2013038988301)

We are currently involved in multiple cases against brokerage firms for mismanagement of elderly investors’ accounts and/or improper conflicts of interest between the financial advisor and the customer. We routinely work closely with estate planning attorneys to help resolve disputes between family members regarding the management of an elderly family member’s financial affairs and we are frequently consulted regarding the improper sale of securities or mismanagement of the portfolio by a fiduciary, trustee or other trusted advisor.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

FINRA Files Disciplinary Charges against Bradley Claus Relating to an Oil and Gas Company

January 14, 2015 | Silver Law Group

Bradley Claus, of Castle Rock, Colorado, was named a respondent in a FINRA complaint alleging that he participated in private securities transactions with three investors, in an oil and gas company, without receiving authorization from his member firm. The complaint alleges that the firm did not permit Claus to solicit or sell investments in the private securities transaction of the oil and gas company. The complaint also alleges that Claus made material misstatements of fact to a customer in emails regarding a potential investment. Claus knew or was reckless in not knowing that his statements were false or misleading. Claus’ firm did not offer or authorize him to solicit or sell the investments. Claus was previously registered with World Group Securities. FINRA further alleges that Claus avoided his firm’s supervisory system and procedures by using an unauthorized outside email account. Despite the firm’s prohibition, Claus routinely used the personal outside email account to conduct securities business. Claus improperly used the firm’s name, firm address and firm phone number in emails from his outside email account. Claus never notified the firm of this email account and prevented his firm from supervising his communications with the public from that email account. (FINRA Case #2012033520801)

If you invested money with Bradley Claus, you may be entitled to recover some of your investment losses. Oil and gas investments can be very speculative and is not suitable for all investors. Many oil and gas investments have collapsed in recent months exposing investors to large 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.

FINRA Files Disciplinary Charges against Candius J. Bannister

January 14, 2015 | Silver Law Group

Candius J. Bannister, of Sarasota, Florida, was named a respondent in a FINRA complaint alleging that she borrowed over $30,000 from a customer in violation of Edward Jones’ procedures and FINRA’s rules. The complaint alleges that Bannister has failed to repay the loans or otherwise comply with the terms of the loan. Bannister did not submit any loan request forms to her firm in connection with the loans she received from the customer. The complaint also alleges that Bannister, on an annual basis, informed her firm from 2007 to 2012, acknowledging her understanding of the firm’s procedures and had not borrowed any funds from customers. (FINRA Case #2012033565601)

Investors who have suffered losses through the sale of variable annuities and non-traded REITs may 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. Financial advisors frequently need their own financial guidance and improperly borrow money or take loans from their own customers. These are red flags and conduct which a firm generally does not permit. We primarily represent investors on a contingent fee basis and, in most cases, we will agree to advance any costs.

Darrell Duane Smith Barred from Securities Industry after Receiving Multiple Customer Complaints

January 8, 2015 | Silver Law Group

Darrell Smith of Mason City, Iowa, worked at Multi-Financial Securities Corporation from 2001 through 2012. In 2014, FINRA finally suspended Mr. Smith from the securities industry after Smith failed to respond to FINRA’s request for information. However, Mr. Smith’s employer, Multi-Financial Securities Corporation, is currently the target of multiple FINRA arbitration claims by Mr. Smith’s customers who allege the firm and Mr. Smith misrepresented private placements and Mr. Smith misused client funds. Additional claims relate to the unsuitable sale of variable annuities.

Multi-Financial Securities Corporation permitted Mr. Smith to resign in March 2012 after a client alleged representative signed a variable annuity application with the client’s consent, in violation of the firm’s policies.

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 – 2

January 7, 2015 | Silver Law Group

According to FINRA Disciplinary actions for December 2014, 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
Donald L. Baker II	State Farm VP Management Corp.
Deborah Bush	JP Morgan Securities LLC
Deborah Bush	Chase Investment Services Corp.
Todd Alan Cummings	JP Morgan Securities LLC
Todd Alan Cummings	Chase Investment Services Corp.
Richard Edward Ford
David Robert Gray II	Cambridge Investment Research, Inc.
David Robert Gray II	Nathan & Lewis Securities, Inc.
Donald Gammon Hall Jr.	Merrill Lynch, Pierce, Fenner & Smith Inc.
Donald Gammon Hall Jr.	TD Ameritrade, Inc.
Kimberley Ann Jim	JP Morgan Securities LLC
Kimberley Ann Jim	Chase Investment Services Corp.
Patricia Maria Lanigan
Edwin Rafael Mejia	Wells Fargo Advisors, LLC
Scott Newsholme	SII Investments, Inc.
Scott Newsholme	Royal Alliance Associates, Inc
Earthel Dwight Parker	Chase Investment Services Corp.
Uday M. Raval	Karvy, Inc.
Darrell Duane Smith	Multi-Financial Securities Corporation
Darrell Duane Smith	Next Financial Group, Inc.
Shakeel Ahmad Tanveer	Ameriprise Financial Services, Inc.
Shakeel Ahmad Tanveer	IDS Life Insurance Company
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

January 7, 2015 | Silver Law Group

According to FINRA Disciplinary actions for December, 2014, 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
Joshua Robinson Ballinger	Fifth Third Securities, Inc.
	Banc One Securities Corporation
Patrick Ryan Bray	Newbridge Securities Corporation
	UBS Financial Services Inc.
Jason Robert Buscaglia	Merrill Lynch, Pierce, Fenner & Smith Inc.
	Morgan Stanley Smith Barney
Joel William Carlson	Sagepoint Financial, Inc.
	Sunamerica Securities, Inc.
Charles Barnett Davis, Jr.	Peak Brokerage Services, LLC
	Cape Securities Inc.
Turker Ergun	Merrill Lynch, Pierce, Fenner & Smith Inc
	Banc of America Investment Services, Inc .
Derek Ryan Forrest	Morgan Stanley
	Wells Fargo Advisors, LLC
Lauren Gail Ganz	U.S. Bancorp Investments, Inc.
	Raymond James Financial Services, Inc.
Gregory Evan Goldstein	Marguis Financial Services, Inc.
	Benson York Group, Inc.
William Eric Hopkins, Sr.	Wells Fargo Advisors, LLC
	Suntrust Investment Services, Inc.
David Scott Isolano	Max International Broker/Dealer Corp.
	Secwest Securities, Inc.
Matthew Thomas Kane	CCO Investment Services Corp.
	Santander Securities LLC
Florence Rosenthal Klein	American Classic Financial Company
	Gruntal & Co. Inc
Brian Joseph Merrigan	Wells Fargo Advisors, LLC
	Bancwest Investment Services, Inc.
Edward Thomas Murphy	Wells Fargo Advisors Financial Network, LLC
	Morgan Stanley DW Inc.
Gurudeo Sukul Persaud	Money Concepts Capital Corp
Frank Anthony Quatararo, Jr.	Gilford Securities Incorporated
	Wells Fargo Advisors, LLC
Anthony John Salino	Buckman, Buckman & Reid, Inc.
	Mercer Capital Ltd.
Joseph Jared Sanchis	Morgan Stanley
	Wells Fargo Advisors, LLC
Brian Simone	Salomon Whitney LLC
	Banc of America Investment Services, Inc.
Steven John Simone	Salomon Whitney LLC
	Westrock Advisors, Inc.
Jeremy Gerald Tintle	Oppenheimer & Co. Inc.
	Morgan Keegan & Company, 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.