Category Archives: Adverse Tax Consequences

George Sefanou-Edward Jones Broker-Discloses Settlement of Customer Dispute

August  2016-Orlando / The Villages, Florida

The FINRA records of George Sefanou ,  a  stock broker who is currently employed by Edward Jones  , disclose a recently settled customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In FINRA Case 15-0387, a customer of Edward Jones alleged that Stefanou’s recommendation to transfer their retirement accounts to Edward Jones was unsuitable in that the transfer caused tax consequences and penalties. They also alleged that Stefanou failed to calculate properly IRS Code Section 72T distributions and that a recommendation to purchase mutual funds was unsuitable due to high fees associated with the purchase. That case was recently settled for $50,000.

Stefanou has been employed by Edward Jones since 8/2009.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Marvin T. Petty-United Planners Broker-Discloses Customer Dispute

Fort Worth, Texas

According to FINRA records,  Marvin T. Petty, Jr.  a stockbroker  who works for United Planners Financial Services ,  discloses  a pending customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Marvin T. Petty discloses that a customer has alleged damages of $350,000. The firm notes “to meet the client’s income needs the representative implemented, with the consent of the client, a strategy of selling covered options between November 2013 and March 2015. In March 2016 the representative received a complaint letter noting suitability and tax consequences.” The matter is under review.

Petty  has been employed by United Planners Financial Services  since 9/2011. He was employed by Weaver Tidwell Capital prior to that.

If you have questions about an account handled  by Marvin T. Petty , call for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Wesley C. Smith-Former Edward Jones Broker-Barred From Securities Industry

Lumberton, Texas

According to FINRA records,  Wesley C. Smith  a stockbroker  who formerly worked  for Edward Jones discloses  a pending customer dispute, 6 prior customer disputes and one final regulatory event.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Smith discloses  a currently pending customer dispute, in which a customer alleges damages of $9,000 . The client claims she was never given a portfolio review, did not understand that the funds were within an IRA and did not authorize a distribution in 2013. The client alleges she has received a notice from the IRS indicating she owes $9,000.

In one of the prior customer disputes, Edward Jones discloses that in 2015 a customer alleged that Smith had misappropriated funds from the client’s account in November and December 2013 and January 2014. Damages of $5,000 were alleged and , based on the firm’s investigation, the claim was settled for $15,000.

In another of the prior customer disputes, Edward Jones discloses that in 2014 a customer alleged that Smith had misappropriated funds from the client’s account . Damages of $5,000 were alleged and , based on the firm’s investigation, the claim was settled for $9,769.45.

In one other of the prior customer disputes, Edward Jones discloses that in 2014 a customer alleged that Smith had sold the client gold coins but she never received them . Damages of $5,600 were alleged and , based on the firm’s investigation, the claim was settled for $5,600.

In 2/2015, Smith was permanently barred from the securities industry by FINRA.

Smith was employed by Edward Jones from 1/2008-9/2014. 

If you have questions about an account handled  by Wesley C. Smith, call for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Richard M. Ohlhaber-Former Southwest Securities Broker-Discloses Pending Customer Disputes/Regulatory Actions

Grapevine, Texas

According to FINRA records,  Richard M. Ohlhaber   a stockbroker  who most recently was  employed by FSC Securities Corp., Inc. , discloses two pending customer disputes. He also discloses  3 prior final regulatory events , 7 prior final customer disputes and has been permanently barred from the securities industry .

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In currently pending FINRA Case 15-02113, a customer while Ohlhaber was employed by Southwest Securities (now known as Hilltop Securities) ,  alleges damages of $230,000 for losses incurred by following Ohlhaber’s recommendation to invest in Life Partners, Inc. , an unregistered security which was represented as a conservative, low risk investment.

In currently pending FINRA Case 13-03547, a customer while Ohlhaber was employed by Southwest Securities,  alleges damages of $450,000 for misrepresentation with respect to the tax consequences of the surrender of a variable annuity.

In 2014, FINRA permanently barred Ohlhaber from the securities industry in connection with his sale of life settlement contracts.

According to FINRA records Ohlhaber was registered with FSC Securities from 8/2012-11/2012. Prior to that he was registered with Southwest Securities from 5/2008-4/2012.

If you have questions about an account handled  by Richard Ohlhaber, call for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Jason L. Freiwald-Waddell & Reed Broker-Discloses $541K Customer Complaint

Chandler, AZ

According to FINRA records, Jason L. Freiwald  a broker who is currently registered  with Waddell & Reed , discloses a pending customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Freiwald recently disclosed that a customer is seeking damages of $541,150. The customer alleges that she was given the recommendation to invest a large portion of her son’s investment portfolio in May 2013 in a closed end fund IPO that was not suitable and resulted in significant losses. The customer also alleges she incurred significant tax consequences on the realized gains from the sale of previous holdings used to purchase the closed end fund.

Freiwald has been registered with Waddell & Reed since 2/1997.

If you have questions about  a brokerage account handled by Jason L. Freiwald  , call to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870