Category Archives: Churning

Scott Sibley-Former Raymond James Broker-Subject of Numerous Customer Complaints-Ft. Lauderdale, FL

February 2018-Boca Raton, FL

According to publicly available records Scott Allen Sibley  , (CRD# 1523981) ,  a   former stockbroker who last worked for Moors & Cabot,  discloses 3 prior regulatory events, 4 pending customer disputes, 18 prior final customer disputes,  a termination from employment and an outstanding judgment/lien.

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 2015  Sibley was fined $15,000 and suspended for 15 days to resolve allegations by the Florida Office of Financial Regulation that  he made unauthorized trades in a client account.

In April 2017 FINRA permanently barred Sibley from the securities industry and made findings  that Sibley made about 900 securities purchases and sales in customer accounts without the authorization , knowledge or consent of the customers. In addition Sibley caused the customer to carry a margin debit balance without the customer’s authorization, knowledge or consent and over  concentrated the customer’s account in precious metals.

The prior final customer disputes include:

  • FINRA arbitration 15-0881 in which a Raymond James customer alleged exploitation of a vulnerable adult, exploitation of a disabled adult and other claims. That case was settled for $325,000.
  • FINRA arbitration 17-0066-a Raymond James customer alleged damages of $300,000 for negligence, fraud and violations of the Florida Investor’s Protection Act. That case was settled in 2017 for $137,000.
  • FINRA arbitration 16-01493-a Raymond James customer alleged damages of $675,000 for negligence, fraud, unsuitable recommendations, exploitation of the elderly, violations of Florida securities laws and other claims. That case was settled in 2017 for $350,000.

The four currently pending cases seek damages in excess of $700,000.

Sibley was discharged by Raymond James in 2/2015 after the firm received multiple customer complaints alleging that the customer’s accounts had been traded without their permission.

Sibley was employed by Moors & Cabot from 3/2015-2/2017 and by Raymond James 11/2007-3/2015.

If you have losses in an  investment account handled by Scott Sibley  , call to learn how you may be able to recover damages through FINRA arbitration.

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

Larry Boggs-Former Ameriprise Broker-Sanctioned for Overtrading Accounts of Elderly Customers-Dallas, TX

February 2018-Dallas, TX

Larry M. Boggs,  a  former stockbroker who worked for Wedbush Securities and Ameriprise Financial Services in Dallas was permanently barred from the securities industry by FINRA in January 2018.

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 the recent regulatory agreement Boggs, without admitting or denying the findings, consented to the sanctions and to the entry of findings that he engaged in excessive and unsuitable trading in the accounts of customers, including several customers who were over 80 years of age. The customers accounts were designated conservative or moderate risk tolerance however the high frequency trading strategy employed by Boggs would have required the customers to earn 15% annually just to break even on the commissions and trading costs. FINRA AWC 2015045518901

 

Boggs was employed by Wedbush Securities from 5/2015-7/2016 and was with Ameriprise Financial from 10/2009-5/2015 when he was discharged for violations of company policy related to discretionary trading and suitability.

If you are a former customer of Larry Boggs and have suffered losses in your account , contact us to discuss how you may be able to recover damages for those losses through FINRA arbitration.

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

NEXT Financial Group Fined $750K by Securities Regulator-Houston, Texas

January 2018-Houston, Texas

Houston-based NEXT  Financial Group recently was sanctioned by FINRA for various deficiencies in its supervisory procedures over one of its brokers in FINRA  Letter of Acceptance Waiver and Consent No. 20155043319901. FINRA fined NEXT Financial Group $750,000, issued a censure and required NEXT to hire an Independent Consultant to conduct a comprehensive review of its supervisory system.

Those supervisory deficiencies include:

  • A failure to implement a system reasonably designed to detect excessive trading (“churning”).
  • NEXT’s systemic failures in the supervision of the sales of variable annuities (VA). The sale of variable annuities earned NEXT over $219 million, 27% of its revenues, from July 2012-April 2014.
  • Failures in supervising the preparation and dissemination of consolidated reports from brokers to customers which allowed brokers to manually enter and value assets held away from the firm without providing supporting documentation to show the existence and value of the assets.
  • Misleading information on the company’s website and the omission of material facts relating to compensation received by NEXT from financial partners supplying investment products to NEXT.

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.

The official records for NEXT Financial Group maintained on the FINRA website disclose that NEXT has been the subject of 19 prior regulatory events.

Several NEXT Financial Group brokers have been accused of converting customer funds in recent years. See this for more detail on NEXT Financial Group brokers alleged to have wrongfully taken funds from customer accounts.

 

Customers of NEXT Financial Group who have questions about how their account has been handled should  contact us to discuss your legal options. If you have suffered losses in your account, you may be able to recover damages through FINRA arbitration.

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

Daniel T. Fischer-Former Four Points Capital Partners Broker-Named In SEC Complaint-Melville, NY

January 2018-Melville, New York / Texas

Daniel T. Fischer , a currently unregistered stockbroker who last worked for Four Points Capital Partners, a Texas LLC, (Four Points) was named in a complaint filed by the Securities and Exchange Commission in December 2017, which alleges that Fischer and another Four Points broker, Zachary S. Berkey, recommended a high cost, in and out trading strategy without reasonable basis to believe it was suitable for the customers.

The SEC alleges that Berkey and Fischer:

  •  were reckless in making such a recommendation which was not suitable given the customers’ financial needs, investment objectives and circumstances.
  • made material misrepresentations and omissions to customers

and that Fischer engaged in unauthorized trading.

Link to SEC complaint.

According to the SEC complaint, the ten customers accounts involved suffered losses of $573,867 while Berkey earned $106,000 and Fischer earned $175,000 in commissions.

According to FINRA records Fischer was employed by Four Points Capital Partners from 11.2012-7/2017. Prior to that he was employed by WTS Proprietary Trading Group and before that Dimension Securities.

Fischer discloses a prior regulatory event. In 7/2016 he consented to FINRA sanctions and was fined $5,000 and suspended for 20 business days to resolve allegations that he exercised discretion in customers’ accounts notwithstanding the fact that he did not have written authorization from the customers to place discretionary trades.

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.

If you have questions about  an account handled by Daniel T. Fischer if you have an account with Four Points Capital Partners that you believe has been mishandled , contact us 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