Category Archives: Cold Calling

Ryan M. Murnane-Former Alexander Capital Broker-Discloses Discharge and Customer/Regulatory Complaints

March 2017-New York

According to publicly available records Ryan M. Murnane  , (CRD# 4784140) ,  a   former stockbroker who last worked for Alexander Capital and Woodstock Financial Group,  discloses a pending customer dispute, 5 prior final customer disputes, a regulatory investigation, a termination from employment and 2 outstanding judgment/liens.

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 January 2017, Murnane was discharged by Woodstock Financial Group who made the following allegation on his FINRA record: “Rep destroyed the personal computer of another registered person and rep had a New York State Tax lien the he failed to disclose to us (it was discovered by FINRA)”

In February 2017 Montana securities regulators commenced an investigation after a resident of that state complained that he had been contacted numerous times by Murnane, who was not registered to do business in the state of Montana.

Murnane also worked for Rockwell Securities from 10/2010-12/2013.

If you have questions about  an investment account handled by Ryan M. Murnane  , 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

Robert Estevez, Former Investors Capital Corp Broker-Discloses Regulatory Matters

March 2017- New York

According to publicly available records Robert Estevez , (CRD# 3161419) ,  a  stockbroker who previously worked for Investors Capital Corp and who is currently employed by Joseph Gunnar & Co.  disclose a pending regulatory investigation, 2 prior finalized regulatory matters, 5 final customer disputes and 3 outstanding judgement/liens.

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 currently pending regulatory matter, Michigan securities regulators seek to deny Estevez’s registration in that state because, according to their allegations: “Estevez…is the subject of a Cease and Desist Order issued by the State of New Hampshire, and Applicant’s liabilities exceed his assets and the Administrator has made a finding of insolvency as to Applicant…”

In a prior regulatory matter while he was employed by Investors Capital Corp., the State of New Hampshire fined Estevez $50,000 and alleged that ” The State found that individuals in the branch where Mr. Estevez was located made telemarketing calls into the state of New Hampshire to persons on the National Do Not Call List. The State found that Mr. Estevez may have initiated some of these calls”. 9/2014- Com-2013-00002-00004. 

Public records disclose that Estevez has three outstanding IRS liens of $56,135 , $15,646 and $59,897.

Estevez has been registered with Joseph Gunnar & Co.  since 9/2016. He was registered with Investors Capital Corp. from 12/2008-9/2016.

Investors Capital Corp., a part of the Cetera Group, wound down operations during 2016. Many of the brokers were transferred to Summit Brokerage Services.

If you have questions about an account in an account handled by Robert Estevez, 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: 877-224-3199Florida-561 391 1900 

Texas-512-329-2870

Joseph Stone Capital Brokers Named in Regulatory Complaint

August 2016- Mineola, NY

The FINRA records of  Lawrence P. Sullivan,  a  stock broker who is not currently licensed and who was last employed by Joseph Stone Capital  disclose  a currently pending regulatory event and a termination from employment.

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.

Office of the Commissioner of Securities and Insurance, Montana State Auditor Case No. SEC-2016-124

On June 8, 2016, the Montana Commissioner of Securities and Insurance (CSI) filed a complaint (CSI Case Number SEC-2016-124) naming Lawrence Sullivan, who at the time was a salesperson with Joseph Stone Capital  and other parties, including:

  • Joseph Stone Capital, Lawrence’s  former employing firm
  • James Pardy-Chief Compliance Officer of Joseph Stone
  • Adam Maggio-a salesperson with Joseph Stone
  • David Manashea salesperson with Joseph Stone
  • Frank Spadaro-a salesperson with Joseph Stone

The Montana CSI complaint alleges that in January 2016, the Montana CSI received a cold call from Sullivan who was transferred to an analyst for CSI. Sullivan pitched an investment about Paypal to the Montana CSI employee who then informed Sullivan that he had called the Montana State securities regulators. At that point, Sullivan denied he was trying to solicit an investment and hung up.

That same day Montana CSI requested complete records regarding all of Joseph Stone’s Montana clients. Analysis of the records revealed churning in the accounts of Montana residents , overcharging of commissions and other statutory violations.

According to the Montana CSI complaint with regard to one of the accounts handled by Frank Spadaro : “The total of all trades resulted in $4,052,938.36 in purchases and $3,747,491.70 sales, with corresponding Looper[l] tumover rates of 30.52 and,28.22 respectively “

Churning & The Looper Formula

The Looper turnover rate calculates the dollar amount of purchases during a time period divided by the average account equity annualized. The 2-4-6 ‘rule of thumb’ turnover rate is often used to generally analyze trading:

  • Twice a year is ‘suggestive’ of excessive trading
  • Four times a year is ‘indicative’ of excessive trading
  • Six times a year turnover is ‘conclusive’ of excessive trading

According to public records:

  • On January 19, 2016, Lawrence Sullivan was discharged by Joseph Stone Capital
  • David Manashe is now registered with Newbridge Securities Corporation

If you have questions about an account handled by Joseph Stone Capital  call to speak with an experienced securities attorney.

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

Investors Capital Corp. Discloses 21 Regulatory Issues-Withdraws FINRA Registration

UPDATE FEBRUARY 2017-As of 11/18/2016 Investors Capital Corp is no longer registered with FINRA or a national securities exchange. In October 2016, Investors Capital was censured, fined $250,000 and required to pay restitution to customers in connection with the short term trading of unit investment trusts (UITS) and Steepener Notes.

ORIGINAL POST JUNE 2016According to FINRA records,  stock brokerage firm Investors Capital Corp.  discloses 19 regulatory events that are final and 14 final arbitrations. According to recent press, there are plans to shut down the company in the coming months.

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.

Investors Capital Corp. is an independent full-service broker-dealer and has been a FINRA member since 1992. They are headquartered in Lynnfield, Massachusetts and employ over 500 brokers in over 300 offices nationwide.

During 2013-2014, RCS Capital Corp. (RCAP) acquired Investors Capital Corp. along with a number of other independent broker-dealers, including Cetera Financial Group. In early 2016 RCAP filed for bankruptcy and in spring 2016, Cetera announced that as part of its restructuring they would be merging Investors Capital and VSR Financial Services, known for its sales of alternative investments, into its Summit Brokerage Services unit.

Investors Capital Corps.’s recent regulatory events include:

  • 8/2014-New Hampshire regulators assessed a fine of $125,000 and required rescission of unsuitable sales of non-traded REITs. Regulators alleged that Investors Capital made telemarketing calls to residents in violation of FINRA telemarketing rules and sold unsuitable non-traded REITs.
  • 3/2014-FINRA alleged that the firm failed to have a proper process in place to ensure that prospectuses were delivered to purchasers of exchange traded funds (ETFs) and that the firm did not engage in training brokers about the features and risks of ETFs. A fine of $100,000 was assessed.

If you have questions about an account at  Investors Capital Corp., 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

Thomas Guerriero Sentenced on Oxford City Football Club Boiler Room Scam-South FLA

May 13, 2016

The Sun Sentinel reports that Thomas Guerriero, former director of British-based Oxford City Football Club was sentenced to 12 years and 7 months for his role in orchestrating a $6.6 million boiler room operation that has financially ruined the lives of many of the elderly victims.

Guerriero lived on Hillsboro Beach and operated his scam from an office in Deerfield Beach, FL.

Victims told the court at the sentencing that they were “cold called” and were tempted by promises of becoming millionaires. Investors who wanted to back out were physically threatened by Guerriero.

Seven others who participated in the scheme have pleaded guilty to related charges and will be sentenced in the future:

  • Diana P. Lovera, 32 and Victor Lovera, 28, of Deerfield Beach
  • Edward R. Sachs, 56, of Boca Raton
  • Joseph Loish, 59, and Frank Penaloza, 30, of Pompano Beach
  • Steven L. Goldstein, 60, of Sunrise
  • Steven Sharaf, 63, of Pembroke Pines

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

West Palm Beach Man- Cecil Speight- Sentenced for Securities Fraud

February 12, 2016

Cecil F. Speight of West Palm Beach, Florida, was sentenced to 42 months in prison following a guilty plea to conspiracy to commit mail and securities fraud. Speight defrauded 72 investors out of more than $3 million operating an Internet stock scheme through his company International Stock Transfer (IST).

IST was founded by Speight in 2004 with offices in Palm Beach, Florida.  Speight used cold callers and fake websites to entice victims into investing their money in allegedly high yield securities purportedly associated with IST.  Investors were directed to wire funds into purportedly secure attorney escrow accounts.  Once there, Speight typically stole the funds for his  own use.

See Department of Justice press release for more.

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

Fischer, Texas- Caldwell International Securities Named in Complaint by Securities Regulator

December 31, 2015- Fischer, Texas

On December 31, 2015, the Financial Industry Regulatory Authority  (FINRA) filed a complaint against Caldwell International Securities alleging that firm founder Greg Caldwell and supervisors Paul Jacobs and Lennie Freiman failed to supervise brokers in New York and New Jersey allowing them to churn customer accounts.

According to FINRA:

  • Caldwell International and the named individuals put profits before customers, growth before compliance and subterfuge before transparency creating a culture of non-compliance in the firm
  • From 12/1/2010-7/31/2014 Caldwell International allowed many of its brokers to recommend an unsuitable active trading strategy that the brokers did not understand causing significant losses to customers while the company generated substantial profits.
  • Caldwell International was aware of virtually all of the alleged misconduct, yet took no meaningful steps to curtail and supervise it for fear reducing the commissions and fees which it was generating.
  • Fifteen customer accounts lost over $1.1 million while paying over $1 million in commissions.

Others named in the complaint are:

  • Alain Florestan
  • Alex Etter
  • Lucas Lichtman
  • Richard Lim
  • Richard Lee

The complaint seeks findings that the company violated Section 10(b) of the Exchange Act, disgorgement of ill gotten gains and other relief.

Caldwell International has nine branches and 20 brokers located in New York, New Jersey, Illinois, Texas, Florida and Nevada. Fischer, Texas is located just north of San Antonio, TX, near Canyon Lake.

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