Category Archives: Concentrated Positions

Timothy T. Gibbons-Former Morgan Stanley Broker-Ordered to Pay Former Customers $749K-New Orleans,LA

NOVEMBER 2017 UPDATE-FOLLOW THIS LINK.

May 2017-New Orleans, LA

According to FINRA records, Timothy T. Gibbons a former Morgan Stanley broker, without admitting or denying the findings, entered into an agreement with FINRA to resolve allegations that he made unsuitable investment recommendations to five elderly customers ranging in age from 72 to 90.

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.

According to FINRA Letter of Acceptance Waiver and Consent No. 2015047910601, Gibbons over concentrated the accounts of these elderly clients in a single energy sector security. The concentration level in the customer’s accounts ranged from 65% to 79%.

The recommendation to invest in such a manner was unsuitable based on the customer’s age, risk tolerance, investment objectives and financial circumstances. FINRA Rule 2111(a) requires stockbrokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer taking those and other factors such as tax status, investment experience time horizon and liquidity needs, into account.

Gibbons, who was employed by Morgan Stanley from 2009-2015,  was suspended from association with any FINRA member for 18 months, fined $20,000 and ordered to pay partial restitution to the customers of $716,750.

 

If you have questions about an account handled  by Timothy Gibbons or if you believe your broker over concentrated your portfolio in energy stocks or made other unsuitable recommendations, 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

RBC Capital Ordered to Pay $723K For Sale of MLPs to Senior Citizen-Tampa, FL

November 2017-Tampa, FL

A FINRA arbitration panel comprised by an all public panel of three arbitrators, ordered RBC Capital Markets and broker Bruce Cameron of Norwell, Massachusetts,  to pay a former client, an elderly lady, $723,000 for losses suffered in an over concentration of oil and gas master limited partnerships (MLPs), which included:

  • Breitburn Energy Partners
  • Enable Midstream Partners
  • Enterprise Products
  • Ferrellgas Partners
  • Gramercy Property Trust, 
  • JP Energy Energy Partners
  • Mid Con Energy Partners
  • Southcross Energy Partners
  • Summit Midstream Partners
  • Tallgrass Energy Partners
  • CrossAmerica Partners
  • Enlink Midstream Partners

The panel found RBC and Cameron liable on the claims of negligence, negligent supervision and breach of fiduciary duty. FINRA Case #17-0305, Nourie, et al v RBC Capital Markets

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. When a customer seeks to recover damages for losses incurred in a stock brokerage account, cases are typically filed as arbitrations with FINRA dispute resolution. Arbitration is generally must quicker and more efficient than court litigation. Cases are often resolved in 12 months or so.

Brokers have a duty to make suitable recommendations to customers, taking into account their age, health, net worth and risk tolerance.

If you have losses in your account that you believe are the result of the negligence or improper advice of a broker, call to learn about how you may be able to recover damages through FINRA arbitration.

The Law Office of Robert H. Rex, P.C.  , 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

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Jonathan T. Pyne-Update on Investigation-Minneapolis, MN

October 2017-Minneapolis, MN

Jonathan Todd Pyne (aka Jon Pyne )  ,  a  stockbroker who is currently registered with Berthel Fisher & Co. Financial Services discloses 2 pending customer disputes and 3 prior final customer disputes on his FINRA record.

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 of the currently  pending  disputes, received in 7/2017 , a customer of Berthel Fisher alleges damages in excess of $5,000 and claims that she was misled by Pyne into purchasing a real estate investment that she did not know was illiquid.

In another currently pending matter received in 9/2016, a Berthel Fisher customer is upset with the overall performance of the account which was invested in oil & gas, real estate securities and a business development company. Damages are not specified, but exceed $5,000.

In September 2016 Berthel Fisher settled a complaint brought by one of Pyne’s customers alleging that oil and gas and real estate securities purchased in 2008 and 2009 were unsuitable and misrepresented. That matter was settled for $48,175.

In FINRA arbitration 14-0952 a customer of Pyne’s alleged damages of $250,000 in connection with the sale of unsuitable investments sold to her in 2007 and 2008 in equipment leasing, oil and gas and real estate securities. That case was settled in 11/2015 for $110,000.

Pyne has been employed by Berthel Fisher & Co.   since 2/2007. Pyne discloses a business affiliation with Evergreen Financial Group.

See this for our prior investigation of Jonathan T. Pyne over the sale of the following alternative investments:

  • Gulf Coast Rig & Equipment
  • Reef Income & Development
  • Leaf Equipment Leasing Fund
  • Inland American
  • Cornerstone Properties (now Summit Health Care)
  • Columbia Properties

If you have questions about an account  handled by Jonathan T. Pyne , contact us to discuss your options.

Alternative investments include non publicly traded real estate investment trusts (REITS) , equipment leasing, oil and gas, hedge funds, real estate, commodities and derivatives contracts and, managed futures.  These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

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

William J. Paynter, Jr. Is Subject of Investor Suit by Elderly Couple Over Oil and Gas Investments-Scottsdale, AZ

October 2017-Scottsdale, AZ

William J. Paynter, Jr., (CRD#2835535) ,  a  stockbroker who is currently employed by Wells Fargo is the subject of a  currently pending customer dispute involving energy sector investments.

In FINRA Case 17-01658 an elderly couple alleges that Paynter recommended unsuitable investments and an over concentration in oil and gas and energy investments. They are seeking damages of $500,000 for negligence, breach of fiduciary duty, negligent supervision and breach of contract. During the time period in question Paynter was employed by Morgan Stanley  (2/2011-11/2014) and then UBS Financial (10/2014/5/2017).

Paynter has been employed by Wells Fargo since 4/2017.

Brokers are charged with the duty of making suitable recommendations to their customers taking into account their age, health and risk tolerance.

If you have losses in an account handled by  William J. Paynter, Jr., contact us to learn how you may be entitled to  recover damages through arbitration before the Financial Industry Regulatory Authority (FINRA). 

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

Abraham Heimann-Former Cetera Stockbroker-Subject of Suits Over Energy Investments-Alpharetta, GA

October 2017-Alpharetta, GA

According to publicly available records Abraham Heimann, (CRD#1315922) ,  a  stockbroker who last was employed by Cetera Advisors, and who is not currently registered with any brokerage firm, discloses five currently pending customer disputes involving energy sector investments.

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 currently pending customer cases include:

  • FINRA case #17-2498-a customer of Heimann while he was employed at Oppenheimer & Co,  alleges damages of $200,000  for breach of fiduciary duty, , negligence fraud, failure to supervise, unauthorized trading, excessive fees, costs and commissions and other claims with respect to energy sector investments.
  • FINRA case #17-1951-a customer of Heimann while he was employed at Oppenheimer and then Cetera Advisors alleges damages of $1,500,000  for lack of diversification.
  • FINRA case #17-1009-a customer of Heimann while he was employed at Oppenheimer and then Cetera Advisors alleges damages of $30,000 against Cetera and $300,000 against Oppenheimer for breach of fiduciary duty, fraud, failure to supervise, unauthorized trading, excessive fees, costs and commissions and negligence for the way his account was handled.
  • FINRA case #17-0766, a customer of Heimann while he was employed at Oppenheimer and then Cetera Advisors alleges damages of $2,000,000 for breach of fiduciary duty, fraud, failure to supervise, unauthorized trading, excessive fees, costs and commissions and negligence for the way his account was handled.
  • FINRA case #15-03220 , another customer of Heimann while he was employed at Oppenheimer and then Cetera Advisors alleges damages of $876,195 for unsuitable investing, unauthorized trading, negligence, breach of fiduciary duty and misrepresentation. The investments alleged to be unsuitable are oil & gas, penny stocks and medical investments.

Heimann was employed by Cetera Advisors  from 6/2013-2/2016.  He was with Oppenheimer & Co. from 1/2002-7/2013. Heimann discloses business affiliations with Alpha Insurance Mart, Global Investments LLC,  and Danlee International.

If you have losses in an account handled by  Abraham Heimann contact us to learn how 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

Marc Reda-Spartan Capital Broker-Discloses Settlement of Customer Claims

OCTOBER 2017

According to FINRA records,  Marc A. Reda , a broker who is currently employed by Spartan Capital Securities, discloses 9 prior customer disputes a prior regulatory event, 2 terminations from employment and a currently 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 June 2017, without admitting or denying the findings, Marc Reda consented to a fine of $5,000 and a three month suspension. FINRA found that he exercised discretion in customer accounts without written authorization from the customers and that he failed to timely disclose on FINRA Form U4 a federal tax lien filed against him in the amount of $575,101.

The prior customer disputes include the following settlements:

  • FINRA Arbitration 16-1461-a customer of his prior employer PHX FInancial alleged breach of fiduciary duty and unsuitable recommendations, seeking damages of $100,000. That case was settled in 7/2016 for $26,000.
  • In 4/2016 a customer of PHX Financial alleged that Reda traded his account without authority and breach of fiduciary responsibility, seeking damages of over $500,000. That case was settled in 5/2016 for $85,000.
  • In 3/2016 a customer of his prior employer Phoenix Financial Services alleged that beginning in 11/2015 Reda failed to follow the customer’s instructions, made trades without authority and over concentrated investments causing damages of $500,000. That case was settled in 6/2016 for $112,500.
  • In 1/2016 a customer of Phoenix Financial Services alleged that Reda made unauthorized trades in her account causing damages of $400,000. That case was settled in 2/2016 for $120,000.

According to FINRA records, Reda  has been registered with Spartan Capital Securities  since 5/2016. Reda was registered with First Standard Financial from 2/2016-5/2016. Prior to that he was registered with PHX Financial from 10/2014-1/2016 and with Laidlaw & Company from 11/2013-10/2014.

In 1/2016 Marc Reda was “permitted to resign” from PHX Financial who alleged that Reda violated firm policy.

FINRA records disclose an Internal Revenue Service lien filed in the Supreme Court of Richmond County, New York,  against Reda in the amount of $575,101.

If you have losses in an account handled by Marc A. Reda contact us 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

Paul V Blum-Former RBC Capital Broker- Sued by Clients for Unsuitable Trading-W. Palm Beach, FL

October 2017-West Palm Beach, FL

The FINRA records of  Paul Vincent Blum ,  a  stockbroker who was previously employed by RBC Capital Markets disclose a prior regulatory event, 9 pending customer disputes and 14 prior customer disputes.

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 August 2017, Blum was permanently barred from the securities industry by FINRA for failing to appear for on the record testimony during the course of an investigation in connection with customer complaints alleging unsuitable trading.

In the pending arbitrations customers make various allegations of wrongdoing, mostly related to unsuitable investments in energy related investments,  including the following:

  • Blum recommended unsuitable and over-concentrated investments in the energy sector. Damages alleged, $886,070.
  • Three former customers allege that Blum was involved as an intermediary in making  unsuitable recommendations of energy sector corporate bond investments. Damages are alleged to be $525,000, $6,000,000  and $2,250,000.

Total dollar amount of the settlements already paid on  the prior customer disputes  is over $1.7 million.

If you have losses in an account handled by Paul Blum, call to discuss 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