Category Archives: Excessive use of margin borrowing

Northeast Securities Ordered to Pay Former Customer $1.8 Million-Mitchelfield, NY

July 2017-New York

An arbitration panel of the Financial Industry Regulatory Authority (FINRA) ordered Northeast Securities, Inc. a broker dealer headquartered in  Mitchelfield , NY, and three of their brokers to pay a former customer nearly $1.8 million dollars in a case involving investments in corporate bonds. The customer alleged common law fraud, churning, breach of fiduciary duty, misrepresentation, failure to supervise, improper use of margin borrowing and other claims.

The all public FINRA arbitration panel assessed the award jointly and severally against Northeast Securities and brokers Stephen J. Perrone, Diane Hawkins and Jonathan M. Zucker. In addition the panel awarded interest of 9% on the award from March 2012 until the award is paid and expert witness fees of nearly $34,000. McLaughlin v Northeast Securities, et al, FINRA Case 16-1806.

If you have suffered losses in your brokerage account due to the fraud or negligence of your stockbroker, we may be able to help you recover damages through FINRA arbitration, a process that is generally much quicker and less costly than court litigation.

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

Steven J Shmulewitz-Former Woodstock Financial Group Broker-Discloses Numerous Customer Disputes-Garden City, NY

May 2017-Garden City, NY

The FINRA records of  Steven J Shmulewitz  ,  a  stockbroker who is currently  registered with Craft Capital Management disclose  10 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.

The prior customer disputes include:

  • In 12/2016 a customer of Craft Capital Management was paid $30,000 to resolve allegations that Shmulewitz failed to enter stop loss orders in October 2016.
  • In 6/2016 a customer of Woodstock Financial was paid $52,800 to resolve allegations that Shmulewitz used margin borrowing without authority from 2011-March 2014.
  • In 1/2016 a customer of Woodstock Financial was paid $125,000 to resolve allegations that Shmulewitz made unsuitable investments, churned the account, committed fraud and other claims.

Steven J Shmulewitz  has been employed by Craft Capital Management since 5/2015. He was employed by Woodstock Financial Group  from 2/1999-12/2014.

If you have questions about an account  handled by Steven J Shmulewitz , contact us to discuss your 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

Jeffrey R. Wilson-Wells Fargo Broker-Loses Arbitration to Customer Over Energy and Real Estate Investments-Las Cruces, NM

May 2017-Las Cruces, NM

The FINRA records of  Jeffrey R. Wilson  ,  a  stockbroker who is currently  registered with Wells Fargo Clearing Services disclose a recent arbitration award to a customer and 2 other 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 March 2017, following a three day hearing,  a FINRA arbitration panel ordered Wells Fargo to pay  a former customer of Wilson $357,000, plus 8.75% interest, for damages related to investments in energy and housing products and the use of a margin line of credit. Pryor vs. Wells Fargo Advisors, Case #16-01123. 

In December 2016, Wells Fargo paid another Wilson customer $250,000 to settle allegations that direct investments purchased in 2014-2015 were unsuitable.

In October 2016, Wells Fargo paid a Wilson customer $275,000 to resolve allegations that the account had been excessively traded in unsuitable and risky investments.

Wilson   has been employed by Wells Fargo since 5/2014. Prior to that he was employed by Morgan Stanley.

If you have questions about an account  handled by Jeffrey R. Wilson , 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

Silvano R. Trino-Northeast Securities Broker-Discloses $3.9M Customer Dispute Alleging Churning-Miami, FL

April 2017-Miami, FL

The FINRA records of  Silvano R. Trino ,  a  broker with Northeast Securities   disclose a pending customer dispute and 3 prior final 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 currently pending FINRA Case 14-02908,  a customer of Northeast Securities  seeks damages of $3,900,000 and alleges unauthorized use of margin, unsuitable trades and churning.

Silvano has been registered with Northeast Securities since 11/2008 and discloses a business affiliation with Global Capital Insurance. .

If you have questions about an account  handled by Silvano R. Trino  , contact us to discuss to discuss your 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

Jonathan M. Zucker-Northeast Securities Broker-Discloses Customer Dispute-Mitchelfield, NY

April 2017-Mitchelfield, NY

The FINRA records of  Jonathan M. Zucker ,  a  broker with Northeast Securities   disclose 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.

In currently pending FINRA Case 16-1806,  a customer of Northeast Securities  seeks damages of $3,000,000 and alleges trades were done in account without his knowledge, churning and the use of margin in his accounts. Mr. Zucker denies the allegations.

 

Zucker has been registered with Northeast Securities since 1/2012.

If you have questions about an account  handled by Jonathan M. Zucker  , contact us to discuss to discuss your 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

Marcos Yanez-Former LPL Financial Broker-Named in Customer Dispute Over Insurance and Loan-Dallas, TX

April 2017-Dallas, Texas

The FINRA records of  Marcos Yanez ,  a   former stockbroker with LPL Financial who is currently not registered with any brokerage firm disclose 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.

In currently pending FINRA case #17-0528 a customer of LPL Financial and Edward Jones alleges damages of $200,000 for misrepresentations in the sale of a variable life insurance policy. In Addition the customer alleges that Yanez convinced him to take out a margin loan in order to loan the money to Yanez.

Yanez was employed by LPL Finanical from 12/2011-3/2016. Prior to that he was with Edward Jones 7/2007-1/2012. Yanez discloses business relationships with STAIB Wealth Management and Silver Sail Wealth Advisors.

If you have questions about an account handled by Marcos Yanez, call to learn about your 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

John Fenimore-Former Aegis Capital Broker-Discloses Customer Disputes Alleging Unsuitable Use of Margin-Hauppauge, NY

April 2017- Hauppauge, NY

The FINRA records of  John David Fenimore ,  a  former Aegis Capital stockbroker who is currently not registered disclose a pending customer dispute and a prior customer dispute that has been settled.

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 pending FINRA Case 14-01293 a customer of Aegis Capital Corp alleges damages of $250,000 for breach of contract, unsuitable recommendations, excessive trading and unsuitable use of margin for period of January 2010-April 2014.

In a previous case, FINRA #13-01747, a customer of Aegis Capital alleged damages for recklessly and without due diligence trading speculative securities , stock shorting and excessive use of margin. That case was settled in 5/2014 for $210,000.

 

John Fenimore  was employed by Joseph Stone from 10/2014-5/2015 and with Aegis Capital Corp. 2/2010-7/2014. He is not currently employed as a broker.

If you have losses in an account in an account handled by John Fenimore  , contact us to discuss how you may be able to recover damages for those losses.

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