Category Archives: Finra Investigation of Stockbroker

Terry Lee Brodt Jr.-Garden State Securities Broker-Discloses Customer Complaints-Boise, Idaho

October 2017 – Boise, Idaho

According to publicly available records  Terry Lee Brodt, Jr. (CRD#2033812) , a stockbroker currently registered with Garden State Securities, Inc. , disclose a regulatory event , five prior customer disputes and 10 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 May of 2017 FINRA entered into an agreement with  Terry Lee Brodt, Jr.  resulting in a $10,000 fine and a two month suspension.   According to the agreement,  “Without admitting or denying the findings, Brodt consented to the sanctions and to the entry of findings that he exercised discretion in accounts maintained by customers without written authorization from these customers and without having obtained approval from his member firm to treat these customer accounts as discretionary.   The findings stated that Brodt provided inaccurate responses about his use of discretion in connection with his firm’s annual compliance documents.”

Prior customer disputes include:

  • FINRA Case 16-1108- a dispute was filed by Garden State Securities, Inc.  customer alleging churning, excessive losses and commissions.   The case was settled for $120,000 with Brodt being personally responsible for $45,000.
  • FINRA Case 12-3841- a Garden State Securities customer filed a dispute alleging unauthorized trading and unsuitable investments.   The case settled for $24,900 with Brodt being personally responsible for the entire amount of the settlement.

Brodt has been  employed with Garden State Securities, Inc. since August of 2010. Brodt discloses a business affiliation with Brodt Capital Management in Boise.

Brodt discloses the filing of a Chapter 7 bankruptcy in Boise, Idaho in 2012 that was dismissed and filing of a Chapter 13 bankruptcy in 7/2016 that is currently pending.

If you have questions about losses in an account handled by Terry Lee Brodt, Jr., 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.

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Tye Williams-Former NEXT Financial Broker-Subject of $1M Customer Dispute-Frisco, TX

UPDATE OCTOBER 2017– Frisco, TX

Former NEXT Financial Group stockbroker, Tye Williams was barred from the securities industry by FINRA for failing to cooperate with regulatory investigation alleging theft of $1M, making unsuitable recommendations and mismanaging accounts. FINRA Case 2015047059702. See this for more details. 

FINRA records report that NEXT Financial Group stockbroker Tye Williams , of Frisco, TX,  has been named in Case 2015-41457, pending in Harris County, Texas, alleging that from mid 2004 until 2015  Williams mismanaged the finances of a customer and exceeded the scope of his authority. Damages of $1 million are sought.

Williams FINRA record also discloses a pending FINRA arbitration (16-0609) filed by a customer of NEXT Financial that makes identical allegations as are made in the Harris County court case.

Williams was employed by NEXT Financial from 11/2008-8/2016. Williams discloses business affiliations with DC Rightside LLC which was formed to deal with the business activities following the sale of Smashburger, Tye Williams Financial Services, and One Source Advisors Group.

If you have losses in an account handled by Tye Williams, contact us to learn how you may be able to recover damages from his former employer.

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

Terry Lee Brodt-Garden State Securities Broker-Discloses Regulatory Suspension/Customer Disputes-Boise, Idaho

August 2017 – Red Bank, NJ

According to publicly available records  Terry Lee Brodt, Jr. (CRD#2033812) , a stockbroker currently registered with Garden State Securities, Inc. , disclose a regulatory event , five prior customer disputes and 10 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 May of 2017 FINRA entered into an agreement with  Terry Lee Brodt, Jr.  resulting in a $10,000 fine and a two month suspension.   According to the agreement,  “Without admitting or denying the findings, Brodt consented to the sanctions and to the entry of findings that he exercised discretion in accounts maintained by customers without written authorization from these customers and without having obtained approval from his member firm to treat these customer accounts as discretionary.   The findings stated that Brodt provided inaccurate responses about his use of discretion in connection with his firm’s annual compliance documents.”

Prior customer disputes include:

  • FINRA Case 16-1108- a dispute was filed by Garden State Securities, Inc.  customer alleging churning, excessive losses and commissions.   The case was settled for $120,000 with Brodt being personally responsible for $45,000.
  • FINRA Case 12-3841- a Garden State Securities customer filed a dispute alleging unauthorized trading and unsuitable investments.   The case settled for $24,900 with Brodt being personally responsible for the entire amount of the settlement.

Brodt has been  employed with Garden State Securities, Inc. since August of 2010.

Brodt discloses the filing of a Chapter 7 bankruptcy in Boise, Idaho in 2012 that was dismissed and filing of a Chapter 13 bankruptcy in 7/2016 that is currently pending.

If you have questions about losses in an account handled by Terry Lee Brodt, Jr., 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.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Investigation-William A. Hightower-Former UBS/Legacy Asset Broker-Houston, TX

OCTOBER 2017- Houston, TX

We are currently investigating former stockbroker William A. Hightower of Houston, TX, on behalf of a former UBS Financial Services client who alleges Hightower recommended that she invest in an unsuitable and illiquid investment, Reproductive Research Technologies.

Hightower was employed by UBS Financial Services from 2007-2013 and then by Legacy Asset Securities from 2013-2015.

In October 2015 Hightower was permanently barred from the securities industry by the Financial Industry Regulatory Authority (FINRA). Without admitting or denying the findings, Hightower agreed to the bar and to entry of findings that while employed by UBS Financial he failed to respond to requests for information  in connection with a FINRA investigation that he improperly referred customers to an unapproved private securities transaction. Specifically, Hightower failed to provide a list of any customers he referred to the private securities transaction.

FINRA records report that former UBS Financial Services stockbroker William A. Hightower is named in  currently pending FINRA arbitration case #15-03387 by a former customer who is seeking damages of $150,000 from UBS Financial Services.

The former UBS Financial Services customer alleges that in 2012 Hightower recommended the purchase of a high risk, illiquid and unsuitable private placement. Claimant further alleges omissions and misrepresentations regarding the recommended investment.

 

If you have losses in an account handled by William Hightower, call to learn how you may be able to recover damages from his former employer.

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

James V. Marino-Former Edward Jones Broker- Faces Allegations of Theft from Customer-Pompano Beach, FL

OCTOBER 2017

James V. Marino , a former stockbroker in Pompano Beach, FL, who was last employed by Edward Jones ,  was recently barred permanently from the securities industry by FINRA. 

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, without admitting or denying the findings, James Marino consented to a permanent bar from the securities industry and to the entry of findings that he refused to appear for on-the-record testimony as requested by FINRA in connection with their investigation related to the acceptance of gifts from a firm client and the use of the client’s credit card for his own benefit.

In October 2016 a customer of Edward Jones alleged that Marino stole money from the client during period from 11/2013-4/2016, and is seeking damages of $702,300.

Marino was discharged by Edward Jones in 10/2016, the same month the customer theft allegation was received.

 

If you have losses in an account handled by James V. Marino  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

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

Aldo Marchena-Former Northeast Securities Broker-Discloses Settlments to Customers and Regulatory Sanction-Boca Raton, FL

UPDATE October 2017Aldo Marchena, who is not currently registered with any broker dealer,  discloses four customer disputes on his FINRA record ,  including:

FINRA Case 16-1918-in which a customer of Northeast Securities alleges damages of $75,000 for breach of fiduciary duty by recommending high risk investments. This case was settled in December 2016 for $30,000.

FINRA Case 15-3116-in which a customer of Northeast Securities alleges damages of $65,250 for unauthorized trading and unsuitable investments. This case was settled for $45,000 in November 2016

ORIGINAL POST -March 24, 2016-Boca Raton, FL

Aldo Nestor Marchena , a broker with Northeast Securities, entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  he engaged in an outside business activity while associated with Northeast Securities without providing written notice to the firm in violation of FINRA rules.

In addition, FINRA alleged that Marchena made inaccurate statements on two annual firm questionnaires , in violation of FINRA rules.

According to FINRA records, Marchena formed ABC, a Florida LLC which offered business consulting services and used his Northeast Securities address as the official address of ABC. In early 2011, Marchena orally requested permission from the firm to refer Northeast Securities customers to ABC for business consulting purposes and for referrals from ABC for brokerage services. The firm denied the request.

According to FINRA, Marchena did not tell the firm he was continuing his involvement with ABC.

AWC No.  2014040769401

Marchena was suspended by FINRA from association with any FINRA member in any capacity for five months and fined $5,000 in April 2016.

FINRA records disclose that Marchena was registered with Northeast Securities from 10/2010-4/2014. Prior to that he was employed by Kovack Securities. He is not currently registered as of October 2017. Marchena also discloses a business relationship with Global Investment Group.

Northeast Securities was founded in 1989 and is headquartered in Mitchelfield , NY.  According to FINRA , Northeast Securities discloses 15  regulatory events and 12 customer arbitrations.

If you have losses in an account handled by Aldo Marchena, 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