Category Archives: Penny Stocks

Mark Beloyan of Tradespot Markets Suspended by Securities Regulators-Davie, FL

December 2016-Davie, FL

The FINRA records of  Mark B. Beloyan,  a  stockbroker with Tradespot Markets, Inc. , disclose 3 prior regulatory events that are final and two financial disclosures.

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 2016 Beloyan was named in a FINRA complaint alleging that he recommended penny stocks and engaged in penny stock transactions without complying the regulations required by the Securities Exchange Act. In addition, FINRA alleged that Beloyan sent customers suitability statements without first documenting an affirmative determination of suitability on the document in violation of industry rules and then altered information on the suitability forms.

Beloyan was suspended by FINRA in his capacity to function as a principal for 50 days. FINRA noted that “In light of Beloyan’s status, no monetary sanction has been imposed.”

In 2011, Beloyan was suspended for 2 months by FINRA in connection with the sale of unregistered shares and low priced stock. In 2012 Beloyan was suspended for 10 days for distribution of correspondence recommending the purchase of securities without providing a sound basis for his recommendation of the stock.

FINRA records indicate Beloyan settled two outstanding debts by compromise in 2012 and 2013.

 

Beloyan has been employed by Tradespot Markets, Inc. since 3/1992. He is also associated with Beloyan Investment Securities, Inc. in Davie, Florida.

If you have losses in an account in an account handled by Mark Beloyan , 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

Michael S. Lavolpe-Former Meyers Associates Broker-Discloses Multiple Pending Customer Disputes

July 2016-New York

The FINRA records of Michael S. Lavolpe  , a  currently unlicensed stockbroker who was  most recently employed by  Meyers Associates  disclose a pending regulatory event, 4 pending customer disputes, 2 prior customer disputes and an outstanding judgement/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.

According to FINRA Disciplinary Proceeding 2015047559201, in October 2015, Lavolpe’s employer Meyers Associates reported to FINRA that a customer had filed an arbitration claiming that Lavolpe had engaged in unsuitable activity in the account. Lavolpe failed to respond to FINRA’s requests for information leading to the filing of the FINRA proceeding.

FINRA Case 15-01019 brought by a customer of Meyers Associates alleging unsuitability was settled for $60,000. FINRA Case 10-3764 brought by a Meyers Associates customer alleged churning, failure to supervise, negligence and breach of fiduciary duty. That case was settled for $60,000.

The four currently pending cases include:

  • FINRA Case 16-0402 in which a Meyers Associates customer alleges damages of $308,703 for unsuitable investments in penny stocks.
  • FINRA Case 16-0454 in which a customer alleges damages of $545,000 for unsuitable investments in private placements.

Lavolpe discloses an outstanding tax lien in favor of the IRS in the amount of $4,277.35.

Michael S. Lavolpe was employed by Meyers Associates from 3/2006-7/2014. He is not currently licensed. 

Investors who have questions about how their account has been handled by Michael S. Lavolpe should call to learn how you may be entitled to collect 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

Bernard T. Weber-Feltl & Co. Broker-Discloses Pending Customer Complaint Alleging Churning

Minnetonka, MN

According to FINRA records, Bernard T. Weber  a broker who has been  registered  with Feltl & Company since  12/2006 , discloses a pending customer dispute, four prior customer disputes, two final regulatory events, one pending financial event and one termination.

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 pending customer complaint,  which was received by the company on 11/24/2015, the customer alleges damages of $238,000 for churning, failure to follow instructions and misrepresentation regarding the purchase and retention of certain lower priced OTC equities.

Feltl & Co. Prior Regulatory Issues related to Penny Stocks and ETFs

Feltl & Co. was fined $1 million in 2014 for issues related to inadequacy of supervision in connection with the sale of penny stocks. See this for more. 

That same year Feltl & Co. was fined $225,000 to resolve allegations that firm procedures related to the sale of ETFs were inadequate. See this for more.

If you have questions about  a brokerage account handled by Bernard T. Weber , call to discuss your legal options. You may be entitled to 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

Jason Harris Klabal Investigation-Legend Securities Broker

FINRA records report that Jason Harris Klabal, who has been registered with Legend Securities since 8/2011, is named in a currently pending arbitration  (FINRA Case 15-484) by a customer who alleges the Klabal misappropriated funds, churned his account, breached his fiduciary duty and was negligent. The customer alleges damages of $134,500.

Jason Klabal has been named in six other customer disputes that have been resolved, including:

  • An 11/17/2015 settlement of $50,000 paid to a client who alleged losses on an equity transaction
  • A 2/12/2015 settlement of $20,000 on a verbal complaint regarding misunderstanding related to a margin account.
  • FINRA arbitration 13-3577 alleging churning, excessive commissions charged, unsuitable recommendations, negligence and failure to supervise. Settled for $6,599.
  • FINRA arbitration 14-132 alleging churning, breach of fiduciary duty, misrepresentation of the facts of the securities bought and sold from the account, negligence and breach of contract. Settled for $85,000.
  • FINRA arbitration 13-3347 , a Michigan resident who alleged churning, misrepresentation, breach of fiduciary duty, failure to supervise, negligence and breach of contract. Settled for $50,000.
  • FINRA arbitration 14-1705 alleging negligence, churning, breach of fiduciary duty, misrepresentations, omission of facts and suitability. Arbitration panel found Klabal jointly and severally liable for damages of $39,488 plus interest.

Prior to joining Legend Securities, Klabal was registered with Mercer Capital Ltd. 

We are investigating Legend Securities broker Jason Klabal and would like to speak with any of his present or prior customers who may have information they believe to be helpful to this investigation.

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

Losses on GTAT ? Recovery Options For Investors

If you suffered losses on GT Advanced Technologies (GTAT) purchased from Legend Securities we may able to help you recover damages through FINRA arbitration.

GT Advanced Technologies which traded at nearly $20 in late 2014 now trades at $.02.

Legend Securities was recently sanctioned by two regulatory agencies:

  • South Carolina Division of Securities-assessed a fine of $300,000 for failing to enforce written supervisory procedures concerning sales of GT Advanced Technologies (GTAT) and committed securities fraud in connection with sale of GTAT by failing to disclose that GTAT had filed bankruptcy. See this for more. 
  • The Financial Regulatory Authority (FINRA)-assessed a fine of $125,000 for failing to tailor its anti-money laundering (AML) to its penny stock liquidation busines. See this for more information.

Legend Securities has been a FINRA member since 1998 and is headquartered in New York City. They have about 146 brokers in 14 branch offices.

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

Legend Securities Fined $300,000 by S. Carolina Securities Regulators

March 18, 2016-Columbia, South Carolina

Legend Securities was named in Administrative Order File Number 14108 filed  by the Securities Division of the Office of the Attorney General of South Carolina for violations of South Carolina law.

The Order finds that Legend Securities:

  • charged unreasonable fees on certain sales to residents of South Carolina
  • failed to obtain information necessary to determine if reasonable grounds existed to believe the securities transactions it recommended for a customer were suitable for the customer
  • failed to enforce their written supervisory procedures concerning the sales of GT Advanced Technologies (GTAT), a non-exchange listed, over the counter security, in at least 13 instances
  • committed securities fraud in connection with the sale of GTAT by soliciting buy orders and failing to disclose that GTAT had filed bankruptcy to the purchasers

Legend Securities was ordered to cease and desist violating the South Carolina Securities Act, censured and fined $300,000. Legend Securities has the right to request a hearing on the matter.

Legend Securities has been a FINRA member since 1998 and is headquartered in New York City. They have about 146 brokers in 14 branch offices.

According to FINRA records, Legend Securities has been named in 10 regulatory matters including a recent FINRA sanction in which Legend Securities was fined $125,000 for failing to see and respond to red flags of suspicious transactions related to penny stock sales. See this for more.

GT Advanced Technologies which traded at nearly $20 in late 2014 now trades at $.02. South Carolina residents who suffered losses on GTAT which they purchased on the recommendation of a Legend Securities broker may be able to recover damages through FINRA arbitration. Call 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

Legend Securities Fined $125,000 Over Penny Stock Sales

February 10, 2016

Legend Securities entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from October 2010 to October 2011, Legend Securities failed to tailor its anti-money laundering (AML) program to its penny stock liquidation business.

FINRA alleged that the firm’s system for reviewing trading activity was not reasonably designed to detect patterns of suspicious activity, given the volume of transactions being executed through the firm and the system for detecting and investigating red flags relating to penny stock trading was not adequate.

AWC 20100225921 01

Legend Securities was censured and fined $125,000 and agreed to an undertaking to retain an independent consultant to review firm policies, systems and procedures and thereafter implement and monitor corrective actions.

Legend Securities  has been a FINRA member firm since November 1998 and employs approximately 146 registered representatives in approximately 14 branch offices. Its principal place of business is New York City.

If you have questions about losses in an account at Legend Securities call to discuss it with an experienced securities lawyer.

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