Category Archives: Penny Stocks

SEC Charges 13 with Fraud Boiler Room Scam Targeting Senior Citizens-Long Island

July 2017

Thirteen individuals from two Long Island-based boiler rooms were charged with securities fraud by the Securities and Exchange Commission who alleges that they made hundreds of thousands of cold calls, many of which targeted senior citizens.

The SEC press release makes quite a few shocking allegations and demonstrates just how far the unscrupulous will go to take advantage of the general public, for example:

  • It is estimated that over $10 million was scammed from innocent and unknowing victims.
  • A boiler room salesman allegedly claimed that Walt Disney Co. was buying into a company that would cause the penny stock he was touting to soar.
  • Victims were harassed and intimidated by sale personnel…One allegedly told a victim “Do you have any rope at home? If so tie a know and hang yourself or get a gun and blow your head off”.
  • The telemarketers would instruct victims to place trades and a specific price and number of shares and then the scammers would place opposing sell orders to dump their own shares.

Scott W. Friestad, Associate Director of the SEC’s Enforcement Division, added, “The defendants allegedly used boiler rooms and high-pressure sales tactics to swindle seniors into investing their life savings in microcap securities they were secretly manipulating for their own profit.  But, through a combination of technology and innovative investigative approaches, we were able to unravel the alleged scheme and prevent further investor harm.”

Defendants named in the SEC complaint are:

  • POWERTRADERSPRESS.COM, INC.
  • ELITE STOCK RESEARCH, INC.
  • ERIK MATZ
  • RONALD HARDY
  • ANTHONY VASSALLO
  • STEPHANIE LEE
  • JEFFREY CHARTIER
  • LAWRENCE D. ISEN
  • ROBERT GLECKMAN,\
  • MICHAEL WATTS
  • BRIAN HEEPKE
  • DENNIS J. VERDEROSA
  • EMIN COHEN
  • SERGIO RAMIREZ
  • ASHLEY ANTOS

If you were recommended to deal with any of these individuals by a registered stock broker, you may be able to recover damages from that broker’s employer. Call for details.

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

Mark A. Kemp Investigation-McNally Financial Services Broker-Corpus Christi, TX

DECEMBER 2017-FINRA Arbitration claim filed vs. McNally Financial Services by South Texas individuals alleging mismanagement of their retirement accounts by Mark Kemp. See this for more. 

June 2017 – Corpus Christi, Texas

According to publicly available records Mark A. Kemp  (CRD#2057200) ,  a  stockbroker who currently works for San Antonio-based McNally Financial Services Corp.  discloses a prior regulatory event, 7 prior customer disputes and 2 terminations 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.

IN 4/2012, Kemp was fined $5,000 and suspended five days by FINRA to resolve allegations that in 11/2009 while employed by NEXT Financial Group, he mismarked seven order tickets for a penny stock as unsolicited when, in fact, they were solicited. FINRA Case 2009018570501.

Prior customer disputes against Mark A. Kemp resulting in the payment of compensation include:

  • FINRA Case 9-5086-While employed by Hornor, Townsend and Kent a customer sought damages of $320,000 and alleged that Kemp engaged in unauthorized trading and recommended unsuitable securities and annuities inconsistent with their financial situation, risk tolerance and investment objectives. That case settled for $43,000.
  • FINRA Case 9-03476-A customer of Hornor, Townsend and Kent sought damages of $538,900 alleging that Kemp misled them about suitable strategies and investments, engaged in unauthorized transactions and failed to follow their directions. The case settled for $145,000.
  • Nueces County, TX,  Case 00-4498C- a group of customers of MONY Securities Corporation alleged that Kemp and others were engaged in the sale stock in Worldhome Industries. The customers alleged that none of the funds they invested went to the compan. That case was settled for $1,133,000.

Kemp has been employed  by McNally Financial Services since 4/2010.  He was previously employed by NEXT Financial Group, Hornor, Townsend & Kent and MONY Securities. Kemp discloses a business affiliation with Kemp Financial Services in Corpus Christi, TX.

In 11/1998 Kemp was discharged by MONY Securities who alleged that Kemp participated in selling of private, non approved, securities, “selling away”.

In 11/2009 Kemp was discharged by NEXT Financial Group who made the following allegation on Kemp’s FINRA record: “Solicitation of penny stock in violation of firm policy and failure to observe high standards of commercial order and equitable principal trade.” Kemp indicated on FINRA records that he was discharged because it was alleged that he solicited a penny stock against firm policy.

If you have losses in an account handled by Mark A. Kemp, you may be able to recover damages from his employer 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

Abraham Heimann-Former Cetera Advisors Broker-Discloses Customer Disputes Seeking $3M-Alpharetta, GA

May 2017-Alpharetta, GA

According to publicly available records Abraham Heimann, (CRD#1315922) ,  a  stockbroker who is not currently registered with any brokerage firm discloses three currently pending 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 #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.

In currently pending 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.

In currently pending 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.

We are currently evaluating potential cases against the firms who employed Abraham Heimann.

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

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