Category Archives: Stockbroker Malpractice

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

Losses on Tiburon Saltwater Reclamation Fund Private Placement ?

October 2017-Austin, Texas / Greenville, South Carolina

If you lost money on the Tiburon Saltwater Reclamation Fund, we may be able to help you recover damages.

FINRA (The Financial Industry Regulatory Authority) recently filed a fraud complaint alleging that Sandlapper Securities created and sold private placements in saltwater disposal wells in Texas while charging huge markups (as much as 270%), totalling over $8 million in undisclosed markups.

Sandlapper CEO Trevor Gordon and another Sandlapper executive Jack Bixler are also named in the complaint which alleges that investors were defrauded when undisclosed markups were channeled to Sandlapper through a middleman development company owned by the defendants. FINRA Complaint No. 2014041860801. 

According to the FINRA complaint, investors in Tiburon Saltwater Reclamation Fund were led to believe that not only was their capital protected but they could also anticipate a long term return of 15%.

Private placements are non public offerings that are only sold to accredited investors.

If you purchased  the Tiburon Saltwater Reclamation Fund, call to learn about your options for recovery.

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

 

William W. Marshall-Ameriprise Broker-Discloses 4 Pending Customer Arbitrations-Plano, TX

October 2017-Plano, TX

The FINRA records of  William W. Marshall ,  a  stockbroker who is currently registered with Ameriprise Financial Services disclose a prior regulatory event, 4 pending customer disputes including at least one claim that alleges a fraudulent investment.

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 2016 Marshall was sanctioned by FINRA who found that he participated in the sale of $1.72 million of privately issued preferred stock without approval of his employing firm and that he received common stock purchase warrants as compensation for serving as a member of the advisory board of the issuer. FINRA found that the offering materials, including sales literature, contained misleading, exaggerated and/or unwarranted statements and inadequate risk disclosures. Marshall was fined $10,000 by FINRA and was suspended from 3/2016-6/2017. FINRA Case 2012033291204.

The pending customer disputes include:

  • A customer of Ameriprise Financial alleges that they were sold two fraudulent investments: $100,000 in Colorado Rare Earths and $100,000 in WestMountain Index Advisors now known as WestMountain Gold. FINRA Case 17-2240
  • A customer of Ameriprise Financial alleges that Marshall recommended they invest $150,000 in an outside investment, BioChemics, without disclosing material information and his relationship to it. FINRA Case 17-1801.
  • A customer of Ameriprise Financial alleges that there was a failure to conduct reasonable due diligence in connection with the sale of Colorado Rare Earths which was represented as a conservative, low risk investment. Damages of $100,000 are sought. FINRA Case 17-1575
  • A customer of Hilltop Securities alleges selling away, misrepresentation and unsuitable recommendations of unregistered securities and seek $350,000. FINRA Case 17-1564.

William Marshall’s employment history includes:

  • Ameriprise Financial Services                     12/2010-present
  • Southwest Securities (now Hilltop)            10/19999-12/2001

If you have losses in an account in an account handled by William W. Marshall , 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

San Antonio Based Investment Professionals Inc. Sanctioned for Unsuitable Advice

October 2017-San Antonio, Texas

San Antonio, Texas, based stock brokerage firm Investment Professionals, Inc.  (IPI)  recently was ordered by William F. Galvin of the Massachusetts Securities Division to pay a $100,000 fine and offer restitution to four senior clients who were allegedly sold unsuitable investment products from offices on the premises of local financial institutions.

In addition the settlement order requires IPI to retain an independent compliance consultant to review the firm’s policies governing supervision of their Massachusetts-registered financial consultants and the sales of securities to persons over 65.

In November 2016, Massachusetts regulators charged IPI with using high pressure sales contests and selling unsuitable investment products to senior citizens who were depositors at community banks.

“This case highlights the dangers of aggressive sales culture that leaves older customers exposed to pressure to buy unsuitable investments,” Secretary Galvin said. “This is especially true when the broker dealer is operating out of a community bank.”

Link to the Massachusetts Securities Division/ Investment Professionals Consent Order. 

In February 2017, without admitting or denying, Investment Professionals agreed to pay FINRA $125,000 and to the entry of findings that from 10/2011-10/2013 it executed 167 non-bona fide municipal transactions without a change of beneficial ownership and that the execution of seven of the transactions were pre -arranged. FINRA also found that IPI did not have written supervisory procedures applicable to trading in limited partnership accounts. FINRA Case 20120313632.

Investment Professionals, Inc., has been a FINRA member since 1992 and operates over 300 branch offices and over 360 employees nationwide.

FINRA records disclose that Investment Professionals, Inc. has 15 prior final regulatory events.

If you have questions about an account handled by Investment Professionals, Inc. call to learn 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

VSR Financial Services-How to Recover Damages On Investment Losses

OCTOBER  2017VSR Financial Services closed down its operations in the Fall of 2016. Many of its brokers and clients have been transferred to Summit Brokerage Services, a related entity which is part of the Cetera Financial Group.

See below for discussion of VSR’s regulatory issues related to the sale of real estate investment trusts (REITs), oil and gas partnerships and other alternative investments and how you may be able to recover damages for losses on those investments.

 

VSR’s  Alternative Investment Problem

VSR is well known for its sales of alternative investments such as non-traded REITs, equipment leasing programs, oil & gas drilling programs, promissory notes and commodity funds. In 2013, VSR and its president Donald Beary, were sanctioned by FINRA in connection with the sale of alternative investments. VSR paid a fine of $550,000.

Recovery of Investment Losses On Limited Partnerships and Other Alternative Investments Purchased From VSR Financial

Over the past several years we have represented a number of investors, mostly retirees, who were recommended alternative investments with the promise of steady, dependable income and minimal risk.

Follow this link for other postings related to the recovery of losses on investments purchased from VSR Financial Services.

If you have suffered losses as a result of investing in alternative investments that were recommended to you by a VSR Financial Services broker (including, but not limited to John Towers, Dennis Van Patter, Mickey Long, Parks Brown, Jr.  , and Keith Bradley) , we may be able to help you recover damages.

Time is of the essence, so if you have a claim, you would be wise to pursue immediately.

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

Andrew “Todd” Yocum Investigation Continues-The VIllages, FL

The Villages Florida

UPDATE OCTOBER 2017FINRA records disclose that Andrew “Todd” Yocum has two prior final regulatory matters resulting in his bar from the industry. There are 10 currently pending customer disputes and 23 prior customer disputes that are final.

In the bulk of the customer disputes, the customers allege an overconcentration of oil and gas related securities.

Here is a sampling of some of the 23 prior cases that have been settled:

  • In 2/2017 a customer of Morgan Stanley was paid $67,500 to resolve allegations that Yocum made unsuitable recommendations in the energy sector 2014-1015.
  • In 8/2017 a Morgan Stanley customer was paid $75,000 to resolve allegations that Yocum over-concentrated their portfolio with unsuitable investments. FINRA Case 17-0049.
  • IN 8/2016 a customer of Morgan Stanley was paid $35,975 to resolve allegations that from March 2012-September 2015 Yocum made unsuitable recommendations.

FINRA Alleges Yocum Recommended Unsuitable Energy Investments to Seniors

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. Customers of broker dealers who have a dispute, such as a claim for account losses , are entitled to file an arbitration proceeding against the firm and/or the broker to recover damages. FINRA entered a permanent bar against Yocum in May 2016 after he refused to appear for FINRA on-the-record testimony in connection with an investigation into whether he effected unauthorized transactions, exercised discretion without written authorization, and recommended unsuitable concentrated purchases of energy sector securities to senior investors.

Florida Securities Regulators Find That Yocum Executed Unauthorized Trades

In 3/2017 the Florida Office of Financial Regulation filed an Administrative Complaint alleging violations of standards of commercial honor and principles of trade; suitability; and placing trades in client accounts without authorization. Yocum was barred from the securities industry by FINRA in May 2017.

The Florida regulators found that Yocum executed trades that were not authorized, made trade recommendations that were not suitable, and failed to execute trades by the end of the day on the date the client requested. Yocum was ordered to cease and desist and be permanently barred from submitting an application for license or registration under Florida Chapter 517.

 

Andrew Yocum was employed by Morgan Stanley and worked in their office located at 832 Lake Sumter Landing, The Villages, Florida, until he was discharged in October 2015 for “Allegations concerning acting on verbal discretion” according to FINRA records.

We continue to evaluate potential cases for former clients of Todd Yocum. Call to discuss your options for recovery. Cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870