Category Archives: Undisclosed compensation

William Blair and Company to Pay $4.5 Million Fine to Regulator

MAY 2017

According to the U.S. Securities and Exchange Commission, Chicago based brokerage firm William Blair and Company will pay $4.5 million to settle charges that mutual fund assets were used to pay for the distribution and marketing of fund shares outside of a Rule 12b-1 plan and that the firm failed to disclose it would retain a fee for providing shareholder administrative services to certain funds.

Link to SEC release

The payment errors cost the funds $1.25 million, which William Blair has repaid with interest.

FINRA records disclose that WIlliam Blair and Company has 25 prior regulatory events. The company has been a FINRA member since 1944.

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

Berthel Fisher & Broker Jeffrey Dragon Named in FINRA Complaint for Overcharging Commissons

April 2017-Burlington, MA

Berthel Fisher & Company and one of their brokers Jeffrey P. Dragon were named in a FINRA complaint alleging that Dragon generated more than $421,000 in concessions for himself and the firm, at the expense of customers, by recommending and effecting a pattern of unsuitable short-term trading of Unit Investment Trusts (UITs).

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 FINRA complaint further alleges that by failing to apply sales charge discounts from 2010-2014, more than 2700 customers did not receive applicable sales charge discounts resulting in excessive charges of about $667,000.

Berthel Fisher, which has about 350 brokers in 230 branch offices, was fined over $700,000 by FINRA 3 years ago for various failures in supervision related to sales of real estate investment trusts and leveraged exchange-traded funds from 2008-2012. Follow this link to review their FINRA record. 

Jeffrey Dragon was discharged by Berthel Fisher in 9/2016. The company made the following allegation in connection with his termination: “The firm believes that the representative did not adhere to a term of his heightened supervisions agreement, which required him to run all business, including fixed indexed annuities, through the firm’s commission grid.” Link to Dragon’s FINRA record. 

Investors who suffered losses on purchases of UITs, REITs or other investments in an account at Berthel Fisher 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

Alejandro Falla-Former Ultralat Capital Markets Broker-Sanctioned by Securities Regulator-Coral Gables, FL

February 2017-Coral Gables, FL

According to publicly available records Alejandro Falla , (CRD# 5064828) ,  a  former stockbroker who was last employed by  BAC Florida Investments,  disclose  a recent regulatory sanction.

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.

Without admitting or denying the findings, Falla consented to the entry of findings the that he failed to disclose the use of non-market foreign exchange rates in connection with a series of bond swap transactions in retail customer accounts in violation of securities laws. Falla was permanently barred by FINRA.

Alejandro Falla was registered with BAC Florida Investments from 3/2013-10/2014. Prior to that he was employed by Ultralat Capital Markets in Miami, FL.

 

If you have questions about an account in an account handled by Alejandro Falla, contact us to discuss your legal 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

Former Essex Financial CEO Sanctioned by Regulators-Faces Home Confinement

January 2017-Old Lyme, Connecticut

The Day, an online news service covering a 20 town region in eastern Connecticut reports that John W. Rafal, 66, of Old Lyme, founder and former CEO of Essex Financial Services faces four months home confinement and four months probation and a fine of $4,000 for lying to Securities and Exchange Commission investigators who were looking into illegal referral payments to a Branford lawyer for steering clients to the firm.

According to the article, Rafal had made a deal with attorney Peter D. Hershman to pay him $50,000 for referring the business of a wealthy widow to Essex Financial.

Publicly available records reveal that in January 2017 Rafal was permanently barred from acting as a broker or investment adviser or otherwise associating with firms that sell securities or provide investment advice to the public.

The SEC Order can be viewed here.

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

Daniel J. O’Neill-Aegis Capital Broker-Discloses Pending Customer Dispute and Outstanding Liens

July 2016-Melville, New York

The FINRA records of Daniel J. O’Neill ,  a  stock broker currently employed  by Aegis Capital Corp. , disclose a pending customer dispute, a prior final financial event and 3 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 the currently pending matter received by the company in February  2016, a customer of Aegis Capital  alleges unspecified damages for unauthorized trades and misuse of margin from May 2013-June 2015.

O’Neill discloses a discharge from Chapter 7 bankruptcy in 10/2009.

O’Neill discloses the following outstanding judgment/liens:

  • $30,000 in favor of Ladenburg Thalmann & Co. filed in Supreme Court of New York, Suffolk County.
  • $56,151 in favor of the Internal Revenue Service filed in Suffolk County, NY.
  • $7,414  tax lien in  favor of the State of New York filed in Suffolk County.

O’Neill has been employed by Aegis Capital since 4/2013. He was with Ladenburg Thalmann from 3/2011-5/2013 and Maxim Group from  8/2007-4/2011.

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

Patrick H. Maddren-Former Dawson James Broker-Discloses Settlment of $1M Customer Dispute

UPDATE FEBRUARY 2017-FINRA records disclose that arbitration 16-00849, discussed below, was settled for a payment $295,000 by Dawson James Securities.

ORIGINAL POST-May 2016-Ft. Lauderdale, FL

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 recordsPatrick H. Maddren has been registered with Laidlaw & Company since 8/2012. Prior to that he was registered with Dawson James Securities from 8/2009-8/2012.

Patrick H. Maddren discloses on his FINRA records disclose that   FINRA Case 16-0849 is currently pending. The customer alleges that while Maddren was registered with Dawson James Securities he failed to follow instructions, made material misrepresentations and omissions, traded the account excessively, charged excessive commissions, traded without authority and made unsuitable recommendations. Damages are alleged to be $1,000,000.

If you have losses in an account handled by Patrick H. Maddren 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