Category Archives: Unfair Bond Pricing

John Tinnelly Investigation-Woodstock Financial Group-New York

April 10, 2016-New York, NY

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.

FINRA records are public and can be accessed on the BrokerCheck website. 

The FINRA records of Woodstock Financial Group stockbroker John M. Tinnelly report that he has recently been named in two pending customer disputes:

  • FINRA Case 15-0736- customer alleges churning, unsuitable investment recommendations, misrepresentation and breach of contract. Damages are alleged to be $168,924.
  • FINRA Case 15-0458-customer alleges churning, excessive commissions, quantitative unsuitable trading, unauthorized trading, fraud and other claims. Damages are alleged to be !118,375.

Tinnelly’s  FINRA record reports six prior customer disputes that have been settled, including:

  • FINRA Case @13-02289 where a customer alleged undisclosed markups/markdowns, fraud, breach of fiduciary duty, and unscrupulous trading and churning. That case was settlement for $125,000.

Tinnelly is currently employed by Woodstock Financial Group.

If you have losses in an account handled by John M. Tinnelly  contact us to learn how you may be able to recover damages from his 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

Bankers & Investors Co. Sanctioned on UIT(Unit Investment Trust) Sales-Topeka, Kansas

February 3, 2016 – Topeka, Kansas

Bankers & Investors Co.  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from March 2010-March 2014, Bankers & Investors Co. failed to apply rollover discounts to certain customers’ eligible purchases of unit investment trusts (UITs) in violation of FINRA Rule 2010.

AWC No.  2014039169401

A UIT is a type of Investment Company that issues securities, typically called “units,” representing undivided interests in a relatively fixed portfolio of securities. UITs are generally issued by a sponsor that assembles the UIT’s portfolio of securities, deposits the securities in a trust, and sells units of the UIT in a public offering. UIT units are redeemable securities that are issued for a specific term, and entitle an investor to receive his or her proportionate share of the UIT’s net assets on redemption or al termination.

Bankers & Investors Co.  was censured and fined $25,000.

Bankers & Investors Co.  has been a FINRA member since 2001 and is headquartered in Kansas City, KS. They have about 14 registered representatives operating out of 11 offices in Kansas and Missouri.

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

Edward Jones Brokerage Firm Fined $20 by SEC on Municipal Bond Overcharges

August 13, 2015-Washington DC

The Securities and Exchange Commission (SEC) announced that Edward Jones, a brokerage firm headquartered in St. Louis, and Stina R. Wishman, the former head of its municipal bond desk have reached a settlement over allegations that they overcharged customers purchasing new municipal bonds.

The SEC found that Edward Jones and Wishman were taking the bonds into the Edward Jones inventory first and then marking them up before selling them to customers.

Edward Jones agreed to pay more than $20 million, which includes over $5 million in disgorgement and prejudgment interest and will be distributed to the customers who were overcharged. Wishman will pay $15,000 and will be barred from the securities industry for at least two years.

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

Securities Regulators Charge Global Arena Capital Corp. with Excessive Markups/Markdowns

June 4, 2015

Global Arena Capital Corp., a broker dealer headquartered in New York that maintains several branch offices nationwide, was named in  FINRA Disciplinary Proceeding #20110265443,  which alleges that from October 2010-June 2013, the company engaged in a pattern of charging excessive and unfair markups/markdowns on corporate bond transactions.

The pleading alleges there were at least 495 instances resulting in excessive charges to customers of over $333,000.

If you have questions about the way your account has been handled at Global Arena Capital Corp. call to speak with an experienced securities attorney.

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

Calton & Associates/R.M. Duncan Named in Regulatory Complaint For Unfair Bond Sales

December 31, 2014

The Department of Market Regulation of FINRA filed an action against Calton & Associates and R.M. Duncan Securities, Inc. and several registered representatives alleging that in connection with the sale of “Ravenwood Bonds”, they charged customers prices that were not fair or reasonable and engaged in deceptive, dishonest and unfair practices.

The Ravenwood Bonds are Maryland St Economic Dev Corp SR-Ravenwood Healthcare FAC-A Bonds, Cusip 57420UAK1, with a coupon rate of 8.75% and a maturity date of 8/1/2027.

The individuals named in the complaint are:

  • Randall M. Duncan
  • Stephen B. Murchison
  • Kenneth R. Harter

The pleading alleges that the bonds were sold to customers at prices that were 60% higher than the prevailing market price.

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

NEXT Financial Fined $265,000 by Securities Regulators

December 16, 2014

NEXT Financial Group  entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that between July 1, 2010 and December 31, 2011, in 19 transactions,  the firm purchased agency securities for its own account or sold agency securities to a customer at a price that was not fair and reasonable, and in doing so failed to observe high standards of commercial honor and just and equitable principles of trade. Case # 20110265211-01

NEXT Financial Group was censured, fined $265,000 and ordered to pay restitution to affected customers in the amount of $177,170, plus interest.

NEXT Financial was formed in 1998 by recently retired chairman Gordon D’Angelo and is headquartered in Houston, Texas.

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

 

Newbridge Securities Sanctioned by Securities Regulators Over Bond Transactions

December 1, 2014- Boca Raton, FL

Newbridge Securities Corporation entered into an agreement with the Financial Industry Regulatory Authority (FINRA) to resolve multiple compliance matters related to corporate bond transactions and customer trading activity. Case 20090198779-01.

As is typically the case, Newbridge neither admits or denies the facts and agreed to the following:

  • Censure
  • A fine of $138,000
  • An undertaking to revise the firm’s written supervisory procedures

FINRA found that Newbridge had violated various rules in connection with numerous transactions, including the following:

  • In 31 transactions in 2009,  the firm bought and sold corporate bonds to and from customers at a price that was not fair.
  • The firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with applicable securities laws and regulations, concerning bond transactions with customers.
  • In 50 instances in 2010, Newbridge failed to execute orders fully and promptly and in 18 of those transactions Newbridge failed to use reasonable diligence to obtain the best price for the customer.
  • Newbridge , on 63 occasions, provided written information to customers that failed to disclose information or disclosed inaccurate information.

Newbridge Securities Corporation is based in Ft. Lauderdale , FL and  according to the firm website, has branch offices located in:

  • Scottsdale, AZ
  • Boca Raton, FL
  • Coral Springs, FL
  • Chicago, Illinois
  • Matawan, NJ
  • Woodbury, NJ
  • New York City

If you have an account with Newbridge Securities that has suffered losses that you believe are the result of negligence or fraud , contact us to learn about your options.

Rex Securities Law , located in Boca Raton, FL, 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.

Rex Securities Law

561 391 1900