Category Archives: Emmett A. Larkin & Co.

Chazon Stein-Former Primex Stock Broker-Discloses Permanent Bar from Securities Industry-Boca Raton, FL

July 2016-Boca Raton, Florida

The FINRA records of Chazon Stein (also known as Chaz Stein, Chazoni Stein & Zoni Stein) , a  currently unlicensed stockbroker who last worked for  Primex disclose a prior regulatory event and 2 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 July 2015 the Florida Office of Financial Regulation found that Chazon Stein offered and sold unregistered securities, engaged in securities  business in Florida without being registered and obtained money by means of fraud and permanently barred Stein from affiliating or seeking future registration as a dealer, investment adviser, or associated person under the Florida Securities and Investor Protection Act, Chapter 517, F.S. In addition Stein was assessed a $40,000 administrative fine.

Chazon Stein was employed by Primex  from 10/2013-1/2014. Prior to that he was employed by Sterne Agee Financial Services and Emmett A. Larkin Company.  

In July 2015, the  FBI announced today the indictment of eight individuals, including Chazon Stein, 36, of Miami Beach, for participating in securities fraud involving Thought Development Inc., a Miami Beach based company claiming invention of a green line on the football field visible, and Virgin Gaming, a fee based service facilitating on line gaming and fantasy sports leagues.

Investors who have questions about how their brokerage account has been handled by Chazon Stein 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

FINRA Announces December 2012 Disciplinary Actions

FINRA Announces December 2012 Disciplinary Actions

The
Financial Industry Regulatory Authority (FINRA) issues a report on
disciplinary and other actions involving registered brokers, investment
advisers and brokerage firms every month. 


Here are significant Florida related actions for December 2012. Follow this link to the FINRA website for the entire report for actions nationwide for the month of December 2012 as well as to access  earlier time periods.

Falcon Research, Inc. Clearwater, Florida submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $10,000. The firm consented to the described sanctions and to the entry of findings that it permitted a person registered solely as a general securities principal to prepare, author and approve a research report that the firm issued. The findings stated that the report contained a rating but failed to define the meaning of each rating used in its rating system. The report failed to disclose the percentage of all securities the firm rated, to which the firm would assign a buy, hold/neutral or sell rating, or to disclose the percentage
of subject companies within each of these three categories for whom the firm had provided investment-banking services within the previous 12 months. The report referred to
important disclosures that are located at the end of the document, however, the disclosure was not prominent. The findings also stated that the report failed to contain research
analyst certifications required by SEC Regulation AC and found various other regulatory issues.

Statetrust Investments Inc. – Miami, Florida, submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $20,000. The firm consented to the described sanctions and to the entry of findings that it failed to report transactions in TRACE-eligible securities to TRACE within 15 minutes of the execution time, failed to report the correct trade execution time for transactions in TRACE-eligible securities to TRACE, and failed to report the correct contra-party’s identifier for transactions on TRACE-eligible securities to TRACE.

Shari Robin Frimer Eastport, New York and Thomas Joseph Heaphy Jr. of , Boynton Beach, Florida submitted an Offer of Settlement in which Frimer was fined $32,407.50, which includes disgorgement of financial benefits of $17,407.50, and suspended from association with any FINRA member in any capacity for seven months. The amount of the fine has been reduced to reflect Frimer’s payment of a $20,000 fine to the State of Florida Office of Financial Regulation. Heaphy was fined $40,827.50, which includes disgorgement of financial benefits of $30,827.50, and suspended from association with any FINRA member in any capacity for nine months.

Frimer and Heaphy consented to the described sanctions and to the entry of findings that they participated in private securities offerings by selling securities offerings to customers and receiving selling compensation for their sales. The findings stated that prior to participating in the private securities transactions, Frimer and Heaphy did not provide written notice to their member firm and did not receive the requisite approval from their firm to participate in the transactions.  The findings also stated that Frimer guaranteed, in writing, to a customer that he would be able to sell shares of a stock within a certain time period for his cost to acquire them. The findings also included that Frimer sent, or caused to be sent, marketing newsletters regarding a company to firm customers, without requesting or receiving the firm’s approval to disseminate the newsletters. The newsletters were not fair and balanced, failed to provide a sound basis for evaluating the facts in regard to the company, and contained exaggerated, unwarranted, and misleading claims and unreasonable and unwarranted forecasts. FINRA found that Heaphy willfully failed to timely amend his Form U4 to disclose a material fact, a lien placed on his property for unpaid taxes, and willfully failed to disclose the material fact on the Form U4 that a member firm filed for him. Frimer’s suspension is in effect from November 5, 2012, through June 4, 2013. Heaphy’s suspension is in effect from November 5, 2012, through August 4, 2013.

According to FINRA records Shari Frimer is not currently registered. She last worked for Emmet A Larkin Co. and prior to that for Scottsdale Capital Advisors. Likewise, Heaphy is not currently registerd having last worked for Forge Financial Group and prior to that Scottsdale Capital Advisors.

Michael Wayne Hendrick – Indialantic, Florida submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for 20 business days. Hendrick consented to the described sanctions and to the entry of
findings that he effected trades in his customer’s account at the direction of the customer’s spouse. The findings stated that the firm did not accept the account as discretionary,
and the customer did not give Hendrick written authority to exercise discretion over the account. In addition, the customer’s spouse did not have written authority to direct
trading in the customer’s account. The findings also stated that on that same day, Hendrick mismarked order tickets in securities as unsolicited when the trades were actually solicited, thus causing the firm’s books and records to be inaccurate concerning these trades.

The suspension was in effect from October 15, 2012, through November 9, 2012. According to FINRA records Hendrick last worked for Charles Schwab and is not currently registered.

William Edward Hesse -Freeport, Florida submitted
a Letter of Acceptance, Waiver and Consent in which he was suspended from association with any FINRA member in any capacity for three months. In light of Hesse’s financial
status, no monetary sanction has been imposed. Hesse consented to the described sanction and to the entry of findings that he failed to reasonably supervise an individual and failed to reasonably review trades and wire transactions directed by a client of the individual for potentially suspicious activity and other irregularities. The finding stated that despite several red flags, Hesse did not identify an
y of the activity in the accounts the client controlled to be suspicious or irregular,
and failed to take any supervisory action to prevent the client from engaging in a cherrypicking scheme. The client had the ability to reallocate trades among the accounts that he controlled.

The suspension is in effect from October 15, 2012, through January 14, 2013.

FINRA records indicate that Hesse is not currently registered and last worked for Wm. H. Murphy & Co.

Thomas Homer Morrow II – Jupiter, Florida was barred
from association with any FINRA member in any capacity. The sanction was based on
findings that Morrow failed to register with FINRA despite functioning as a representative
for a member firm. The findings stated that Morrow traded in the firm’s proprietary account on the firm’s behalf, sharing in the profits from his trading and causing the firm’s capital requirement to increase from $5,000 to $100,000. The findings also stated that Morrow created and maintained the trading blotters for the firm’s proprietary trading account. The findings also included that although Morrow conducted trading without oversight from the firm, his activities were controlled by the firm and was therefore, an associated person of the firm. FINRA found that Morrow failed to appear and testify at a FINRA on-the-record interview.

Morrow is not currently registered.

Alissa Marie Ponzurick fka Alissa Marie Youngblood
Palm Beach Gardens, Florida submitted a Letter of Acceptance, Waiver and Consent in which she was fined $5,000 and suspended from association with any FINRA member in any capacity for three months. Ponzurick consented to the described sanctions and to the entry of findings that after a co-worker advised her that they had earned a $200 bonus, but without confirming from her team leader how she could collect the bonus, Ponzurick submitted a reimbursement form to her member firm claiming approximately $200 in mileage expenses based on the purported use of her personal car for business travel. The findings stated that Ponzurick had not actually incurred such expenses.

The suspension is in effect from November 5, 2012, through February 4, 2013.

Riad Shanawany -Tamarac, Florida submitted a Letter of Acceptance, Waiver and Consent in which he was fined $7,500 and suspended from association with any FINRA member in any capacity for 45 days. Shanawany consented to the described sanctions and to the entry of findings that he engaged in an outside business activity by participating in a limited liability company involved in start-up efforts for reconstruction and modernization of the Port-au-Prince airport in Haiti, and received a membership interest in the company for his participation, without providing his member firm with adequate notice of the outside business activity and membership interest.

The suspension is in effect from November 5, 2012, through December 19, 2012. Shanawany currently works for J.W. Cole Financial. He previously was registered with Ameriprise Financial Services according to FINRA records.

William Mitchell Tillett
-Delray Beach, Florida
submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for six months. Tillett consented to the described sanctions and to the entry of findings that
he willfully failed to timely disclose material information to his member firm and FINRA. The findings stated that Tillett failed to disclose that he had been charged with the felony
offense of criminal trespassing and the misdemeanor offenses of theft by unlawful taking and theft of services. The findings also stated that Tillett failed to timely file amended Forms U4 to report that the felony trespassing charge was reduced to a non-reportable summary offense for trespassing.

The suspension is in effect from October 15, 2012, through April 14, 2013.

Clyde Marshall Thornburg
-Riverview, Florida submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity. Thornburg
consented to the described sanction and to the entry of findings that he engaged in a pattern of unsuitable short-term trading and switching of unit investment trusts (UITs), corporate debt, and mutual funds in customer accounts without having reasonable grounds for believing that such recommendations were suitable in view of the size and
frequency of the recommended transactions, and in light of each customer’s investment objectives, circumstances, financial situations and needs. The findings stated that
Thornburg’s actions caused these customers to pay approximately $332,231 in unnecessary sales charges, and the accounts had cumulative losses of approximately $983,152.
Thornburg generated gross commissions of approximately $301,389 for his firm, of which he received a significant portion based on his member firm’s percentage payout structure.

The findings also stated that at the time some of the customers opened their accounts, Thornburg informed them that they would not pay costs for trading products such as UITs and other securities; these customers paid sales charges, commissions, front-end loads and other costs when they believed they were not paying such costs. Thornburg misled some customers by omitting information about the actual charges they were paying and by misrepresenting products as not having any costs when in fact they did have a charge. The
findings also included that Thornburg exercised discretion in each of the accounts without prior written authorization.
FINRA found that Thornburg forged, or caused to be forged, the names of some customers or their representatives on mutual fund disclosure forms, causing his firm to maintain
inaccurate books and records. FINRA also found that Thornburg provided false information about the customers’ income, liquid net worth, risk tolerance and investment objectives.

FINRA records indicate that Thornburg is no longer registered having last worked for International Financial Solutions.

Enrique Vila -Key Biscayne, Florida submitted
a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for 15 business days.  Vila consented to the described sanctions and to the entry of findings that he exercised discretion in a customer’s account and executed
numerous trades in the account. T
he findings stated that although the customer authorized the use of discretion with respect to his account, Vila did not obtain the customer’s written authorization and his member firm’s acceptance of the account as discretionary.

The suspension was in effect from November 5, 2012, through November 26, 2012.

FINRA reports that Vila currently works for Morgan Stanley and previously was registered with Merrill Lynch.

If you have questions about
losses or other activity in your brokerage account, please do not
hesitate to contact us. We have been helping investors recover stock
market losses for more than 20 years. 

Free consultation. Nationwide representation.

FINRA Issues September 2012 Disciplinary Actions

FINRA Issues September 2012 Disciplinary Actions

The
Financial Industry Regulatory Authority (FINRA) issues a report on
disciplinary and other actions involving registered brokers, investment
advisers and brokerage firms every month.

This month there seem to be quite a few situations involving a broker borrowing money from his customer, which is not allowed by firm and industry rules.

Here are significant Florida related actions for September 2012. Follow this link to the FINRA website for the entire report for actions nationwide for the month of September 2012 as well as to access  earlier time periods.

You can access the employment, educational and disciplinary history of any broker by going to the FINRA Broker Check website which can be accessed here.

Robert Nunes Da Frota  Fort Myers, Florida was fined $10,000, suspended from association with any FINRA member in any capacity for six months and ordered to make full repayment of the outstanding balance on a customer’s loan. The fine and full repayment of the outstanding balance on the loan, pursuant to the terms of the promissory note, must be paid either immediately upon Da Frota’s reassociation with a FINRA member firm following his suspension. 

Da Frota consented to the described sanctions and to the entry of findings that he borrowed $10,000 from a customer and executed a promissory note.The findings stated that while previously employed with another member firm, he borrowed $10,000 from a customer, executed a promissory note and has not repaid that customer. Da Frota never disclosed the loan to his previous member firm.

The suspension is in effect from August 6, 2012, through February 5, 2013.

FINRA
records disclose that DaFrota previously worked for LPL Financial and
more recently with Royal Alliance Associates. At the time of this
writing he is not currently registered.

Patrick Alan Deramus  Tampa, Florida  was fined $5,000 and suspended from association with any FINRA member in any capacity for six months. The fine must be paid either immediately upon Deramus’ reassociation with a FINRA member firm following his suspension.

Deramus consented to the described sanctions and to the entry of findings that he failed to timely notify his member firm of a felony charge and guilty plea. The findings stated that
Deramus willfully failed to amend his Form U4 to disclose the felony charge.

The suspension is in effect from July 16, 2012, through January 15, 2013.

Mr. Deramus was most recently employed by FSC Securities Corporation and is not currently registered with FINRA.

Brent Keith Deviney West Palm Beach, Florida
was barred from association with any FINRA member in any capacity
based on findings that Deviney failed to respond to FINRA requests for information and documents, and to appear for on-the-record interviews in connection with an investigation
of allegations that Deviney had converted funds and forged documents to do so.

Mr. Deviney has not been registered since February 2012 and his last broker position was with Newbridge Securities Corporation.

David Marasek  Boca Raton, Florida  was fined $5,000 and suspended from association with any FINRA member in any capacity for 10 business days.  Marasek consented to the described sanctions and to the entry of findings
that he participated in private securities transactions, not for compensation, for some of his member firm’s foreign customers through another broker-dealer.

Marasek exercised limited trading authority in the customers’ accounts. The findings stated that Marasek did not provide his firm with written notice of the proposed transactions at the other brokerdealer and his proposed role therein, and failed to receive his firm’s prior written approval to participate in the private securities transactions.

Marasek’s supervisor was aware that he was assisting the firm’s customers with liquidating their stock, but not aware of Marasek’s limited trading authority.

The suspension was in effect from July 16, 2012, through July 27, 2012.

Marasek last worked as a broker for Wentworth Securities and is not currently registered.

Stephen Nietsch – Boynton Beach, Florida was barred from association with any FINRA member in any capacity and ordered to pay $20,000, plus interest, in restitution to a customer. The sanctions were based on findings that Nietsch borrowed $20,000 from an elderly customer contrary to his member firm’s procedures prohibiting him from borrowing from customers. Nietsch has not repaid the loan.

Nietsch last worked as a broker for Bank of America Investment Services and is not currently registered.

Jose S. Ramos Tampa, Florida was suspended from association with any FINRA member in any capacity for 12 months. In light of Ramos’ financial status, no monetary sanction has been imposed. Ramos consented to the described sanction and to the entry of findings that he failed to provide prompt written notice to his member firm to disclose his outside business activities.

Ramos held ownership interests in each outside business; held the titles of officer, treasurer and director; was responsible for, among other things, arranging financing to operate each business and participating in monthly board meetings; and received funds from a customer to invest in one of the businesses.

Ramos was clearly aware of his firm’s requirement and had previously disclosed outside business activities and had attended  compliance training sessions in which he was reminded of his obligation to report, in writing, his involvement in any outside business activity.

The findings also included that Ramos failed to timely update his Form U4 with his personal bankruptcy filing.

The suspension is in effect from August 6, 2012, through August 5, 2013.

Ramos formerly worked for Genworth Financial Securities (now known as Genworth Financial)  and most recently with Sterling Enterprises Group. He is not registered at the time of this writing.

Andrew Glen Rosenberg  -Weston, Florida
was fined $10,000 and suspended from association with any FINRA member in any capacity for three months. Rosenberg consented to the described sanctions and to the entry of findings that he performed legal services for an issuer through his law practice, a sole proprietorship, and received approximately $98,000 in compensation.

The findings stated that for approximately 18 months, Rosenberg, acting through his company, presented and/or sold approximately $4.5 million worth of the issuer’s notes and debentures to investors, most of whom were his member firm’s customers. Rosenberg failed to disclose to the investors that he was providing legal services for compensation
to the issuer, thereby negligently failing to disclose a material fact to the investors. The findings also stated that Rosenberg advised his firm of his law practice on an outside business activities form and represented he was unaware of any potential conflicts of interest, but failed to promptly notify his firm through an amended form that he, through his law practice, was providing legal services for compensation to the issuer, an entity whose securities he was selling to investors, including firm customers.

The suspension is in effect from August 6, 2012, through November 5, 2012.

FINRA records indicate Rosenberg formerly worked as a registered representative for NFP Securities, Inc. and most recently for Securities America. He is not registered at the time of this writing.

Stephen Paul Tommelleo – Boca Raton, Florid was fined $5,000, suspended from association with any FINRA member in any capacity for three months and ordered to pay $14,990, plus interest, in restitution to a customer. Tommelleo consented to the described sanctions and to the entry of
findings that he borrowed money from customers without his member firm’s authorization and contrary to his firm’s WSPs, which did not permit loans between registered representatives and their customers.

The findings stated that Tommelleo completed two firm annual compliance attestations indicating he had not and would not borrow money from any firm customer. Tommelleo borrowed a total of $34,875 and repaid the customers
a total of $5,800. One customer sued Tommelleo in state court for $15,000 and another was not repaid at all.

The suspension is in effect from August 6, 2012, through November 5, 2012.

Tommelleo last worked in the industry as a registered representative for PFS Investments, Inc. He is not currently registered.

Jeffrey Griffin Lane Darien, Connecticut and Robert
Marcus Lane – North Palm Beach, Florida
were barred
from association with any FINRA member in any capacity and ordered to pay $317,030.70, jointly and severally, in restitution to customers. The sanctions were based on findings
that the Lanes’ member firm charged its customers unfair and excessive markups on the prevailing market price, for which Marcus Lane was responsible because he set the markups
and structured the legs of the transactions.

The firm charged its customers more than the 5 percent guideline, and the Lanes failed to present any evidence of special circumstances or special services that might justify the excessive markups. The findings stated that Marcus Lane accomplished the unfair and excessive markups by interpositioning the entities he owned between the customers and the contemporaneous market, which was inconsistent
with the requirement to obtain as favorable a price as possible for the customer under prevailin
g market conditions.

FINRA found that Marcus Lane purposely structured the multi-legged transactions to make up for losses on other transactions. The transactions were reported  as though
they were customer transactions with third parties, concealing the connection between the firm and the Marcus Lane entities.

Furthermore, FINRA found that Jeffrey and Marcus Lane failed to respond timely to FINRA requests for information and documents.

The decision has been appealed to the NAC and the sanctions are not in effect pending the
appeal.

Neither Jeffrey Lane nor Robert Lane is  currently registered, each  having last worked at Greenwich High Yield LLC.

Shari Robin Frimer -Royal Palm Beach, Florida
was named a respondent in a FINRA complaint alleging that she sold private offerings of securities from which she received selling compensation, without providing written notice
of her proposed role in, or the compensation she might receive from, the transactions to her member firm.

The complaint alleges that Frimer received a total of $37,407.50 in selling compensation and that she participated in other private securities transactions from which she did not receive selling compensation, without providing prior notice to her firm. The complaint further alleges that Frimer guaranteed, in writing, a customer against loss; the customer would be able to sell shares of stock withina certain time period for his cost to acquire them.

In addition, the complaint alleges that Frimer sent, or caused to be sent, two marketing newsletters regarding a company without requesting or receiving firm approval and that the newsletters were not fair and balanced, and contained numerous exaggerated, unwarranted, and misleading claims and numerous unreasonable and unwarranted forecasts.

Frimer is not currently registered and last worked as a registered representative for Emmett A. Larkin & Co. Prior to that she was with Scottsdale Capital Advisors and Brookstone Securities.

If you have questions about losses in your brokerage account or other unexplained activity, please do no hesitate to contact us. We have been helping investors recover stock market losses nationwide for more than twenty years. Call us or click the Contact Us link at the bottom of the page and send us an email with a description of the problem.

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561 391 1900