Category Archives: Liberty Partners Financial Services

Joseph Stone Capital Brokers Named in Regulatory Complaint Alleging Churning

August 2016- Mineola, NY

The FINRA records of  Lawrence P. Sullivan,  a  stock broker who is not currently licensed and who was last employed by Joseph Stone Capital  disclose  a currently pending regulatory event and a termination 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.

Office of the Commissioner of Securities and Insurance, Montana State Auditor Case No. SEC-2016-124

On June 8, 2016, the Montana Commissioner of Securities and Insurance (CSI) filed a complaint (CSI Case Number SEC-2016-124) naming Lawrence Sullivan, who at the time was a salesperson with Joseph Stone Capital  and other parties, including:

  • Joseph Stone Capital, Lawrence’s  former employing firm
  • James Pardy-Chief Compliance Officer of Joseph Stone
  • Adam Maggio-a salesperson with Joseph Stone
  • David Menashea salesperson with Joseph Stone
  • Frank Spadaro-a salesperson with Joseph Stone

The Montana CSI complaint alleges that in January 2016, the Montana CSI received a cold call from Sullivan who was transferred to an analyst for CSI. Sullivan pitched an investment about Paypal to the Montana CSI employee who then informed Sullivan that he had called the Montana State securities regulators. At that point, Sullivan denied he was trying to solicit an investment and hung up.

That same day Montana CSI requested complete records regarding all of Joseph Stone’s Montana clients. Analysis of the records revealed churning in the accounts of Montana residents , overcharging of commissions and other statutory violations.

According to the Montana CSI complaint with regard to one of the accounts handled by Frank Spadaro : “The total of all trades resulted in $4,052,938.36 in purchases and $3,747,491.70 sales, with corresponding Looper[l] tumover rates of 30.52 and,28.22 respectively “

Churning & The Looper Formula

The Looper turnover rate calculates the dollar amount of purchases during a time period divided by the average account equity annualized. The 2-4-6 ‘rule of thumb’ turnover rate is often used to generally analyze trading:

  • Twice a year is ‘suggestive’ of excessive trading
  • Four times a year is ‘indicative’ of excessive trading
  • Six times a year turnover is ‘conclusive’ of excessive trading

According to public records:

  • On January 19, 2016, Lawrence Sullivan was discharged by Joseph Stone Capital
  • David Manashe is now registered with Newbridge Securities Corporation

If you have questions about an account handled by Joseph Stone Capital  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

Kristopher R. Tung-Axiom Capital Mgmt. Broker-Discloses Pending Customer Arbitration

August  2016-Westbury, New York

The FINRA records of Kristopher R. Tung ,  a  stock broker who is currently employed by Axiom Capital Management  , discloses a pending customer dispute.

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 FINRA Case 16-0140, a customer of Tung’s prior employer, Liberty Partners Financial Services alleges damages of $42,383 for failure to supervise.

 

Tung has been employed by Axiom Capital Management since 10/2015. Prior to that he was employed by Rockwell Global Capital, B.B. Graham & Co. and Liberty Partners Financial Services.

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

Hank Werner-Former Legend Securities Broker-Discloses Investigation for Churning Account of Blind & Disabled Widow

August  2016-New York

The FINRA records of Hank M. Werner ,  a  currently unlicensed stock broker who was most recently employed by Legend Securities Inc.  , discloses a pending FINRA investigation in which he was charged with excessive trading and commissions which cost a 77 year old widow, who is blind,  $184,000 over a three year period.

In addition Werner’s FINRA record discloses a prior final customer dispute, 2 terminations from employment and six 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 recently filed FINRA regulatory case 2015048048801, FINRA makes the following allegations:

  • Werner enriched himself at the expense of an elderly, blind and physically disabled customer by engaging in a manipulative, deceptive and fraudulent scheme pursuant to which he churned three accounts of the widow.
  • The victim, blind since birth, had recently lost her husband of 40 years, who was also blind.
  • Werner place over 700 trades in the accounts, generating nearly $250,000 in commissions resulting in losses of $184,000.

In FINRA case 98-0692, a customer of one of Werner’s prior employers, American Investment Services, (firm expelled by FINRA in 2/2003) , alleged damages of $412,636 for unsuitable investments, churning, misrepresentation and fraud. That case was settled for $190,000.

Werner was discharged for cause by two prior firms.

Werner discloses six outstanding tax liens, including amounts to the Internal Revenue Service totaling over $500,000.

 

Werner was employed by Legend Securities from 12/2012-3/2016. Prior to that he was employed by Liberty Partners Financial Services.

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

Emil Botvinnik-Salomon Whitney Broker-Discloses Customer Disputes

UPDATED January 2017Botvinnik discloses pending FINRA Case 16-3284 filed by a customer of Salomon Whitney Financial alleging damages of$50,000 for unsuitable and high frequency trades, highly leveraged account and not minimizing risk.

Original Post—July 2016

The FINRA records of Emil Botvinnik  , a stockbroker who is currently employed by  Salomon Whitney Financial  disclose 4 prior customer disputes , a pending customer dispute and a termination 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 July 2014 a customer of Meyer Associates alleged damages of $385,000 for excessive commissions. That matter was settled for $385,000 with Botvinnik contributing $192,500 toward the settlement.

In currently pending FINRA Case#16-01051 a customer of Meyers Associates alleges damages of $99,000 for suitability and churning.

Botvinnik has been  employed by   Salomon Whitney Financial since 11/2015.  Prior to that he was with Newport Coast Securities from 11/2014-11/2015 and before that with Meyers Associates 6/2012-11/2014.

In 9/2009 Botvinnik was permitted to resign from Liberty Partners Financial Services who alleged unauthorized trades and use of discretion over a client.

Investors who suffered losses in an account handled by Emil Botvinnik may be entitled 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

Marlon Cole Named in Customer Arbitration Dispute-Legend Securities Broker

May 2016

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 records,  Marlon O. Cole has been registered with Spartan Capital Securities since 2/2016. Prior to that he was registered with Avenir Financial Group, Blackbook Capital, E.J. Sterling, LLC, Legend Securities and Liberty Partners Financial. 

FINRA records disclose that there are currently two customer disputes pending against  Marlon O. Cole, including:

  • FINRA Case 15-00994- a customer alleges that Mr. Cole wasted over $80,000 of his savings without his permission and did not abide by agreement to pull funds off the market and send back to his credit union if stock dropped 10%. Damages alleged are $250,000.

If you have losses in an account handled by Marlon Cole, 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

Marcus Farquhar-Former 1st Global Capital Broker -Sanctioned by Regulator-Edna, TX

August 7, 2015- Edna, Texas

Marcus Farquhar  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from April 2013 to January 2014 he made 21 misrepresentations regarding his employment over the phone and by fax to a FINRA firm in order to change addresses, request distributions and restore online access to customer accounts.

Farquhar, while employed by Liberty Partners Financial Services, represented himself as working for his prior employer 1st Global Capital Corp.

AWC No. 2014040062001

Farquhar  was  suspended for 30 business days and assessed a fine of $7,500. He worked for Liberty Partners Financial Services from 1/2013-2/2014. Prior to that he was with 1st Global Capital Corp.

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

Ronald Rafaloff, Former Liberty Partners Financial Broker, Sanctioned by Regulator

February 3 , 2015

Ronald Rafaloff  entered into an Order Accepting Offer of Settlement (Order) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that beween January 2011 and November 2012, while associated with Liberty Partners Financial Services, he invested the retirement savings of an elderly client in companies he controlled and thereafter converted the funds to his personal use.

The Order alleges that Rafaloff invested $405,000 of the elderly client’s savings in three speculative business entities founded by him and thereafter converted at least $168,000 of the client’s funds to pay his personal expenses.

FINRA Disciplinary Proceeding #2013036261002

Rafaloff was permanently barred from associating with any FINRA registered firm in any capacity.

Liberty Partners Financial Services was formed in 2004 and is registered in 52 States and Territories. Their main office is located in Bakersfield, California.

If you had losses in an account handled by Ronald Rafaloff, you may be able to recover damages from the broker dealer employing him. 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