Category Archives: Royal Alliance Associates

Bill Holubec-Royal Alliance Broker-Discloses Pending Customer Dispute-San Angelo, TX

January 2016-San Angelo, Texas

Publicly available records of Bill A. Holubec, (CRD# 1304064) ,  a  stockbroker who is employed by Royal Alliance Associates disclose that a Royal Alliance customer has filed FINRA Case #17-0068 alleging damages of $500,000 for misrepresentation,  suitability and failure to supervise in connection with the sale of junk bonds and non-traditional exchange traded funds (ETF).

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.

Holubec  has been employed by Royal Alliance Associates since 12/1994.

If you have questions about an account in an account handled by Bill Holubec, 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

Roger B. Deal-Former Royal Alliance Broker-Discloses $3.2M Customer Dispute over Real Estate Investment

July 2016- Columbus, Nebraska

The FINRA records of Roger B. Deal  , a stock broker currently employed by Geneos Wealth Management , disclose  a currently 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 a currently pending case CL14-7646, in the District Court of Douglas County Nebraska, a customer while Deal was employed by Royal Alliance Associates, alleges damages of $3.2 million in connection with an investment in a real estate tenant in common investment (TIC) that the former customer alleges was purchased based on misrepresentations and which is also unsuitable.

Deal has been employed by Geneos Wealth Management since 9/2014. Prior to that he was employed by Royal Alliance Associates from 6/2001-9/2014.

If you have losses in an account handled by Roger B. Deal, contact us to discuss 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

First Allied Securities Broker Sanctioned for Sale of Unsuitable Exchange Traded Funds

April 21, 2015

Daniel Grieco  entered into a Letter of Acceptance Waiver and Consent (AWC)  with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he recommended and caused to be executed purchases of leveraged and inverse leveraged exchange traded funds (ETFs) in 15 customer accounts. FINRA alleges that Grieco made the recommendations on non-traditional ETFs to various customers without having reasonable grounds to believe his recommendations were suitable.

According to FINRA, the ETFs were designed to achieve their objectives over the course of a single day, but were actually held for much longer, in some cases as long as five years.

Grieco was fined $7,500 and suspended for 15 days.

Disciplinary Proceeding NO. 2013035076201

Stock brokers have a duty to make recommendations that are suitable for customers, taking into account their age, health, liquid net worth and level of financial sophistication.

According to FINRA records, Grieco has been registered with First Allied Securities since 8/2010. Before that he was registered with Royal Alliance Associates 4/2007-8/2010.

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

Royal Alliance Ordered to Pay $870K Over Variable Universal Life (VUL) Policy

January  9, 2015- Los Angeles, California

A FINRA arbitration panel in Los Angeles, CA , ordered Royal Alliance Associates  to pay a customer $870,000 in compensatory damages and over $14,000 in costs.  The customer alleged that he suffered damages as a result of the alleged recommendation by Royal Alliance that he surrender his Variable Universal Life Policy (VUL) issued by Provident Mutual . Estate of Michael William Lenvin v Royal Alliance Associates, Inc.  , FINRA Case # 14-000982.

The three person panel was comprised of two public and one non-public arbitrator. This was a split decision with the non-public arbitrator dissenting and finding no liability.

If you have questions about losses in your brokerage account, 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

Royal Alliance Associates Hit with Big Arbitration Award Over Annuity Investment

January 9,2015- Los Angeles, CA

An arbitration panel of the Financial Industry Regulatory Authority (FINRA) ordered Royal Alliance Associates to pay an estate $870,000 following a five day arbitration in Los Angeles.

The estate brought a claim for breach of fiduciary duty, fraud and other claims relating to the alleged recommendation made by the Royal Alliance that the now deceased customer surrender his variable universal life policy (VUL) issued by Provident Mutual. Estate of Michael William Lenvin v Royal Alliance Associates, FINRA Case #14-00982.

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

Five Brokerage Firms Order to Pay Another $10 Million On Non-Traded REIT Sales

As we have previously noted, regulators have already hit broker-dealers for big fines and damages for the sale of non-traded REITs:

  • In May Massachusetts regulators order five firms to pay $6 million for improperly selling non-traded REITs
  • Earlier in 2013 LPL Financial was hit with a $4.8 million order from the Massachusetts securities regulators for failing to train and supervise brokers in connection with the sale of non-traded REITs.

In early September 2013, Massachusetts regulator William Galvin announced a second round of restitution orders, totaling $10.75 million,  against the same five firms: Securities America, Ameriprise Financial, Commonwealth Financial Network, Lincoln Financial and Royal Alliance.

In total, the six firms have agreed to pay up to $21.6 million in restitution and fines of $1.5 million.

According to Galvin, “These investments are popular, but risky. Our investigation showed widespread problems with adherence to the firms’ own policies, as well as the state rule that an investor’s purchase of REITs cannot be more than 10% of that person’s liquid net worth”.

What are non-traded REITs?

Non traded real estate investment trusts (REITS) do not trade on any conventional exchange and were sold with the promise of steady and dependable income, with little warning as to the illiquid nature of the investment and with the hopes of appreciation. Many purchasers believed them to be safe, secure investments similar to bonds. Now many of these investments have ceased making distributions and have plummeted in value. Since they are not traded on any conventional exchange, investors may look only to a secondary market if liquidity is required.

Popular Non-Traded REITs include:

Behringer Harvard (Multifamily, Opportunity I and II)

CNL Lifestyle Properties

Cole Credit Property Trust II and III

Corporate Property Associates 16, 17

Dividend Capital Diversified Property Fund

Healthcare Trust of America

Hines

Inland Diversified

KBS I and II

KBS Strategic

Landmark Apartment Trust

Lightstone Value 

Retail Property of America

TNP Strategic Retail

United Development Fune III and IV

Columbus Property (Wells REIT II)

Wells Timberland

If you believe you were sold a non traded REIT based upon misrepresentations, you may be able to recover damages through FINRA arbitration. Contact us for more information.

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 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