Category Archives: SII Investments Inc.

Thomas Fross-SII Investments Stockbroker Discloses Customer Dispute-The Villages, FL

UPDATE-September 2016SII Investments was found liable for negligence, unsuitability and breach of fiduciary duty and ordered to pay damages in the amount of $19,634 plus interest in FINRA Case #16-0082. The cause of action related to the purchase of Cole Credit Property Trust II and Behringer Harvard REIT I non traded real estate investment trusts. Kraemer vs SII Investments, Inc. 

Original Post–April 4, 2016-The Villages, Florida

According to their website, The Financial Industry Regulatory Authority (FINRA), “ is dedicated to investor protection and market integrity through effective and efficient regulation of the securities industry.”

IN 2015, FINRA brought 1,512 disciplinary actions and levied fines of nearly $100 million, and referred over 800 fraud and insider trading cases to the U S Securities & Exchange Commission for litigation and prosecution.

The FINRA records of stockbroker Thomas M. Fross disclose that a customer has filed an arbitration . In FINRA Case 16-0082, a customer alleges that two real estate investment trusts (REITs) are not suitable. Damages of $29,000 are alleged.

Fross has been employed by SII Investments since 6/2007.

If you have losses in an account handled by Thomas Fross of Fross & Fross Wealth Management and SII Investments, 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

Thomas Schober- Former SII Investments Stockbroker-Sued by Customer Over Annuity Investments

UPDATE MARCH 2017Thomas Schober, formerly a broker with SII Investments discloses a pending customer dispute and two prior customer disputes that have been resolved. All of the disputes relate to investments in annuities.

In the currently pending FINRA arbitration #16-02558, a customer or SII Investments alleges damages of $350,000 for unsuitable investments in variable and fixed annuities.

ORIGINAL POST–March 3, 2016– Westborough, MA

Thomas P. Schober , a broker with SII Investments, entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  he recommended unsuitable annuity exchanges in the accounts of two senior customers (ages 83 and 84)  and then concealed the source of the funds on the annuity transaction documents in violation of FINRA rules.

The AWC alleges finds that the investors, one of which suffers from dementia, were conservative investors with limited financial means and counted on the income from their investments to fund their retirement. Schober made the following trades, per FINRA:

JM (1)

LP

Since all of the exchanged were still in the surrender period, the customers paid $154,642 in surrender charges thereby generating a huge commission for Schober and his employing firm  SII Investments.

AWC No.  2015044007001

Schober was permanently barred from association with any FINRA member in all capacities.

FINRA records disclose that Schober was registered with SII Investments from 6/2007 to 1/2015. Prior to that Schober was registered with Legacy Financial Services 8/1998-6/2007.

If you suffered losses in an account handled by Thomas Schober, 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

IBN Financial Broker Anthony Diaz Sued by FINRA for Multiple Securities Violations

In August 2014, the Financial Industry Regulatory Authority (FINRA) filed a complaint against stockbroker Anthony Diaz of IBN Financial Services, Scotrun, PA.

The complaint, FINRA Disciplinary Proceeding No. 2011030254902, alleges a myriad of wrongdoing by Diaz, including:

  • From March 2010-May 2011, Diaz solicited 80 customers to exchange variable annuities without a reasonable basis for recommending those exchanges. (This is know as annuity swapping, a form of churning)
  • During 207-2010, DIaz falsely told customers that direct participation partnerships and real estate investment trusts (REITs) were guaranteed.
  • He recommended an illiquid product to an 88 year old customer, violating suitability requirements.
  • He falsified the liquid net worth, net worth and/or income information of at least nine customers to make it appear that they were eligible to invest in REITs and direct investment partnerships when in fact they were not. He also changed dates and forged documents.
  • Diaz made unauthorized trades in the accounts of at least 7 customers

Diaz was first registered as a stockbroker in 2000. During this 14 years he has worked for eleven firms:

  • IBN Financial Services
  • Sandlapper Securities
  • International Financial Solutions
  • Kovack Securities
  • Matrix Capital Group
  • SII Investments
  • First Allied Securities
  • Round Hill Securities
  • Raymond James Financial Services
  • Edward Jones
  • Horwitz & Associates (now InSight Securities) 

According to FINRA records Diaz was fired or allowed to resign from half of the firms where he worked for reasons including:

  • Solicited sales of variable annuities to clients without being properly appointed with annuity company
  • Complaints that Mr. Diaz entered unauthorized trades
  • Violated firm’s prohibition against unauthorized trading

If you suffered losses in an account handled by Mr. Diaz you may be able to recover damages. If you suffered damages in an account handled by your broker as a result of churning annuities, unauthorized trading or forgery, call 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

SII Investments Broker David Thomas Sanctioned by Securities Regulators

 

David Patrick Thomas, a resident of Washington state was recently sanctioned by securities regulators in Washington in connection with the sale of LLC membership interests issued by Chadbourne Partners, LLC, a Florida limited liability company.
According to FINRA records, Thomas, who is not currently registered, previously was registered as follows:
  • Seacoast Investor Services 12/2010-10/2011
  • SII Investments Inc  9/2007-12/2010
  • The O.N. Equity Sales Co 11/2004-10/2007
  • Wachovia Securities 2/2002-11/2004
According to the regulators, Thomas represented to investors that their funds would be pooled together and used by Chadbourne Partners to acquire a securities broker-dealer firm. Thomas represented that the broker-dealer would expand and become very profitable.
In a related matter, Colorado securities regulators filed a complaint against  Chadbourne Partners, LLC and its operators Daniel R. Murphy and Henry Dyer Wiggans of Jacksonville, FL,  alleging that they offered and sold unregistered securities in violation of the Colorado Securities Act. The complaint alleges they hired Michael Mendenhall, a former licensed stockbroker and raised $879,000  from the sale of unregistered securities.
If you have questions about your legal rights to recover investment losses, call to speak with an experienced securities attorney.

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