Category Archives: Penny Stocks

Mark Beloyan of Tradespot Markets Suspended by Securities Regulators-Davie, FL

December 2016-Davie, FL

The FINRA records of  Mark B. Beloyan,  a  stockbroker with Tradespot Markets, Inc. , disclose 3 prior regulatory events that are final and two financial disclosures.

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 May 2016 Beloyan was named in a FINRA complaint alleging that he recommended penny stocks and engaged in penny stock transactions without complying the regulations required by the Securities Exchange Act. In addition, FINRA alleged that Beloyan sent customers suitability statements without first documenting an affirmative determination of suitability on the document in violation of industry rules and then altered information on the suitability forms.

Beloyan was suspended by FINRA in his capacity to function as a principal for 50 days. FINRA noted that “In light of Beloyan’s status, no monetary sanction has been imposed.”

In 2011, Beloyan was suspended for 2 months by FINRA in connection with the sale of unregistered shares and low priced stock. In 2012 Beloyan was suspended for 10 days for distribution of correspondence recommending the purchase of securities without providing a sound basis for his recommendation of the stock.

FINRA records indicate Beloyan settled two outstanding debts by compromise in 2012 and 2013.

 

Beloyan has been employed by Tradespot Markets, Inc. since 3/1992. He is also associated with Beloyan Investment Securities, Inc. in Davie, Florida.

If you have losses in an account in an account handled by Mark Beloyan , contact us to discuss how you may be able to recover damages for those losses.

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

Joshua L. Feldman-Aegis Capital Broker-Discloses Customer Dispute Over Penny Stocks

August  2016-New York

The FINRA records of Joshua L. Feldman ,  a  stock broker who is currently  employed  by Aegis Capital Corp.  , disclose 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 the pending dispute, FINRA Case #16-0916, a customer of Aegis Capital alleges damages of $300,000 for  unsuitability in penny stocks and option transactions for the period from January 2011 through December 2015.

Feldman has been employed by Aegis Capital Corp. since 12/2011. Prior to that he was employed by First Midwest Securities from 1/2009-12/2011.

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

Miami, FL-DOJ Charges Two With Securities Fraud

July 2016-Miami, Florida

The Department of Justice announced that stock promoters Daniel McKelvey, 49, of Foster City, CA and Jeffrey L. Lamson, 51, of El Dorado Hills, CA, have been charged with conspiracy to commit securities fraud in connection with a fraudulent scheme to register shell companies with the SEC, issue shares in the companies that they and other co-conspirators secretly own and then sell the share to the investing public at a profit.

McKelvey and Lamson face up to five years in prison and a fine up to $250,000.

In April 2015, the Miami Regional office of the SEC filed a related civil action against McKelvey and Lamson and 8 other individuals involved in the scheme to offer and sell penny stock in undisclosed companies, which the SEC describes as a ‘blank check’ companies.

Others named in the previously filed civil action are:

  • Steven Sanders, Lake Worth, FL
  • Alvin Mirman, Sarasota, FL
  • Edward G. Sanders, Coral Springs, FL
  • Scott F. Hughes, Duluth, GA

Four others who acted as figurehead officers and directors settled SEC charges in separate administrative proceedings:

  • Edward T. Farmer, Sarasota, FL
  • William J. Gaffney, Cumming, GA
  • Kevin D. Miller, Alpharetta, GA
  • Ronald A. Warren, Peachtree Corners, GA

They consented to SEC orders without admitting or denying the findings that they violated the antifraud, reporting, recordkeeping, and internal control provisions of the federal securities laws. They are barred from serving as an officer or director of a public company and from participating in penny stock offerings, and they must disgorge ill-gotten gains plus prejudgment interest.

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

Michael S. Lavolpe-Former Meyers Associates Broker-Discloses Multiple Pending Customer Disputes

July 2016-New York

The FINRA records of Michael S. Lavolpe  , a  currently unlicensed stockbroker who was  most recently employed by  Meyers Associates  disclose a pending regulatory event, 4 pending customer disputes, 2 prior customer disputes and an outstanding judgement/lien.

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 Disciplinary Proceeding 2015047559201, in October 2015, Lavolpe’s employer Meyers Associates reported to FINRA that a customer had filed an arbitration claiming that Lavolpe had engaged in unsuitable activity in the account. Lavolpe failed to respond to FINRA’s requests for information leading to the filing of the FINRA proceeding.

FINRA Case 15-01019 brought by a customer of Meyers Associates alleging unsuitability was settled for $60,000. FINRA Case 10-3764 brought by a Meyers Associates customer alleged churning, failure to supervise, negligence and breach of fiduciary duty. That case was settled for $60,000.

The four currently pending cases include:

  • FINRA Case 16-0402 in which a Meyers Associates customer alleges damages of $308,703 for unsuitable investments in penny stocks.
  • FINRA Case 16-0454 in which a customer alleges damages of $545,000 for unsuitable investments in private placements.

Lavolpe discloses an outstanding tax lien in favor of the IRS in the amount of $4,277.35.

Michael S. Lavolpe was employed by Meyers Associates from 3/2006-7/2014. He is not currently licensed. 

Investors who have questions about how their account has been handled by Michael S. Lavolpe 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

Garden State Securities Order to Pay Damages for Investment Losses

July 5, 2016-New York

A Financial Industry Regulatory Authority (FINRA)  arbitration panel ordered Garden State Securities, based in Red Bank, New Jersey, to pay an elderly customer over $142,000 to resolve allegations that the firm had over traded his account and put him in unsuitable investments. Romano v Garden State Securities, FINRA Case 15-0996. 

The customer was in his late 70’s and brought the arbitration claim to recover losses on unsuitable investments, including penny stocks, stocks of Chinese owned companies and leveraged exchange traded notes.

Investors who have suffered losses as a result of the fraud, negligence or mismanagement of their brokerage accounts 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

Larry S. Werbel Discloses Customer Dispute Over Investment in VGTL and QLTS

UPDATE August 2016-Disclosure that another customer dispute has been filed. In July 2016 a customer of LPL Financial alleged damages of $19,995 for unsuitable penny stock trading and failure to disclose high risk strategy.

June 2016-Chagrin Falls, Ohio

According to FINRA records,  Larry S. Werbel   a stockbroker  who  was most recently  employed by Concorde Investment Services. He discloses  3 prior final regulatory events,  one pending criminal matter, 2 pending customer disputes and 4 terminations from employment in the securities industry.

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.

As of June 6, 2016, Werbel was suspended from associating with any FINRA member firm in any capacity for failing to respond to a FINRA request for information in connection with an investigation. If Werbel does not respond within 3 months he will be permanently barred.

Werbel was indicted in January 2016 for defrauding investors and charged with securities fraud, conspiracy to commit wire fraud and other charges in the US District Court for the Southern District of New York in Manhattan.

In currently pending FINRA Case 16-1232, a customer while Werbel was employed by LPL Financial   alleges damages of $74,518 for losses on unsuitable investments.

In another currently pending matter,   a customer while Werbel  was employed by LPL Financial and Summit Brokerage Services,  alleges damages of $661,800 for negligence and unsuitability in recommendation of penny stocks VGTL and QLTS, between 2010-August 2013.

Werbel was discharged from Concorde Investment Services in January 2016. The firm made the following allegation:
“Discharged after internal review initiated upon learning Rep was indicted for defrauding investors prior to association with the firm.”

If you have questions about an account handled  by Larry S. Werbel, call for a no charge consultation.

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

Brandt B. Wendland-Feltl & Co. Broker-Named in Customer Arbitration Involving Penny Stocks

Minneapolis, MN

According to FINRA records, Brandt B. Wendland  a broker who has been  registered  with Feltl & Company since  3/2004 , discloses a pending customer dispute involving penny stocks and leveraged exchange traded funds (ETFs).

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 pending FINRA Case 14-2132, a customer alleges damages of $300,000 for unsuitable trading in penny stocks, leveraged exchange traded funds, margin and unauthorized trading.

Feltl & Co. Prior Regulatory Issues related to Penny Stocks and ETFs

Feltl & Co. was fined $1 million in 2014 for issues related to inadequacy of supervision in connection with the sale of penny stocks. See this for more. 

That same year Feltl & Co. was fined $225,000 to resolve allegations that firm procedures related to the sale of ETFs were inadequate. See this for more.

If you have losses in an account handled by Brandt B. Wendland, 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