Category Archives: Churning

Michael Stanton-Worden Capital Management Broker- Discloses $15M Pending Customer Dispute- NYC

July 2019-New York, NY

The FINRA records of  Michael Salvatore Stanton,  a  financial advisor employed by  Worden Capital Management disclose 2 regulatory events,  3 prior customer disputes, 1 pending customer dispute, a pending bankruptcy and  7 outstanding judgments.

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 # 2015048048801 filed in 11/2016 -FINRA alleged that Stanton and his firm < legend Securities, failed to establish, maintain and enforce a reasonable supervisory system, and failed to prevent a registered representative from churning and excessively trading a customer’s brokerage accounts.   The complaint alleges that Stanton and the firm failed to adequately investigate or simply ignored that the registered representative engaged in aggressive “in and out” trading, repeatedly purchasing securities and then selling them after relatively short holding periods to purchase other securities, for no apparent reason.   Such in and out trading is the hallmark of excessive trading and churning.  Stanton was suspended from FINRA for a period of seven months and was fined $5000.

In March 2017,   a Legend Securities,Inc. customer filed FINRA case #16-03695  alleging failure to supervise representative’s excessive trading and unsuitable recommendations.    The case was settled for $20,000.

In October 2005, a Summit Brokerage Services, Inc. customer alleged inappropriate conduct and coercion concerning payments for margin calls.    The case settled for $15,000.

Pending  FINRA case #18-04040 alleges that while Stanton was employed by Legend Securities he failed to supervise a broker and alleges common law fraud, breach of fiduciary duty, negligence and breach of contract.    The damages  sought are $15,000,000 .

Stanton discloses the filing of a Chapter 13 bankruptcy petition in June 2018, which is currently pending.

Stanton  discloses outstanding 7 currently outstanding lines/judgments, 5 of which are Federal & State Tax Liens.

Michael Stanton has been registered with Worden Capital Management  since December of 2016.  . His prior employment in the financial industry includes Legend Securities, Inc., Obsidian Financial Group and National Securities Corporation.

If you have losses in an account  handled by Michael Salvatore Stanton , contact us for a no charge consultation 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

Summit Brokerage Services Sanctioned for Churning Accounts-Boca Raton, FL

July 2019-Boca Raton, FL

Wealthmangement.com reports that Summit Brokerage Services, an independent broker dealer headquartered in Boca Raton, FL,  will close it doors and roll its business up into an affiliated broker dealer, Cetera Advisor Network.

Summit Brokerage reports having 450 advisors and $17.5 billion in client assets.

According to FINRA records, Summit Brokerage discloses 15 prior regulatory matters. Most recently in July 2019, Summit Brokerage was censured by FINRA, fined $325,000 and ordered to pay restitution to customers of $558,296, plus interest, to resolve various allegations related to supervision of the firm’s brokers. The supervisory deficiencies include a broker who excessively traded customer accounts which generated over $650,000 in commissions.

If you have losses in an account at Summit Brokerage Services, call for a no charge consultation 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

Kyusun Kim-Former Independent Financial Group Broker-Barred from FINRA-Discloses 19 Settled Customer Suits- Greenville, SC

June 2019- Greenville, SC

According to publicly available records, former Independent Financial and Sandlapper Securities  financial advisor Kyusun Kim,  discloses 19 settled and 4 pending customer disputes  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 June 2018 FINRA (FINRA case 2017052705001) permanently barred Kim from the securities industry to resolve allegations that he made unsuitable recommendations to numerous senior customers, who were retiring or had retired. Kim recommended that these customers concentrate their retirement assets and liquid net worth in speculative and illiquid securities, according to FINRA.   Kim failed to disclose to his customers the risks associated  and as a result of these recommendations, Kim’s customers suffered substantial losses.

From December of 2007 until June 2013, 15 customers of Independent Financial Group brought cases alleging that Kim  forged signatures, made unsuitable recommendation, misrepresentation, violated state and federal securities laws, committed elder abuse, and other wrongful conduct.   These cases were collectively settled for over $3 million.

Between December 2016 and February 2018, four customers of Independent Financial Group filed cases alleging wrongful conduct, breach of fiduciary duty, breach of written contract, violations of federal and state securities laws in connection with investments,  unsuitable investments, breach of oral and written contract. Total damages on these pending cases exceed 1 million.

Kim  was employed by Sandlapper Wealth Management  from March 2016 until August of 2018 when he was discharged.   Kim was employed with Independent Financial Group in San Diego, CA from February of 2006 until March of 2016.

If you have losses in an account handled by Kyusun Kim, call 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

Craig Bonn-Former Laidlaw & Company Broker-Discloses Customer Disputes- New York

June 2019 – New York

According to publicly available records, a former Laidlaw & Company financial advisor, Craig A. Bonn discloses 1 pending 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 a prior matter, FINRA Case 14-0033, a customer of Laidlaw & Company was paid $325,000 to resolve allegations that Bonn made unsuitable recommendations in limited partnerships and equities from 2006 to 2012.

In pending FINRA Case 18-02628 a customer of Laidlaw & Company alleges unsuitability and that Bonn traded his account excessively from 2008 to 2016.   The customer is seeking damages of $228,128.

Bonn has been employed by National Securities Corporation since January 2016.   Prior to that he was registered with Laidlaw & Company (UK) Ltd. from August 2004 until December 2015.

If you have questions about an investment account handled by Craig Aaron Bonn,  contact us for a no charge consultation to learn about your legal options for recovery of damages.

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

Toll Free: 877-224-3199

Florida-561 391 1900

Texas-512-329-2870