Category Archives: Failure to Supervise

Failure to Supervise, FINRA, Promissory Notes, Securities & Exchange Commission (SEC), Stockbroker Malpractice, StockBroker Misconduct, Theft, Western International Securities

Bradley Mascho-Former Western International Securities Broker- Charged with Securities Fraud- Frederick, MD

November 2019 – Frederick, MD

The FINRA records of Bradley Mascho  , a currently unregistered stockbroker who was last employed by  Western International Securities, discloses 2 regulatory events , a criminal event, a civil event, 9 pending customer disputes, 5 prior 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 1/2018, FINRA  permanently barred Mascho after he refused to appear for a FINRA-requested on- the -record testimony during an investigation into his potential serious violations, including fraud, undisclosed outside business activities, and private securities transactions.

In 12/2017, United States Securities and Exchange Commission filed case 8:17cv2453 alleging violations of Section 5(a) and (c), Section 17(a) of Securities Act of 1933, Section 10(b) and 10b-5 of the Securities Exchange Act of 1934.   Sanctions sought are Civil and Administrative Penalties/Fines, Disgorgement, monetary penalty other than fines and injunction.   This case is pending.

In 11/2017 Mascho was charged with a felony count of conspiracy to commit securities fraud, one felony count of wire fraud conspiracy and one count of Securities Fraud; aiding and abetting,   Charges are currently pending in the US DIstrict Court of Maryland.

In 12/2017 the SEC charged Mascho and his company DJB Holdings with fraud in connection with raising over $20 million through the sale of convertible and promissory notes in the company.

From 3/2015 until  4/2019, 5 customer disputes were filed by customers of Western International Securities, Inc.,  alleging unsuitable recommendations, negligence and breach of fiduciary duty.  These cases were settled in the cumulative amount of nearly $500,000

The following cases , filed by customers of Western International, are still pending.

  1. Case #19-00748 alleging damages of $427,538.
  2. Case #19-00977 alleging  damages of $100,000.
  3. Case #19-00517 alleging damages of $2,444,388.
  4. Case #18-03902 alleging damages of $500,000.
  5. Case #18-03888 alleging damages of $200,000.
  6. Case #18-03080 alleging damages of $353,000.
  7. Case #18-03958 alleging damages of $150,000.
  8. Case #18-03941 alleging damages of $250,000.
  9. Case #18-00968 alleging damages of $5,000.

Mascho worked for Western International Securities  from 10/2009-12/2017.

Prior to that Mascho was employed by Royal Alliance Associates, Inc., Legg Mason Wood Walker, and  American Express Financial Advisors.  

If you have questions about an account  handled by Bradley Mascho  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.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Conflict of Interest, Failure to Supervise, Fraud, Lack of Due Diligence, Misrepresentation, Stockbroker Malpractice, Texas State Securities Board

Texas Regulators Revoke Gus Marwieh’s Securities Registration-Austin, TX

October 2019 – Austin, Texas 

Texas Securities Commissioner, Travis Iles, revoked the registration of  Gus Marwieh  for fraud related to the sale of pension investments, according to a news release from the Texas State Securities Board (TSSB). 

According to the release Marwieh, who was president of Marwieh Advisory Services in Austin, fraudulently sold over $5 million in investments without disclosing excessive commissions, misuse of client funds and conflicts of interest.

The TSSB inspection of Marwieh’s books and records revealed that Marwieh primarily recommended investments in either Future Income Payments (FIP) supposedly based on payouts from pensions, and promissory notes from real estate developers which were supposed to pay 18% annually.

The TSSB found that Marwieh collected commissions on sales of these two products in excess $300,000 and violated his fiduciary duty by not disclosing conflicts of interest to his customers and by using escrowed funds to pay personal expenses.

Link to TSSB Disciplinary Order. 

About the TSSB, from their website:

The State Securities Board is responsible for administering and enforcing the Texas Securities Act. The agency is overseen by five Board members appointed by the Governor, with the advice and consent of the Senate, for six-year overlapping terms. The Board adopts and periodically updates rules to ensure that investors are adequately protected and that unreasonable burdens on legitimate capital-raising activities are avoided. The Board appoints a Securities Commissioner who serves at its pleasure and serves as the agency’s chief administrative officer and supervises the day-to-day activities of the staff.

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.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Berthel Fisher and Company, Failure to Supervise, Independent Financial Group, Royal Alliance, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments, WFG Investments

Shawn B. Davis-Former Independent Financial Group Broker-Discloses 6 Pending Customer Disputes And A Prior Customer Dispute – Auburn, CA

October 2019 – Auburn, CA

The FINRA records of Shawn Bruce Davis  , a stockbroker who was last employed by  Independent Financial Group , disclose 6 pending customer disputes 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 August 2013, a Berthel Fisher & Company Financial Services customer filed FINRA case #13-02524 alleging that investments purchased from 2005 to 2008 were unsuitable and misrepresented by Davis.  The case settled for $52,500.

In August of 2018, a customer of Berthel Fisher & Company Financial Services, WFG Investments, Inc. , and Independent Financial Group,  filed FINRA case #18-02735 alleging that the investments they purchased in 2012 were unsuitable and misrepresented to them by the representative.   The clients also allege the firm failed to conduct adequate due diligence and filed to supervise the representative.   No monetary damages are stated and the case is pending.

In June of 2018, a WFG Investments customer filed FINRA case #18-02173 alleging investments, including REITs, were unsuitable.    The damages sought are $560,000.    The case is pending.

In April of 2018, a Berthel Fisher & Company Financial Services customer filed FINRA case #18-01268 alleging the investments they purchased between 2007 and 2011 were unsuitable and misrepresented to them by Davis.   The clients also allege that the firm failed to supervise Davis and are seeking damages of $500,000.

In March of 2018, a Berthel Fisher & Company Financial Services and Royal Alliance Associates, Inc., customer filed FINRA case #18-01092 alleging the investments, including REITs and limited partnerships purchased between 2005- 2006 are unsuitable and were misrepresented by Davis.   The claimants allege that the firm failed to supervise the actions of Davis and are seeking damages of $1,500,000.

In September of 2016, a Berthel Fisher & Company Financial Services customer filed FINRA case #16-02660 alleging the investments, including REITs and oil and gas securities. purchased 2005- 2010 are unsuitable and were misrepresented by Davis.   Claimants allege that the firm failed to supervise Dais and are seeking damages are $800,000.

In September of 2017 a WFG Securities and Independent Financial Group customer filed FINRA case #17-02219 alleging that they were not fully informed of the risks associated with REIT offerings purchased from 2013 to 2015.   No specific damages set forth in the claim.

Davis  was employed by Independent Financial Group  from February 2014 until May 2017, and with WFG Investments, Inc. from August 2012 until January 2014.   Before that he was with Berthel Fisher & Company Financial Services  and Royal Alliance Associates, Inc. Davis discloses business affiliations with Davis Financial Advisors, Uncommon Capital and Leads from the Vine in Roseville, CA.

If you have problems in an account  handled by Shawn Bruce Davis  call for a no charge consultation to learn more about 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.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Failure to Supervise, Four Points Capital Partners, National Securities Corporation, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments, Worden Capital Management

Allan Montalbano-Former Worden Capital Broker- Discloses 14 Customer Disputes- Westbury, NY

October 2019- Westbury, NY

According to publicly available records Allan P Montalbano (CRD#4507029) ,  a  stockbroker who is not currently registered  and who was last registered with Worden Capital Management ,  disclose 13 prior customer disputes and 1 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.

From September of 2009 until August of 2017 there were 11 FINRA cases filed against Montalbano by customers of Worden Capital and National Securities Corp.   with allegations of churning, unsuitability, breach of contract, negligence, reckless and intentional misrepresentation, breach of fiduciary duty, breach of contract, excessive trading, unauthorized trading, negligent  and misrepresentation.   These cases were settled at various amounts totaling more than $1.2 million.

In August 2018, a National Securities Corp. customer filed FINRA case #18-02616 alleging breach of fiduciary duty, negligence, negligent misrepresentation and breach of contract and is currently seeking damages of $280,000.

Alan Montalbano  was employed by Worden Capital from June of 2015 to January 2018.   He was employed by Four Points Capital Partners from June 2014 until June 2015 and with National Securities Corp. from August 2010  until June 2014.  Before that he was with Woodstock Financial Group, Chase Investment Services Corp. and NY Life Securities.  Montalbano  discloses business affiliations with APM Consulting Services.

If you have questions about an investment account handled by Allan Montalbano  contact us for a no charge consultation to learn about 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

Failure to Supervise, National Securities Corporation, Spartan Capital Securities, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments, Worden Capital Management

Albert Foronda- Spartan Capital Securities Broker- Discloses Customer Disputes- NYC

October 2019- NYC, NY

According to publicly available records Albert Foronda.   (CRD#5737620 ,  a  stockbroker  currently registered  with Spartan Capital Securities,  disclose a prior customer dispute and 2 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 July 2017, a Worden Capital Management  customer, alleged unauthorized trades from 7/11/2017 until 7/27/2017.    The case was settled for $14,000.

In May 2019, a Spartan Capital Securities customer filed FINRA case #19-1160 alleging unsuitability, excessive trading and negligence and is seeking damages of $650,000.

In March 2018, a customer of Legend Securities and Worden Capital Management, filed FINRA case #18-01479 alleging breach of fiduciary duty, violations of NASD and FINRA Rules, breach of contract and negligence and is seeking damages of $90,000.

Albert Foronda.  has been  employed by Spartan Capital Securities since August of 2017.    He was with Worden Capital Management from November 2016-August 2017.  Before that time he was employed with Legend Securities and National Securities Corp.   

If you have questions about an investment account handled by Albert Foronda. ,  contact us for a no charge consultation to learn about 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