Category Archives: Morgan Keegan

Mark S. Garfinkel-Oppenheimer Broker, Boca Raton-Discloses Customer Disputes and Bankruptcy Filing

August  2016-Boca Raton, Florida

The FINRA records of Mark S. Garfinkel ,  a  stock broker who is currently employed  by Oppenheimer & Co.  , disclose  five prior  customer disputes and and one financial event.

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.

Garfinkel’s prior customer disputes include:

  • New York Stock Exchange Case#2002-010633-In which a customer of Garfinkel’s prior employer, Morgan Stanley, alleged damages of $435,000 for common law and statutory securities violations. That case was settled for $95,000.

Garfinkel discloses the filing of a Chapter 7 personal bankruptcy proceeding in 9/2010 in U.S. Bankruptcy Court Southern District of Florida.

Garfinkel has been employed by Oppenheimer & Co. at 4855 Technology Way, Suite 400,  Boca Raton, FL, since 11/2013.   Garfinkel’s  prior employment includes:

  • Raymond James, Jupiter, FL                     2/2013-11/2013
  • Morgan Keegan, Jupiter, FL                      8/2010-2/2013
  • Morgan Stanley SB, Boca Raton             6/2009-8/2010
  • Citigroup Global Mkt, Boca                       4/2005-6/2009

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

Murray B. Roark-Wunderlich Securities Broker-Discloses Pending Customer Dispute Over Energy Investments

Dallas, Texas

According to FINRA records,  Murray B. Roark,  a stockbroker  who works for Wunderlich Securities ,  discloses  a pending customer dispute and  three prior final 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 pending FINRA Case 16-0404, a customer alleges damages of $303,950 for lack of diversification, over concentration and misrepresentation from October 2014 through 2015. The product type is indicated to be Equity-OTC, Equity Listed and Oil & Gas.

Roark  has been employed by Wunderlich since 7/2011. Prior to that he was with Morgan Keegan & Co.

If you have questions about an account handled  by Murray B. Roark , 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

Claus C. Foerster Sanctioned by South Carolina Securities Regulators

October 17, 2014-The Securities Commissioner of South Carolina, Alan Wilson, entered a consent order barring Claus Christop Foerster from participating in any aspect of the securities industry in or from the State of South Carolina. In addition Foerster was assessed an administrative fine of $120,000.

In June 2014, FINRA entered a permanent bar from the securities industry against Foerster to resolve allegations that while employed at Citigroup Global Markets, Morgan Keegan & Company and Raymond James & Associates, Foerster converted about $3 million in customer funds to his personal use.

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

Claus C. Foerster, Former Raymond James Broker, Barred by FINRA

June 2014- Spartanburg, South Carolina- Claus Christoph Foerster was barred by FINRA from association with any member in any capacity to resolve allegations that he solicited firm customers to invest in a fictitious entity and converted the funds to his own use. The entity was not an investment fund but rather Foerster’s own personal bank account. About $3 million was converted.

According to FINRA records, Foerster was most recently registered as follows:

  • Raymond James            2/2013-6/2014
  • Morgan Keegan            2/2008-2/2013
  • Citigroup Global          7/1997-2/2008

If you had an account  with Foerster that suffered losses you may be able to recover losses through FINRA arbitration. Call to discuss your legal options.

Rex Securities Law provides nationwide representation to investors 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

 

 

Why Are Brokerage Firms Suing Their Former Stock Brokers ?

Many investors may not be aware of the fact that in the brokerage industry when a stock broker moves from one broker dealer to another, unless he is a poor producer or has been asked to leave, it is common practice for the new brokerage firm to pay the stock broker a “signing bonus” if he is able to convince his customers to follow him.

The amount of this signing bonus is based on the production (commissions, margin interest credits, etc) history of the broker and can be in the hundreds of thousands of dollars (or millions for the really big producer). This is referred to as the value of “his book”.

The firm disguises the bonus to your broker as a forgivable loan. If the broker generates the revenue requirements in the forgivable loan agreement annually, then a certain amount of the loan is forgiven. It does not take much contemplation of this arrangement to arrive at the conclusion that there is an inherent conflict of interest that works contrary to the best interest of you, the broker’s customer.

For example, if the year is coming to an end and the broker has not yet generated sufficient commission income from his customers who followed him to the new firm to qualify for having a portion of the loan forgiven, he is faced with two choices:

  1. Figure a way to generate activity in the customer accounts to meet the revenue goal and have a portion of the loan forgiven; or
  2. Face having to repay that portion of the bonus to the firm.

My experience with both the industry and human nature leads me to believe option 1 will be the path taken in most cases. We often see in our cases mutual fund churning, equity churning and the recommendation of unsuitable investments including private placements, non traded REITs , oil & gas investments and limited partnerships that have likely been generated, not to benefit the investor, but rather to generate commissions for the broker and his firm.

What happens when a broker who has received a signing bonus leaves his firm for a new firm with the promissory note unpaid? Prudent business practice would suggest that the broker would pay off the note to the firm he is departing. In real life, many brokers leave for the new firm and are sued in FINRA arbitration by the old firm for the outstanding balance. Their defense is generally based upon allegations that the old firm somehow hindered their ability to conduct business.

In this week’s FINRA arbitration awards there was a spate of arbitrations by firms against their former brokers, including these:

  • Wells Fargo v Caio Dean Dunson (Case 10-2139) Dunson had signed two notes in 2005 and 2006 on which he still owed over $800,000 when he left Wells Fargo, and apparently the industry, in 2009. The FINRA arbitration panel ordered Dunson to pay Wells Fargo nearly a million dollars, plus attorney fees and costs. A review of Dunson’s CRD on the BrokerCheck site reveals that he had a number of customer complaints involving misrepresentation of variable universal life policies. Wells Fargo paid hundreds of thousands to the aggrieved investors.
  • Ameriprise v Lisa Engstrom Seran (Case 12-2563) Ameriprise requested the $75,000 note balance and interest which the arbitration panel awarded pursuant to a stipulated award between the parties. According to FINRA recoreds Seran currently is registered with Cetera Advisors, LLC.
  • Morgan Keegan v Wayne Thomas Altman (Case 11-3624) Morgan Keegan alleged failure to repay commissions related to cancelled annuity sales and to repay promissory notes executed by Altman in 2009 & 2010 and sought $115,000 plus interest on the notes and $5,100 related to commissions. The panel awarded a total of $121,000 to Morgan Keegan. According to FINRA records, Altman currently works for Ameriprise Financial Services.
  • Regal Services, Inc. v John A. Cavanaugh (Case 12-980) Regal sought the unpaid balance on a note executed by Cavanaugh in 2007. The panel awarded $71,000 plus attorney fees and costs. Cavanaugh is no longer registered according to FINRA records.

If you have losses in your brokerage account that you believe are due to the negligence or fraud of your broker or broker dealer contact us for a no charge consultation.

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