Tag Archives: First Standard Financial problem

Gabe Block-Former First Standard Financial/NSC/Oppenheimer Broker-Fined $750K by NJ Regulators-Rumson , NJ

May 2019– Rumson, NJ

The FINRA records of Gabriel (Gabe)  Block, a former stockbroker who was last employed by First Standard Financial Co., disclose 4  final regulatory events,3 currently pending customer disputes and 9  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.

NJ Regulators Find That Block Was Dishonest/Unethical

On May 15, 2019, New Jersey securities regulators revoked Gabe Block’s registration and fined him $750,000 for making investment recommendations to clients that were inconsistent with their needs and risk tolerance. The NJ regulator found that Block engaged in dishonest or unethical practices in the securities business by inducing trades designed to maximize commissions for himself, without regard to its suitability for his customers. Block’s preyed upon his customers according to the regulator who cites the following examples of his victims:

  • A 36-year old, quadriplegic construction-accident victim , who had funded his accounts with the proceeds of a legal settlement that were for his medical care and living expenses;
  • A 43-year old, unemployed widow and mother of three children, who had funded her accounts with the proceeds of a legal settlement from a medical malpractice claim from her husband’s death; and
  • a 75-year old, retired, and widowed mother-in-law , who had funded her accounts with her and her deceased husband’s retirement savings.

“Block callously steered his clients towards riskier trades that put more money in his own pocket, instead of recommending securities or an investment strategy that was suitable for investors. This was a pattern of practice that was not only illegal, but made all the more offensive because he preyed on the vulnerable,” said Paul R. Rodríguez, Acting Director of the Division of Consumer Affairs. “The Bureau’s action today sends a clear message that New Jersey will vigorously enforce the law to protect investors from being taken advantage of.”

On March 13, 2018, FINRA permanently barred Block from the securities industry in connection with a complaint filed by the Delaware Investor Protection Unit alleging numerous violations, including:

  • Securities Fraud
  • Churning
  • Dishonest or Unethical practice-Narcotics Use
  • Excessive Trading

FINRA found it not in the public interest, and would create an unreasonable risk of harm to the market and investors for Block to continue to associate with his firm. Block was employed by Janney Montgomery and Oppenheimer during the period of time when activity occurred leading to the regulatory action.

Gabe Block discloses settlement of the following   customer disputes :

  • FINRA Case 18-01038-A customer of Oppenheimer   alleged that Gabe Block made unauthorized and unsuitable purchases of Puerto Rico Bonds in claimant’s account from 2011-2013. The case was settled for $55,000.
  • FINRA Case 15-1551- a customer while Block was registered with Oppenheimer & Co. alleges churning, unsuitability, breach of fiduciary duty in connection with the handling of family accounts. Damages were alleged to be $800,000. The case was settled for $675,000.
  • FINRA Case 15-1550-a customer while Block was registered with Oppenheimer & Co. alleges churning, unsuitability, breach of fiduciary duty in connection with the customer’s account. Damages were alleged to be $100,000. The case was settled for $60,000.
  • Block’s FINRA record discloses two other customer disputes that wereresolved including one in which a customer alleged mismanagement of investments between 9/2005-12//2008, while Block was registered with Janney Montgomery Scott. That case was settled for $375,000.

In 2/2019 a customer of Oppenheimer filed FINRA case 19-0431 alleging that Block made trades and made unsuitable recommendations. The case is currently pending and the customer is seeking damages of $1.4 million.

IIn 3/2019 a customer of First Standard Financial filed FINRA Case #19-0550 alleging that Block made unsuitable recommendations causing losses of $300,000. That case is still pending.

Block  was registered with First Standard Financial  from 3/2016-3/2018. He was registered with National Securities Corporation from 3/2014-4/2016 and with Oppenheimer from 11/2008-3/2014. He discloses a business affiliation with Block Wealth Management in Rumson, NJ.

If you have losses in an account handled by Gabe Block contact us for a no charge consultation to learn how  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

National Toll Free: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Joseph M. Thurnherr-Former First Standard Financial Broker-Discloses Pending Customer Disputes

UPDATE MARCH 2018-Joseph M. Thurnherr is now employed by Spartan Capital Securities and has another customer dispute disclosed on his BrokerCheck report. See this for details. 

Meyers Associates is now  Windsor Street Capital

In 2016 Meyers Associates changed its name to Windsor Street Capital. While called Meyers Associates the firm gained a reputation for hiring brokers whose FINRA BrokerCheck reports had an inordinate number of disclosures. The Investment News reported in 2014 that Meyers Associates “stands out as a haven for registered representatives with black marks on their employment histories”. 

Original Post–August 2016- New York

The FINRA records of  Joseph M. Thurnherr,  a  stock broker who is currently employed by Meyers Associates  disclose  two pending customer disputes 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 FINRA Case#16-01460, a customer of Thurnherr’s prior employer First Standard Financial Company alleges damages of $93,624 alleging that his account was unsuitably invested and over concentrated.

In FINRA Case#1-01143, a customer of Thurnherr’s prior employer Legend Securities alleges damages of $536,180 alleging churning, excessive trading, suitability, unauthorized trading, negligence, breach of fiduciary duty and misrepresentation.

 

Thurnherr has been registered with Meyers Associates since 11/2015.  He was registered with First Standard Financial Company from 10/2014-10/2015, National Securities Corp from 11//2012-10/2014 and with Legend Securities from 1/2011-1/2012.

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

James B. Schwartz-Former Aegis Capital Broker-Barred for Churning Customer Accounts-New York

April 2019-Garden City, New York

The FINRA records of James B. Schwartz ,  a  former stock broker  who worked for Aegis Capital from 8/2013-6/2016 and was last employed  by Joseph Gunnar & Co.  , disclose  that he was recently barred from the securities industry, 2 pending customer disputes, 7  prior final customer disputes and a currently 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.

In 4/2019 Schwartz was permanently barred from the securities industry by FINRA. FINRA alleged that Schwartz churned and excessively traded the accounts of his customers causing combined losses of $660,000 while generating commissions for Schwartz and his employer of over $194,000. According to FINRA Schwartz made unauthorized trades of $10 million, including unauthorized trades in a customers account after the customer had died. FINRA Disciplinary Proceeding 2016051704302. 

The currently pending disputes include:

  • A customer of Aegis Capital who resides in Maine filed FINRA case 18-03717 alleging that from 2013-2016 Schwartz was negligent and made unsuitable recommendations and is seeking damages of over $32,000.
  • In 1/2018 a customer of Aegis Capital residing in New York file FINRA case 18-0408 alleging that Schwartz made unauthorized and unsuitable trades and is seeking damages of $1.8 million.

The previously resolved customer disputes include:

  • FINRA Case 17-1932 -a customer of Paulson Investment Company alleged excessive trading and unauthorized trading was paid a settlement of $800,000.
  • In June 2016 a customer of Schwartz’s prior employer, Aegis Capital Corp. alleged damages of $2,000,000 for unsuitable recommendations and mishandling their account from June 2013-January 2016. This case was settled for $782,000.
  • In pending FINRA Case #15-3428, another Aegis Capital customer alleged damages in excess of $287,000 for excessive trading, negligence, breach of fiduciary duty and unsuitable recommendations. That case was settled for $180,000.
  • In pending FINRA Case #15-2901, another Aegis Capital customer alleged damages of $289,163 for for unauthorized trading, negligence, breach of fiduciary duty and misrepresentation. This case was settled for $95,000.

Schwartz discloses a tax lien to  New York State  in the amount of $15,667.

Schwartz most recent employment was with Joseph Gunnar from 12/2016-2/2017. Before that he was  employed by First Standard Financial Co. from 6/2016-12/2016 .  Prior to that he was employed by Aegis Capital Corp from 6/2013-6/2016 and before that John Thomas Financial (expelled by FINRA 10/2013.

If you have losses in an account handled by James Schwartz, call for a no charge consultation to learn how you may be able to recover 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

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870