Tag Archives: risky option trading

Matthew Singer- Former Morgan Stanley Broker-Customer Suits Over Option Investments- Aventura, FL

August 2018 – Aventura, FL

The FINRA records of  Matthew Singer,  a  broker previously employed by Morgan Stanley Smith Barney disclose 3 prior customer disputes and a regulatory 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.

In March of 2018,  without admitting or denying the findings, Singer consented to sanctions and entry of findings that he refused to appear for FINRA on-the-record testimony in connection with its investigation into whether Singer made unsuitable options recommendations to customers.   In March of 2018, Singer was permanently barred from the securities industry.

In December of 2016,  a client of Morgan Stanley Smith Barney,  filed FINRA Case 16-1063 and alleged unauthorized trading and misrepresentation with respect option investments from May 2015 to January 2016.    The case settled for $60,000.

In October of 2015, a client of Morgan Stanley Smith Barney, filed FINRA case 15-2767 alleging  that  Singer recommended investments were recommended that were not suitable for their level of risk.   The case was settled for $365,000.

If you have losses in an account  handled by Matthew Singer , 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

Brandon Stimpson-Former Allegis Investment Broker-Ordered to Pay Customer $400,000 For Option Trading-Logan, Utah

March 2018-Logan, Utah

An all public FINRA arbitration panel recently orderedand former Allegis broker Brandon C. Stimpson to pay a former client over $400,000 for losses suffered on the buying and selling of put options tied to the performance of the Russell 2000 index. The award, which is joint and several, included compensatory damages, interest, costs and attorney fees. Watson v Allegis Investment Services, et al, FINRA Case 16-0343.

The FINRA records of  Brandon Curt Stimpson ,   disclose  a  number of prior and 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 2/2016 a customer of Stimpson and Allegis Investment Advisors was paid $35,000 to resolve allegations that an option  trade placed in his account was outside the scope of the strategy.

There are currently two pending arbitrations disclosed, seeking a total of $700,000, that relate to option trading.

Stimpson had been employed by Allegis since 5/2014. In 12/2017 he was discharged for failing to follow firm policies and code of ethics. Prior to that he was employed by Signator Financial Services.

 

If you have questions about an account handled by Brandon C. Stimpson, call for a no charge consultation to learn about 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

Steven Yellen-Former Ameriprise Broker-Discloses Discharge from Employment-El Paso, Texas

February 2018 – El Paso, Texas

According to publicly available records Steven T. Yellen , (CRD# 1281663) ,  a  stockbroker who is not currently registered with any broker dealer and who was last employed by Ameriprise Financial Services disclose that he was recently discharged by Ameriprise Financial Services.

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 January 2018 Ameriprise discharged Yellen and made the following allegation on his FINRA record: “Registered representative was discharged for violations of company policy related to outside business activities and options trading.”

Yellen was the subject of a customer dispute while employed by Morgan Stanley Smith Barney. In 11/2015 Morgan Stanley paid a customer $5,000 to resolve allegations that Yellen did not follow instructions to transfer stocks to their children.

Yellen was employed by Ameriprise Financial Services from 3/2016-1/2018.

If you have questions about an account in an account handled by Steven Yellen , contact us for a no charge consultation to discuss 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

Losses On LJM Preservation and Growth Fund May Be Recoverable

April 2018

We are currently reviewing potential claims for investors who suffered losses in  LJM Preservation and Growth Fund (LJMIX & LJMCX) securities.

Once close to a billion dollars, the LJM Preservation and Growth Fund lost over 80% of its value in the first week of February 2018 and is closed to further investment, according to filings with the US Securities and Exchange Commission.

The fund was managed by Anish Parvataneni and Anthony Caine. According to the firm website the fund invested in long and short options on the S&P 500 Index futures that seek to profit, primarily, from the volatility premium-the spread between implied and realized volatility.

According to analysts following the fund, the strategy  of the LJM Preservation and Growth Fund was to sell naked put options on S&P futures.

Put Option

A “put” option is a contract granting the right to the buyer to sell a security at a specified price (strike price) , allowing the buyer to hedge a position. The seller of a put option  is betting the price of the security will remain higher than the strike price of the option. If the seller doesn’t own the security on which the option is written, that is called naked option writing and the downside risk is magnified greatly.

If a downward market adjustment occurs, as it did in the first week of February 2018, losses can be catastrophic. These charts show the dramatic drop in value on two of the LJM funds:

Brokers Have Duty to Make Suitable Recommendations

Brokers have a duty to make suitable recommendations taking into account an investor’s health, age, level of financial sophistication , tolerance for risk and investment objectives. For most retirees, a recommendation to invest in an investment that could experience such a dramatic drop in value would not be suitable. Investors may have been unaware of the risks associated with an investment in the LJM Preservation and Growth Fund, given the apparent misuse of the word “Preservation” .

Losses May be Recoverable

If you have losses in the LJM Preservation and Growth Fund and believe you were misled as to the risks, contact for a no charge consultation us to learn how damages may be recoverable 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

OneAmerica Securities Investigated for Failing to Supervise Option Trading

February 13, 2015

OneAmerica Securities, Inc.  entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that they failed to make reasonable inquiries or otherwise follow-up on multiple red flags that indicated one of their brokers,  Matthew J. Davis, was making unsuitable options recommendations and causing improper transfers of funds to a third party.

Davis was barred from the securities industry as a sanction from a FINRA disciplinary proceeding in an AWC issued in April 2014.

According to this recent AWC with OneAmerica Securities, Davis opened an account for a 65 year old couple with earnings between $50,000-$75,000 and a net worth (not including their residence) of between $250,000-$500,000. The couple indicated they had only two years of prior investment experience.

Davis sold puts and calls in the couple’s account causing the account to lose over half its value in a year.

OneAmerica Securities was censured for failing to supervise Davis and fined $75,000.

FINRA Case # 2013036026902

OneAmerica Securities was formed  in 1969 and is registered in 51 U.S. States and territories. Their main office is located in Indianapolis, Indiana.

OPTION TRADING NOT SUITABLE FOR ALL CUSTOMERS

Option trading can be risky and therefore unsuitable for retirees on fixed income. If you have suffered losses on option trading in your brokerage account, call to speak with an experienced securities attorney.

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