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Jan 24, 2017

FINRA January 2017 Disciplinary Actions

By |January 24th, 2017|Alabama, Bonds, Broker Check, Churning, Conflict of Interest, Conspiracy, Failure To Supervise, Fiduciary Duties, FINRA, FINRA News, Fraud, Georgia, Hedge, Bond & Mutual Funds, Legal Matters, Master Limited Partnership, Misappropriated Funds, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, Private Placements, Pump-And-Dump, REIT, SEC, Securities Law Violations, Selling Away, Suitability, Variable Annuity|

FINRA takes disciplinary actions against firms and individuals for violations of FINRA rules; federal securities laws, rules, and regulations; and the rules of the Municipal Securities Rulemaking Board. Below are a number of penalties announced by the regulator in January 2017. If you have been a victim of any of the below behavior, you may [...]

Dec 6, 2016

Wells Fargo Fined $1M For Client Reports

By |December 6th, 2016|Failure To Supervise, FINRA, FINRA News, Press Releases & News|

FINRA fined Wells Fargo $1 million for failing to have instituted reasonable supervisory systems to watch advisors' creation of consolidated reports for clients. The fine and settlement referenced two Wells Fargo firms failing to enforce supervisory systems “for the use of consolidated reports generated by their registered representatives through a particular application that the firms made available” [...]

Oct 7, 2016

Texas Broker-Dealer Fined Over Variable Annuities

By |October 7th, 2016|Failure To Supervise, Fiduciary Duties, FINRA News, REIT, Variable Annuity|

An annuity exchange allows brokers to transfer an investor's funds in an annuity to a new policy without incurring tax penalties. IMS Securities, a small broker-dealer firm, was fined $100,000 by FINRA for failing to supervise their brokers who used the annuity exchange to benefit themselves, according to a recent Investment News article. The brokers at IMS were [...]

Jun 22, 2016

FINRA Suspends Former LPL Broker

By |June 22nd, 2016|Broker Check, Failure To Supervise, FINRA, FINRA News, Press Releases & News|

FINRA has suspended former LPL Financial broker and supervisor Peter Neuberg for six months and has fined him $15,000 after failing to reasonably supervise a registered representative, according to the regulatory agency. Neuberg ceased regularly reviewing paperwork prepared by the representative, who altered documents pertaining to customer accounts, including reusing signatures from previously completed forms, [...]

May 24, 2016

NBA/NFL Players Win $819k FINRA Award

By |May 24th, 2016|Broker Check, Failure To Supervise, FINRA, FINRA News, Press Releases & News, Securities Arbitration|

Two former professional athletes, one from the National Basketball Association (NBA) and one from the National Football League (NFL), won an $819,000 arbitration award against Morgan Stanley Smith Barney in a case that revolved around the broker-dealer's negligent supervision of a former broker. The arbitration was brought by Keyon Dooling, who played guard in [...]

Apr 8, 2016

Investors File Complaints Against James Hayne

By |April 8th, 2016|Alabama, Broker Check, Churning, Failure To Supervise, Fiduciary Duties, FINRA, Fraud, Misrepresentation and Fraud, Press Releases & News, Suitability, Unauthorized Trading|

The Frankowski Firm is investigating complaints regarding Texas-based Cetera Advisors broker James Hayne (CRD# 3257845). He has spent sixteen years in the securities industry and has been registered with Cetera Advisors in Mansfield, Texas since 2014. Previous registrations include Questar Capital Corporation in Glendora, California (2013-2014); First Allied Securities in Glendora, California (2008-2013); Edward Jones in Pomona, [...]

Mar 25, 2016

FINRA Panel Orders UBS To Pay For Bond Losses

By |March 25th, 2016|Bonds, Failure To Supervise, FINRA, FINRA News, Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Press Releases & News, UBS|

A FINRA arbitration panel ordered UBS Group AG's wealth management business for the Americas to pay over $470,000 to three investors who claimed damages because their accounts were over-concentrated in Puerto Rico bonds that plummeted. The investors--Obdulio Melendez Ramos, Ramon Velez Garcia and Carlos L. Merced--filed the arbitration in 2014 and sought up to $570,243 [...]

Mar 2, 2016

Ex-MetLife, Pruco Broker Accused Of Deceptive Variable Annuity Sales Practices

By |March 2nd, 2016|Broker Check, Failure To Supervise, FINRA, FINRA News, Fraud, Misrepresentation and Fraud, Press Releases & News, Suitability, Variable Annuity|

FINRA has accused a former MetLife Securities Inc. and Pruco Securities Inc. broker, Winston Wade Turner, of harmful and deceptive variable annuity sales practices. According to FINRA's complaint, Turner allegedly "engaged in a course of deception and other misconduct in connection with sales and exchanges of variable annuities involving numerous customers." Turner also allegedly induced [...]

Feb 29, 2016

Most Common Investment Adviser Violations

By |February 29th, 2016|Failure To Disclose, Failure To Supervise, Fiduciary Duties, Fraud, Misrepresentation and Fraud, Press Releases & News, SEC|

Six investment adviser violations make up roughly 60% of all deficiencies the SEC's staff find when they investigate adviser offices, according to Renee Esfandiary, assistant director of the SEC's Office of Compliance, Inspections and Examinations. The investment adviser violations include: Compliance Rule Violations include not have written policies and procedures to ensure firm operations adhere to [...]

Feb 17, 2016

Questar Advisor Allegedly Sold Fraudulent Securities

By |February 17th, 2016|Failure To Supervise, FINRA, FINRA News, Fraud, Misrepresentation and Fraud, Press Releases & News, Selling Away|

The Frankowski Firm is investigating complaints regarding and the termination of former Questar Capital Corporation advisor Kevin Wanner. The complaints allege that The North Dakota Securities Department issued a cease and desist order claiming that Wanner sold time certificate of deposit securities purporting to represent an investment in an FDIC insured interest bearing account and further misrepresented [...]

Feb 12, 2016

Craig Scott Capital Subject Of FINRA Complaint

By |February 12th, 2016|Churning, Failure To Supervise, FINRA, FINRA News, Press Releases & News|

FINRA recently filed an amended complaint against Craig Scott Capital, LLC and its co-founders, Craig Scott Taddonio and Brent Morgan Porges, alleging, among other things, excessive trading, churning, failure to supervise. Churning and Excessive Trading According to the complaint, Respondents churned and excessively traded Craig Scott Capital customer accounts. They encouraged their sales team to [...]

Feb 9, 2016

Broker Lies About Charging $11M In Commissions For Nontraded REITs and BDCs

By |February 9th, 2016|Failure To Disclose, Failure To Supervise, FINRA, FINRA News, Fraud, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, REIT|

FINRA charged a broker for lying to a Native American tribe about the $11 million in commissions he charged when he sold the tribe $190 million in nontraded real estate investment trusts and business development companies. Between June 2011 and January 2015, broker Gopi Krishna Vungarala “regularly lied to his customer, a Native American tribe, regarding [...]

Feb 8, 2016

Stephens, Inc. Submits AWC Letter To FINRA For Failing To Apply Sales Charge Discounts

By |February 8th, 2016|Failure To Supervise, FINRA, FINRA News, Press Releases & News|

Stephens, Inc. submitted a letter of Acceptance, Waiver, and Consent to FINRA for failing to apply sales charge discounts to certain customers' eligible purchases of unit investment trusts ("UITs") between June 1, 2010 and May 31, 2015 in violation of FINRA's rules. Stephens alse failed to establish, maintain, and enforce a supervisory system and written [...]

Feb 5, 2016

Frankowski Firm Investigating UBS Broker

By |February 5th, 2016|Broker Check, Failure To Supervise, Fiduciary Duties, FINRA, Press Releases & News, SEC, Securities Law Violations, Suitability, UBS, Unauthorized Trading|

The Frankowski Firm is currently investigating the possible wrongdoing of current UBS Financial Services broker Bradley Ross of Fort Lauderdale, Florida. According to FINRA's BrokerCheck, Ross has been the subject of a number of customer complaints. In 2015, a customer alleged Ross, while employed at UBS, recommended investments not consistent with their risk tolerance. The [...]

Jan 11, 2016

Biggest FINRA Penalties In 2015

By |January 11th, 2016|Failure To Supervise, FINRA, FINRA News, Press Releases & News, Securities Law Violations, Suitability, UBS|

The biggest penalties FINRA levied last came from a wide variety of violations: Puerto Rico The Puerto Rico bond crisis was the source of a couple substantial FINRA actions. The regulator fined UBS Financial Services Inc. of Puerto Rico $7.5 million and ordered restitution of $11 million to 165 customers who had bought Puerto Rican [...]

Dec 29, 2015

FINRA Fines Barclays Capital $13.75M

By |December 29th, 2015|Failure To Supervise, FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Securities Law Violations, Suitability|

FINRA ordered Barclays Capital, Inc. to pay over $10 million in restitution, including interest, to affected customers for mutual fund-related suitability violations. These suitability violations relate to an array of mutual fund transactions including mutual fund switches. Further, the firm failed to provide applicable breakpoint discounts to particular customers and was censured and fined $3.75 [...]

Dec 28, 2015

Morgan Stanley To Pay $8.8M For Unsupervised Trading

By |December 28th, 2015|Broker Check, Failure To Supervise, FINRA, Press Releases & News, Securities Law Violations|

The SEC ordered Morgan Stanley Investment Management and brokerage firm Societe Generale Americas to pay $8.8 million and $1 million respectively for what it says was unsupervised prearranged trading conducted by a portfolio manager and a trader. In what the SEC called an attempt to give certain clients preferential treatment, Morgan Stanley portfolio manager Sheila Huang allegedly [...]

Dec 28, 2015

FINRA December 2015 Disciplinary Actions: Part II

By |December 28th, 2015|Failure To Supervise, FINRA, FINRA News, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Press Releases & News, Private Placements, REIT, Securities Law Violations, Variable Annuity|

Wunderlich Securities, Inc. (Memphis, TN) submitted an AWC in which the firm was censured and fined $50,000. FINRA found that it failed to establish, maintain, and enforce an adequate supervisory system and written procedures regarding the preparation and dissemination of consolidated reports. The findings stated that although the firm’s WSPs expressly permitted the preparation and dissemination [...]

Dec 23, 2015

FINRA December 2015 Disciplinary Actions: Part I

By |December 23rd, 2015|10b-5, Bonds, Failure To Supervise, FINRA, FINRA News, Press Releases & News, Securities and Exchange Act, Securities Law Violations|

Brookstone Securities, Inc. (Lakeland, FL) was censured, fined $1,000,000 and required to pay, jointly and severally with Christopher Dean Kline (Baraboo, Wisconsin) and Antony Lee Turbeville (Lakeland, FL) $1,620,100 plus prejudgment interest in restitution to their respective customers. Kline and Turbeville were barred from association with any FINRA member in any capacity. David William Locy (Overland [...]

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