Broker Theft

Eric Dupre Fired Over Misappropriation of Client Funds – Investor Recovery Options

November 16, 2024 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Eric Dupre (Dupre) has been accused by investors of engaging in fraudulent misappropriation of their funds. Higgins was terminated by his employer for engaging in undisclosed investment activities including undisclosed outside business activities (OBAs). According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Dupre was employed by Ameriprise Financial Services, LLC (Ameriprise) at the time of the activity. If you have been a victim of Dupre’s alleged misconduct our firm may be able to assist you in recovering funds.

In December 2023 Ameriprise terminated Dupre for cause alleging that the firm terminated Dupre due to violation of company policy related to borrowing from clients.

On May 23, 2024 a customer filed a complaint alleging that former advisor Dupre recommend that they invest in a “cryptocurrency opportunity”. However, it appears that Dupre did not invest the Claimants’ funds, but instead misappropriated the funds. Claimants allege that Dupre stole more than $2.6 million dollars from them. The dispute is currently pending.

Jeffrey Higgins Barred Over Misappropriation of Client Funds – Investor Recovery Options

November 9, 2024 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Jeffrey Higgins (Higgins) has been accused by multiple investors of engaging in fraudulent misappropriation of their funds. Higgins was barred by a regulator for engaging in undisclosed investment activities including undisclosed outside business activities (OBAs). According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Higgins was employed by Western International Securities, Inc. (Western) and Financial West Group (FWG) at the time of the activity. However, Higgins also did business under the names Azzurra Wealth Management, LLC. If you have been a victim of Higgins’ alleged misconduct our firm may be able to assist you in recovering funds.

In June 2024 Western terminated Higgins for cause alleging that the firm was investigating the conduct of Higgins following his notification to Western that he had been misdirecting client investments and funds and misappropriating client investments and funds to his own use, starting in approximately 2007 at his prior broker-dealer firm, and that these activities have continued through to the current date.

On July 1, 2024, Higgins accepted a permanent industry bar with FINRA by failing to respond to the regulator’s requests for documents and information. According to FINRA, Higgins consented to the sanction and to the entry of findings that he refused to produce information and documents and refused to appear for testimony requested by FINRA during the course of a matter that originated from an examination by FINRA following a regulatory tip. FINRA found that Higgins’ member firm filed a Form U5 stating that he was discharged based on his notification to it that he had been misdirecting client investments and funds and misappropriating client investments and funds to his own use, starting at his prior broker-dealer firm, and that these activities have continued through to the date of termination.

Securities Arbitration – The Basics: What you need to know.

February 23, 2023 | by Staff Attorney

Securities arbitration is a method of resolving disputes between investors and their brokers or brokerage firms, which is governed by the Financial Industry Regulatory Authority (FINRA). FINRA is a self-regulatory organization that oversees the securities industry and provides a forum for resolving disputes between investors and their brokers or brokerage firms.

Securities arbitration through FINRA is a legal process that allows investors to seek redress for claims arising out of their investment accounts, such as fraud, breach of fiduciary duty, unsuitable investment recommendations, selling away or other misconduct. Securities arbitration is generally faster and less expensive than going to court, and the decision of the arbitrator is final and binding on both parties. It is important for investors to understand their rights and legal options if they believe they have been the victim of misconduct by their broker or brokerage firm.

To initiate a securities arbitration through FINRA, an investor must file a Statement of Claim with FINRA, which sets forth the facts and legal basis for the claim. The Statement of Claim must be filed within six years from the occurrence or event giving rise to the claim. However, the occurrence or event that gives rise to a claim is usually considered the date of damages, or the date a reasonable investor knew or should have known about the claim. While brokerage firms usually argue it is the date of purchase, most arbitration panels disagree with that analysis.

Shawn Good Barred Over Alleged Ponzi Scheme – Investor Recovery Options

October 1, 2022 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Shawn Good (Good) has been accused by clients and regulators of engaging in fraudulent investment activities including undisclosed outside business activities (OBAs) and a ponzi scheme. According to records kept by The Financial Industry Regulatory Authority (FINRA), Good was employed by Morgan Stanley Smith Barney, LLC (Morgan Stanley) at the time of the activity. If you have been a victim of Good’s alleged misconduct our firm may be able to assist you in recovering funds.

On April 18, 2022, the Securities and Exchange Commission filed an emergency action and charged Good with defrauding clients and misappropriating millions of dollars of investor funds. The SEC alleges that Good engaged in a multi-year Ponzi scheme involving his clients at Morgan Stanley. Good is alleged to have defrauded his clients – novice investors who trusted him, including retirees and a single mother of young children – of at least $4.8 million. Beginning in or about December 2012 through at least February 2022, the SEC claims that Good solicited five Morgan Stanley clients to make supposed investments by transferring funds from firm accounts to his personal bank account. Good then is alleged to have solicited the clients to transfer the funds to his personal account to make low-risk investments in real-estate development projects and tax-free government bonds. It is alleged that in fact those funds were used to repay earlier victims and also to pay Good’s personal expenses, such as payments towards his Tesla, over $800,000 in credit-card bills, and Venmo transfers. The SEC claims that Good invoked his Fifth Amendment right against self-incrimination to virtually every question when confronted with his actions.

James Couture Accused of Misappropriating Client Funds – Investor Recovery

September 13, 2021 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor James Couture (Couture) has converted customer funds among other allegations. According to BrokerCheck records, Schmidt is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm LPL Financial LLC (LPL Financial) out of the firm’s Worcester, Massachusetts office location. In addition, Couture disclosed two customer complaints, one employment terminations for cause, and two regulatory actions. If you have been a victim of Couture’s alleged misconduct our firm may be able to assist you in recovering funds.

In June 2020 LPL Financial terminated Couture alleging that he had altered identifying information, account balances and distributions in customer account statement, maintained comingled customer funds, use of an unapproved email address. Thereafter, FINRA investigated these claims but Couture refused to comply with the agency’s requests.

In June 2021 the SEC alleged that Couture violated his fiduciary duty to his clients by engaging in a deceptive scheme to misappropriate approximately $2.9 million from them. According to the SEC, Couture fraudulently prompted his clients to sell portions of their securities holdings in order to fund large money transfers to an entity that he owned and controlled. The SEC alleges that once Couture used the fraudulently obtained authorizations to secure the sale of client securities and transfers of the proceeds to his exclusive control, Couture then spnt the money for his own benefit. Couture went so far as to lull clients into believing that their sale proceeds had been actually reinvested by providing them with fabricated account systems and account holding reviews. The SEC found that the fabricated statements contained securities transactions that never happened, investments that did not exist, and earnings that the clients never received for the purposes of creating the false appearance that Couture had reinvested his clients’ money.

Advisor Michael Shillin Accused of Numerous Allegations of Financial Misconduct and Fraud – Investor Recovery Options

September 12, 2021 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Michael Shillin (Shillin) has been accused by numerous clients of engaging in fraudulent investment activities including undisclosed outside business activities (OBAs) and private securities transactions. According to records kept by FINRA Shillin was employed by Alliance Global Partners at the time of the activity. If you have been a victim of Shillin’s alleged misconduct our firm may be able to assist you in recovering funds.

As reported by WEAU News, Shillin has been barred from working in the brokerage industry. FINRA has disclosed that Shillin refused to respond to the claims and complaints made against him. “In one of two new complaints, one count alleges that Shillin claimed to have purchased 20-thousand dollars in Space-X shares, but withdrew 25-thousand from their account. Another client writes that Shillin falsified documents to cover up a non-existent life insurance policy. This person wrote a check for nearly 30-thousand dollars for the policy.”

One of dozens of complaints filed relating to Shillin states “Each claimant alleges one or more of the following: that former FA misrepresented that he bought securities in claimants’ accounts when he did not actually buy them and presented claimants with documents that led them to believe the securities had been bought; represented that a claimant could obtain long-term care benefits under a rider to the claimant-spouse’s long-term care policy but never submitted the paperwork; failed to inform claimants that there were limits on penalty-free withdrawals from 401k accounts that had been rolled into an IRA; incorrectly represented to claimants they could withdraw from their IRAs when the withdrawals were prohibited transactions, and he prepared falsified accounting documents; improperly advised claimants they were eligible for a benefit under the Affordable Care Act and prepared a falsified Form 1099 reflecting a lower income; incorrectly advised claimants that investments in pre-IPO stocks would provide certain tax benefits, provided figures to include in tax returns, and represented that he would file the tax returns and forward payment to the IRS for claimants but failed to do so; incorrectly advised claimants on how much they could withdraw from their accounts to live on; and/or incorrectly advised claimants they could retire based on the purported performance of their portfolios.”

Yellowstone Advisors David Hansen and Cameron High Fraudulently Bill Clients Out of $11.8 Million – Investor Recovery Options

February 14, 2021 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisory firm Yellowstone Partners, LLP, of Idaho Falls, and its two principals, David Hansen (Hansen) and Cameron High (High) fraudulently overbilled clients and charged fees for work not performed. According to records kept by The Financial Industry Regulatory Authority (FINRA) High was employed by Crown Capital Securities, L.P. through October 2017. If you have been a victim of Hansen’s and High’s misconduct our firm may be able to assist you in recovering funds.

According to the SEC, Yellowstone overbilled investment advisory clients as part of a fraudulent scheme to inflate the firm’s income. The SEC claims that High participated in the fraudulent scheme by causing the overbilled management fees to be charged to and taken from client accounts. The Defendants are accused and later pled guilty to stealing over $11.8 million from over 120 client accounts by overbilling clients for investment advisory management fees that were never earned.

The SEC alleged that the overbillings were taken from unsuspecting clients to generate additional revenue to cover Yellowstone’s operating expenses and to support Hansen’s lavish lifestyle. The SEC found that the advisors targeted specific accounts in a small number of larger accounts where overbilled fees would be less noticeable. In carrying out their scheme, the advisors allegedly billed client accounts twice for periodic management fees taking double the amount of fees earned during particular periods. In addition, the advisors also failed to maintain current investment advisory agreements for each client and to keep such records easily accessible for a period of five years.

On March 14, 2018, High pled guilty to one count of wire fraud before the United States District Court for the Northern District of Idaho.

Advisor Ronald Hannes Accused of Converting Client Funds – Investor Recovery Options

October 4, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Ronald Hannes (Hannes) has been accused by a financial regulator of engaging in converting client funds among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Hannes was employed by his prior employer Woodbury Financial Services, Inc. (Woodbury Financial) prior to being investigated concerning his activities. If you have been a victim of Hannes’ alleged misconduct our firm may be able to assist you in recovering funds.

In December 2019, Hannes was terminated by Woodbury Financial for cause after the firm received notice from a client that funds were paid to the representative for purchase of a life insurance contract that were not forwarded to the life insurance company.

Thereafter, FINRA investigated Woodbury Financials’ disclosures and Hannes refused to cooperate with FINRA. FINRA found that Hannes consented to sanctions and findings that he failed to produce documents and information requested by FINRA during its investigation into allegations that he converted customer funds.

In March 2020, the Securities Division of the State of Washington filed a complaint against Hannes alleging that from approximately 2003 to 2019, Hannes engaged in an extensive, long-term fraud against his Woodbury Financial clients by convincing them to write checks to Hannes Financial Services, Inc. for off-the-books investments and then used the money for other purposes. In total, Hannes is alleged to have defrauded at least nineteen clients out of at least $2.9 million.

The State of Washington alleges that Hannes generally approached existing clients and misrepresented to them that he had an opportunity for a fixed-rate investment in either a bond, or in a unit investment trust which functioned similarly to a bond. It is alleged that Hannes did not provide investors with any offering documents for to the investments or financial statements and in some cases did not even identify the company in which the client would be investing. Instead, it is alleged that Hannes most commonly stated that the investments offered a return of 5% to 7%, and could be rolled over into new investments at the end of their fixed terms in the two-to-five-year range. Investors are then alleged to have been solicited to roll over their investments rather than requesting withdrawals. Hannes is alleged to have had the clients write the checks to HFS, whose bank accounts he controlled as the owner of the company. Hannes is then alleged to have created false account statements and company names to provide the appearance that actual investments had been made.

Advisor George Schmidt Investigated for Converting Client Funds – Investor Recovery

April 6, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor George Schmidt (Schmidt) has converted customer funds among other allegations. According to BrokerCheck records, Schmidt is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Lincoln Financial Advisors Corporation (Lincoln Financial) out of the firm’s Melville, New York office location. In addition, Schmidt disclosed four customer complaint, one employment terminations for cause, and one regulatory action. If you have been a victim of Schmidt’s alleged misconduct our firm may be able to assist you in recovering funds.

According to FINRA, Schmidt refused provide documents and information to FINRA in connection with an investigation into allegations made by his firm upon his termation.

In November 2019 Lincoln Financial terminated Schmidt stating that he was discharged while under allegations of misappropriation related to undisclosed outside business activity serving as trustee for a non-family member.

Schmidt’s disclosed outside business activities include Schmidt Associates.

Advisor John Cahill Investigated for Converting Client Funds – Investor Recovery

March 24, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor John Cahill (Cahill) has converted customer funds among other allegations. According to BrokerCheck records, Cahill is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Janney Montgomery Scott LLC (Janney). In addition, Cahill disclosed one customer complaint, two employment terminations for cause, and one regulatory action. If you have been a victim of Cahill’s alleged misconduct our firm may be able to assist you in recovering funds.

According to FINRA, Cahill consented to sanctions and to findings that he refused provide documents and information and to appear for testimony requested by FINRA in connection with an investigation into allegations that he commingled and/or converted funds belonging to, and served as power-of-attorney for, an elderly individual who was his customer while he was associated with his former member firm.

In March 2019 Janney terminated Cahill stating that he was discharged while under internal review regarding receipt of funds while acting as POA for a client.