Failure to Supervise

Advisor John Blakezuniga Has Several Regulatory Actions – Investor Recovery

April 22, 2023 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP have currently been investigating previously registered broker John Blakezuniga (Blakezuniga). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Blakezuniga, has three regulatory disclosures on his profile.

In 2017, Blakezuniga allegedly violated his firm’s policy when he borrowed $775,000 from two of his firm’s customers and did not repay the full principal amount for either of these loans. According to FINRA, it is generally prohibited for an investment advisor to borrow money from a client unless certain conditions are met, which did not occur here. The purpose of this rule is to avoid serious potential conflicts of interest and risks associated with an investment adviser, who is a fiduciary, borrowing his or her client’s money. Furthermore, Blakezuniga was allegedly untruthful when he completed his firm’s annual compliance questionnaire and answered no to a question that asked if he ever borrowed money from a customer which was false.

Also in 2017, Blakezuniga was fined and suspended for 22 months when he recommended approximately 1,280 transactions in inverse and inverse leveraged exchange traded funds (non-traditional ETFs) in 85 customer accounts without a reasonable basis for the recommendations. In fact, Blakezuniga recommended that his customers hold these non-traditional ETF’s for periods ranging from 30 days to several years despite the fact that these investments were not meant to be held for long periods of time. According to FINRA, an investment adviser is always required to have a reasonable basis for making investment recommendations to clients. This is known as the “suitability” standard, which requires a recommendation based on a client’s idiosyncratic profile such as their individual financial situation, investment objectives, risk tolerance, and other factors.

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.

Raymond James & Associates financial Advisor Joseph Andreoli Jr has many disputes in his 33 Year career

January 19, 2021 | by Staff Attorney

Joseph Andreoli Jr is a Financial advisor. A graduate of Ramapo College of New Jersey, Mr. Andreoli Jr holds a Bachelor of Science in business. In 1987 he started his professional career at Hym Financial, INC for a year and proceeded further on his path to work for many firms such as J.B. Hanaur & Company, Smith Barney Inc., Citigroup Global Markets Inc., Wells Fargo Clearing Services LLC and is currently working for Raymond James & Associates, Inc. Mr. Andreoli was in the securities industry for approximately 33 years.

A brokerage firm or broker-dealer is in the business of buying and selling securities- stocks, bonds, mutual funds and certain other investment products on behalf of its customer for its own bank. An investment adviser is paid for providing advice about securities to clients. In addition, some investment advisers manage investment portfolios and offer financial planning services. Mr. Andreoli Jr is licensed to sell securities in 17 states.

In or around July of 2000, Mr. Andreoli Jr had his first dispute, the allegations against him consisted of the unsuitable sale of securities, negligence, breach of contract, breach of fiduciary duties, fraud, violation of industry rules, federal securities laws, and various Texas state law statutes regarding trading of treasury bonds on margin for capital gains for a requested amount of $196,275.88. The unsuitable sale of securities occurs when a broker fails to take into account customer specific information in making a recommendation. Negligence is the failure to take proper care or carelessness. Breach of contract is the breaking of legal agreement. A breach of fiduciary duty occurs when the fiduciary acts in the interest of themselves, rather than the best returns for the client. Fraud is an intentional act to deceive for personal gain. At the conclusion of the case, the Claimant in this matter was awarded $56,555 by an arbitration panel.

Gana Weinstein LLP: In The News

October 5, 2020 | by Staff Attorney

Is Copy Trading on its way to the United States? Adam Gana of Gana Weinstein, LLP spoke with the great Edward Robinson about the pitfalls with copy trading in the United States and the legal ramifications in the article below. Happy reading to our loyal followers!

https://www.bloomberg.com/news/articles/2020-10-02/robinhood-versus-etoro-brokerage-showdown-looming-in-stock-market-investing?srnd=wealth

Advisor Ferrell Rollins Terminated for Borrowing Customer Funds

May 14, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Ferrell Rollins (Rollins) has been accused by his former employer of borrowing client funds among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Rollins has been terminated by his prior employer, Capital Investment Group, Inc. (Capital Investment Group) concerning his outside business activities. If you have been a victim of Rollins’ alleged misconduct our firm may be able to assist you in recovering funds.

In September 2019 Capital Investment Group terminated Rollins after alleging violation of firm policy and FINRA Rules 2010 and 3240 related to borrowing money from a customer and making false statements to the firm on forms related to said loan.

Rollins’ outside business activities disclosed on his publicly available BrokerCheck report include Telco Credit Union.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

Advisor Jason LaBelle Sanctioned Over Outside Business Activities – Investor Recovery

May 14, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Jason LaBelle (LaBelle) has been accused by a securities regulator of potentially engaging in the sales of private securities among other allegations. LaBelle was sanctioned by The Financial Industry Regulatory Authority (FINRA) concerning his private securities and undisclosed outside business activity conduct. According to BrokerCheck records, LaBelle was formerly registered with FINRA member firm LPL Financial LLC (LPL Financial). If you have been a victim of LaBelle’s alleged misconduct our firm may be able to assist you in recovering funds.

In January 2020 FINRA found that that LaBelle consented to the sanctions and findings that he participated in an outside business activity involving a real estate development project that was financed with money lent by one of his customers without providing prior written notice to his firm. FINRA found that LaBelle falsely confirmed that he had fully disclosed his outside business activities on two annual compliance questionnaires submitted to his firm.

In June 2017 a customer filed a complaint concerning LaBelle where the customer alleged that LaBelle violated the securities laws by alleging the advisor made misrepresentations on the terms of a promissory note he recommended Plaintiffs purchased in February 2016, and without authorization withdrew money to purchase the note from Plaintiffs’ taxed deferred accounts. The complaint is currently pending.

According to LaBelle’s publicly disclosed records the he has several disclosed outside business activities including Berkshire Retirement Strategies (his d/b/a for LPL Financial), Brickhouse Mountain LLC (owner of office building), and Private Advisory Group (an RIA d/b/a).

Advisor Antonio Puente Barred Over Outside Business Activities – Investor Recovery

April 12, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Antonio Puente (Puente) has been accused by a securities regulator of potentially engaging in the sales of private securities among other allegations. Puente was barred by The Financial Industry Regulatory Authority (FINRA) concerning his private securities sales conduct. According to BrokerCheck records, Puente was formerly registered with FINRA member firm Valic Financial Advisors, Inc. (Valic Financial). If you have been a victim of Puente’s alleged misconduct our firm may be able to assist you in recovering funds.

In August 2018 Valic Financial terminated Puente alleging that he was terminated following conclusion of investigation into undisclosed outside business activity. Then in January 2020 FINRA found that Puente consented to sanctions and findings that he refused to provide testimony requested by FINRA in connection with its investigation into whether he potentially violated FINRA rules by engaging in undisclosed outside business activities and/or private securities transactions.

According to Puente’s publicly disclosed records the he has no disclosed outside business activities.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds. Continue Reading

Advisor Diane Zhu Investigated Over Undisclosed Outside Business Activities

October 11, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Diane Zhu (Zhu) engaged in undisclosed outside business activities (OBAs) that were not approved by the brokerage firm. Zhu, formerly registered with PFS Investments Inc. (PFS Investments) was subject to a regulatory investigation according to records kept by The Financial Industry Regulatory Authority (FINRA). In addition, Zhu disclosed one employment termination for cause.

In July 2019, FINRA alleged that Zhu accepted a bar from the financial industry, without admitting or denying the findings, that she refused to provide documents and information requested by FINRA in connection with FINRA’s investigation into Zhu’s outside business activity that led to her termination from her member firm.

In November 2018 Zhu was discharged by PFS Investments after the firm claimed that she engaged in an undisclosed outside business activity.

At this time it is unclear what the activity was that was the focus of FINRA’s investigation or the scope of Zhu’s activities. Zhu’s publicly available BrokerCheck information discloses several OBAs including the sale of home security and automation products and a company called Stars Accounting which appears to be a tax accounting business. It is unknown whether the activity investigated by FINRA involves any of these entities.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling fraudulent securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds. Continue Reading

Advisor Robert Montes Investigated Over Missue of Elderly Investor’s Assets

October 11, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Robert Montes (Montes) engaged in undisclosed outside business activities (OBAs) and investment sales that were not approved by his brokerage firm. Montes, formerly registered with Morgan Stanley was subject to a regulatory investigation according to records kept by The Financial Industry Regulatory Authority (FINRA). In addition, Montes disclosed three customer complaints.

In July 2019, FINRA alleged that Montes accepted a bar from the financial industry, without admitting or denying the findings, that he refused to provide documents and information requested by FINRA in connection with an investigation into whether he potentially misused an elderly customer’s assets.

At this time it is unclear what the activity was that was the focus of FINRA’s investigation or the scope of Montes’ activities. Montes’ publicly available BrokerCheck information discloses several OBAs including a real estate venture and a company called R.J.R. Asset Management, LLC. It is unknown whether the activity investigated by FINRA involves any of these entities.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling fraudulent securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

James Booth Being Investigated For Taking Money From Clients – Investor Recovery

June 30, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor James Booth (Booth) has taken funds from clients and engaged in certain business activities not approved by his brokerage firm. Booth, formerly registered with LPL Financial, LLC (LPL Financial) out of Norwalk, Connecticut has left LPL Financial and is under investigation by securities regulators. In addition, Booth disclosed at least four customer complaints.

Our firm has been contacted by Booth clients who have been informed that certain funds of clients that they believed were invested with Booth could no longer be located. Upon information and belief, investors have been asked to write out checks to Insurance Trends to invest with Booth and now these funds cannot be located. If you have had this experience with Booth we encourage you to contact our firm for a free consultation.

Booth’s CRD disclosures state that Booth has an outside business activity called Booth Financial Associates and John M Glover Agency.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling fraudulent securities sales. Booth’s activities in the sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.