Investment Attorney

Advisor David Phillips Accused of Selling Future Income Payments Investment Fraud

January 12, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor David Phillips (Phillips), formerly employed by Moloney Securities Co., Inc. (Moloney Securities) has been subject to one customer complaint and one tax lien during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaint against Phillips concerns allegations of unsuitable investments in Future Income Payments, Inc. (FIP).

In October 2018 a customer complained that Phillips recommending an investment in Future Income Payments, Inc. that was misrepresented and improperly recommended. The claim alleges $106,368 in damages and is currently pending.

The law offices of Gana Weinstein LLP have been investigating investor recovery options due to the alleged pay advance fraud scheme orchestrated by Future Income Payments, LLC (Future Income Payments) also known as Pensions, Annuities, and Settlements, LLC, and its owner Scott Kohn (Kohn). Future Income Payment is an unregistered and illegal security offering. Numerous state and local regulators and agencies also have concluded that FIP product violates a host of laws including securities, loan laws, usury laws, elder abuse, and consumer protection laws.

At the heart of the alleged scheme is the misrepresentation that Future Income Payments engages in agreements that are sales of pensions and not loans. However, regulators have claimed that the company misstates the effect of the contract and that in fact pensioners are entering into a consumer loan and not a sale. The purpose of the misrepresentations are to try to exempt Future Income Payments loans from consumer lending laws and regulations and to collect interest on loans at illegal rates.

Thurston Spinger Advisor Paul Muran Subject to Customer Complaints

January 9, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Paul Muran (Muran), currently employed by Thurston Spinger Financial (Thurston Spinger) has been subject to four customer complaints during his career. In addition, Muran has been twice terminated for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Muran concern allegations of unsuitable investments and allegations of overconcentration involving equities, oil and gas, life settlement contracts, and structured products.

In March 2011, Muran was terminated by Merrill Lynch Pierce, Fenner and Smith, Inc. (Merrill Lynch) over allegations that he participated in an outside investment without the firm’s approval. Thereafter, in October 2017 Muran was then terminated by UBS Financial Services, Inc. (UBS) on similar charges that Muran facilitated client purchases of life-settlement products not listed on firm platform, failing to escalate a client complaint, responding to the complaint without managerial approval, and failing to disclose a client’s subsequent investment in an outside passive investment.

In November 2018 a customer complained that Muran recommended investments that violated the securities laws by recommending a life settlement contract that was misrepresented and unsuitable. The client further alleges unauthorized trading of structured products and that the client had no idea she was borrowing from her loan account. The customer alleges an unknown amount of damages but the claim is currently settled for $250,000.

In May 2018 a customer complained that Muran recommended investments that violated the securities laws including unsuitable investments, unauthorized credit line agreement, unauthorized trades, uninvested funds, and lost market opportunity. The customer claimed $183,000 in damages and is currently pending.

Advisor Jon Pariser Terminated Over Securities Rule Violation

December 3, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Jon Pariser (Pariser), formerly associated with Independent Financial Group, LLC (Independent Financial) in Pacific Grove, California was sanctioned by FINRA resulting in a bar from the industry. In October 2018 Pariser consented to the FINRA sanction and an entry of findings that he failed to provide FINRA with requested documents and information related to allegations that he referred some of his customers to an individual who was not registered and who may have recommended or sold potentially unsuitable securities to them.

It is believed that Pariser recommended that his clients invest with Christopher Parris, an unlicensed broker. At that time Parris has been accused by the SEC of running an investment fraud scheme through First Nationle Solution. According to an Securities and Exchange Commission (SEC) complaint filed in June 2018, Parris and others orchestrated the First Nationle Solution Ponzi scheme and bilked investors out of over $102 million. Parris and others have been accused of using brokers like Pariser to liquidate safe or non-fraudulent investments in order to obtain financing of their scheme.

Advisor David Barber Barred Over Unauthorized Trading

October 6, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor David Barber (Barber), formerly employed by Madison Avenue Securities, LLC (Madison Avenue) has been subject to five customer complaints, two regulatory actions, and one employment termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Barber customer complaints allege that Barber made unsuitable recommendations in equity securities.

In March 2018, FINRA sanctioned Barber and barred him from the industry. FINRA alleged that Barber failed to produce information and documents request by FINRA during the course of an ongoing examination to determine whether he engaged in unauthorized trading in the accounts of customers of his member firm, exercised discretion in customer accounts without written authorization, or otherwise acted in violation of FINRA rules.

In addition, in September 2011 Raymond James and Associates, Inc. (Raymond James) discharged Barber claiming that he was alleged to misappropriate funds from a client, engaged in outside business activities and selling away, and that the firm lost confidence in the broker.

Merrill Lynch Advisor Charles Kenahan Subject to Multiple Complaints Over Unsuitable Investments

August 28, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Charles Kenahan (Kenahan), currently employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) has been subject to four customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Kenahan’s customer complaints allege that Kenahan made unsuitable recommendations or engaged in excessive trading – sometimes referred to as churning.

In May 2018 a customer alleged excessive trading and unsuitable investment recommendations from 2012 until 2017. The claim alleged $700,000 in damages and is currently pending.

In March 2018 a customer alleged unsuitable investment recommendations, excessive trading and misrepresentation from February 2012 until December 2017. The claim is currently pending.

Advisor John Krohn Sanctioned Over $7.9 Million in Sales for Private Deals

August 28, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor John Krohn (Krohn), formerly associated with Principal Securities, Inc. (Principal Securities) in West Des Moines, Iowa was suspended and sanctioned concerning allegations that Krohn engaged in private securities transactions.

FINRA alleged that between April 2014 and January 2017, Krohn served as an officer or a director of four companies, including one that invested in early-stage and distressed companies. In addition, between December 2012 and December 2016, Krohn was alleged to have made more than two dozen purchases totaling $7.9 million of ten companies’ securities. FINRA alleged that Krohn did not notify Principal Securities about those transactions, his role in them, and whether he had received or expected to receive compensation. In addition, FINRA alleged that Krohn made some of those purchases through the investing company that he owned jointly with a customer.

Krohn disclosed a number of outside business activities including outside insurance business and tax preparation. In addition, Krohn also disclosed involvement with Domiknow as a board member, Spotlight Innovation, Inc., as a board member, Tax Saver Plus, and Cash Flow Structure Group.

David Manor Subject to Multiple Complaints Alleging Unsuitable Investments

August 23, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker David Manor (Manor). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Manor has been subject to two customer disputes concerning unsuitable investment recommendations and false representations of investments. One of these disputes is currently still pending. In addition, Manor has been subject to resignation from a previous employer.

Most recently, in April 2018, a customer alleged that in 2017, Manor recommended unsuitable investments to the customer. The customer requested $224,837.25 in damages. This dispute is currently still pending.

In January 2016, a customer alleged that Manor falsely represented investments to the customer by failing to disclose the surrender penalty to the investment. The customer further alleged that the investment was unsuitable to her financial status and needs, being that the funds were her only source of income. The customer requested $30,000 in damages.

Edward Mirabella Subject to Multiple Customer Complaints for Unsuitable Unauthorized Transactions

July 29, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Edward Mirabella (Mirabella). According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), Mirabella has been subject to 5 customer disputes, 2 of which are still pending. Mirabella has also been subject to two tax liens. The majority of these disputes involve unsuitable investment recommendations, unauthorized trading, and breach of fiduciary duty.

Most recently, in November 2017, a customer alleged that Mirabella churned the customer account and engaged in unsuitable investment transactions. The customer has requested $879,584 in damages. This dispute is currently still pending.

In January 2014, a customer alleged that Mirabella was executing unauthorized trades in the customer account. The customer has requested $40,000 in damages. This complaint is currently still pending.

Stephen Dellelo Subject to Pending Customer Complaint Alleging $900,000 in Damages

July 24, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating NEXT Financial Group, Inc. (Next Financial) broker Stephen Dellelo (Dellelo).

According to BrokerCheck records, Dellelo is subject to one pending customer complaint concerning unsuitable placements in illiquid investments.

In November 2017, a customer alleged that from 2007 to 2017, Dellelo placed the customer into private and illiquid investments that were unsuitable to the customer and resulted in losses of $900,000. This dispute is currently still pending.

Alvery Bartlett Subject to Multiple Customer Complaints Over Alternative Investments

June 16, 2018 | by Staff Attorney

Current Arete Wealth Management, LLC (Arete Wealth) broker Alvery Bartlett (Bartlett) has been subject to three customer complaints. According to a BrokerCheck report many of the complaints concern alternative investments, private placements, and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs) and oil and gas programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In March 2018 a customer filed a complaint alleging that the investments purchased between 2003 and 2011 were unsuitable and were misrepresented to him. The client also alleged that the firm failed to conduct adequate due diligence on the investments and failed to supervise the representative. The claim is currently pending and alleges damages of $6,637,918.

Our firm often handles cases involving direct participation products, Non-Traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These products are almost always unsuitable for investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments which provides a perverse incentives by brokers to create an artificial market for products that no honest advisor would sell.