Investment Attorney

FINRA Bars Broker Andrew Kramer Over Securities Practices

June 11, 2017 | by Staff Attorney

Broker Andrew Kramer (Kramer) was recently sanctioned by The Financial Industry Regulatory Authority (FINRA) in an enforcement action. According to the FINRA AWC (Letter of Acceptance, Waiver, and Consent) FINRA found that Kramer consented to sanctions that he failed to respond to FINRA’s requests for documents and information related to an examination concerning a customer complaint.

The securities lawyers of Gana Weinstein LLP are investigating the six customer complaints brought against Kramer. The customer complaints allege a number of securities law violations including that the broker made unsuitable investments among other claims. Accorded to one complaint, it was alleged that Kramer implemented a bear market strategy. When brokers recommend these strategies they are rarely profitable and almost always unsuitable for the client. Historically the market is only negative a small fraction of the time. Accordingly, a sustain bear market strategy always bets against the odds rarely makes sense.

The most recent claim was filed in December 2016 alleging Kramer engaged in unsuitable trades causing $1,000,000 in damages. The complaint is currently pending.

Broker Robert Schultz Subject to Multiple Customer Complaints

May 29, 2017 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Robert Schultz (Schultz). According to BrokerCheck records, Schultz has been subject to four disclosures including four customer complaints. The customer complaints against Wolfe allege a number of securities law violations including that the broker made unsuitable investments, breach of fiduciary duty, misrepresentations, negligence, and omissions of material information among other claims.

The most recent customer complaint was filed in October 2016 claims $95,000 in damages and alleges suitability misconduct, misrepresentations, and breach of fiduciary duty from 2005 through 2010. The claim is currently pending.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

FSC Securities Broker Brian Presley Subject to Multiple Alternative Investment Complaints

May 29, 2017 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against current FSC Securities Corporation (FSC Securities) broker Brian Presley (Presley). According to BrokerCheck records, Presley has spent 34 years in the securities industry and is currently located in Punta Gorda, Florida operating under the d/b/a The Presley Advisory. Over his career, Presley has been the subject of at least eight customer complaints and two regulatory actions.

The most recent complaint was filed in August 2015 alleging that Presley breached his duties to his clients in illiquid investments including oil and gas and non-traded REIT’s. The customer alleged $117,000 in damages. The claim has been settled. Many of Presley’s other customer complaints similarly allege damages resulting from the sale of alternative investment products.

Our firm often handles cases involving direct participation products (DPPs) and private placements including oil and gas partnerships, non-traded real estate investment trusts (REITs), and other alternative investments.

Financial Advisor Sara Eng Subject to Multiple Firm Terminations

May 25, 2017 | by Staff Attorney

Our firm is investigating claims made by various regulators and brokerage firms including Axiom Capital Management, Inc. (Axiom) and Financial West Group (FWG) concerning broker Sara Eng (Eng a/k/a Sara Aiping Ng). Eng is currently associated with brokerage firm Moloney Securities Co., Inc. (Moloney).

The allegations revolve around Eng’s offering of investments to clients. In October 2015, FWG terminated Eng for cause and allowed Eng to voluntarily resign after allegations were made that Eng was being placed on heightened supervision for potential violation of firm policy regarding marketing of investments to firm customers. Thereafter, in September 2016, Axiom terminated Eng for cause for violation of the firm’s policies and procedures regarding email correspondence. At the same time The Financial Industry Regulatory Authority’s (FINRA) opened its own investigation into Eng concerning Axiom’s disclosures for Eng’s termination. At this time it is unclear the exact nature and extent of the investigation.

Eng entered the securities industry in 1997. From November 2002 until March 2014, Eng was associated with Berthel, Fisher & Company Financial Services, Inc. From February 2014 until November 2015, Eng was associated with FWG. From October 2015 until September 2016, Eng was registered with Axiom. Finally, since November 2016 Eng has been registered with Moloney out of the firm’s Oak Brook, Illinois and Flushing, New York office locations.

INVESTOR WARNING: Broker Malcolm Segal is the Subject of Multiple Customer Complaints and Regulatory Actions

April 28, 2017 | by Staff Attorney

The securities and investment lawyers of Gana Weinstein LLP are investigating customer complaints filed with the Financial Industry Regulatory Authority (FINRA) against broker Malcolm Segal (Segal). According to FINRA’s BrokerCheck record, there are at least 11 disclosures on Segal’s record including customer complaints, multiple regulatory actions, and one employment separation from Aegis Capital Corp. The customer complaints against Segal allege misappropriation of customers’ funds, negligence, breach of fiduciary duty, and breach of contract.

Throughout his career with Aegis, Segal received number customer complaints:

January 2016: Alleging misappropriation of funds and misrepresentation. The damage amount requested is $135,000.00. This complaint is currently pending.

INVESTOR ALERT: Broker David James Mura Subject To Multiple Customer Complaints

April 25, 2017 | by Staff Attorney

The securities and investment lawyers of Gana Weinstein LLP are investigating customer complaints filed with the Financial Industry Regulatory Authority (FINRA) against broker David James Mura (Mura). According to FINRA’s BrokerCheck records for Mura, there are at least 14 disclosures on Mura’s record including customer complaints, multiple regulatory actions, and one employment separation from Aegis Capital Corp. The customer complaints against Mira allege securities law violations that claim unsuitable investments, excessive trading or “churning”, negligence, and breach of fiduciary duty.

The most recent customer complaint against Mura was in August 2014, alleging unsuitable investments, negligence, breach of fiduciary duty, and breach of contract. This claim occurring during Mura’s employment at J.P. Turner & Company. The customer alleged losses of $268,000.00 and the claim settled for the amount of $55,000.00.

In July 2013, another customer complaint was filed with FINRA alleging that Mura of unsuitable investments in private placement exchange-traded funds, negligence, breach of fiduciary duty, and breach of contract. The statement of claim did not specify an amount and the settled for $1,100,000.00.

Broker Tracy Rae Turner barred from FINRA

April 25, 2017 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with Financial Industry Regulatory Authority (FINRA) against broker Tracy Rae Turner (Turner). According to BrokerCheck records, Turner has been subject to at least 31 customer complaints, two employment separations for cause, one regulatory, and one financial among other claims during his 22 years of experience. The customer complaints against Turner alleges securities law violations that including unauthorized trading, fraud, breach of contract, negligence, and failure to supervise among other claims.

In a FINRA regulatory action against Turner in November 2016, the agency alleged that he offered and sold interests to investors totaling approximately $4.1 million without giving prior notice to and receiving prior written permission from his member firm. For successfully soliciting these investments, Turner received approximately $270,000 in compensation. A decision was rendered in April 2017 which resulted in barring Turner from FINRA association and fining him for $272, 879.04. The findings of the decision also alleged that Turner created a publically available offering memorandum to market sales of interest in private securities without providing a sound evaluation of investments and included false and misleading statements.

In June 2009, Turner was permitted to resign from his position at CapWest Securities, Inc. for conducting sales in states where he was not registered.

Broker Thomas Edward Gackle Barred For Failing To Cooperate With Regulatory Investigation

April 25, 2017 | by Staff Attorney

The investment fraud lawyers of Gana Weinstein LLP are investigating regulatory complaints of broker Thomas Edward Gackle (Gackle). According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Thomas Edward Gackle was permanently barred in July 2016 from the securities industry for failing to appear for on-the-record testimony requested by FINRA during the course of an investigation. In addition, the broker has been subject to at least one customer complaint and one employment separation for cause among other claims. The customer complaint against Gackle involve direct participation products (DPPs) such as non-traded real estate investment trusts (REITs).

In April 2015, a customer filed a complaint alleging that the amount of income ($100,000.00) stated on the suitability form was invalid and an investment purchased March 2015 caused $1,000,000.00 in damages. This complaint is currently pending.

This customer complaint resulted in Gackle to resign from his position at Lowell & Company in April 2015. This was based on allegations of failure to disclose material levents prior to association with Lowell & Company, which was an order issued by the Kansas Bar for the indefinite suspension from practicing law in the state of Kansas. Gackle’s resignation preceded FINRA’s sanctions, barring him from securities industry.

Broker Parks Heard Brown Jr. recipient of multiple customer complaints

April 24, 2017 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are interested in speaking with clients of broker Parks Heard Brown Jr. (Brown). According to his BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA), Brown has been the subject of at least four customer complaints. The customer complaints against Brown allege securities law violations that claim unsuitable investments, churning, unauthorized trading, breach of fiduciary duty, and negligence among other claims.

The most recent complaint was filed in October 2016, alleging that the broker while employed at VSR Financial Services Inc. made unsuitable investments based on the client’s liquidity needs. In March 2014, FINRA found that Brown violated FINRA rules 2090 and 2111 that require the use of reasonable diligence when recommending investment strategies. In addition, a customer alleged an unsuitable series of investments made in account between June 2012 and January 2014 resulting in damages of $245,750.00. The case settled for $71,500.00.

In another case filed in March 2004 a customer alleged that in June 2003 Brown misrepresented and failed to inform the account activity that caused $7,000.00

Broker Silvano Rolando Trino Subject to Pending Customer Complaint

April 21, 2017 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating a pending customer complaint filed with the Financial Industry Regulatory Authority (FINRA) against Silvano Rolando Trino (Trino). According to FINRA’s BrokerCheck record for Trino, there are at least 4 disclosures on Trino’s records, all pertaining to customer complaints. The customer complaints against Trino allege unauthorized use of margin, unsuitable trading, and churning.

All brokers who are registered with FINRA are required to disclosure customer complaints and arbitrations, regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings.

The most recent customer complaint against Trino was filed with FINRA in September 2014 alleging unauthorized use of margin, unsuitable trades, and churning. This claim occurred during Trino’s current employment at Northeast Securities, Inc.