Investment Lawyer

Broker John Timberlake Accused of Making Unsuitable Recommendations and Failure to Supervise

April 6, 2021 | by Staff Attorney

John Timberlake (Timberlake), a previously registered broker formerly employed at Carter Terry & Company, Inc. (Carter Terry), has been subject to at least four customer complaints during the course of his career. His most recent customer complaints allege Timberlake of making unsuitable trading recommendations. Additionally, Timberlake was recently discharged from Cater Terry & Company for violating the firm’s policies.

According to a BrokerCheck report, there have been four complaints against Timberlake in the past 5 years alleging him of making unsuitable recommendations. Collectively, the allegations brought up against Timberlake have settled for over $200,000.00. In October 2019, a customer filed a complaint against Timberlake for unsuitably recommending a speculative investment strategy. This matter settled for $50,000.00. Additionally, In March 2019, a customer alleged that Timberlake failed to make suitable investments, implement a proper investment strategy and properly manage the account. This matter settled in favor of the client for $55,000.00. Similarly, in January 2016, another customer alleged Timberlake of making unsuitable recommendations. Here, the customer settled for over $105,000.00.

Brokers have an obligation to make only suitable recommendations for investments to the client. There are many investments that are not appropriate for the majority of investors or for certain investors given their risk tolerance, age, and other factors. Brokers should not present these investment options to clients. There are two screens that brokers must employ to determine whether an investment is suitable for a client. First, there must be a reasonable basis for the recommendation – meaning that the product has been investigated and due diligence conducted into the investment’s features, benefits, risks, and other relevant factors. The broker must conclude that the investment is suitable for at least some investors and some securities may be suitable for no one. 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.

Advisor Bryan Benson Has Customer Complaint Over Alternative Investments

June 29, 2020 | by Staff Attorney

Advisor Bryan Benson (Benson), formerly employed by Wells Fargo Clearing Services, LLC (Wells Fargo) has been subject to at least one customer complaint and one regulatory action during the course of his career. According to a BrokerCheck report the customer complaint concerns alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

In April 2020 FINRA barred Benson after he consented to sanctions and findings that he refused to provide information and documents that were requested by FINRA in connection with an investigation into an investment-related customer complaint. It is unclear the nature of the FINRA complaint that led to Benson’s bar from the industry

In April 2017 a customer complained that Benson violated the securities laws by alleging that Benson engaged in sales practice violations related to unsuitable investments concerning DPPs and limited partnership interests. The claim settled for $415,000.

Broker Eladio Santiago Subject to Customer Complaints Over Investment Recommendations

May 29, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Eladio Santiago (Santiago), currently employed by Cambridge Investment Research, Inc. (Cambridge Investment) has been subject to at least three customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Santiago’s customer complaints alleges that Santiago recommended unsuitable investments and account mismanagement among other allegations of misconduct relating to the handling of their accounts.

In February 2020 a customer complained that Santiago violated the securities laws by alleging that from 2014 through the present the broker made unsuitable investments and engaged in mismanagement with respect to recommendations and handling of accounts. The claim is currently pending.

In August 2019 a customer complained that Santiago violated the securities laws by alleging that from November 2012 through October 2018 the broker made unsuitable investments and engaged in mismanagement with respect to recommendations and handling of accounts. The claim is currently pending and alleges $350,000 in damages.

Advisor Narinder Singh Accused of Selling Private Securities – Investor Recovery

February 25, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Narinder Singh (Singh) has multiple client complaints concerning allegations that he engaged in the sales of investments in a company he controlled called Express Asset and Wealth Management, Inc. (Express Asset) among other allegations. According to BrokerCheck records, Singh was formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Farmers Financial Solutions, LLC (Farmers Financial). If you have been a victim of Singh’s alleged misconduct our firm may be able to assist you in recovering funds.

In December 2019 a customer complained that Singh violated the securities laws by alleging that Singh solicited him to invest $50,000 in an investment contract guaranteeing 5% interest for six months to a company controlled by Singh. The claim alleged $16,500 in damages and is currently pending.

In September 2019 a customer complained that Singh violated the securities laws by alleging that Singh induced them to invest $412,500 into an investment contracts with a company Singh controlled called Express Asset and Wealth Management, Inc. Claimants alleged that the first investment of $300,000 was made in January 2015 and second investment of $112,500 was made in January 2017. The claim alleged $1,237,500 in damages and is currently pending.

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

James McKinney Under Investigation For Securities Laws Violations

January 28, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor James McKinney (McKinney), formerly employed by Cetera Advisors LLC (Cetera) has been subject to at least three customer complaints, three tax liens, and one regulatory action during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), McKinney’s customer complaints alleges that McKinney recommended unsuitable investments among other allegations of misconduct relating to the handling of their accounts.

In November 2019 FINRA filed a regulatory action against McKinney alleging that he was named a respondent in a FINRA complaint alleging that he failed to comply with FINRA requests for information, documents and on-the-record testimony in connection with an investigation of him for possible violations of FINRA rules. If McKinney does not respond to the investigation the usual outcome is a bar from the securities industry.

McKinney also has three tax lien disclosures including a $622,351 lien from June 2017. The fact that a broker cannot manage his own personal finances is material information for a client to consider. In addition, the types of products clients have alleged were unsuitable are high commission products that may be recommended to generate high profits for the advisor at the expense of the client.

Advisor William Baum Subject to Multiple Customer Disputes

January 6, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor William Baum (Baum), currently employed by Great American Investors, Inc. (Great American) was has been subject to at least eight customer complaints and one regulatory action during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Baum’s customer complaint alleges that Baum recommended unsuitable investments among other allegations of misconduct relating to the handling of their accounts.

In July 2017 FINRA brought a regulatory action against Baum that he settled consenting to findings that he sent 58 text messages relating to his securities business – including messages about investment strategies and specific securities – to sixteen customers over the course of a year. FINRA found that Baum prevented his member firm from supervising those communications, violated the firm’s policy about business correspondence, and contradicted his attestation that he would use his firm’s email system for all business correspondence and retain all correspondence with customers for the firm’s review.

In September 2019 a customer complained that Baum violated the securities laws by alleging that Baum engaged in sales practice violations over the period of 2014 through 2017 by failing to recommend appropriate investments, disclose all conflicts of interest and fully inform claimants about the associated risks. The claim alleges $87,000 in damages and the case settled for $20,000.

Advisor Yvonne Silguero Has Complaints Over Altnerative Investment Sales

December 18, 2019 | by Staff Attorney

Advisor Yvonne Silguero (Silguero), currently employed by LPL Financial LLC (LPL Financial) has been subject to at least two customer complaints during the course of her career. According to a BrokerCheck report the customer complaints concerns alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have represented dozens of investors who suffered losses caused by these types of high risk, low reward products.

In August 2019 a customer complained that Silguero violated the securities laws by alleging that Silguero engaged in sales practice violations related to negligence, misrepresentations, breach of fiduciary duty from July 2014 through October 2018 concerning alternative investments. The claim alleges $500,000 in damages and is currently pending.

In April 2017 a customer complained that Silguero violated the securities laws by alleging that Silguero engaged in sales practice violations related to violations of the Texas State Securities Statutes, negligent misrepresentations, unsuitable investment recommendations and violations of the FINRA Rules. The claim alleged $3,759,713 in damages and went to hearing. The arbitration panel found LPL Financial liable and awarded $864,839 in damages, $340,000 in attorneys’ fees, and $350,000 in additional damages.

Advisor Timothy Atyeo Alleged to Have Recommended Unsuitable Energy Securities

December 10, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Timothy Atyeo (Atyeo), currently employed by Oppenheimer & Co. Inc. (Oppenheimer), has been subject to at least four customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA) Atyeo has been accused by multiple customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

In July 2019 a customer filed a complaint alleging that Atyeo violated the securities laws by engaging in, among other violations, negligence, breach of fiduciary duty, misrepresentations, and over concentration and speculative trading in the energy sector. The claim alleges $1,100,000 in damages and is currently pending.

In June 2017 a customer filed a complaint alleging that Atyeo violated the securities laws by engaging in, among other violations, too much risk and lack of diversification from 2014 through 2017 causing $4,000,000 in damages. The claim was denied by the firm.

Broker Marc Korsch Subject to Multiple Investment Complaints

September 25, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are investigating broker Marc Korsch (Korsch), currently associated with Centaurus Financial, Inc. (Centaurus Financial) out of Sarasota, Florida and Port Charlotte, Florida. According to a BrokerCheck report, Korsch has been subject to at least three customer disputes, one financial disclosure, and one criminal matter during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the customer complaints against Korsch concern allegations of unsuitable investment recommendations and misrepresentations.

In June 2019 a customer alleged that from August 2014 through May 2019, Korsch misrepresented the features of real estate securities and provided misleading information causing $53,000 in damages. This dispute is currently pending.

In April 2018 a customer alleged that Korsch made an unsuitable recommendation of annuity switches. The claim alleged $55,000 in damages and settled for $8,000.

In February 2017 a customer filed a complaint alleging that Korsch and his previous member firm, Trustmont Financial Group, Inc. (Trustmont Financial), violated the securities laws by, among other things, engaging in common law fraud, unsuitable investments, failure to supervise, and misrepresentations causing $500,000 in damages. The FINRA arbitration panel ordered Trustmont Financial to pay the customer $848,002 in compensatory damages, $100,000 in punitive damages, $15,596 in costs, and $82,500 in attorneys fees.

Lloyd Johnston Subject to Complaints Over Alternative Investments

September 10, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are investigating claims against advisor Lloyd Johnston (Johnston). According to records kept by The Financial Industry Regulatory Authority (FINRA), Johnston, formerly registered with Capital Financial Services, Inc. (Capital Financial) out of Spokane, Washington was barred from the financial industry. According to a BrokerCheck report, Johnston has been subject to at least two customer complaints, four regulatory actions, two investigations, one bankruptcy disclosure, one termination, and 15 tax liens. Johnston’s customer complaints allege that Johnston engaged in unsuitable sales of alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have handed many cases with these types of investments causing investor losses.

In September 2018 Johnston failed to disclose or timely disclose tax liens with a balance exceeding $1,000,000 and violated the terms of a Conditional Registration Order, which resulted in the revocation of his license. Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. In addition, a broker’s inability to manage their own finances is relevant in a customer’s decision to use their services.

In May 2018 Johnston failed to respond to FINRA’s request for information and was suspended indefinitely.

In May 2018 a customer alleged that Johnston’s sales of alternative investments were unsuitable to the customer’s investment needs. The exact amount of damages cannot be determined. The claim settled for $35,000.