Securities Arbitration

Christopher Miller Subject to Investment Customer Complaint

September 1, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Christopher Miller (Miller), currently employed by Emerson Equity LLC (Emerson Equity) has been subject to at least two customer complaints during the course of his career. One of those complaints appears to have been expunged through FINRA’s notoriously flawed expungement process. According to records kept by The Financial Industry Regulatory Authority (FINRA), Mr. Miller’s customer complaints alleges that Mr. Miller recommended unsuitable investments in various investments including allegations involving private placements and real estate securities, among other allegations of misconduct relating to the handling of their accounts.

In February 2020, a customer complained that Mr. Miller violated the securities laws by alleging that Mr. Miller engaged in financial elder abuse, involving a 1031 exchange investment. The claim alleges $292,000 in damages. This complaint was subsequently expunged from Mr. Miller’s record.

In October 2019, a customer complained that Mr. Miller violated the securities laws by alleging that Mr. Miller engaged in the sale of unsuitable securities, breach of fiduciary duty, and financial elder abuse. The claim settled in the amount of $57,000.

Daniel Pimental Engaged in Unsuitable Investment Advice and Unauthorized Trading

October 27, 2021 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Daniel Pimental (Pimental), most recently employed by Wells Fargo Advisors Financial Network, LLC (Wells Fargo) has been subject to at least three customer complaints during the course of his career. Mr. Pimental is no longer a registered broker. According to records kept by The Financial Industry Regulatory Authority (FINRA), Mr. Pimental’s customer complaints alleges that Mr. Pimental recommended unsuitable investments in various investments including allegations involving mutual funds, options, and over-the-counter securities, among other allegations of misconduct relating to the handling of their accounts.

In January 2020, a customer complained that Mr. Pimental violated the securities laws by alleging that Mr. Pimental engaged in unsuitable investment advice, unauthorized trading, and churning of the customer’s accounts. The claim is currently pending.

In May 2008, a customer complained that Mr. Pimental violated the securities laws by alleging that Mr. Pimental engaged in unsuitable investment advice. The claim settled in the amount of $14,138.

In March 2002, a customer complained that Mr. Pimental allegedly played a role in the substantial aggregate net loss in their technology stocks. The claim settled in the amount of $700,000.

Brokers are required under the securities laws to treat their clients fairly. This obligation includes the duties to disclose material risks of the investments they recommend and to present products, particularly complex or confusing products, in a fair and balanced manner that allows the client to evaluate the recommendation. Another important obligation advisors have is 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. Advisors should not present these investment options to clients. There are two screens that advisors 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 advisor 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.

Financial Advisor David Bibo Has REIT Investor Complaints

September 22, 2021 | by Staff Attorney

Advisor David Bibo (Bibo), currently employed by brokerage firm Western International Securities, Inc. (Western International) has been subject to at least four customer complaints, one termination for cause, and two criminal matters during the course of his career. According to a BrokerCheck report several of the customer complaints concern 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 September 2020 a customer complained that Bibo violated the securities laws by alleging that Bibo made misleading recommendations and unsuitable recommendations in alternative investments. The claim alleges $300,000 damages, and is currently pending.

In December 2019 a customer complained that Bibo violated the securities laws by alleging that Bibo made unsuitable recommendations in alternative investments. The claim alleges $1,500,000 damages, and is currently pending.

In May 2019 a customer complained that Bibo violated the securities laws by alleging that Bibo made an unreasonable investment. The claim alleges $50,000 damages and was denied by the firm.

Centaurus Advisor Conrad Corcoran Has Alternative Investment Complaints

April 22, 2021 | by Staff Attorney

Advisor Conrad Corcoran (Corcoran), currently employed by brokerage firm Centaurus Financial, Inc. has been subject to at least four customer complaints during the course of his career. According to a BrokerCheck report the two most recent customer complaints filed in 2020 concern 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 July 2020 a customer complained that Corcoran violated the securities laws by alleging that Corcoran made investments where the documentation for their investments contained incorrect personal information and that certain initials/signatures were not theirs. The claim involves a real estate security, alleged damages, and is currently pending.

DDPs include products such as non-traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These alternative investments virtually never profit investors and are almost always unsuitable for investors because of their high fee and cost structure. Brokers selling these products are paid additional commission in order to hype these inferior quality investments providing a perverse incentives to create an artificial market for the investments.

Several studies have confirmed that Non-traded REITs underperform publicly traded REITs with some showing that Non-Traded REITs cannot even beat safe benchmarks, like U.S. treasury bonds. Brokers selling these products must disclose to the investor that non-traded REITs provide lower investment returns than treasuries while being high risk and illiquid – but almost never do. Because investors are not compensated with additional return in exchange for higher risk and illiquidity, these kinds of alternative investment products are rarely, if ever, appropriate for investors. Continue Reading

Advisor Peter Ianace Barred By Regulator Over Undisclosed Business Dealings – Investor Recovery Options

April 11, 2021 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Peter Ianace (Ianace) has been accused by The Financial Industry Regulatory Authority (FINRA) of engaging in undisclosed outside business activities (OBAs). According to records kept by FINRA Ianace was employed by Wells Fargo Clearing Services, LLC (Wells Fargo) and Merrill Lynch Pierce, Fenner & Smith Incorporated (Merrill Lynch) through June 2020 when he abruptly resigned when he refused to cooperate in FINRA’s investigation over these allegations. If you have been a victim of Ianace’s alleged misconduct our firm may be able to assist you in recovering funds.

According to FINRA, the regulatory barred Ianace after he consented to the sanction that he refused to provide documents and information requested by FINRA in connection with its investigation into his potential failure to disclose outside business activities (OBAs) to his member firm.

Ianace’s BrokerCheck also reveals four customer complaints. The most recent allegation in January 2021 alleges unsuitable investment recommendations and misrepresentations from February 2013 until December 2019 and claims $18 million in damages. The claim is currently pending.

Broker Audrey Croft Subject to Multiple Tax Liens and Several Customer Complaints

April 8, 2021 | by Staff Attorney

Broker Audrey Croft (Croft), currently employed at Ameriprise Financial Services, LLC (Ameriprise), has been subject to at least three customer complaints and an astonishing ten tax liens during the course of her career. Her customer complaints allege misrepresentation and unsuitable recommendation.

Croft’s BrokerCheck report shows a substantial amount of disclosures (13). Over the course of her career, Croft has disclosed ten tax liens totaling approximately $80,000.00. Most recently, Croft disclosed two tax liens in April and October 2019 totaling approximately $600.00. In February 2012, Croft disclosed her largest tax lien totaling approximately $64,000.00. 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. FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.

Additionally, Croft has been alleged of making misrepresentations and unsuitable recommendations. In January 2019, a customer alleged Croft misrepresented the surrender charges and premium payments of an insurance policy. Additionally, in February 2009 a customer alleged Croft did not disclose the full details of a policy. The Broker Comment stated, “THE VUL POLICIES DID NOT APPEAR TO BE SUITABLE FOR THE CLIENTS’ INSURANCE NEEDS OR ABILITY TO SUSTAIN LARGE PAYMENTS AND THEY DID NOT APPEAR TO HAVE UNDERSTOOD THERE COULD BE SURRENDER CHARGES OR THE POLICIES COULD LAPSE.” This matter settled for approximately $37,000.00. Similarly, in September 2008, a customer alleged Croft of making unsuitable recommendations. This matter also settled in favor of the customer for approximately $44,000.00.

Advisor and Broker Ralph Byer Accused of Making Unsuitable Investment Recommendations

April 5, 2021 | by Staff Attorney

Advisor and broker Ralph Byer (Byer), currently employed by Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch), has a substantial complaint history. Byer has been subject to at least seven customer complaints during the course of his career. According to a BrokerCheck report, the majority of his customer complaints (four out of seven) concern unsuitable investment recommendations.

In June 2018, a customer alleged Byer engaged making unsuitable investment recommendations and excessive trading from 1990 until 2018. Ultimately this matter settled for $565,000.00. Additionally, from 2001 through 2009, three other known customer complaints were brought against Byer for making unsuitable investments. Moreover, in 1999, a customer alleged Byer engaged in churning. That matter ultimately settled in favor of the client for $22,500.00.

Advisors 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. Advisors should not present these investment options to clients. There are two screens that advisors 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 advisor 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.

Robert Brinckerhoff Has Investor Complaint Over Structured Products

February 20, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Robert Brinckerhoff (Brinckerhoff), currently employed by Morgan Stanley has been subject to at least five customer complaints and five regulatory actions during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Brinckerhoff’s customer complaints alleges that Brinckerhoff recommended unsuitable investments in various investments such structured products among other allegations of misconduct relating to the handling of their accounts.

The law offices of Gana Weinstein LLP are currently representing investors who were surprised to find out that the “bonds” that were recommended by their advisors have almost completely stopped paying interest while plummeting in value. What many investors in this situation did not realize was that they were not sold bonds at all but instead complex structured products that go by a variety of names including steepener notes, adjustable rate market notes, spread linked notes, or structured notes. Regulators have already stated that it is improper to sell these investments as a fixed income substitute or to compare them to bonds in terms of producing a revenue stream. However, in our firm’s experience it appears that many brokers have been selling structured products as bond alternatives.

Structured products range in risk from benign to extreme. However, most structured products produce inferior risk/return profiles than ordinary debt or equity instruments because the brokerage firms that issue these products seek to profit from the spread between the payment to investors and the amount of money the brokerage firm can make from the issuance. When dealing with complex structured products most investors will lack the ability to understand the merits of investments nor are they appropriate for investors seeking a fixed or reliable income and have a desire for preservation of capital.

Advisor John Boatright Subject to Complaints Over Unsuitable Investments

September 26, 2019 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are currently investigating customer complaints against broker John Boatright (Boatright), formerly associated with Newbridge Securities Corporation (Newbridge Securities) out of Duluth, Georgia. According to a BrokerCheck report, Boatright has been subject to at least three customer disputes and one large tax lien during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Boatright’s recent customer complaints concern allegations of unsuitable investment recommendations.

In May 2018 a customer alleged that Boatright made unsuitable recommendations and provided negligent investment advice. The customer requested $46,000 in damages. This dispute is still pending.

In May 2018 Boatright disclosed a $22,813 tax lien against him. 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. FINRA discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.

Broker Mark Upchurch Subject to Several Investment Complaints

September 9, 2019 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating advisor Mark Upchurch (Upchurch), currently associated with Centaurus Financial, Inc. (Centaurus Financial) out of Houston, Texas. According to a BrokerCheck report, Upchurch has been subject to at least three customer disputes, one regulatory action, and one termination for cause during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the customer complaints against Upchurch concern allegations of unsuitable investment recommendations and misrepresentations.

In April 2018 a customer alleged that Upchurch made unsuitable investment recommendations and misrepresentations causing over $5,000 in damages. The claim settled for $17,500.

In October 2006 FINRA found that Upchurch violated NASD Rule 2110 by signing a customer’s name to an account transfer form without the customer’s permission. Without admitting or denying the allegations, Upchurch consented to the described sanctions and to the entry of the findings. Upchurch was fined $5,000 and suspended for 30 days.