Securities Attorney

Glennon Cole Has Many Customer Investment Complaints

November 25, 2024 | by Staff Attorney

Former financial advisor Glennon Cole (Cole), formerly employed by brokerage firm Moloney Securities Co., Inc. (Moloney) has been subject to at least 13 customer complaints, one tax lien, one employment termination for cause, and one criminal matter during the course of his career. According to a BrokerCheck reports most of the recent customer complaints concern either corporate debt securities or 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 June 2019 it appears that Cole had a domestic criminal matter involving harassment and threating to disseminate images. Thereafter in February 2021 Moloney discharged Cole as being disqualified under the securities laws.

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 Tyler Dean Delahunt barred from industry over unapproved business activity

April 22, 2023 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Tyler Dean Delahunt (“Delahunt”) has been accused by a securities regulator of engaging in unapproved business activities among other allegations. Delahunt was sanctioned by The Financial Industry Regulatory Authority (FINRA) concerning his private securities and undisclosed outside business activity conduct. According to records kept by The Financial Industry Regulatory Authority (FINRA), Reed was employed by Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”) at the time of the activity. If you have been a victim of Delahunt’s alleged misconduct our firm may be able to assist you in recovering funds.

In January 2021, FINRA brought a regulatory action and found that Delahunt consented to sanctions and findings that he failed to provide documents and information requested by FINRA in connection with its investigation into Delahunt’s termination. Delahunt’s former firm, Merrill Lynch filed a Form U5 disclosing his termination for alleged misconduct involving the solicitation of clients in an outside investment and participating in financial arrangements with clients. Continue Reading

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.

Jonathan Ellefson Sold GWG Bonds and Has Investor Complaints

October 6, 2022 | by Staff Attorney

Advisor Jonathan Ellefson (Ellefson), currently employed by brokerage firm Intervest International Equities Corporation (Intervest) has been subject to at least four disclosures and customer complaints. According to a BrokerCheck report 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. In Ellefson’s case at least one of the complaints occurred from the sale of GWG Holdings L-Bonds. GWG went into bankruptcy. The attorneys at Gana Weinstein LLP represented nearly 100 investors who suffered losses in GWG.

GWG’s business focused on the acquisition of life insurance policies in the secondary market. GWG was offered to investors even though the company had no significant operating history and no profits. Until 2018, GWG’s sole business was to borrow money to buy life insurance policies in the secondary market at prices that are less than the face value of the insurance benefits payable upon the death of the insureds. GWG would then hold the policies until maturity and collect the face value upon the insured’s death.

The contours of the GWG bonds are as follows:

Advisor Richard Reynolds Has Numerous Trading Complaints

September 16, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Richard Foerster Reynolds (Reynolds), currently employed by SW Financial has been subject to at least 13 customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Reynolds’ customer complaints alleges that Reynolds recommended unsuitable investments in various investments, among other allegations of misconduct relating to the handling of their accounts, including unauthorized trading.

In April 2019, a customer complained that Reynolds violated the securities laws by alleging that Reynolds charged unauthorized commissions. The damage amount requested was $8,000. The claim settled in the amount of $4,000.

In December 2018, a customer complained that Reynolds violated the securities laws by alleging that Reynolds engaged in negligence and negligent supervision. The damage amount requested was $65,000. The claim settled in the amount of $14,500.

In November 2018, a customer complained that Reynolds violated the securities laws by alleging that Reynolds engaged in statutory and common law fraud, misrepresentation, negligence, breach of contract, and breach of fiduciary duty. The damage amount requested was $56,000. The claim settled in the amount of $14,999.99.

In May 2018, a customer complained that Reynolds violated the securities laws by alleging that Reynolds engaged in churning, improper use of margin, unsuitability, and charged high commissions.. The damage amount requested was $503,828.39. The claim settled in the amount of $150,000.

Advisor Frank Venturelli Suspended By Securities Regulator

August 31, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that Frank Venturelli has been subject to at least one customer complaint and two regulatory sanctions during his career. According to records kept by the Financial Industry Regulatory Authority (FINRA), Venturelli’s customer complaint alleges that Venturelli engaged in unauthorized trading and recommended unsuitable investments. While the two regulatory actions brought against him state that he consented to sanctions of engaging in unsuitable trading in customers’ accounts and committed fraud.

In December 2020, the New Jersey Bureau of Securities initiated disciplinary action against Venturelli. They alleged that Venturelli engaged in an act, practice, or course of business which would operate as fraud or deceit upon another person. BrokerCheck records state that Venturelli engaged in a pattern of excessive, unsuitable, and unauthorized trading activity in the accounts of certain customers. Civil and administrative penalties in the amount of $120,000 were issued against Venturelli’s employer, First Standard Financial Company LLC.

In June 2019, FINRA initiated disciplinary action against Venturelli. They allege that Venturelli engaged in quantitatively unsuitable trading in customers’ accounts. The findings stated that Venturelli recommended the trading in customers’ accounts, and they followed his recommendations. These recommendations were excessive, unsuitable given the customers’ investment profiles, and were such that it was virtually possible for any customers to earn a profit. Venturelli’s trading of the accounts resulted in high turnover rates and significant losses. Venturelli’s customers suffered collective losses of $373,226 and paid $169,803 in commissions and fees. Venturelli neither admits nor denies these findings. As a result, FINRA suspended Venturelli in all capacities for eleven months and issued partial restitution, due to his limited ability to pay, in the amount of $30,000.

Michael Fahsholtz Subject to 12 Customer Complaints Related to Investment Advice

August 31, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Michael Anthony Fahsholtz (Fahsholtz), most recently employed by Stifel, Nicolaus & Company, Inc. (Stifel) has been subject to at least twelve customer complaints during the course of his career. Fahsholtz is no longer registered as a broker. According to records kept by The Financial Industry Regulatory Authority (FINRA), Fahsholtz’s customer complaints alleges that Fahsholtz recommended unsuitable investments in various investments including allegations involving debt-corporate securities, unit investment trusts, and variable annuities, among other allegations of misconduct relating to the handling of their accounts.

In September 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, and misrepresentations related to the risks of the recommended investments. The claim alleges $255,791 in damages and is currently pending.

In February 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, negligence, and breach of fiduciary duty. Additionally, the customer alleges that Fahsholtz violated the Securities Act of Washington and FINRA Rule 3110. The damage amount requested was $106,000. The claim settled in the amount of $25,000.

In December 2020, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz purchase inappropriate securities for the customer, including stocks, bonds, and UITs. The damage amount requested was $40,000. The claim settled in the amount of $7,500.

Aegis Capital Advisor Johnny Guan Has Investor Complaints

October 25, 2021 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Johnny Guan (Guan), currently employed by Aegis Capital Corp. (Aegis Capital) has been subject to at least two customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Mr. Guan’s customer complaints alleges that Mr. Guan recommended unsuitable investments in various investments including allegations involving real estate securities, options, and penny stocks, among other allegations of misconduct relating to the handling of their accounts

In December 2019, a customer complained that Mr. Guan violated the securities laws by alleging that Mr. Guan engaged in negligent investment advice, breach of fiduciary duty, and unauthorized transactions. The claim settled in the amount of $5,400.

In April 2016, a customer complained that Mr. Guan violated the securities laws by alleging that Mr. Guan engaged in unsuitable investment advice, negligence, and material misrepresentations. The claim settled in the amount of $7,200.

Raymond James Advisor Eric Bachinsky Has Several Disclosed Customer Complaints

September 15, 2021 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Eric Bachinsky (Bachinsky), currently employed by Raymond James & Associates, Inc. (Raymond James) has been subject to at least five customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Bachinsky’s customer complaints alleges that Bachinsky recommended unsuitable investments in various investments.

In March 2020, the attorney for a customer’s estate complained that Bachinsky violated the securities laws by alleging that Bachinsky engaged in unsuitable investments. The damage amount requested was $228,465.26. The damages were denied.

In November 2011, a customer complained that Bachinsky violated the securities laws by alleging that Bachinsky engaged in negligence, misrepresentation, breach of contract, and breach of fiduciary duty. The damage amount requested was $80,000. The claim settled in the amount of $24,000.

Advisor John Howard Has Unsuitable Investment Complaints

September 12, 2021 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that advisor John Howard (Howard), currently employed by Raymond James & Associates, Inc. (Raymond James) 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), Howard’s customer complaints alleges that Howard recommended unsuitable investments in various investments including allegations involving unauthorized trading among other allegations of misconduct relating to the handling of their accounts.

In September 2019, a customer complained that Howard violated the securities laws by alleging that Howard engaged in breach of fiduciary duty, negligence, breach of contract, and violated several other securities laws. The claim settled in the amount of $97,500.

In March 2008, a customer complained that Howard violated the securities laws by alleging that Howard engaged in unauthorized purchase of commercial paper. The claim settled in the amount of $1,134,601.00.

In February 2005, a customer complained that Howard violated the securities laws by alleging that Howard conducted unauthorized trades. The claim alleges settled in the amount of $7,859.83.