Securities Attorney

Advisor Charles Bloom Barred by Regulator Over Unsuitable Trading

December 4, 2018 | by Staff Attorney

According to BrokerCheck records former financial advisor Charles Bloom (Bloom), formerly employed by Chelsea Financial Services (Chelsea Financial) has been subject to at least two customer complaints. In addition, Bloom has been subject to three regulatory actions, one employment termination for cause, and two financial disclosures including a bankruptcy filing. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Bloom concern allegations of unsuitable investments.

In July 2018 Bloom consented to a FINRA sanction and findings that he refused to appear for testimony in connection with an investigation into allegations that Bloom engaged in an unsuitable pattern of trading in at least three customer accounts. Bloom accepted a bar from the securities industry.

In November 2017 a customer filed a complaint alleging that Bloom engaged in unsuitable recommendations and made misrepresentation with regard to a REIT purchase. The customer alleged $99,326 and the claim is currently pending.

Amerprise Financial Advisor James Kujawski Has Customer Complaints and Regulatory Action

November 27, 2018 | by Staff Attorney

According to BrokerCheck records former financial advisor James Kujawski (Kujawski), currently employed by Ameriprise Financial Services, Inc. (Ameriprise Financial) has been subject to at least seven customer complaints, one employment termination for cause, and one regulatory action. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Kujawski concern allegations of unsuitable investments and material misrepresentations concerning investments being recommended.

In February 2018 Kujawski was terminated by UBS Financial Services, Inc. (UBS) after the firm claimed that Kujawski’s continued failure to disclose some of his outside business activities/outside business investments was in violation of firm policies.

Thereafter, in August 2018 FINRA brought a regulatory action against Kujawski which Kujawski consented to the findings that he engaged in a private securities transaction by facilitating the repurchase of a call option between two individuals, neither of whom were customers at his member firm. FINRA found that Kujawski’s participation included the repurchase of the option by introducing a commercial lender to participate in the transaction, attending meetings with the parties, reviewing draft sale contracts and providing comments, and accepting $73,444.90 in compensation for his participation. Kujawski was suspended for four months and agreed to pay financial penalties.

Advisor Jason McBride Has Customer Complaints Over REIT Investments

November 13, 2018 | by Staff Attorney

Presidential Brokerage, Inc. (Presidential Brokerage) advisor Jason McBride (McBride) has been subject to at least five customer complaints. According to a BrokerCheck report many of the customer complaints concern 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 extensive experience handling investor losses caused by these types of products.

In May 2018 a client alleged that McBride made unsuitable investments, breached his fiduciary duty, was negligent, and made misrepresentations in the purchase of two REITs and a limited partnership between February 2006 and august 2008. The complaint claims $251,317 in damages and is currently pending.

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.

Ameriprise Advisor Eric Stuckey Subject to Multiple Complaints Over Unsuitable Investments

November 9, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Eric Stuckey (Stuckey), currently employed by Ameriprise Financial Services, Inc. (Ameriprise) has been subject to five customer complaints and two liens. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of a Stuckey’s customer complaints allege that Stuckey made unsuitable recommendations in different investments including variable annuities and energy stocks.

In May 2018 a customer alleged the broker recommended unsuitable investments, misrepresented features of the investments and failed to disclose risks in the investments causing $220,000 in damages. The claim is currently pending.

In January 2018 a customer alleged that the broker placed them in high risk funds which are not suitable causing $79,000 in damages. The claim was settled for $25,000.

Hilltop Securities Advisor Walter Valenzuela Subject to Multiple Customer Complaints

October 10, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Walter Valenzuela (Valenzuela), currently employed by Hilltop Securities Inc. (Hilltop Securities) has been subject to at least seven customer complaint. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Valenzuela concern excessive trading of unit investment trust (UITs) securities.

In July 2018 a customer complained that Valenzuela engaged in unsuitable recommendations, misrepresentation, and excessive trading involving UITs causing $3 million in damages. The claim is currently pending.

In August 2017 a customer complained of unsuitable recommendations, unsuitable use of margin, churning, financial exploitation, elder abuse and excessive mark-up/mark-down with respect to municipal bond and UIT trades executed in the account. The complaint also alleged that the representative failed to obtain proper breakpoint discounts for UIT purchases. The customer alleges $9.5 million in damages and the claim is currently pending

Advisor Clifton Roberts Discharged Over Undisclosed Business Activity – Investment Attorneys

September 25, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Clifton Roberts (Roberts), formerly associated with LPL Financial LLC (LPL Financial) in Houston, Texas was terminated for cause by LPL Financial in April 2018 after the firm made allegations that Roberts violated of firm policy regarding outside business activities (OBAs).

At this time it is unclear the nature or scope of the alleged OBAs that Roberts was involved in. According to Roberts’ public diclsoures the broker was part of number of OBAs including IDLife, Ursus Wealth Management – a d/b/a entity for his LPL Financial business, Ursus and Company – a real estate management and construction company which Roberts claims is not investment related. In addition, an unnamed business for insurance is listed. It is unknown whether LPL’s claims relate to any of these entities.

Wells Fargo Settles Advisor Peter Malis’ Dispute for $1,100,000

September 12, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP are currently investigating Wells Fargo Clearing Services, LLC (Wells Fargo) broker Peter Malis (Malis). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA). According to BrokerCheck Records, Malis has been subject to five customer disputes, the majority concerning unsuitable investments in mutual funds, municipal bonds, and limited partnerships.

Most recently, in December 2017, a customer alleged that from February 2006 to December 2016, Malis placed the customer in unsuitable investments and executed trades in the account without the customer’s consent.

In September 2016, a customer alleged that from March 2002 to January 2016, Malis placed the customer in unsuitable investments and engaged in unauthorized trades and churning of the account. The case was settled at $1,100,000.

In May 1995, a customer alleged that Malis placed the customer in unsuitable mutual funds and limited partnerships. The case was settled at $12,500.

Paul Dangelo Subject to Customer Complaint Alleging Unsuitable Puerto Rico Bond Investments

July 31, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Paul Dangelo (Dangelo). According to BrokerCheck Records, Dangelo has been subject to six customer disputes, the majority concerning unauthorized trades and unsuitable investment recommendations in Puerto Rico bonds. In addition, Dangelo has been subject to termination from two firms of employment.

In January 2017, a customer alleged that from March 2005 to January 2017, Dangelo placed the customer in high-risk, uninsured Puerto Rico bonds that were unsuitable for the customer’s investment needs and objectives considering the customers old age of 70 years old and retiree status.

In addition, in September 2016, a customer alleged that from March 2005 to February 2015, Dangelo placed the customer in unsuitable bonds that did not match the customer’s objectives of safe, passive income investments.

FS Energy & Power Fund Investment Loss Options

July 8, 2018 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating investor losses in FS Energy & Power Fund a business development company (BDC). According to the firm’s website, FS Energy is designed to provide income and growth. It invests primarily in the debt and, to a lesser extent, equity securities of private U.S. energy and power companies.

Because FS Energy in non-traded product there are no market pricing for the value of the securities. Secondary market sources for BDCs are currently pricing the BDC at $5.12 per share based on a tender offer. This is a far drop from the sale price of $10 per share when the BDC issued shares to investors.

Our firm often handles cases involving direct participation products (DPPs), private placements, Non-Traded REITs, and other alternative investments. These products are almost always unsuitable for middle class investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments providing perverse incentives for brokers to sell high risk and low reward investments.

Mark Chamberlain Subject to Multiple Customer Complaints

June 15, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against First Allied Securities, Inc. (First Allied) broker Mark Chamberlain (Chamberlain). According to BrokerCheck records, Chamberlain has been subject to seven customer complaints and one regulatory action. The majority of the complaints concern alternative investments and annuities.

Most recently, in May 2015, a customer alleged that Chamberlain engaged in unsuitable investments requesting $29,700 in damages.

In May 2012, a customer alleged that from October 2009 to May 2011, Chamberlain engaged in breach of fiduciary duty, constructive fraud, and unauthorized transactions. This dispute settled for $13,000.