Selling Away

Former Cetera Advisors Broker Scott Kozak Accused of Selling Unapproved Securities

December 24, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Scott Kozak (Kozak), formerly associated with Cetera Advisors LLC (Cetera) in Highlands Ranch, Colorado has been accused by his former firm and barred by FINRA over unapproved securities. In addition, Kozak has four customer complaints on his record.

In May 2018 FINRA filed a notice of investigation stating that FINRA has made a preliminary determination to recommend disciplinary action be brought against Kozak for potential violations of engaging in private securities transactions and outside business activities for the period July 2011 to March 2017, without prior notice to or approval from his member firm, Cetera Advisors.

Thereafter, in July 2018 Cetera terminated Kozak stating that he violated policies concerning personal securities transactions.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Kozak’s public disclosures list several OBAs including Kozak & Associates – his securities d/b/a, K&A Charities – a charitable arm of Kozak & Associates, IGC, LLC – a manufacturing company that he owns, and Dominican Home Health agency – where Kozak serves as a board member. It is unknown if FINRA’s claims relate to any of these entities.

Former Morgan Stanley Advisor John Buck Accused of Selling Unapproved Securities

December 20, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor John Buck (Buck), formerly associated with Morgan Stanley in Boston, Massachusetts has been accused by his former firm and barred by FINRA over unapproved securities.

In January 2018 Morgan Stanley terminated Buck stating that there were allegations about the timing and completeness of disclosures to the firm regarding involvement in private investments outside of the firm.

Thereafter, in October 2018 Buck was terminated by FINRA and consented to the sanction that he failed to provide FINRA with requested documents and information in connection with its investigation concerning his potential involvement in certain unapproved private securities transactions.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Buck’s public disclosures only state that he is an investor in Gemini Partners – a venture fund.

Advisor Judith Bufis Accused of Engaging in Unapproved Securities

December 19, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Judith Bufis (Bufis), formerly associated with Kovack Securities Inc. (Kovack Securities) in East Brunswick, New Jersey has been accused by FINRA over private securities transactions.

In October 2018 Bufis consented to the sanction and to the entry of findings that she failed to provide documents and information requested by FINRA in connection with potential private securities transactions. In so doing she accepted a bar from the securities industry.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Bufis public disclosures state that she engaged in the sale of insurance and annuities but discloses not other activities.

Advisor Karl Foust Accused of Selling Unsuitable Wimbledon Health Partners

December 6, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Karl Foust (Foust), formerly associated with H.D. Vest Investment Services (HD Vest) in Boca Raton, Florida has been accused by at least seven clients of selling unsuitable investments in Wimbledon Health Partners leading to substantial investor losses..

In July 2018 a customer filed a complaint alleging that Foust recommended Wimbledon Health Partners LLC that was not suitable and were misrepresented to her. The customer alleged $100,000 in damages. The claim is currently pending.

In March 2018 another customer filed a complaint alleging that Wimbledon Health Partners LLC, were not suitable and were misrepresented to him. The customer alleged $95,000 in damages. The claim is currently pending.

Former Mutual Securities Advisor Gary Pevey Accused of Selling Unapproved Securities

December 3, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Gary Pevey (Pevey), formerly associated with Mutual Securities, Inc. (Mutual Securities) in Sacramento, California has been accused by his former firm over unapproved securities. In addition, Pevey has one customer complaint on his record.

In February 2018 Mutual Securities terminated Pevey stating that he violated policies concerning private securities transactions.

Thereafter in September 2018 a customer filed a complaint alleging that Pevey engaged in high-risk and fraudulent investments and inadequate supervision causing $171,000 in damages. The claim is currently pending.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Pevey’s public disclosures state that the activity was conducted through his Registered Investment Advisory (RIA) firm Wealth Design Group. It is unknown the nature of the transactions from public filings.

Advisor Dexter Thomas Accused of Engaging in Client Loans and Unapproved Securities

November 24, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Dexter Thomas (Thomas), formerly associated with United Planners Financial Services of America LP (United Planners) in Dallas, Texas has been accused by his former firm over unapproved securities and making client loans. In addition, Thomas has 19 customer complaints on his record – most of which relate to the unapproved activities.

In August 2018 United Planners terminated Thomas stating that he affiliated with the firm in late-2017. A short period of time later, the Thomas passed away. The firm claimed that immediately before his death, Thomas disclosed that he was involved with a number of private loans or private investments with individuals which private loans or investments were neither disclosed to, nor approved by, the firm. After Thomas’ death customers have claimed that Thomas did not return all of the funds privately loaned to or invested.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Thomas’ public disclosures state that his securities activity was conducted through a d/b/a – Dexter Thomas Financial Services, LLC.

Advisor Floyd Powell Accused of Selling Fraudulent Securities

November 18, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Floyd Powell (Powell), formerly associated with MML Investors Services, LLC (MML Investors) in Albertville, Alabama has been accused by at least four clients of selling fraudulent investments.

In October 2018 a customer filed a complaint alleging that Powell, beginning in or around 2016, recommended that they invest in unregistered and fraudulent investment programs, made false representations, and failed to disclose material facts about the investments. The customer alleged over $3.1 million in damages. The claim is currently pending.

Also in October 2018 another customer filed a complaint alleging that Powell made inappropriate and unsuitable investment recommendations to and transactions beginning in early 2017. The claim is currently pending.

In August 2018 another client alleged violations of securities law regarding Powell’s recommendation to invest in unregistered and fraudulent investment program in July 2016. The claim alleges $250,000 in damages and is currently pending.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Powell’s public disclosures only state that he operates his business through a DBA called Faithway Financial Solutions LLC.

Advisor Mitchell Kurtz Termnated Over Unapproved Product Sales and Ethical Violations

November 8, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Mitchell Kurtz (Kurtz), formerly associated with Henley & Company LLC (Henley & Company) in Roslyn Heights, New York was terminated by the firm. In July 2017 Kurtz was discharged after the firm claimed that based discussions with Kurtz and the SEC Auditors that it is necessary to terminate Kurtz’s registrations with Henley & Company due to violations of both FINRA and SEC rules and firm policies and procedures regarding outside business activities (OBAs), selling away, fiduciary duty obligations, violation of professional standards and the firm’s Code of Ethics.

In addition in August 2012 FINRA brought a regulatory action against Kurtz for altering certain account records. In December 2009 Kurtz was terminated by his prior employer Raymond James Financial Services, Inc. (Raymond James) for altering documents.

At this time it is unclear the nature or scope of the alleged OBAs and private securities transactions that Kurtz may have been involved in.

Geneos Wealth Broker Bradley Tennison Barred for Selling Away Practices

October 3, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP have currently been investigating previously registered broker Bradley Tennison (Tennison). According to BrokerCheck Records kept by the Financial Industry Regulatory Authority (FINRA), Tennison was barred from the financial industry due to a customer complaint alleging Tennison’s selling away activities during his employment at Geneos Wealth Management Inc (Geneos Wealth). In addition, Tennison has been subject to two other customer disputes and termination from employment at two firms.

In January 2018, the customer alleged that in January 2016, Tennison recommended the client to wire $300,000 of her funds into “The Joseph Project” away from the member firm, with a promise of a 5% enhancement. Geneos Wealth had no record of such investment, and the customer never received any statements or return on the principal of the investment. Subsequently after, in April 2018, Geneos Wealth discharged Tennison from employment after failing to locate any record of investment and for being unable to retrieve information from Tennison regarding the investment. This complaint is currently still pending.

Shortly after, in July 2018, Tennison was barred from the financial industry for failing to show up to on-the-record testimony regarding the selling away allegations of “The Joseph Project” at Geneos Wealth. By failing to provide information and show up to the testimony, Tennison was in violation of FINRA Rules 8210 and 2010. Without admitting or denying the findings, Tennison consented to the sanction and to the entry of findings.

In addition, Tennison has been subject to two preceding customer disputes. In March 2010, a customer alleged that Tennison placed the Continue Reading

Advisor Alex Herrera Barred Over Sale of Unapproved Products

September 22, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Alex Herrera (Herrera), formerly associated with UBS Financial Services Inc. (UBS) in Coral Gables, Florida was barred by FINRA. In the regulatory action FINRA claimed that Herrera consented to the sanction and findings that he refused to provide information requested by FINRA in connection with its investigation of his possible participation in unreported outside business activities (OBAs) and private securities transactions.

At this time it is unclear the nature or scope of the alleged OBAs and private securities transactions that Herrera was involved in. However, in May 2018 a customer filed a complaint alleging that Herrera stole her money to buy a vacation home. The claim is currently pending.