Securities Lawyers Blog

Customer Complaint Against National Securities Corporation Broker Jason Wilk

April 26, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against National Securities Corporation (National Securities) broker Jason Wilk (Wilk). According to BrokerCheck records Wilk has been subject to at least one customer complaint. The customer complaints against Wilk alleges securities law violations that including unsuitable investments, unauthorized trading, and breach of fiduciary duty among other claims.

In January 2016 a customer filed a complaint alleging $53,532 in damage stemming from unsuitable investment. The complaint settled.

According to a recent study conducted by the Securities Litigation and Consulting Group entitled “How Widespread and Predictable is Stock Broker Misconduct?” the incidents of investor harm at National Securities is extraordinarily high. The study ranked National Securities as the third worst brokerage firm finding that brokers at the firm had over a 31% misconduct rate. The study stated that investors should stay away from National Securities “Given their coworkers’ disclosure record as of 2014, 83.7% of the brokers at these six firms would be in the highest risk quintile as defined in the FINRA study and should be avoided by investors. The BrokerCheck reports for most of the brokers at these six firms should prominently display a skull and crossbones warning.”

Investment Advisor Spotlight: Suitability Complaints Against Matthew Turner

April 25, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Matthew Turner (Turner). According to BrokerCheck records Turner has been subject to at least five customer complaints and one pending bankruptcy. The customer complaints against Turner allege securities law violations that including unsuitable investments, unauthorized trading, unsuitable use of margin, and churning among other claims.

In July 2014 a customer filed a complaint alleging $40,000 in damage stemming from unsuitable investment recommendations from 2010 through 2012. The complaint settled. In November 2012, another customer filed a complaint alleging unsuitable investments causing $450,000. The claim settled. In addition, in April 2015, Turner filed for bankruptcy. Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. 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.

Customers File Suitability Complaints Against Merrill Lynch Advisor Lisa Wolf

April 25, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Lisa Wolf (Wolf). According to BrokerCheck records Wolf has been subject to at least six customer complaints. The customer complaints against Wolf allege securities law violations that including unsuitable investments, unauthorized trading, misrepresentations, and excessive trading among other claims.

In April 2015 a customer filed a complaint alleging $364,630 in damage stemming from unauthorized trades and unsuitable investment recommendations from July 2008 through June 2014. The complaint is currently pending. In May 2013, another customer filed a complaint alleging unsuitable investments from May 2008 through March 2009 causing $220,000. The claim settled.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. 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.

Broker Investigation: Customer Complaints Against Zak Shapiro

April 23, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Zak Shapiro (Shapiro). According to BrokerCheck records Shapiro has been subject to at least four customer complaint, 11 financial disclosures, and 1 employment separation. The customer complaints against Shapiro allege securities law violations that including unsuitable investments and unauthorized trading among other claims.

In February 2016 a customer filed a complaint alleging unsuitable investments and unauthorized trade occurred in or about September 2014. The complaint has been denied. Shapiro has disclosed 11 financial matters. Substantial financial disputes on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. Advisors are also not allowed to engage in unauthorized trading. Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b). These rules explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.

Financial Advisor Roman Reed Discharged From Merrill Lynch Over Customer Complaint

April 23, 2016 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Roman Reed (Reed). According to BrokerCheck records Reed has been subject to at least four customer complaints. The customer complaints against Reed allege securities law violations that including unsuitable investments and unauthorized trading among other claims.

In February 2015 Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) discharged Reed for cause stating that the reason related to the broker’s handling of a customer complaint. In April 2014 a customer filed a complaint alleging $1,153,803 in damage stemming from the Reed conducting unauthorized trades from March 2011 through January 2014.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. 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.

Wells Fargo Broker Charles Frieda Energy Stock Investor Claims

April 23, 2016 | by Staff Attorney

The investment attorneys of Gana Weinstein LLP are investigating investor claims of unsuitable investments in oil and gas related products. Our firm is currently representing a number of investors who lost substantial savings due to poor advice to concentrate holdings in speculative commodities investments like master limited partnerships (MLPs). According to Brokercheck records, Charles Frieda (Frieda) currently with Wells Fargo Advisors, LLC (Wells Fargo) and operating from their offices in Irvine, California has recently received at least 17 customer complaints with similar allegations that the broker overconcentrated them in oil and gas equities, preferred stock, and debt. Four complaints have been filed against Frieda in 2016 alone.

One of the most popular energy related investments in the brokerage industry in recent years are MLPs. MLPs are publicly traded partnerships. About 86% of the total MLP securities market, a $490 billion sector, can be attributed to energy and natural resource companies. There are about 130 MLPs trading on major exchanges that focus on energy related industries and natural resources.

Wall Street loves MLPs because they provide high yields to investors and require companies to pay Wall Street in order to continue to grow. In 2013 banks earned fees of $890.3 million from MLP issuance. Bloomberg quoted an analyst stating that “MLPs are Wall Street’s dream,” because “[t]hey’re fee machines.” Naturally, in order to entice investors to continue to invest in MLPs Wall Street pumps up MLPs every chance they get. According to Bloomberg, in May 2014 “[a]nalysts predict that 93 of the 114 MLPs in existence will rise in value in the next year…” Astonishingly, “all but five MLPs are recommended by the majority of the analysts who cover them.” At that time professionals without conflicts called MLPs “the next great investment debacle” and warned that “many MLP shareholders…may not understand what they’ve gotten into.”

Customers Files Churning Complaints Against Broker John Prinzivalli

April 12, 2016 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker John Prinzivalli (Prinzivalli). According to BrokerCheck records Prinzivalli has been the subject of at least two customer complaints, three financial disclosures, and one judgement or lien. The customer complaints against Prinzivalli allege a number of securities law violations including that the broker made unsuitable investments, breach of fiduciary duty, and churning (excessive trading) among other claims.

One complaint filed in October 2014 alleged $130,000 in damages due to unsuitable recommendations, high pressure sales tactics, and churning. The complaint is currently pending. Another complaint was filed in November 2010 alleging churning and unsuitable investments claiming $250,000 in damages. The complaint was settled.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Broker Investigations: Complaints Against Legend Securities Broker Michael Androulakis

April 12, 2016 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Michael Androulakis (Androulakis). According to BrokerCheck records Androulakis has been the subject of at least three customer complaints. The customer complaints against Androulakis allege a number of securities law violations including that the broker made unsuitable investments, breach of fiduciary duty, and churning (excessive trading) among other claims.

One complaint filed in April 2015 alleged $134,350 in damages due to unsuitable recommendations and churning. The complaint is currently pending.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Broker Investigations: Complaints Against Aegis Capital Broker Shadi “Sean” Barakat

April 11, 2016 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Shadi “Sean” Barakat (Barakat). According to BrokerCheck records Barakat has been the subject of at least two customer complaints and two judgements or liens. The customer complaints against Barakat allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, misrepresentations, and churning (excessive trading) among other claims.

One complaint filed in June 2013 alleged $500,000 in damages due to unsuitable recommendations and churning. The complaint was settled. Barakat has disclosed several large tax liens including a $1,758 lien in April 2015 and a tax lien of $14,331 in May 2014. Substantial judgements and liens on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Investors File Excessive Trading Complaints Against Legend Securities Broker Bernardo Misseri

April 11, 2016 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Bernardo Misseri (Misseri). According to BrokerCheck records Misseri has been the subject of at least seven customer complaints, five judgements or liens, and two regulatory actions. The customer complaints against Misseri allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, fraud, misrepresentations, and churning (excessive trading) among other claims. In addition, there are two regulatory claims against Misseri. One by the state of Illinois filed in June 2010 that suspended the broker for two years. Another action was filed by the NASD in 2005 alleging that Misseri effected private securities transactions away from his firm by soliciting certain limited partnerships.

Misseri has disclosed several large tax liens including a $6,746 in March 2015, a tax lien of $7,662 in February 2015, a $37,847 tax lien in November 2014, a $11,884 tax lien in June 2014, and a $217,156 tax lien in August 2013. Substantial judgements and liens on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services. A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.