Securities Lawyers Blog

Gregory P. Washington of Merrill Lynch Has an Investment Complaint

January 12, 2021 | by Staff Attorney

Gregory P. Washington (CRD # 5420613) is a financial advisor at Merrill Lynch in Washington, DC. Gregory Washington has 10 years of experience and started in the securities industry in 2009 and has previously worked for such companies as Aegis Capital Corp, Spartan Capital Securities and Maxim Group.

In March of 2011 Mr. Washington was part of a civil judgement which resulted in a tax lien of $57,739 and in August of 2007 he had a civil lien for $1,612.64. His criminal record consists of one count Petit Larceny which is a class A misdemeanor, Disorderly conduct which came with a $250 fine and a $100 surcharge fee.

In September of 2018, Financial Industry Regulatory Authority (FINRA) released information about a dispute between Mr. Washington and one of his clients in the sum of just over $6.5 million dollars. Investor allegations include claims of churning, unsuitable investments, misrepresentation and breach of fiduciary duties. All of this information can be found on Finra.org/brokercheck. A $6.5 million claim is very significant and the types of claims presented are discussed below.

Crown Capital Advisor Kenneth Barroga Has Alternative Investment Complaints

December 2, 2020 | by Staff Attorney

Advisor Kenneth Barroga (Barroga), currently employed by Crown Capital Securities, L.P. (Crown Capital) has been subject to at least five customer complaints during the course of his career. According to a BrokerCheck report most of these customer complaints appears to concern unsuitable investments in alternative investments. These allegations may also concern investments in GPB Capital Holdings (GPB Capital) related investments. Crown Capital is known to have approved their brokers to sell GPB Capital to their clients.

GPB Capital is facing multiple accusations of being a Ponzi scheme, an ongoing U.S. Securities and Exchange Commission (SEC) and FBI investigations, and even GPB’s chief compliance officer being indicted for illegally obtaining information on the SEC’s investigation. Now even Volkswagen and Toyota are threatening to pull the plug on GPB Capital auto dealerships. While advisors have been telling investors to do absolutely nothing and just hang in there – this is nothing more than just additional poor advice. In November 2019 GPB Capital’s admitted that no financial audit would occur anytime in the near future. The firm has admitted that it has never been profitable and has merely returned investor capital in the past in order to fake a successful business model. In sum, investors now know there is nothing to hang onto. By the day, advisor recommendations to do nothing appear to be completely self-serving, out of the loop, and not in the interest of the investor.

In June 2020 a customer complained that Barroga violated the securities laws by alleging that Barroga engaged in sales practice violations related to lack of suitability, breach of fiduciary duty, misrepresentation and omissions of material facts and lack of due diligence in connection with transactions in alternative investment products. The claim alleges $180,000 in damages and is currently pending.

In November 2018 a customer complained that Barroga violated the securities laws by alleging that Barroga engaged in sales practice violations related to misrepresentations concerning REITs and unsuitable investments in alternative investments. The claim alleges $250,000 in damages and resolved for $160,097.69 with another party settling for $40,000.

Newbridge Securities Financial Advisor Kerri Jamison Has Multiple Customer Complaints

December 2, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Kerri Jamison (Jamison), currently employed by Newbridge Securities Corporation (Newbridge Securities) has been subject to at least four customer complaints during the course of her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Jamison’s customer complaints alleges that Jamison recommended unsuitable investments in various investments including allegations involving energy securities and alternative investments among other allegations of misconduct relating to the handling of their accounts. Jamison also hold herself out as an estate planning attorney and real estate agent.

In April 2020 a customer complained that Jamison violated the securities laws by alleging that Jamison engaged in negligent investment advice, breach of fiduciary duty, and breach of contract. The claim alleges $99,0000 in damages and is currently pending.

In February 2020 a customer complained that Jamison violated the securities laws by alleging that Jamison engaged in unsuitable investment advice, breach of fiduciary duty, and material misrepresentations. The claim alleges $200,000 in damages and is currently pending.

In January 2020 a customer complained that Jamison violated the securities laws by alleging that Jamison engaged in negligent investment advice, breach of fiduciary duty, and breach of contract. The claim alleges $99,000 in damages and is currently pending.

Triad Advisor Darrin Cohn Has Alternative Investment Complaints

December 1, 2020 | by Staff Attorney

Advisor Darrin Cohn (Cohn), currently employed by Triad Advisors LLC (Triad Advisors) has been subject to at least two customer complaints during the course of his career. According to a BrokerCheck report these customer complaints appears to concern unsuitable investments in alternative investments. These allegations may also concern investments in GPB Capital Holdings (GPB Capital) related investments. Triad Advisors are known to have approved their brokers to sell GPB Capital to their clients.

GPB Capital is facing multiple accusations of being a Ponzi scheme, an ongoing U.S. Securities and Exchange Commission (SEC) and FBI investigations, and even GPB’s chief compliance officer being indicted for illegally obtaining information on the SEC’s investigation. Now even Volkswagen and Toyota are threatening to pull the plug on GPB Capital auto dealerships. While advisors have been telling investors to do absolutely nothing and just hang in there – this is nothing more than just additional poor advice. In November 2019 GPB Capital’s admitted that no financial audit would occur anytime in the near future. The firm has admitted that it has never been profitable and has merely returned investor capital in the past in order to fake a successful business model. In sum, investors now know there is nothing to hang onto. By the day, advisor recommendations to do nothing appear to be completely self-serving, out of the loop, and not in the interest of the investor.

In March 2020 a customer complained that Cohn violated the securities laws by alleging that Cohn engaged in sales practice violations related to unsuitable investments in alternative investments. The claim alleges $400,000 in damages and is currently pending.

In March 2020 a customer complained that Cohn violated the securities laws by alleging that Cohn engaged in sales practice violations related to unsuitable investments in multiple alternative investments. The claim alleges $200,000 in damages and is currently pending.

Advisor Martin Noonan Barred by Regulator Over Trading Claims

December 1, 2020 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Martin Noonan Jr. (Noonan), formerly associated with BMA Securities, LLC (BMA Securities), has been subject to at least one customer complaint, one regulatory action, and eight judgement or liens during his career. The complaint against Noonan concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

In November 2018 a customer complained that Noonan violated the securities laws by alleging that Noonan engaged in sales practice violations related to account mismanagement or that the account representative engaged in unsuitable or excessive trading. The claim is currently pending and seeks $250,000 in damages.

In May 2020 FINRA barred Noonan after the broker consented to sanctions and to findings that he refused to produce information or documents requested by FINRA during an investigation that it began after reviewing a Dispute Resolution Statement of Claim filed alleging unsuitable and excessive trading in a client account. Accordingly, Noonan was automatically barred from the securities industry.

FS Energy & Power Fund Investor Losses – Recovery Options Update

November 30, 2020 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP represent investors who have lost millions in are investigating investor losses in Franklin Square Energy & Power Fund (FS Energy & Power) a business development company (BDC). When our firm first reported on this fund back in 2018 the FS Energy & Power fund was priced at $5.12 per share based on a tender offer down from its $10 offering. Now secondary market sources price FS Energy & Power at $1.10 while the sponsor claims the fund is worth $3.32. Oftentimes the sponsor value significantly lags the secondary market value.

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.

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.

New York City REIT Investors Suffer Massive Losses – Investor Recovery

November 28, 2020 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP represent investors who have lost millions investing in American Realty Capital New York City REIT (ARC New York REIT, New York City REIT, or NYC REIT) (Ticker Symbol: NYC) a non-traded real estate investment trust (Non-Traded REIT) that recently went public.

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.

In 2018 NYC REIT ceased making distributions. However, the REIT continued to tell investors that the investment was worth at least $20.26 a share on their initial $25 per share price investment while secondary market sources were projected massive losses. In early 2020 NYC REIT announced that it would go public. REIT investors would realize shares subject to a 2.43-to-1 reverse stock split. Thereafter, 75% of client funds would be converted into Class B shares which could not be sold and would remain illiquid. NYC REIT told investors that by the end of the first listing year all Class B shares would be converted into Class A shares which could be sold on the market.

Once NYC REIT went public and the true value of NYC REIT was revealed investors lost a significant portion of their investment seemingly overnight. At the initial public offering (“IPO”), NYC REIT lost almost 44% of its value in that first trading session. By the end of October 2020 NYC REIT had lost over 63% of its initial public offering price. Investors in NYC REIT have suffered losses of approximately 85% of their initial investment in the Non-Traded REIT and still cannot liquidate the majority of their investment.

As a law firm that represents investors, we have watched the same story as NYC REIT play out over and over again where real estate and other assets are touted as safe and reliable investments only to realize significant losses when the true value is revealed.

Gana Weinstein LLP: In The News

October 5, 2020 | by Staff Attorney

Is Copy Trading on its way to the United States? Adam Gana of Gana Weinstein, LLP spoke with the great Edward Robinson about the pitfalls with copy trading in the United States and the legal ramifications in the article below. Happy reading to our loyal followers!

https://www.bloomberg.com/news/articles/2020-10-02/robinhood-versus-etoro-brokerage-showdown-looming-in-stock-market-investing?srnd=wealth

Advisor Ronald Hannes Accused of Converting Client Funds – Investor Recovery Options

October 4, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Ronald Hannes (Hannes) has been accused by a financial regulator of engaging in converting client funds among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Hannes was employed by his prior employer Woodbury Financial Services, Inc. (Woodbury Financial) prior to being investigated concerning his activities. If you have been a victim of Hannes’ alleged misconduct our firm may be able to assist you in recovering funds.

In December 2019, Hannes was terminated by Woodbury Financial for cause after the firm received notice from a client that funds were paid to the representative for purchase of a life insurance contract that were not forwarded to the life insurance company.

Thereafter, FINRA investigated Woodbury Financials’ disclosures and Hannes refused to cooperate with FINRA. FINRA found that Hannes consented to sanctions and findings that he failed to produce documents and information requested by FINRA during its investigation into allegations that he converted customer funds.

In March 2020, the Securities Division of the State of Washington filed a complaint against Hannes alleging that from approximately 2003 to 2019, Hannes engaged in an extensive, long-term fraud against his Woodbury Financial clients by convincing them to write checks to Hannes Financial Services, Inc. for off-the-books investments and then used the money for other purposes. In total, Hannes is alleged to have defrauded at least nineteen clients out of at least $2.9 million.

The State of Washington alleges that Hannes generally approached existing clients and misrepresented to them that he had an opportunity for a fixed-rate investment in either a bond, or in a unit investment trust which functioned similarly to a bond. It is alleged that Hannes did not provide investors with any offering documents for to the investments or financial statements and in some cases did not even identify the company in which the client would be investing. Instead, it is alleged that Hannes most commonly stated that the investments offered a return of 5% to 7%, and could be rolled over into new investments at the end of their fixed terms in the two-to-five-year range. Investors are then alleged to have been solicited to roll over their investments rather than requesting withdrawals. Hannes is alleged to have had the clients write the checks to HFS, whose bank accounts he controlled as the owner of the company. Hannes is then alleged to have created false account statements and company names to provide the appearance that actual investments had been made.

Mark Cline Subject to Customer Complaints Over Private Placement Sales

October 4, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck reports that financial advisor Mark Cline (Cline), currently employed by National Securities Corporation (National Securities) has been subject to at least 12 customer complaints and one criminal matter during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Cline’s customer complaints involves the sale of private placements. The complaints allege that Cline recommended unsuitable investments in these private placements.

At Gana Weinstein LLP, we often hear from investors who were recommended by their advisors to purchase high risk private placement investments and suffered substantial – often crushing losses as a result. Our firm regularly represents these investors in disputes with the advisors and brokers who sold these products without adequate disclosure. Brokers have a responsibility to conduct due diligence on all private placement offerings. Due diligence includes an investigation into the investment’s properties including its benefits, risks, tax consequences, issuer, history, and other relevant factors.

Private placements are bond, equity, or other debt instruments issued in reliance on a statutory or rule-based exemption from the registration requirements administered by the (SEC). The private placement industry was created based upon the reasoning that exempting private placements from registration is appropriate where purchasers have the economic ability, sophistication, and the professional advice necessary to do without the regular protection afforded by the disclosures required through registration. According to sources, a total of $33.5 billion was raised in 647 transactions through the third quarter of 2018.