Securities Lawyers Blog

Eric Dupre Fired Over Misappropriation of Client Funds – Investor Recovery Options

November 16, 2024 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Eric Dupre (Dupre) has been accused by investors of engaging in fraudulent misappropriation of their funds. Higgins was terminated by his employer for engaging in undisclosed investment activities including undisclosed outside business activities (OBAs). According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Dupre was employed by Ameriprise Financial Services, LLC (Ameriprise) at the time of the activity. If you have been a victim of Dupre’s alleged misconduct our firm may be able to assist you in recovering funds.

In December 2023 Ameriprise terminated Dupre for cause alleging that the firm terminated Dupre due to violation of company policy related to borrowing from clients.

On May 23, 2024 a customer filed a complaint alleging that former advisor Dupre recommend that they invest in a “cryptocurrency opportunity”. However, it appears that Dupre did not invest the Claimants’ funds, but instead misappropriated the funds. Claimants allege that Dupre stole more than $2.6 million dollars from them. The dispute is currently pending.

Chun Elmejjad Barred Over Alleged Real Estate Scheme – Investor Recovery Options

November 12, 2024 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Chun Elmejjad (Elmejjad) has been accused by an investor and barred by a regulator for engaging in undisclosed investment activities including undisclosed outside business activities (OBAs). According to records kept by The Financial Industry Regulatory Authority (FINRA), Elmejjad was employed by Equitable Advisors, LLC (Equitable) at the time of the activity. If you have been a victim of Elmejjad’s alleged misconduct our firm may be able to assist you in recovering funds.

On January 24, 2024, Elmejjad accepted a permanent industry bar with FINRA by failing to respond to the regulator’s requests for documents and information. The request for information was likely related to Elmejjad’s termination for cause in November of 2023 from Equitable when the firm filed a Form U5 claiming that Elmejjad was terminated due to violating company policy by accepting a loan and an investment from a client in connection with an undisclosed and unapproved outside business activity. Thereafter, a customer filed a complaint alleging that Elmejjad misappropriated funds that he loaned to Elmejjad in connection with real estate projects Elmejjad and her husband were involved in.

UBS Advisor Barry Schwartz Has Customer Complaint

November 11, 2024 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Barry Schwartz (Schwartz), currently associated with UBS Financial Services Inc. (UBS), has been subject to at least two customer complaints and one regulatory action during his career. The most recent complaint against Schwartz alleged that Schwartz recommended unsuitable investments in various equity and alternative investments among other allegations of misconduct relating to the handling of their accounts.

In December 2023 a customer complained that Schwartz, from January 2021 to February 2022, engaged in unsuitability and overconcentration of certain investments, and that such investments resulted in principal losses. The investor also alleges misrepresentation with respect to the handling of Claimants’ investment accounts and violated the securities laws claiming $1 million in damages. The claim is currently pending.

Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a “best interest” standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.

Todd Lesk Barred Over Unapproved Securities Activities – Investor Recovery Options

November 11, 2024 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Todd Lesk (Lesk) has been accused by multiple investors of engaging in fraudulent securities sales. Lesk was barred by a regulator for engaging in undisclosed investment activities including undisclosed outside business activities (OBAs). According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Lesk was employed by LPL Financial LLC (LPL) and Cambridge Investment Research, Inc. (Cambridge) at the time of the activity. However, Lesk did business under the names Lesk Financial, RLA Financial, and CIRA. If you have been a victim of Lesk’s alleged misconduct our firm may be able to assist you in recovering funds.

In September 2022 LPL terminated Lesk for cause alleging that Lesk directed customers to invest in an unapproved investment, a LLC that the representative founded, without notice to, or approval from LPL.

In October 2023 Cambridge terminated Lesk for cause alleging that Lesk tendered his resignation based on the Firm’s understanding that the Lesk was unwilling to cooperate with either the regulators or Cambridge’s requests for information.

On October 6, 2023, Lesk accepted a permanent industry bar with FINRA by failing to respond to the regulator’s requests for documents and information. According to FINRA, Lesk consented to the sanctions and to the entry of findings that he refused to provide information and documents and to appear for testimony requested by FINRA in connection with an investigation into whether he recommended that his customer invest in a crypto asset offering. Thereafter, multiple customers have filed complaints alleging that Lesk engaged in securities law violations.

Jeffrey Higgins Barred Over Misappropriation of Client Funds – Investor Recovery Options

November 9, 2024 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Jeffrey Higgins (Higgins) has been accused by multiple investors of engaging in fraudulent misappropriation of their funds. Higgins was barred by a regulator for engaging in undisclosed investment activities including undisclosed outside business activities (OBAs). According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Higgins was employed by Western International Securities, Inc. (Western) and Financial West Group (FWG) at the time of the activity. However, Higgins also did business under the names Azzurra Wealth Management, LLC. If you have been a victim of Higgins’ alleged misconduct our firm may be able to assist you in recovering funds.

In June 2024 Western terminated Higgins for cause alleging that the firm was investigating the conduct of Higgins following his notification to Western that he had been misdirecting client investments and funds and misappropriating client investments and funds to his own use, starting in approximately 2007 at his prior broker-dealer firm, and that these activities have continued through to the current date.

On July 1, 2024, Higgins accepted a permanent industry bar with FINRA by failing to respond to the regulator’s requests for documents and information. According to FINRA, Higgins consented to the sanction and to the entry of findings that he refused to produce information and documents and refused to appear for testimony requested by FINRA during the course of a matter that originated from an examination by FINRA following a regulatory tip. FINRA found that Higgins’ member firm filed a Form U5 stating that he was discharged based on his notification to it that he had been misdirecting client investments and funds and misappropriating client investments and funds to his own use, starting at his prior broker-dealer firm, and that these activities have continued through to the date of termination.

Moloney Securities Broker Shane DeSherlia Has Three Customer Complaints

July 17, 2024 | by Staff Attorney

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Shane DeSherlia (DeSherlia) has at least three disclosable events. These events include three customer complaints alleging that DeSherlia engaged in some form of investment related misconduct in the handling of the client’s accounts. DeSherlia is currently employed by Moloney Securities Co., Inc. (Moloney Securities). DeSherlia’s customer complaints allege that DeSherlia recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

In July 2023 a customer complained that DeSherlia violated the securities laws by alleging that DeSherlia made unsuitable and negligent investment recommendations in the 2019-2020 time period resulting in $500,000 in damages. The claim is currently pending.

In July 2023 a customer complained that DeSherlia violated the securities laws by alleging that DeSherlia made unsuitable and negligent investment recommendations in the 2018-2020 time period resulting in $182,000 in damages. The claim settled for $65,000.

Under the securities laws brokers are obligated to act in their clients’ best interests and provide only suitable recommendations for investments to the client. In addition, the SEC has promulgated “Regulation Best Interest” which according to the SEC enhanced the broker-dealer standard of conduct beyond existing suitability obligations and requires broker-dealers to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities. Regulation Best Interest and the fiduciary standard for investment advisers are drawn from key fiduciary principles that include an obligation to act in the retail investor’s best interest and not to place their own interests ahead of the investor’s interest.

Leslie Jackson Barred Over Alleged Promissory Note Sales – Investor Recovery Options

July 17, 2024 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Leslie Jackson (Jackson) has been accused by a regulator of engaging in undisclosed investment activities including undisclosed outside business activities (OBAs) and the sale of promissory notes. According to records kept by The Financial Industry Regulatory Authority (FINRA), Jackson was employed by Momentum Independent Network Inc. (Momentum) at the time of the activity but also did business under the name Jackson Financial Services. If you have been a victim of Jackson’s alleged misconduct our firm may be able to assist you in recovering funds.

On September 2023, Jackson accepted a permanent industry bar with FINRA and agreed to findings that he participated in private securities transactions totaling $1,975,000 without providing advance written notice to his firm prior to these transactions. FINRA found that Jackson participated in the sale of promissory notes issued by entities that claimed to be engaged in a business that provided financing to construction companies. According to the regulator, Jackson recommended the investments to five investors who ultimately purchased an aggregate $1,475,000 of the issuers’ promissory notes. Jackson alleged participation in the note sales included telling the investors about the notes, answering questions about the investments, helping the investors complete the subscription documents, and collecting the payments for the investments to provide to the issuers. According to FINRA, Jackson was compensated for his activities through periodic payments from the issuers in amounts equal to 3% of each investment per year during their respective terms.

Gana Weinstein Represents Investors in Claims Concerning Jason Mitsuda’s Sale of Structured Products

July 13, 2024 | by Staff Attorney

The attorneys at Gana Weinstein LLP have filed a complaint on behalf of investors relating to financial advisor Jason Mitsuda’s (Mitsuda) sales of structured products. At the time Mitsuda was registered with Equitable Advisors, LLC (Equitable) and has since been registered with Ameriprise Financial Services, LLC, Cetera Investment Services, LLC, and now Pruco Securities, LLC.

Structured products are a class of derivative products that derive their performance from market linked data. A structured product generally references a source against which market risk is taken. The source can be a single security, a basket of securities such as a market index, commodities, interest rates, or a real estate loan portfolio. The variety of products that can be structured demonstrates the difficulty in formulating a single unified definition of a structured product.

In recent years, banks of started issuing structured products that reference not a basket of securities or a broad index but instead a single stock. And usually not just any stock but instead a very volatile stock that exhibits large price fluctuations. The structured product at issue in the case filed by our firm referenced a well known high risk technology ETF called ARK Innovation ETF “ARKK.” The ARRK investment was issued by JP Morgan and came due at the end of 2022. Banks issue these structured products trying to entice investors with promises of above market interest rate returns. However, the banks know that the volatile stocks that the notes are linked to make it likely that the bank will be protected from paying the investor.

Aegis Capital Accused of Harming Investors Out of at Least $5 Billion

July 13, 2024 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating claims made by SLCG Economic Consulting LLC that Aegis Capital, a broker-dealer, routinely serves as underwriter for dubious stock offerings that cost investors billions. SLCG starts off by calling Aegis one of the worst retail brokerage firms based on complaints and a firm that investors should avoid it at all costs. Our firm has represented a large number of investors in claims against the firm over the years.

SLCG claims that since 2010, Aegis has been the sole underwriter of 186 offerings for 111 issuers totaling $1.9 billion. The article further claims that Aegis underwrites stocks issued by small companies on the verge of delisting or bankruptcy and that Aegis’s underwriting peddles worthless stock to its customers and to the customers of other brokerage firms. SLCG further claims that Aegis provides inflated research analyst coverage for many of the stocks it underwrote and aggressive buy recommendations with unrealistic price targets.

SLCG also provided statistics to back up its findings stating:

Advisor Raul Benitez Has Suitability Customer Complaints

February 11, 2024 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Raul Benitez (Benitez), formerly employed by Wells Fargo Clearing Services , LLC (Wells Fargo) has been subject to at least six customer complaints and one termination for cause during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Benitez’s customer complaints alleges that Benitez recommended un suitable investments in various investments and makes allegations including common law fraud, gross negligence.

In January 2024 a customer complained that Benitez violated the securities laws by alleging that Benitez made unsuitable investments and misrepresentations of recommendations in September 2014 and March 2015. The claim alleges $500,000 in damages and is currently pending.

In November 2023 a customer complained that Benitez violated the securities laws by alleging that Benitez made an investment recommendation that was unsuitable. The claim alleges $500,000 in damages and is currently pending.

In July 2021 a customer complained that Benitez violated the securities laws by alleging that Benitez made an investment recommendation in NorthStar that was unsuitable. The claim alleged $2178,707 in damages and settled for $175,000.