Securities Lawyers Blog

Gana Weinstein LLP Files Complaint On Behalf of Clients Alleging William Fox Sold Unsuitable Alternative Investments

April 13, 2020 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP recently filed a complaint on behalf of a client alleging that William Fox (Fox) and The Fox Alliance, registered with New England Securities (now MML Investors Services LLC) and First Allied Securities, Inc., (First Allied) and the firms failed to supervise Fox’s recommendations and investment activity in alternative investments. The complaint alleges that Fox constructed an investment plan for the Claimants that violated multiple securities laws.

Claimants trusted their investment advisor to prudently invest their income savings that was to be used for their retirement. Fox’s website boasts that the firm’s definition means “a collaboration designed with the intent of leveraging expertise, increasing returns and/or appropriately reducing risk for the parties involved.” Further, Fox claims to provide investors with “institutional caliber investments.”

However, the Claimants alleged that in fact Fox did the exact opposite of what he claims and abused Claimants’ trust by recommending an investment strategy consisting of large concentrations in illiquid, low-quality, speculative, high commission alternative investments that no institution would ever touch. For more than a decade the claim stated that Fox recommended that Claimants invest over $2 million in illiquid securities such as non-traded real estate investment trusts (Non-Traded REITs), private placements, equipment leasing programs, oil and gas programs, and annuities. Of the nearly $3 million Claimants gave Fox to invest the vast majority ended up in these types of programs.

Advisor Antonio Puente Barred Over Outside Business Activities – Investor Recovery

April 12, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Antonio Puente (Puente) has been accused by a securities regulator of potentially engaging in the sales of private securities among other allegations. Puente was barred by The Financial Industry Regulatory Authority (FINRA) concerning his private securities sales conduct. According to BrokerCheck records, Puente was formerly registered with FINRA member firm Valic Financial Advisors, Inc. (Valic Financial). If you have been a victim of Puente’s alleged misconduct our firm may be able to assist you in recovering funds.

In August 2018 Valic Financial terminated Puente alleging that he was terminated following conclusion of investigation into undisclosed outside business activity. Then in January 2020 FINRA found that Puente consented to sanctions and findings that he refused to provide testimony requested by FINRA in connection with its investigation into whether he potentially violated FINRA rules by engaging in undisclosed outside business activities and/or private securities transactions.

According to Puente’s publicly disclosed records the he has no disclosed outside business activities.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds. Continue Reading

Advisor Darren Oglesby Has Potential Complaint Regarding GPB Capital

April 12, 2020 | by Staff Attorney

Advisor Darren Oglesby (Oglesby), currently employed by Money Concepts Capital Corp. (Money Concepts) has been subject to at least four customer complaints during the course of his career. According to a BrokerCheck report one of the customer complaints that may concern fraudulent GPB Capital Holdings (GPB Capital) related investments.

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 officier 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 August 2019 a customer complained that Oglesby violated the securities laws by alleging that Hoidas engaged in sales practice violations related to a claim with FINRA that an investment was an unsuitable product, breach of contract and breach of fiduciary duty. The claim alleges $100,000 in damages and is currently pending.

Broker Charles Evan Subject to Regulatory and Customer Complaints Over Annuity Practices

April 7, 2020 | by Staff Attorney

According to BrokerCheck records financial advisor Charles Evan (Evan), formerly employed by MML Investors Services, LLC (MML Investors) has been subject to five customer complaints, one regulatory action, and one employment termination for cause during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the customer complaints against Walker concern allegations over various annuities, insurance, and variable annuity sales practices.

In October 2019 MML Investors terminated Evan alleging inappropriate traditional insurance sales practices. Thereafter, FINRA investigated Evan, and in January 2020, FINRA found that Evan consented to the sanction and findings that he refused to provide documents and information requested by FINRA in connection with allegations concerning inappropriate traditional insurance sales practices.

In March 2020 a client complained that Evan violated the securities laws alleging that after meeting with Evan in 2017, he sold her several variable annuities that were found to be unsuitable for her needs. The customer alleged $157,370 in damages. The claim is currently pending.

In February 2020 a client complained that Evan violated the securities laws alleging that beginning in 2008, Evan made misrepresentations, and provided bad investment advice on the sales of various products, which resulted in a financial loss. The claim is currently pending.

Nationwide Planning Advisor Jeremy Rosen Has Customer Complaints

April 7, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Jeremy Rosen (Rosen), currently employed by Nationwide Planning Associates Inc. (Nationwide Planning) has been subject to at least four customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Rosen’s customer complaints alleges that Rosen recommended unsuitable investments in various investments among other allegations of misconduct relating to the handling of their accounts.

In March 2020 a customer complained that Rosen violated the securities laws by alleging that Rosen made investments in 2016 through 2019 that were unsuitable and misrepresented to them. The clients also alleged that the firm failed to supervise the actions of Rosen. The claim is currently pending.

In January 2020 a customer complained that Rosen violated the securities laws by alleging that Rosen made investments in 2016 through 2019 that were unsuitable and misrepresented to them. The clients also alleged that the firm failed to supervise the actions of Rosen. The claim seeks $140,000 in damages and is currently pending.

In July 2019 a customer complained that Rosen violated the securities laws by alleging that Rosen made investments in 2016 through 2019 recklessly which has jeopardized their family’s future. The claim is currently pending.

Advisor George Schmidt Investigated for Converting Client Funds – Investor Recovery

April 6, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor George Schmidt (Schmidt) has converted customer funds among other allegations. According to BrokerCheck records, Schmidt is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Lincoln Financial Advisors Corporation (Lincoln Financial) out of the firm’s Melville, New York office location. In addition, Schmidt disclosed four customer complaint, one employment terminations for cause, and one regulatory action. If you have been a victim of Schmidt’s alleged misconduct our firm may be able to assist you in recovering funds.

According to FINRA, Schmidt refused provide documents and information to FINRA in connection with an investigation into allegations made by his firm upon his termation.

In November 2019 Lincoln Financial terminated Schmidt stating that he was discharged while under allegations of misappropriation related to undisclosed outside business activity serving as trustee for a non-family member.

Schmidt’s disclosed outside business activities include Schmidt Associates.

Advisor Gerald Dewes Accused of Selling Private Securities – Investor Recovery

April 6, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Gerald Dewes (Dewes), working out of East Amherst, New York, has been barred by a financial regulator concerning allegations that he engaged in the sales of private securities among other allegations. Dewes was barred by The Financial Industry Regulatory Authority (FINRA) concerning his private securities sales conduct. According to BrokerCheck records, Dewes was formerly registered with FINRA member firm Cadaret, Grant & Co., Inc. (Cadaret Grant). If you have been a victim of Dewes’ alleged misconduct our firm may be able to assist you in recovering funds.

In March 2020 FINRA found that Dewes consented to the sanctions and a bar from them industry as well as to the entry of findings that he refused to appear for testimony before FINRA during the course of an investigation into his potential participation in undisclosed private securities transactions and outside business activities. In addition, Cadaret Grant terminated Dewes alleging that he sold away from the firm by soliciting client investments into an undisclosed outside business activity called Elite Roasters, Inc. (Elite Roasters) for which he was an officer and director.

According to Dewes’ publicly disclosed records his outside business activities include Sunbridge Management.

Roger Owens Terminated Over Sale of Fraudulent Woodbridge Mortgage Investments

March 25, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to investigate the Woodbridge Group of Companies and the Woodbridge Mortgage Funds (Woodbridge). The Securities and Exchange Commission (SEC) has alleged that the Woodbridge operated a billion-dollar Ponzi scheme ensnaring about 8,400 investors. Woodbridge solicited hundreds of disreputable insurance agents and investment brokers to sell its false notes that the firm claimed to be backed by mortgages. In plain sight to regulators, Woodbridge engaged in a nationwide investment fraud by offering the sale of unregistered securities.

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) Roger Owens (Owens) appears to be an agent for Woodbridge fraudulent note sales. Owens was formerly associated with Cetera Advisors LLC (Cetera) out of the firm’s Elkton, Maryland office location. Owens has four complaints related to his Woodbridge note sales.

In addition, in August 2019 FINRA found that Owens consented to sanctions and findings that he engaged in private securities transactions without providing notice to Cetera. FINRA determined that Owens solicited investors to purchase promissory notes relating to a purported real-estate investment fund [Woodbridge]. Owens was found to have sold at least $1,170,000 in promissory notes to investors while receiving $59,471 in commissions in connection with these transactions. FINRA also found that Owens falsely attested in compliance questionnaires that he had not engaged in any private securities transactions without receiving prior written approval from his firm.

Peter Maller Has Complaints Over Non Traded REIT Investments

March 25, 2020 | by Staff Attorney

Advisor Peter Maller (Maller), currently employed by Lincoln Financial Advisors Corporation (Lincoln Financial) has been subject to at least three customer complaints during the course of his career. According to a BrokerCheck report the customer complaints concern alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs) and annuities. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

In August 2019 a customer complained that Maller violated the securities laws by alleging that Maller engaged in sales practice violations related to recommending a client to invest her life savings in an unsuitable and deceptive manner, specifically concentrating her assets in annuities and illiquid, non-publicly traded investments. The claim is currently pending.

In April 2019 a customer complained that Maller violated the securities laws by alleging that Maller engaged in sales practice violations related to recommending an investment strategy in 2013 that failed to account for tax liabilities and recommended unsuitable investments. The claim is currently pending and seeks $350,394 in damages.

DDPs include products such as non-traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These alternative investments virtually never profit investors and are almost always unsuitable for investors because of their high fee and cost structure. Brokers selling these products are paid additional commission in order to hype these inferior quality investments providing a perverse incentives to create an artificial market for the investments.

Several studies have confirmed that Non-traded REITs underperform publicly traded REITs with some showing that Non-Traded REITs cannot even beat safe benchmarks, like U.S. treasury bonds. Brokers selling these products must disclose to the investor that non-traded REITs provide lower investment returns than treasuries while being high risk and illiquid – but almost never do. Because investors are not compensated with additional return in exchange for higher risk and illiquidity, these kinds of alternative investment products are rarely, if ever, appropriate for investors. Continue Reading

Advisor John Cahill Investigated for Converting Client Funds – Investor Recovery

March 24, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor John Cahill (Cahill) has converted customer funds among other allegations. According to BrokerCheck records, Cahill is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm Janney Montgomery Scott LLC (Janney). In addition, Cahill disclosed one customer complaint, two employment terminations for cause, and one regulatory action. If you have been a victim of Cahill’s alleged misconduct our firm may be able to assist you in recovering funds.

According to FINRA, Cahill consented to sanctions and to findings that he refused provide documents and information and to appear for testimony requested by FINRA in connection with an investigation into allegations that he commingled and/or converted funds belonging to, and served as power-of-attorney for, an elderly individual who was his customer while he was associated with his former member firm.

In March 2019 Janney terminated Cahill stating that he was discharged while under internal review regarding receipt of funds while acting as POA for a client.