Securities Lawyers Blog

Securities America Broker Andrew Burdsall Has Investment Complaints

May 7, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Andrew Burdsall (Burdsall), currently employed by Securities America, Inc. (Securities America) has been subject to at least five customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Burdsall’s customer complaints allege that Burdsall invested them in a fraudulent private placement security or made unsuitable investments.

In January 2019 a customer filed a complaint alleging that Burdsall violated the securities laws including that after briefly discussing the possibility of generating a monthly income plan, Burdsall placed unauthorized trades within the client’s account which resulted in a loss to his portfolio. The customer alleges $106,202.16 in damages. The claim is currently pending.

There are also four claims against Burdsall concerning the sale of fraudulent private placements including Provident Shale and Medical Capital.

Broker John Neely Subject to Regulatory Sanctions Over Unauthorized Trading

May 7, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor John Neely (Neely), currently employed by St. Bernard Financial Services, Inc. (St. Bernard Financial) has been subject to at least one customer complaint, three regulatory actions, and one employment termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), Neely has been accused by FINRA of engaging in unauthorized trading in client accounts.

In November 2018 FINRA settled a regulatory action against Neely stating that Neely consented to sanctions and findings that he exercised discretion in effecting hundreds of transactions in two customers’ brokerage accounts without obtaining written approval from the customers to do so. FINRA also found that the customers verbally authorized Neely to exercise discretion in their accounts but that Neely never sought his firm’s approval to service either customer’s accounts on a discretionary basis. In addition, according to FINRA Neely’s firm prohibited the use of discretion in brokerage accounts altogether.

In September 2018 Neely’s then employer Berthel, Fisher & Company Financial Services, Inc. (Berthel Fisher) terminated Neely stating that he failed to respond to an inquiry from the compliance department.

Thomas Burns Subject to Complaints Over REIT Investments

May 6, 2019 | by Staff Attorney

Advisor Thomas Burns (Burns), formerly employed by Crown Capital Securities, L.P. (Crown Capital) has been subject to at least seven customer complaints and two regulatory actions. According to a BrokerCheck report some of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In February 2019 FINRA settled a regulatory dispute with Burns where Burns consented to sanctions and an entry of findings that he negligently made numerous mistakes causing errors and inaccuracies in identifying customer assets on alternative investment forms causing his firm to have inaccurate books and records. For instance, FINRA found that Burns mistakenly double counted assets held away from his firm in direct pension benefit plans by placing the individual holdings in their individual categories and by counting them again in the other assets category. FINRA found that Burns made computational errors in adding up holdings when calculating net worth. In addition, FINRA alleged that Burns erroneously understated the amount of existing alternative investment holdings by either unintentionally understating the value of existing tenants in common or rental holdings or by misclassifying those existing holdings as personal real estate, instead of as alternative investments.

Raymond James Advisor William Council Alleged to Have Recommended Unsuitable Energy Securities

May 6, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor William Council (Council), currently employed by Raymond James & Associates, Inc. (Raymond James), has been subject to at least three customer complaints and eight financial disclosures during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA) Council has been accused by multiple customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

In February 2019 a customer filed a complaint alleging that Council violated the securities laws by purchasing unsuitable securities causing $334,000 in damages. The claim is currently pending.

In December 2018 a customer filed a complaint alleging that Council violated the securities laws by purchasing unsuitable securities, breach of fiduciary duty, negligent misrepresentation, negligence from February 2015 through October 2015 causing $105,000 in damages. The claim settled for $28,000.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

Hilltop Securities Broker Mark Augusta Subject to 19 Customer Complaints

May 4, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Mark Augusta (Augusta), currently employed by Hilltop Securities, Inc. (Hilltop Securities) has been subject to at least an astonishing 19 customer complaints and one employment termination for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), Augusta’s customer complaints allege that Augusta sold his clients a variety of improper products including Puerto Rico municipal bonds, interest rate swap CDs (structured CDs), and other unsuitable debt securities.

In May 2015 Augusta’s then employer Wedbush Securities Inc. (Wedbush Securities) terminated Augusta after a client filed a complaint against him.

In February 2019 a customer filed a complaint alleging that Augusta violated the securities laws by, among other things, engaged in unauthorized and unsuitable investments made by the financial advisor in June 2014. The claim alleged $398,832 in damages and is currently pending.

In August 2018 a customer filed a complaint alleging that Augusta violated the securities laws by, among other things, making unsuitable investments, breach of fiduciary duty, misrepresentations and omissions, negligence, and violations of California securities laws. The claim alleged $97,774 in damages and is currently pending.

In July 2018 a customer filed a complaint alleging that Augusta violated the securities laws by, among other things, misrepresentation by omission with respect to the disclosure of representative’s regulatory and disciplinary history, unsuitable recommendations, and financial abuse of an elder. The claim seeks $375,000 in damages and is currently pending.

Advisor Gary Meier Sanctioned by Washington State Over Penny Stock Trading

May 1, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Gary Meier (Meier), formerly employed by Boz & Company LLC (Boz) and Cambridge Investment Research, Inc. (Cambridge Investment) has been subject to at least eight customer complaints and two regulatory actions. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Meier’s customer complaints allege that Meier made was negligent, breached his fiduciary duty, and made unsuitable investments in penny stocks and low priced securities.

In February 2017 the State of Washington Securities Division found that from approximately 2008 to 2017 Meier made unsuitable investment recommendations to his client and engaged in other unethical business practices. The state found that Meier executed transactions in client accounts without obtaining prior client authority to do so and purchased speculative penny stocks for client accounts. It was found that Meier purchased the same three penny stocks for nearly all of his clients – Rentech, Cytodyn, or Provectus Biopharmaceutical stock – regardless of their investment profile. It was found that Meier added to client holdings of these three penny stocks and most of his client accounts were heavily concentrated in these three penny stocks. These purchases resulted in large losses in client accounts.

Washington State also alleged that Meier mislead clients in order to assuage investor concerns about the penny stocks. Meier purportedly provided clients with grossly exaggerated future values of the three stocks indicating that large returns in the near future would occur. Further, it was found that Meier was forced to resign from Cambridge Investment when the firm objected to Meier’s investment practices. Thereafter, it was found that Meier did not register with another firm until July 14, 2015, with Boz, an investment adviser owned by his son.

Broker Jesse Krapf Has A Customer Complaint

May 1, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Jesse Krapf (Krapf), currently employed by Benchmark Investments, Inc. (Benchmark Investments) has been subject to at least one customer complaint and two debt related judgements or tax liens. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Krapf’s customer complaints allege that Krapf made was negligent and breached his fiduciary duty to the customer.

In October 2018 a customer filed a complaint alleging that Krapf violated the securities laws including negligence and breach of fiduciary duty causing $500,000 in damages. The claim is currently pending.

Krapf also has two unsatisfied debts including a $3,247 tax lien from May 2015. The fact that a broker cannot manage his own personal finances is material information for a client to consider. In addition, the types of products clients have alleged were unsuitable are high commission products that may be recommended to generate high profits for the advisor at the expense of the client.

Advisor William Gordon Subject to Complaints Over Alternative Investments

April 30, 2019 | by Staff Attorney

Advisor William Gordon (Gordon), currently employed by Capital Financial Services, Inc. (Capital Financial) has been subject to at least 13 customer complaints and one regulatory complaint. According to a BrokerCheck report most of the customer complaints concern alternative investments and direct participation products (DPPs) such as private placements, tenants-in-common trusts, non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In January 2019 a customer filed a complaint alleging that Gordon violated the securities laws including unsuitability, misrepresentation and omissions, and breach of fiduciary duty causing $200,000 in damages. The claim is currently pending.

In January 2013 a customer filed a complaint alleging that Gordon violated the securities laws including unsuitability causing $300,964 in damages. The claim settled.

Ameriprise Advisor Stan Leavitt Has An Options Trading Complaint

April 30, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Stan Leavitt (Leavitt), currently employed by Ameriprise Financial Services, Inc. (Ameriprise) has been subject to at least two customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Leavitt’s customer complaints allege that Leavitt made unsuitable recommendations and made misrepresentations.

In October 2018 a customer filed a complaint alleging that Leavitt violated the securities laws including misrepresentations and unsuitable investments from April 2015 until June 2017 in options causing $550,000 in damages. The claim is currently pending.

In July 2018 a customer filed a complaint alleging that Leavitt violated the securities laws including misrepresentations from December 2015 until June 2017 in a variable annuity product causing $31,015 in damages. The claim settled.

Morgan Stanley Broker Barry Speyer Subject to Multiple Customer Investment Complaints

April 28, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Barry Speyer (Speyer), currently employed by Morgan Stanley has been subject to at least seven customer complaints and one regulatory action. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Speyer’s customer complaints allege that Speyer made was negligent and made unsuitable investments.

In January 2019 a customer filed a complaint alleging that Speyer violated the securities laws including unsuitable investments from August 2014 until October 2018 causing damages. The claim is currently pending.

In August 2013 a customer filed a complaint alleging that Speyer violated the securities laws including that Speyer failed to follow the instructions of the client in or about December 2011. The claim was denied by the firm.