Securities Lawyers Blog

National Securities Broker Robert Abramowitz Subject to Customer Complaints

January 31, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Robert Abramowitz (Abramowitz), currently employed by National Securities Corporation (National Securities) has been subject to at least three customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Abramowitz’s customer complaints allege that Abramowitz made unsuitable recommendations in a variety of investments including equities including energy related stocks.

In July 2018 a customer complained that Abramowitz violated the securities laws by engaging in unsuitable investments, breach of fiduciary duty, and negligence. The customer alleges $100,000 in damages and the claim is currently pending.

In March 2018 a customer complained that Abramowitz violated the securities laws by engaging in conduct alleges investments were misrepresented to her and were unsuitable based on her investment objectives. The customer also alleged that her investment objectives and risk tolerance were incorrectly stated on new account paperwork. The customer alleges $149,236 in damages. The claim was settled for $75,000.

Advisor Robert Jamison Sanctioned Over Unapproved Securities Sales

January 23, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Robert Jamison (Jamison), formerly associated with PNC Investments, in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Jamison consented to the sanction and to the entry of findings that he refused to provide testimony to FINRA related to allegations that he, in connection with private securities transactions, referred customers to an individual who was not registered and who may have recommended or sold unsuitable securities to those customers.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Jamison’s activities. Jamison’s disclosures include any outside business activities (OBAs) disclosures. The only disclosure is an involvement with Crump Life Insurance.

Advisor James Schwartz Subject to Multiple Churning Claim

January 23, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker James Schwartz (Schwartz) has been subject to nine customer complaints, one tax lien, and one bankruptcy during his career. Schwartz is currently not registered but was previously employed by Joseph Gannar & Co. LLC (Joseph Gunnar). Many of the the customer complaints against Schwartz concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In October 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in breach of fiduciary duty, unsuitable investments, and negligence causing $32,871.30 in damages. The claim is currently pending.

In May 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in churning, unsuitable investments, unauthorized trading, and breach of fiduciary duty causing $150,000 in damages. The claim is currently pending.

In February 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in unsuitable investments and unauthorized trading causing $1,694,099 in damages. The claim is currently pending.

In addition, Schwartz has one financial disclosure concerning a tax lien for $15,667 and declared bankruptcy in June 2017. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

Advisor Gregory Williams Subject to Multiple Suitability Complaints

January 22, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Gregory Williams (Williams), currently employed by Presidential Brokerage, Inc. (Presidential Brokerage) has been subject to four customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Williams’ customer complaints allege that Williams made unsuitable recommendations in a variety of investments.

In June 2018 a customer complained that Williams violated the securities laws by engaging in unsuitable investments and making misrepresentations. The customer alleges $151,337 in damages. The claim is currently pending.

In June 2018 a customer complained that Williams violated the securities laws by engaging in unsuitable investments, making misrepresentations, making unauthorized transfers, fraud, and breach of fiduciary duty from May 2012 through March 2018. The customer alleges $1,200,000 in damages. The claim is currently pending.

Advisor George McCaffrey Accused of Selling Unapproved Products to Clients

January 20, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor George McCaffrey (McCaffrey), formerly associated with NTB Financial Corporation (NTB Financial), in September 2018, was sanctioned and suspended from the securities industry by FINRA over accusations of potentially selling unapproved products.

In September 2018 FINRA alleged that McCaffrey consented to the sanctions and findings that he participated in 22 undisclosed private securities transactions in which nine investors purchased $1,775,000 in debt and equity securities. FINRA found that McCaffrey introduced the nine individuals to representatives of a greenhouse building and leasing company so they could invest in the company. Other activities McCaffrey is alleged to have performed include reviewing and editing documents relating to the investments, forwarding investment-related documents to the customers, and communicating with the customers about their investments.

The investors were found to have purchased $1,775,000 in promissory notes of the greenhouse building and leasing company and preferred stock in one of the company’s affiliates. FINRA also found that the company paid $124,250 in commissions to an entity controlled by McCaffrey’s wife.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

Advisor Christopher Hellman Accused of Misappropriating Client Funds

January 20, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Christopher Hellman (Hellman), formerly associated with Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Hellman consented to the sanction and to the entry of findings that he failed to provide FINRA with requested documents and information during its investigation. FINRA found that Merrill Lynch terminated Hellman’s registration for conduct including failure to adhere to firm standards regarding selling away and failure to fully disclose participation in outside business activities.

The providing of loans, misappropriating funds through false pretenses, or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Hellman’s activities. Hellman’s disclosures do not include any outside business activities (OBAs) disclosures.

Joseph Stone Capital Broker Joseph Ambrosole Subject to Churning Claim

January 14, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Joseph Ambrosole (Ambrosole) has been subject to two customer complaints, two regulatory actions, and one tax lien during his career. Ambrosole is currently employed by Joseph Stone Capital L.L.C. (Joseph Stone Capital). One of the the customer complaints against Ambrosole concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In August 2018 a customer filed a complaint alleging that Ambrosole violated the securities laws by engaging in common law fraud, breach of fiduciary duty, and negligence causing $100,000 in damages. The claim is currently pending.

In March 2018 a customer filed a complaint alleging that Ambrosole violated the securities laws by engaging in churning, unsuitable investments, and overconcentration causing $275,000 in damages. The claim is currently pending.

In addition, Ambrosole has one financial disclosure concerning a tax lien for $57,199. This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider. In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

Advisor Nicholas Radke Barred by Regulator Over Unapproved Products

January 14, 2019 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Nicholas Radke (Radke), formerly associated with MML Investors Services, LLC (MML Investors) in December 2018, was sanctioned and barred from the securities industry by FINRA over accusations of potentially selling unapproved products.

In December 2018 FINRA alleged that Radke consented to the sanction and a bar from the industry because he failed to provide FINRA with requested documents and information in connection with allegations that Radke participated in a private securities transaction without prior approval from his member firm.

The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”.

At this time it is unclear the nature and scope of Radke’s activities. Radke’s disclosures include outside business activities (OBAs). At this time it is unclear whether the unapproved products involve any of these entities.

Wenjinn Chang Subject to Complaints Over REITs and Alternative Investments

January 14, 2019 | by Staff Attorney

Advisor Wenjinn Chang (Chang), currently employed by Independent Financial Group, LLC (Independent Financial) has been subject to at least two customer complaints. According to a BrokerCheck report 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 October 2018 a customer filed a complaint alleging that Chang violated the securities laws by alleging over-concentration of non-traded REITs that were not suitable and that resulted in losses. The claim alleged $50,000 in damages and the claim is currently pending.

In September 2018 a customer filed a complaint alleging that Chang violated the securities laws by Alleging that the broker failed to advise of the risks of the investments made and that the Claimant has suffered losses as a result of the investments made. The claim alleged $75,000 in damages and the claim settled for $10,000.

Stifel, Nicolaus Advisor Lynn Faust Subject to Investor Complaints

January 12, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Lynn Faust (Faust), currently employed by Stifel, Nicolaus & Company, Inc. (Stifel Nicolaus) has been subject to at least three customer complaints and one employment termination for cause during her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Faust concern allegations of unsuitable investments in market linked notes.

In November 2018 a customer complained that Faust recommended investments that violated the securities laws concerning misrepresented market linked notes. The complaint alleges $59,000 in damages and is currently pending.

In October 2018 Faust was terminated by Raymond James & Associates, Inc. (Raymond James) due to allegations that the firm had concerns relating to the nature of advisor’s UIT activity.