Securities Lawyers Blog

Did A Aegis Capital Broker Recommend Biotech Stock Akers Biosciences?

November 27, 2018 | by Staff Attorney

Biotech company Akers Bioscience (AKER) went public in 2014 using Aegis Financial as its investment underwriter. The company’s IPO price was $5 but has subsequently fallen to only $.25. According to SeekingAlpha not only did Aegis underwrite the security but it also promoted it to investors and potentially the firm’s own brokerage clients buy maintaining a buy rating on the stock. Akers was given an $11.00 price target in June 2014.

The company has also been subject to a recent class action complaint. The complaint alleges that the company made materially false and misleading statements regarding the Akers’ business, operational and compliance policies.

According to the company’s website, Akers Biosciences, Inc. (aka Akers Bio) was founded in 1989, with the objective of developing proprietary, in vitro diagnostic technologies that accelerate the rate at which clinicians, and in some cases consumers, can obtain health information. The tests are designed to provide the same level of accuracy as traditional laboratory testing methods but at a fraction of the cost and turn-around time.

Brandon Stimpson Subject to Multiple Customer Complaints Over Put Options Trading

November 24, 2018 | by Staff Attorney

According to BrokerCheck records former financial advisor Brandon Stimpson (Stimpson), formerly employed by Allegis Investment Services, LLC (Allegis Investment) has been subject to at least eight customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Stimpson concern allegations of unsuitable investments in a put options trading strategy.

In December 2017 Stimpson was terminated by Allegis Investment after the firm claimed that Stimpson failed to follow firm policies and code of ethics. Prior to his termination, Stimpson was subject to multiple complaints.

In October 2017 a customer complained that Stimpson engaged in unsuitable investments in an options strategy that was active in the account was unsuitable and a trade in Aug 2015 caused the account losses. The customer alleged $300,000 in damages and the claim is currently pending.

In June 2016 a customer complained that Stimpson engaged in unsuitable investments in an options strategy and a trade in Aug 2015 caused the account losses. The customer alleged $400,000 in damages and the claim is currently pending.

Advisor Dexter Thomas Accused of Engaging in Client Loans and Unapproved Securities

November 24, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Dexter Thomas (Thomas), formerly associated with United Planners Financial Services of America LP (United Planners) in Dallas, Texas has been accused by his former firm over unapproved securities and making client loans. In addition, Thomas has 19 customer complaints on his record – most of which relate to the unapproved activities.

In August 2018 United Planners terminated Thomas stating that he affiliated with the firm in late-2017. A short period of time later, the Thomas passed away. The firm claimed that immediately before his death, Thomas disclosed that he was involved with a number of private loans or private investments with individuals which private loans or investments were neither disclosed to, nor approved by, the firm. After Thomas’ death customers have claimed that Thomas did not return all of the funds privately loaned to or invested.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Thomas’ public disclosures state that his securities activity was conducted through a d/b/a – Dexter Thomas Financial Services, LLC.

Investor Recovery Options: Global Credit Recovery, Rhino Capital, Kevin Merrill, and Jay Ledford $345 Million Ponzi Scheme

November 22, 2018 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating potential recovery options concerning an investment fraud scheme recently enjoined by the the Securities and Exchange Commission (SEC). The SEC recently announced it obtained a court order halting an ongoing Ponzi-like scheme conducted by Kevin B. Merrill (Merrill), Jay B. Ledford (Ledford) and Cameron Jezierski (Jezierski) that raised more than $345 million from over 230 investors. Investors dealt with the defendants entities including Global Credit Recovery, LLC (Global Credit Recovery), Delmarva Capital, Rhino Capital, DeVille Asset Management, and Riverwalk Financial Corporation.

The SEC alleged that Merrill, Ledford and Jezierski, from at least 2013 through the present, through the web of entities they control have offered and sold investments relating to consumer debt portfolios, claiming to generate significant profits through their expertise in collecting on and reselling consumer debt. However, the SEC found that in nearly every interaction with investors Merrill and Ledford misled investors about what they would do with the raised money. The SEC found that the defendants made false statements, fabricated nonexistent debt portfolios, created fake wire transfers and contracts, and founded shell companies meant to mimic legitimate companies. The SEC claimed that instead of purchasing debt as promised, investor money was largely used investor money to fund the defendants’ lavish lifestyles and prop up the scheme with Ponzi-like payments to other investors.

Aegis Advisor Thomas Kelley Accused of Unsuitable Investments by Over a Dozen Clients

November 22, 2018 | by Staff Attorney

According to BrokerCheck records former financial advisor Thomas Kelley (Kelley), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints in his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Kelley concern allegations of unsuitable investments.

In November 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable investments, unauthorized trading, and breach of fiduciary duty causing $500,000 in damages. The complaint is currently pending

In October 2018 a customer filed a complaint alleging that Kelley engaged in misrepresentations, negligence, and breach of fiduciary duty causing $230,000 in damages. The complaint is currently pending.

In August 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable recommendations, misrepresentations, and breach of fiduciary duty causing $750,000 in damages. The complaint is currently pending.

Advisor Walter Parker Suspended Over Alternative Investment Sales Practices

November 18, 2018 | by Staff Attorney

Former Titan Securities advisor Walter Parker (Parker) has been subject to at least eight customer complaints. According to a BrokerCheck report many 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 addition, in April 2018 FINRA suspended and sanctioned Parker alleging that he made investment recommendations to a customer that were not suitable given her age, risk tolerance, financial experience and liquidity. FINRA found that the customer had little prior experience investing and no experience investing in alternative investments. FINRA alleged that Parker recommended that the customer invest her funds into illiquid, alternative investments and that the customer suffered significant losses in the alternative investments. Due to her investment losses the client was forced to obtain full-time employment.

Advisor Floyd Powell Accused of Selling Fraudulent Securities

November 18, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Floyd Powell (Powell), formerly associated with MML Investors Services, LLC (MML Investors) in Albertville, Alabama has been accused by at least four clients of selling fraudulent investments.

In October 2018 a customer filed a complaint alleging that Powell, beginning in or around 2016, recommended that they invest in unregistered and fraudulent investment programs, made false representations, and failed to disclose material facts about the investments. The customer alleged over $3.1 million in damages. The claim is currently pending.

Also in October 2018 another customer filed a complaint alleging that Powell made inappropriate and unsuitable investment recommendations to and transactions beginning in early 2017. The claim is currently pending.

In August 2018 another client alleged violations of securities law regarding Powell’s recommendation to invest in unregistered and fraudulent investment program in July 2016. The claim alleges $250,000 in damages and is currently pending.

At this time it is unclear the nature or scope of the alleged outside business activities (OBAs) and private securities transactions. Powell’s public disclosures only state that he operates his business through a DBA called Faithway Financial Solutions LLC.

Advisor Stephen Murray Subject to Allegations of Excessive Trading

November 14, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Stephen Murray (Murray) has been subject to seven customer complaints, two financial disclosures or tax liens, and one regulatory action. Murray was formerly employed by Raymond James & Associates, Inc. (Raymond James) prior to his bar from the financial industry. Many of the customer complaints against Murray concern allegations of high frequency trading activity also referred to as churning, unauthorized trading, and unsuitable investments.

In May 2018 FINRA barred Murray after he failed to respond to FINRA’s requests for documents and information concerning his activities.

In May 2017 a customer filed a complaint alleging churning unauthorized trading, negligence, and breach of fiduciary duty. The claim alleged $100,000 in damages and settled.

In addition, Murray has two financial disclosures concerning debts and tax liens. 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 Jeffrey Schwebach Terminated Over Securities Rule Violation

November 13, 2018 | by Staff Attorney

According to BrokerC heck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Jeffrey Schwebach (Schwebach), formerly associated with Independent Financial Group, LLC (Independent Financial) in Dell Rapids, South Dakota was terminated by the firm. In June 2018 Schwebach was discharged after the firm claimed that he failed to accurately describe the nature of his outside business activities (OBAs) and also violated firm policy with regard to disclosure of customer complaint. There are no other public disclosures on Schwebach’s record.

At this time it is unclear the nature or scope of the alleged OBAs and if such activity included private securities transactions. Schwebach’s public disclosures show that he has disclosed numerous OBAs including The Cartwright Bros, a landlord rental business, 50% owner of Schwebach Financial – a d/b/a company. In addition, Schwebach has disclosed he is a radio DJ for Backyard Broadcasting, 50% owner of Dells Mini Storage, 20% owner of Schwebach Family Partnership, and instructor for a retirement course, board member of Planning Life, and a radio DJ ofr Midwest Communications, among other disclosures.

Advisor Jason McBride Has Customer Complaints Over REIT Investments

November 13, 2018 | by Staff Attorney

Presidential Brokerage, Inc. (Presidential Brokerage) advisor Jason McBride (McBride) has been subject to at least five customer complaints. According to a BrokerCheck report many 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 May 2018 a client alleged that McBride made unsuitable investments, breached his fiduciary duty, was negligent, and made misrepresentations in the purchase of two REITs and a limited partnership between February 2006 and august 2008. The complaint claims $251,317 in damages and is currently pending.

Our firm often handles cases involving direct participation products, Non-Traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These products are almost always unsuitable for investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments which provides a perverse incentives by brokers to create an artificial market for products that no honest advisor would sell.