Securities Lawyers Blog

Wells Fargo Terminates Robert Meyers for Recommending Private Investments

July 6, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP have been investigating previously registered broker Robert Meyers (Meyers).

According to the Financial Industry Regulation Authority (FINRA) BrokerCheck records, in October 2017, Meyers was terminated from Wells Fargo Clearing Services LLC (Wells Fargo) for recommending investments to customers that he did not notify the firm about.

In addition, Meyers has been subject to eight customer disputes. In August 2005, a customer alleged that Meyers failed to follow the customer’s instructions regarding the investment. The customer requested $1,000,000 in damages.

James Flynn Subject to at Least 10 Customer Complaints Over Alternative Investments

July 5, 2018 | by Staff Attorney

Former IFS Securities, Inc. (IFS) and Voya Financial Advisors, Inc. (Voya) broker James Flynn (Flynn) has been subject to at least ten customer complaints, two employment terminations for cause, three tax or civil judgment liens, and one bankruptcy proceeding. 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). The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In February 2017 Voya discharged Flynn accusing the broker of providing misleading information to the firm during a complaint investigation. Despite numerous customer complaints and financial troubles IFS hired Flynn anyway only to also discharge him a year later in February 2018. IFS claims that Flynn was terminated because he executed unauthorized trades.

In addition, Flynn was subject to large tax liens totaling hundreds of thousands of dollars. In April 2005 Flynn disclosed a tax lien of over $256,000. Thereafter, Flynn declared bankruptcy in April 2013. 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.

Larry Boggs Barred by FINRA from Industry for Executing Unauthorized Trades

July 5, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), in January 2018, advisor Larry Boggs (Boggs) was barred indefinitely from the financial industry by FINRA concerning allegations that he engaged in unsuitable investments, excessive trading and unauthorized transactions. According to FINRA, Boggs exercised discretion in customer accounts without written approval from customers or the firm. Boggs would also allegedly falsely state the investment objectives and risk tolerance of customers in the firm’s books so that customers would conform to his high-frequency trading strategy.

FINRA found that in June 2010, Boggs updated the risk tolerance in 4 investment portfolios from Moderate to Moderate/Aggressive, and changed 2 investment portfolio objectives to Aggressive. FINRA determined that the high-frequency trading strategy was unsuitable to his customer’s needs and did not match the customer’s investment portfolio objectives. By changing Ameriprise’s books and records, Boggs violated FINRA Rules 4511 and 2010.

In addition, in May 2015, Boggs’ employer, Ameriprise Financial Services, Inc. (Ameriprise Financial) discharged Boggs alleging that Boggs violated the company’s discretionary trading and suitability policies.

Frank Dietrich Terminated Over Sale of Fraudulent Woodbridge Mortgage Investments

July 5, 2018 | 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) Frank Dietrich (Dietrich) appears to be an agent for Woodbridge fraudulent note sales. Dietrich was formerly associated with Quest Capital Strategies, Inc. (Quest Capital) out of the firm’s Lake Forest, California office location. At least seven customers have accused Dietrich of selling them the fraudulent Woodbridge investment. In addition, Qeust Capital terminated Dietrich in March 2018 for failing to disclose his involvement with Woodbridge.

Charles Stevens Subject to Multiple Customer Complaints Over Alternative Investments

July 4, 2018 | by Staff Attorney

Current D.H. Hill Securities, LLLP (D.H. Hill) broker Charles Stevens (Stevens) has been subject to four customer complaints and five tax liens. According to a BrokerCheck report many of the complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs). The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In addition, Stevens is subject to massive tax liens totaling hundreds of thousands of dollars. In March 2017 Stevens disclosed a tax lien of over $202,000. 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.

In March 2018 a customer filed a complaint alleging unsuitable recommendations, breach of fiduciary duty, negligence, failure to supervise and breach of contract during period of 2012 to 2017. The client alleged $150,000 in damages and the claim is currently pending.

Matthew Paolucci Subject to Multiple Customer Complaints Alleging Unsuitable Investments

July 4, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against CUNA Brokerage Services, Inc. (CUNA Brokerage) broker Matthew Paolucci (Paolucci). According to BrokerCheck records, Paolucci has been subject to three customer complaints, one of which is still pending. The majority of these complaints concern recommendations of unsuitable investments.

Most recently, in September 2017, a customer alleged that from 2008 to 2015, Paolucci recommended unsuitable investments from a wide range of securities. The customer has requested $200,000 in damages. This dispute is currently still pending.

In July 2016, a customer alleged that in 2012, Paolucci recommended unsuitable recommendations in oil and gas securities. The customer requested $18,829.27 in damages.

James and Lorraine Conaway Accused of Selling Unapproved Tycon Properties to Investors

July 4, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor James and Lorraine Conaway (Conaway), formerly associated with USA Financial Securities Corporation (USA Financial) in Tustin, California was terminated by his firm concerning allegations of failure to comply with firm advertising and outside business activity (OBA) procedures, participating in financial transactions with securities clients, and failure to fully cooperate with a firm investigation.

In May 2018 FINRA sanctioned the Conaways and provided more details in their private securities transactions. FINRA alleged that Conaway failed to timely and completely disclose the scope of his real estate related outside business activities in referring clients to Tycon Properties among other business relationships. FINRA found that the Conaways established Tycon Properties to refer clients to investments in rental real estate properties. FINRA found that Conaway began a business relationship with a vendor of distressed rental properties in St. Louis, Missouri which was controlled by an individual who had pleaded guilty to unrelated federal charges for submitting false loan applications to banks and sentenced to 15 months imprisonment. FINRA determined that Conaway’s company received over $450,000 in referral fees from the individual’s vendor company and referred more than 35 investors who contracted to purchase one or more rental properties.

At this time it is unclear the extent of Conaways outside business activities or private securities transactions. However, Conaway disclosed a number of outside business activities including that he operates his securities business through a d/b/a C&C Wealth Advisory Group. Other OBAs include Lorcon Inc., Brancor Properties, LLC, and American Family Life Assurance Company of Columbus.

Broker George Oldoerp Sanctioned for Obstructing FINRA Investigation

July 3, 2018 | by Staff Attorney

The investment lawyers of Gana Weinstein LLP are investigating the regulatory action brought by the Financial Industry Regulatory Authority (FINRA) against George Oldoerp (Oldoerp). According to BrokerCheck records, Oldoerp was suspended by FINRA in May 2018. In addition, Oldoerp has been subject to one pending customer complaint and a tax lien.

In November 2017, a customer alleged that from August 2003 to November 2017, Oldoerp recommended the customer to invest in illiquid securities in oil and gas, equipment leasing, Business Development Companies(BDCs), and non-traded Real Estate Investment Trusts (REITs), which were unsuitable investments for the customer. The customer is requesting $500,000 in damages. This complaint is currently still pending.

In April 2018, Oldoerp refused to respond to information requested by FINRA regarding the pending customer dispute. Thus, Oldoerp is undergoing suspension indefinitely until he requests termination of the suspension. If he does not respond by July 16 to FINRA’s Notice of Suspension, he will automatically be barred from the industry.

Aaron Brodt Subject to Multiple Customer Complaints Alleging Breach of Fiduciary Duty

July 3, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating Peachcap Securities, Inc. (Peachcap Securities) broker Aaron Brodt (Brodt). According to BrokerCheck Records kept by The Financial Industry Regulatory Authority (FINRA), Brodt has been subject to four customer complaints alleging breach of fiduciary duty and unsuitable investment recommendations. One of these disputes is currently still pending. In addition, Brodt has also been subject to one financial action.

Most recently, in May 2017, a customer alleges that from 2014 to 2015, Brodt breached his fiduciary duty and was grossly negligent in his recommendation of 4 investments that he placed the customer in.

In April 2016, a customer alleged that from May 2015 to October 2015, Brodt recommended unsuitable investments to the customer. The case was settled at $116,667.

Laidlaw & Company Advisor Osbert Haynes Subject to Complaints and Tax Liens

July 2, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Osbert Haynes (Haynes), currently employed by Laidlaw & Company (UK) Ltd. (Laidlaw), has been subject to two customer complaints, one regulatory action, and six tax liens or judgments. Most of a Haynes’ customer complaints allege that Haynes made unsuitable recommendations.

In addition, Haynes is subject to large tax liens and civil judgments totaling tens of thousands of dollars. In September 2014 Haynes disclosed a civil judgment of over $19,000. The fact that a broker cannot manage his own personal finances is material information for a client to consider. In addition, an advisor with poor personal finances may be incentivized to sell unsuitable or high commission products that may be recommended to generate high profits for the advisor at the expense of the client.

In August 2017 a customer made allegations unsuitable recommendations and unauthorized trading from 2011 to 2012. The claim alleged $163,886 in damages and is currently pending.