Securities Lawyers Blog

Gerald Repasz Subject to Customer Disputes Alleging Unsuitable Alternative Investments

July 1, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP are currently investigating Ausdal Financial Partners, Inc. (Ausdal Financial) broker Gerald Repasz (Repasz). According to BrokerCheck records, Repasz has been subject to 5 customer disputes, one of which still pending. The majority of these investments concern the unsuitable recommendation of alternative investments.

Most recently, in October 2017, a customer alleged that Repasz placed customers into UDF III, UDF IV, and Behringer Harvard REIT investments which were unsuitable to the customer’s investment objectives. The customer is requesting $62,000 in damages. This dispute is currently still pending.

In September 2016, a customer alleged that from 2005 to 2010, Repasz placed the customer in alternative investments that were unsuitable for the customer and misrepresented the material facts of the investments. The dispute was settled at $20,000.

Stephen Williams Subject to Multiple Customer Disputes over REITs and Alternative Investments

June 30, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Next Financial Group Inc. (Next Financial) broker Stephen Williams (Williams). According to BrokerCheck records, Williams has been subject to six customer complaints, one of which is still pending. The majority of these claims involve the misrepresentation of Real Estate Investment Trusts (REITs).

Most recently, in February 2018, a customer alleged that Williams misrepresented the nature of various non-traded REITs and didn’t properly disclose the high risk associated with private investments. The customer has requested damages of $350,000. This dispute is currently still pending.

In February 2018, a customer alleged that Williams recommended the customer to invest $50,000 in United Development Funding III (UDF lll) while misrepresenting and failing to disclose UDF III’s highly risky and illiquid nature. The customer requested $50,000 for damages.

David Watkins Subject to Pending Customer Complaint Alleging $5,000,000 in Damages

June 30, 2018 | by Staff Attorney

Securities attorneys at Gana Weinstein LLP are investigating UBS Financial Services Inc. (UBS Financial) broker David Watkins (Watkins). According to BrokerCheck records, Watkins has been subject to two customer disputes, one of which is still pending. In addition, Watkins has been subject to two tax liens. The majority of these disputes concern unsuitable recommendations in bonds, stocks, and exchange-traded funds (ETFs).

In August 2017, a customer alleges that from May 2013 to October 2016, Watkins recommended for the customer to buy fixed-income securities and ETFs which were unsuitable to the customers investment needs. The customer has requested $5,000,000 in damages. This dispute is currently still pending.

In September 2015, a customer alleged that from January 2011 to August 2015, Watkins placed the customer in bonds that were unsuitable to the customer and not rated AA or higher as the customer had approved. The case settled for $60,000.

Gary Forrest Sanctioned Over Sale of Fraudulent Woodbridge Mortgage Investments

June 30, 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) Gary Forrest (Forrest) appears to be an agent for Woodbridge fraudulent note sales. Forrest was formerly associated with American Portfolios Financial Services, Inc. (American Portfolios) out of the firm’s Flint, Michigan office location. Thereafter, the State of Michigan Sanctioned Forrest finding that Forrest offered or sold twelve Woodbridge securities in the State of Michigan which were not federally covered, exempt from registration, or registered, in violation of the securities laws.

Federal securities laws and the FINRA rules require firms to monitor and supervise its employees, like Forrest, in order to detect and prevent brokers from offering investments in this fashion. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction with the public. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including recommending fraudulent investments.

Mitchell Walk Subject to Multiple Customer Complaints for Unsuitable Investments

June 28, 2018 | by Staff Attorney

Securities attorneys from Gana Weinstein LLP are investigating Kestra Investment Services, LLC (Kestra Investment Services) broker Mitchell Walk (Walk).

According to BrokerCheck records, Walk has been subject to 5 customer complaints, 2 of which are still pending. The majority of these complaints regard unsuitable investment recommendations.

In August 2017, a customer alleged that Walk made unsuitable investment recommendations to the customer and that Kestra Investment Services failed to properly supervise this activity. The client has requested $72,000 in damages. This dispute is currently still pending.

Dee Dee Brooks Resigns During Woodbridge Mortgage Fraud Investigation

June 28, 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.

One of Woodbridge’s agents appears to be Dee Dee Brooks (Brooks) formerly associated with Signator Investors, Inc. (Signator Investors). In June 2018 Brooks resigned from Signator Investors while under investigation concerning her involvement with the sale of unregistered securities. Brooks also operated an insurance company called Surf City Insurance Services, Inc. (Surf City) which may have been used by Brooks to conceal investments. Federal securities laws and the FINRA rules require firms to monitor and supervise its employees, like Brooks, in order to detect and prevent brokers from offering investments in this fashion. In order to properly supervise their brokers each firm is required to have procedures in order to monitor the activities of each advisor’s activities and interaction with the public. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including recommending fraudulent investments.

The signs that the Woodbridge Funds was a giant fraud debacle ware all apparent. Woodbridge and its agents have been sanctioned by multiple state regulators for offering unregistered securities. Going back to May 2015, the Massachusetts Securities Division imposed a bar on the Woodbridge Mortgage Investment Funds and ordered the companies to permanently cease and desist from selling unregistered or non-exempt securities in the Commonwealth of Massachusetts.

Thomas Curtis Subject to Unsuitable Investment Complaint Alleging Over $4,000,000 in Losses

June 28, 2018 | by Staff Attorney

Investment fraud attorneys at Gana Weinstein LLP have been investigating Dawson James Securities, Inc. (Dawson James Securities) broker Thomas Curtis (Curtis). According to BrokerCheck Records, Curtis has been subject to 6 customer disputes, one of which is still pending. The majority of these disputes involve unsuitable investment recommendations and the false representation of investments.

In August 2017, a customer alleged that Curtis misrepresented the nature of securities and provided unsuitable investment recommendations to the customer. The customer is requesting $4,952,610 in damages. This dispute is currently still pending.

In October 2015, a customer alleged that from October 2014 to September 2015, Curtis misrepresented the material facts of the investments recommended. The customer has requested $100,000 for damages.

FMSBonds Advisor Zachary Feinsilver Alleged to Have Recommended Unsuitable Puerto Rico Municipal Bonds

June 27, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Zachary Feinsilver (Feinsilver), employed by FMSBonds, Inc. (FMSBonds), has been subject to three customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA) Feinsilver has been accused by a customers of unsuitable investment advice concerning recommendations to invest in Puerto Rico bonds. Puerto Rico has been devastated by a $70 billion debt it cannot pay in addition to extensive hurricane damage. However, according to news reports, the process to resolve Puerto Rico’s debts could take years. In fact, it has taken more than two years of debate with Puerto Rico’s government, creditors, and federal lawmakers just to get to this point.

In February 2018 a client complained that certain aspects of bonds were misrepresented by Feinsilver. The complaint was closed.

In December 2017 another customer complained that Feinsilver made unsuitable investments in Puerto Rico bonds claiming $100,000 in damages. The claim was settled for $50,000.

Jason Zwibel Subject to Pending Customer Complaint for Alleging Over $2.5 Million in Damages

June 27, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating Garden State Securities, Inc. (Garden State) broker Jason Zwibel (Zwibel). According to BrokerCheck records, Zwibel has been subject to 4 customer complaints, one of which is still pending.

In November 2017, a customer alleged that Zwibel engaged in unsuitable investments and breach of fiduciary duty from 2013 to 2016. The customer is requesting $2,670,750 in damages. This complaint is still pending.

In June 2007, a customer alleged that Zwiber engaged in breach of fiduciary duty, misrepresentation of investments, and failure to supervise. The case settled at $50,000.

Thomas Logue Subject to Multiple Pending Complaints for Unsuitable Investments

June 27, 2018 | by Staff Attorney

The investment attorneys at Gana Weinstein LLP have been investigating previously registered broker Thomas Logue (Logue). According to BrokerCheck Records, Logue has been subject to 5 customer complaints concerning misrepresentation and unsuitable investment recommendations, two of which are still pending. In addition, Logue has been subject to a financial regulation.

In February 2018, a customer alleged that Logue misrepresented the material facts about an investment and that this investment recommendation was unsuitable. The customer has requested $188,025.76 in damages. This dispute is currently still pending.

In December 2017, a customer alleged Logue made unsuitable transactions and is requesting them to be rescinded. The customer has requested $127,520.30 in damages. This dispute is currently still pending.