Securities Lawyers Blog

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.

GPB Capital Investor Recovery Options

June 27, 2018 | by Staff Attorney

The law offices of Gana Weinstein LLP are investigating GPB Capital Holdings (GPB Capital) and its dispute with a former business partner Patrick Dibre (Dibre) who allegedly reneged on the sale to GPB Capital of certain auto dealerships causing the fund to lose $40 million according to GPB’s complaint. The complaint alleged that between December 2013 and April 2015 GPB Capital advanced Dibre $42 million for auto dealerships he then failed to deliver. The lawsuit claims that Dibre failed to provide required notices to start the sales process of five dealerships.

Dibre owned auto dealerships in the New York area and purportedly held himself out to the GPB Capital as the person who could build out GPB Capital’s auto dealership business. Instead of that happening, the complaint alleges that Dibre informed automobile manufacturers that they should withhold their approval of GPB Capital owning and operating dealers because of claimed malfeasance. However, GPB Capital alleges that Dibre is negotiating for the sale of the same dealerships to an investment fund.

At this time it unclear the ultimate financial impact this failed transaction will have on GPB Capital Holding’s funds which include:

Michael Resciniti Suspended by FINRA for Executing Unauthorized Transactions

June 25, 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 Michael Resciniti (Resciniti). According to BrokerCheck records, Resciniti was suspended by FINRA in December 2017 for seven months. In addition, Resciniti has been subject to five customer disputes and three regulatory orders. Three of the customer disputes are still pending. Many of the claims allege churning and unauthorized trading.

In November 2017, FINRA found that Resciniti executed 31 unauthorized transactions in two of his customer’s accounts. The duration of his suspension is 7 months.

In addition, in February 2016, Resciniti resolved a bankruptcy filing and has a tax lien of over $115,000. Bankruptcies and large tax liens are a potential sign that the advisor has difficulty managing their own finances. FINRA provides this information to the public because it is material for consumers to know whether or not their advisor’s financial situation influences the advisor’s recommendations.

Jorey Bernstein Subject to a Pending Customer Complaint Alleging $3,000,000 in Damages

June 25, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Western International Securities, Inc. (Western International) broker Jorey Bernstein (Bernstein). According to BrokerCheck records, Bernstein has been subject to one pending customer complaint regarding excessive trading.

In August 2018, a customer alleged that from 2009 to 2014, Bernstein excessively traded their account. The customer requested damaged of $3,000,000. This dispute is currently still pending.

In addition, Bernstein has been subject to resignation from Morgan Stanley in 2015 due to customer allegations regarding Bernstein’s illegal interactions and outside business activities with a third-party. A broker’s outside business activities with a third-party can create a conflict of interest with the firm. Therefore, firms are required to monitor such activities through supervision that is in compliance with securities laws and regulations.

David Ferwerda and Sandra Ferwerda Accused of Selling Woodbridge Mortgage Fraudulent Investments

June 25, 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 public filings two of Woodbridge’s agents appears to be David and Sandra Ferwerda (Ferwerda). David Ferwerda was formerly associated with Signator Investors, Inc. (Signator Investors) out of the firm’s Grand Rapids, Michigan office location. In March 2018 Ferwerda was terminated from Signator Investors for involvement in the sale of unapproved outside investments in violation of firm policy.

Federal securities laws and the FINRA rules require firms to monitor and supervise its employees, like Ferwerda, 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.

Is Hector May Your Financial Advisor? – Investor Recovery Options

June 24, 2018 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Hector May (May), formerly associated with Securities America, Inc. (Securities America) in New York, New York is under criminal investigation by the U.S. Department of Justice (DOJ) for investment fraud. At the same time, May was terminated by Securities America on concerns that the advisor misappropriated client assets.

Investors who have come forward concerning May’s fraud claim that he sold what now appear to be fake tax-free corporate bonds. It is doubtful that these investments ever existed. Instead, the allegations claim that May most likely pocketed client funds and paid other clients funds with the proceeds from other investors – a classic Ponzi-scheme. As with all Ponzi schemes this one collapsed when May could not make promised payments.

It appears that May conducted his alleged scheme through a disclosed outside business activity called Executive Compensation Planners, Inc. May may have used this company to handle client investments and distribute fake returns to investors. Outside business activities such as Executive Compensation Planners should have caused concern at May’s brokerage firm because these separate corporate entities are frequently used by unscrupulous advisors to conceal and commit frauds. According to news sources, Executive Compensation Planners’ website in 2016 stated the firm was registered to sell securities and insurance but has since been taken down. Further, May disclosed to clients in a brochure from Executive Compensation Planners that the firm handled more than $18 million in assets.

Sean Brady Barred By FINRA Over Complaints Concerning Alternative Investment Sales Practices

June 24, 2018 | by Staff Attorney

Former First Allied Securities, Inc. (First Allied) broker Sean Brady (Brady) has been subject to at least six customer complaints, one employment termination for cause, and one regulatory action resulting in a bar from the industry. 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 October 2017 First Allied terminated Brady on allegations that he violated the firm’s policies pertaining to client falsification of signature on documents, text messaging, and consolidated account reports. Thereafter, Brady was subject to a FINRA investigation concerning his sales practices. FINRA found that Brady failed to provide the regulator with information and documents requested resulting in a automatic industry bar.

The most recent customer complaint alleges Brady misrepresented her net worth, made an unsuitable recommendation, and made misrepresentations and omissions with respect to her investment from 2017 causing $265,000. The claim is currently pending.