Securities Lawyers Blog

ARO Equity and Thomas Renison Investor Recovery Options

June 24, 2018 | by Staff Attorney

The law offices of Gana Weinstein LLP are investigating the Massachusetts Securities Division’s enforcement action and administrative complaint against ARO Equity, LLC (ARO Equity), Thomas David Renison (Renison), and Timothy James Allcott (Allcott). The complaint alleges that ARO Equity is Ponzi-scheme. This is not Renison’s first securities offense. In 2014, the Securities and Exchange Commission (SEC) issued an order permanently barring Renison from the securities industry. The SEC’s order was the result of Renison’s role in a 2008 scheme to defraud one of his former advisory clients through the sale of a promissory note. A year after the SEC issued its permanent bar, Renison established ARO Equity which is a self-described “private investment fund” claiming to invest in various business ventures throughout Massachusetts and New England.

The state of Massachusetts has claimed that Allcott was the manager of ARO Equity and together with Renison took $5.8 million of investor funds since August 2015. The complaint alleges that these funds were raised through the sale of unsecured promissory notes promising 8-12% annual returns over three to five-year terms. The complaint alleges that investors made significant investments from their retirement accounts by transferring qualified retirement assets to a self-directed IRA to invest in ARO Equity.

The state of Massachusetts alleges that ARO Equity and its members made material misstatements or omissions of material fact to investors in the sale of its securities. ARO Equity is alleged to have failed to inform note holders of Renison’s criminal and disciplinary history. Further, it was alleged that ARO Equity assured investors that their money is generally safe or somehow guaranteed but have failed to truthfully inform investors of the fund’s past or present performance. Critically, the complaint alleges that ARO Equity principals have received undisclosed and excessive commission payments and executive compensation for soliciting investments and bears the hallmarks of a Ponzi scheme.

Defrauded Investors: SEC Accused First Nationle Solution, United RL Capital, and Percipience Global of Being a $102 million Ponzi Scheme

June 23, 2018 | by Staff Attorney

The law offices of Gana Weinstein LLP are investigating the Securities and Exchange Commission’s (SEC) charges and asset freeze against several individuals and companies behind what the agency calls a $102 million Ponzi scheme that defrauded investors throughout the country. According to the SEC’s complaint, the defendants misled 600 investors through sales of securities in issuers First Nationle Solution LLC (First Nationle), United RL Capital Services (United RL), and Percipience Global Corp. (Percipience Global). The so-called advisors involved charged by the SEC include Perry Santillo, Christopher Parris, Paul LaRocco, John Piccarreto, and Thomas Brenner (the Advisors).

The SEC alleged that investors were solicited by the Advisors after they had acquired the brokerage practices from retiring investment advisors or through a sale of their business. After the business was acquired investors were told that their funds would be invested in companies with guaranteed dividends returns. However, the SEC alleges that the defendants stole $20 million of investor funds, paid $38.5 million in Ponzi payments to other investors, and transferred the remainder in transactions that the SEC believes was unrelated to the companies’ claimed businesses.

The SEC provides an example of the Advisors use of stolen investor funds. The SEC alleges that Santillo used stolen money to fund a jet-setting lifestyle including paying for housing in multiple states, car leases, expenditures at a country club and a Las Vegas resort and casino. The SEC alleged that Santillo at a nightclub in Las Vegas commissioned a song about himself where the lyrics refer to (Perry) Santillo as “King Perry.” The song also allegedly contained lyrics concerning Santillo’s lifestyle with his stolen funds as: “pop the champagne in L.A., New York to Florida; buy another bottle just to spray it all over ya.”

Dennis Travis Subject to Customer Disputes Over Unsuitable Variable Annuity Practices

June 22, 2018 | by Staff Attorney

Securities attorneys at Gana Weinstein LLP are investigating The O.N. Equity Sales Company (O.N. Equity Sales) broker Dennis Travis (Travis). According to BrokerCheck records, Travis has been subject to 6 customer disputes, one of which is still pending. The majority of these customer disputes involve the unsuitable recommendations of variable annuities. In addition, Travis has been subject to a regulatory action by The Financial Industry Regulatory Authority (FINRA) in which FINRA sanctioned Travis for various violations of the securities laws.

In November 2017, a customer alleged that Travis placed customer into a variable universal life (VUL) insurance policy that was unsuitable to customer investment needs. The customer has alleged $57,643.65 in damages. This dispute is currently still pending.

In addition, in November 2011, FINRA found that Travis placed discretionary trades in the subaccounts of his customers’ variable annuities without the written authorization or knowledge of his customers or his member firm. Travis did this in an attempt to “balance” the allocation of investments. Without admitting or denying the findings, Travis consented to the described sanctions and entry findings. He was fined $5,000 and suspended on December 2011 for 10 days.

Justin Vaccaro Subject to Multiple Customer Disputes for Alleged Committed Fraud

June 22, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against J.W. Cole Financial, Inc. (J.W. Cole Financial) broker Justin Vaccaro (Vaccaro). According to BrokerCheck records, Vaccaro has been subject to three customer complaints, one of which is still pending.

In September 2017, a customer alleged that Vaccaro engaged in Breach of Fiduciary duty, unsuitable investments, fraudulent misrepresentations, and failure to supervise. The case settled at $70,000.

In September 2017, a customer alleged that Vaccaro had advised for unsuitable investments, violated the Oregon Securities Law, breached fiduciary duty, and committed fraud and deceit. The client has requested $195,000 in damages. This dispute is still pending.

Broker Jeffrey Mcaleney Subject to 10 Customer Disputes Over Unsuitable Investments

June 22, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP have been investigating J.P. Morgan Securities LLC (J.P. Morgan) broker Jeffrey Mcaleney (Mcaleney). According to BrokerCheck Records, Mcaleney has been subject to 10 customer disputes, the majority of which concern unsuitable equity, preferred stock, funds, and limited partnership investments.

In October 2017, a customer alleged that from 2007 to 2016, Mcaleney recommended investments that were unsuitable because they were contrary to the customer’s stated goals. The customer requested $313,909.22 in damages.

In October 2017 another customer similarly alleged that from 2014 to 2016, Mcaleney was recommending unsuitable investments that didn’t align with the customer’s needs and goals.

Cormac Maughan Subject of Pending Customer Complaint Alleging Unsuitable Bond Investments

June 20, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP have been investigating The GMS Group, LLC (GMS Group) broker Cormac Maughan (Maughan). According to BrokerCheck records, Maughan has been subject to 2 customer disputes involving unsuitable recommendations of municipal bonds, one of which is still pending. Maughan has also been subject to two regulatory actions in which New York Stock Exchange (NYSE) sanctioned Maughan for various violations of the securities laws, including unauthorized trading and unsuitable investments.

In November 2017, a customer alleged that from January 2009 through to November 2015, Maughan recommended Puerto Rico municipal bonds which were unsuitable to the customer’s investment needs and that Maughan breached his fiduciary duty to the client. This dispute is still pending.

In addition, in May 2004, the NYSE found that Maughan engaged in unauthorized trading by exercising discretionary power with oral but not with written authorization from customer or member firm. The NYSE also found that Maughan also engaged in unsuitable investments that were inconsistent and excessive for his customer in terms of the customer’s age, investment objectives, and financial circumstances. This violation of NYSE rules 408(a) and 3529c) resulted in a one month suspension for Maughan.

Patrick McNamara Subject to Multiple Customer Complaints for Unsuitable Investments

June 18, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) broker Patrick McNamara (McNamara). According to BrokerCheck records, McNamara has been subject to seven customer complaints. The majority of these complaints concern unsuitable investment recommendations and misrepresentation of material facts.

In August 2017, a customer alleged that from September 2011 to July 2017, McNamara misrepresented the nature of investments to customers. The case was settled at $16,063.98.

In August 2015, a customer alleged that from July 2014 to January 2015, McNamara provided unsuitable investment recommendations. The case was settled at $8,438.00.

Michael Mathias Subject to One Pending Customer Complaint Alleging Unsuitable Investments

June 18, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are investigating claims against Summit Brokerage Services (Summit Brokerage) broker Michael Mathias (Mathias). According to BrokerCheck records, Mathias has been subject to twenty customer complaints, two of which are still pending. The majority of the complaints concern the unsuitable recommendation of variable annuities.

Most recently, in August 2017, a customer alleged that Mathias recommended unsuitable investments to customers, requesting $433,687 in damages. This dispute is currently still pending.

In 2001, a customer alleged that Mathias did not reimburse client for deferred sales charges. The customer further alleges that the annuity investment recommended was not suitable for him.The client is requesting $10,000 in damages. This dispute is currently still pending.

Alvery Bartlett Subject to Multiple Customer Complaints Over Alternative Investments

June 16, 2018 | by Staff Attorney

Current Arete Wealth Management, LLC (Arete Wealth) broker Alvery Bartlett (Bartlett) has been subject to three customer complaints. According to a BrokerCheck report many of the complaints concern alternative investments, private placements, and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs) and oil and gas programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In March 2018 a customer filed a complaint alleging that the investments purchased between 2003 and 2011 were unsuitable and were misrepresented to him. The client also alleged that the firm failed to conduct adequate due diligence on the investments and failed to supervise the representative. The claim is currently pending and alleges damages of $6,637,918.

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.

Ameriprise Financial Advisor Anthony Salerno Alleged to Have Recommended Unsuitable Securities

June 16, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Anthony Salerno (Salerno), employed by Ameriprise Financial Services, Inc. (Ameriprise), has been subject to three customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA) Salerno has been accused by a customers of unsuitable investment advice concerning various investment products including energy stocks including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

The most recent claim was filed in March 2018 and alleges unsuitable recommendations of municipal bonds in the period of 2013 to December 2017. The customer claimed $300,000 in damages and the claim is currently pending.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.