Chelsea Financial

Advisor Charles Bloom Barred by Regulator Over Unsuitable Trading

December 4, 2018 | by Staff Attorney

According to BrokerCheck records former financial advisor Charles Bloom (Bloom), formerly employed by Chelsea Financial Services (Chelsea Financial) has been subject to at least two customer complaints. In addition, Bloom has been subject to three regulatory actions, one employment termination for cause, and two financial disclosures including a bankruptcy filing. According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Bloom concern allegations of unsuitable investments.

In July 2018 Bloom consented to a FINRA sanction and findings that he refused to appear for testimony in connection with an investigation into allegations that Bloom engaged in an unsuitable pattern of trading in at least three customer accounts. Bloom accepted a bar from the securities industry.

In November 2017 a customer filed a complaint alleging that Bloom engaged in unsuitable recommendations and made misrepresentation with regard to a REIT purchase. The customer alleged $99,326 and the claim is currently pending.

FINRA suspends Chelsea Financial Broker George Warner for Filing Inaccurate Client Records

September 4, 2018 | by Staff Attorney

The investment fraud attorneys at Gana Weinstein LLP are currently investigating Chelsea Financial Services (Chelsea Financial) broker George Warner (Warner). According to BrokerCheck Records, Warner has been subject to a regulatory matter in which the Financial Industry Regulatory Authority (FINRA) sanctioned Warner for the violation of the securities laws. In addition, Warner has been subject to termination from two firms of employment and a customer complaint.

In November 2014, Warner was permitted to resign from NFP Advisor Services for changing customer documents and information after the clients had signed the documents. In June 2013, Warner was discharged from LPL Financial LLC for getting customer signatures on account transfer forms that were blank.

Subsequently, in April 2017, FINRA found that Warner altered customer documents without customer knowledge or permission on over five occasions in which he included customer liquidity needs, net worth, annual income, alternative investment forms, and an IRA application. By altering the firm’s documents, Warner impeded on the firm’s ability to maintain accurate records. Without admitting or denying the findings, Warner consented to the sanctions and to the entry of findings. Consequently, FINRA imposed a $5,000 fine and 30 day suspension.

In addition, Warner has been subject to a customer dispute. In August 2009. a customer alleged that Warner purchased CIT bonds instead of CITI Corp bonds. The case was settled at $225,000.

FINRA Files Complaint Against Chris Fulco Over US Coal Corporation Transactions

March 15, 2015 | by Staff Attorney

The Financial Industry Regulatory Authority (FINRA) recently filed a complaint against broker Chris Fulco (Fulco) concerning allegations that Fulco facilitated the sale of stock in US Coal Corporation, Inc. (US Coal), in numerous private securities transactions away from his firm, aslo known as “selling away” in the industry. FINRA alleged that Fulco received significant compensation for facilitating these transactions in the amount of $601,159. In addition, FINRA alleged that Fulco lied to FINRA about his involvement in these transactions by providing false sworn testimony that many of the wire transfers he received were not related to sales of US Coal shares but rather were payments for his role in transactions involving gold. Further, FINRA alleged that Fulco tried to encourage the primary seller of US Coal securities in the transactions, known by the initials “LF”, not to appear for his scheduled testimony or to testify falsely about the transactions in order to corroborate Fulco’s own false testimony. Finally, FINRA alleged that Fulco failed to timely disclose to FINRA a lien and civil judgment entered against him.

Fulco entered the securities industry in 1999. From June 2007 to June 2010, Fulco was registered with vFinance Investments, Inc. (vFinance). From July 2010 to February 2011, he was registered with Charles Morgan Securities, Inc. (Charles Morgan). Thereafter, from March 2011 to December 2011, he was registered with Caldwell International Securities, Inc. (Caldwell International). Finally, Fulco was registered with Chelsea Financial Services until November 8, 2013.

According to FINRA, in or around August 2009, LF engaged vFinance and another individual referred to as “PCA”, to help sell his shares in US Coal, a non-public company that produces coal in Appalachia. LF acquired US Coal shares through various entities in or around 2006 after helping found the company. In or around September 2009, FINRA alleged that vFinance approved Fulco facilitation of the sale of 300,000 shares of LF’s US Coal stock to a customer referred to by the initials “MM”, a vFinance customer.