investment advisor fraud attorney Tag Archives

Advisor Stuart Pearl Sanctioned By Regulatory and Subject to Customer Complaints

April 8, 2021 | by Staff Attorney

According to BrokerCheck records financial advisor Stuart Pearl (Pearl), currently employed by International Assets Investment Management, LLC (International Assets) and formerly employed by David A. Noyes & Company (David A. Noyes) has been subject to five customer complaints, two terminations for cause, and one regulatory action during his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Pearl concern allegations of unsuitable investments, unauthorized trading, and margin trading among other causes of action.

In June 2015 Pearl was terminated by Ameriprise Financial Services, Inc. (Ameriprise Financial) for violation of company policy related to use of discretion in non-discretionary accounts and complying with supervision.

In October 2017 FINRA sanctioned Pearl finding that Pearl consented to the sanctions and findings that he effected securities transactions in a customer’s account on several occasions on a discretionary basis without prior written authorization from the customer and without prior written acceptance of the account as discretionary from his member firm. FINRA also found that Pearl made unsuitable recommendations in two other customers’ joint brokerage account when he recommended the customers use margin to effect several trades. According to FINRA, the recommendations made by Pearl to purchase securities on margin were unsuitable in light of the customers’ investment objectives, risk tolerances, and their financial situation and needs. FINRA found that these purchases caused the account to be subject to seven margin calls during the relevant period.

In March 2019 David A. Noyes permitted Pearl to resign stating that Stuart Pearl resigned while on heightened supervision. The firm claims that Pearl had not followed his heightened supervision plan and would have been terminated had he not resigned.

Broker Eladio Santiago Subject to Customer Complaints Over Investment Recommendations

May 29, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Eladio Santiago (Santiago), currently employed by Cambridge Investment Research, Inc. (Cambridge Investment) has been subject to at least three customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Santiago’s customer complaints alleges that Santiago recommended unsuitable investments and account mismanagement among other allegations of misconduct relating to the handling of their accounts.

In February 2020 a customer complained that Santiago violated the securities laws by alleging that from 2014 through the present the broker made unsuitable investments and engaged in mismanagement with respect to recommendations and handling of accounts. The claim is currently pending.

In August 2019 a customer complained that Santiago violated the securities laws by alleging that from November 2012 through October 2018 the broker made unsuitable investments and engaged in mismanagement with respect to recommendations and handling of accounts. The claim is currently pending and alleges $350,000 in damages.

Independent Financial Advisor Morgan Arford Has Customer Complaints

February 18, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Morgan Arford (Arford), currently employed by Independent Financial Group, LLC (Independent Financial) has been subject to at least four customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Arford’s customer complaints alleges that Arford recommended unsuitable investments among other allegations of misconduct relating to the handling of their accounts.

In September 2016 a customer complained that Arford violated the securities laws by alleging that Arford in mid-2012 participated in the sale of unapproved and unsuitable investments in oil and gas and a penny stock. The claim alleged $140,760 in damages and settled for $95,000.

In August 2016 a customer complained that Arford violated the securities laws by alleging that Arford in 2012 and 2013 participated in the sale of unapproved and unsuitable investments in oil and gas and a penny stock. The claim alleged $335,300 in damages and settled for $192,500.

Advisor Dain Stokes Accused Of Running An Investment Scam – Recovery Options

December 16, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Dain Stokes (Stokes) was discharged by his employer after being accused of running an investment fraud scheme. According to BrokerCheck records, Stokes is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm LPL Financial LLC (LPL Financial). In addition, Stokes disclosed two regulatory complaints and four customer complaints. If you have been a victim of Stokes’ alleged misconduct our firm may be able to assist you in recovering funds.

On August 1, 2019 an investor reported to the Fremont Police Department that he had possibly been defrauded by Stokes related to an investment of two hundred one thousand dollars. The complaint alleges that the investment was for an alleged project in Africa purportedly involving popstar Taylor Swift. The victim provided copies of cancelled checks, unsecured promissory notes, and text messages to the Fremont Police Department that corroborated his complaint.

According to the complaint Stokes used fraudulent messages to continue to entice the investor including:

On November 29, 2018, Stokes is claimed to have wrote: “We are getting close, a week, maybe two, I just had a long talk with Taylor about it in the middle of the night lol.”
On May 8, 2019, Stokes is claimed to have wrote: “Taylor is meeting with Bill Gates and the rest of the sponsors who are paying out the commissions on May 20th To try in wrap things up, so we all get paid.”
On June 12, 2019, Stokes is claimed to have wrote: “Trump’s illegally locked my bank accounts, and I’m fighting it in the Federal Bank Commission in the New Hampshire AG’s Office. Taylor is releasing a new song on Instagram in 30 minutes and I’m promoting it.”

In August 2019 LPL Financial discharged Stokes in connection with State of New Hampshire suspension of investment adviser agent and broker-dealer representative license.

Broker Dean Kajouras Subject to Multiple Customer Complaints

October 14, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Dean Kajouras (Kajouras), currently employed by Fordham Financial Management, Inc. (Fordham Financial) has been subject to at least eight customer complaints, one employment termination for cause, one regulatory matter, and six judgement or liens during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Kajouras’ customer complaints alleges that Kajouras recommended unsuitable investments, negligence, fraud, misrepresentations, and breach of fiduciary duty among other allegations of misconduct relating to the handling of their accounts.

In June 2019 a customer complained that Kajouras violated the securities laws by alleging misrepresentation, breach of contract, breach of fiduciary duty, statutory and common law fraud, suitability. The claim alleges $1,600,000 in damages and is currently pending.

In October 2016 the State of Massachusetts entered into a cease and desist order against Kajouras concerning claims that Kajouras unsuitably overconcentrated a retired investor’s portfolio in a single security. The State of Massachusetts fined Kajouras $60,000.

In May 2019 one of Kajouras’ tax liens entered totals $391,153. Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. In addition, a broker’s inability to manage their own finances is relevant in a customer’s decision to use their services.

Benjamin Bourgeois Terminated Over Converting Client Funds – Investor Recovery

July 1, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Benjamin Bourgeois (Bourgeois) has taken funds from clients and engaged in certain business activities not approved by his brokerage firm. Bourgeois, formerly registered with Commonwealth Financial Network (Commonwealth Financial) out of Metairie, Louisiana has been barred by The Financial Industry Regulatory Authority (FINRA) for failing to answer questions concerning his conduct. In addition, Bourgeois disclosed at least three customer complaints and one termination for cause.

In May 2019 FINRA found that Bourgeois consented to sanctions and findings that he failed to produce documents and information requested by FINRA during the course of an investigation into allegations reported that he borrowed money from a customer, converted customer funds, and committed fraud.

In April 2019 a customer alleged that Bourgeois engaged in conversion of customer funds made by personal check purportedly for investment purposes; employing devices, schemes or artifices to defraud; making untrue statements of material facts; fraud beginning around 2016. The claim alleged $519,500 in damages and is currently pending.

Bourgeois’ CRD disclosures states that Bourgeois has an outside business activity through which he engages in fixed insurance sales.

Ricky Flatt Terminated Over Taking Money From Clients – Investor Recovery

June 11, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Ricky Flatt (Flatt) has taken loans from a client and engaged in certain business activities not approved by his advisory firm. Flatt, formerly registered with Royal Fund Management, LLC (Royal Fund) out of Troy, Michigan has been terminated by Royal Fund and under investigation by the State of Michigan for accepting funds from a client. In addition, Flatt disclosed at least 12 tax or judgement liens totaling hundreds of thousands of dollars.

In March 2019 the State of Michigan opened an investigation into Flatt alleging that he borrowed money from a client and defaulted on the loan while also failing to disclose an outside business activity.

In March 2019 Royal Fund terminated Flatt after alleging that Flatt breached the firm’s internal policies and procedures concerning reporting business activities and loans from a client.

Flatt’s IARD disclosures state that Flatt has an outside business activity called Financial Strategies, Inc. selling certain insurance policies. It is unclear at this time what business activity that investigations concern.

Advisor Alan Dole Subject to Complaints Over Alternative Investments

April 23, 2019 | by Staff Attorney

Advisor Alan Dole (Dole), currently employed by Cambridge Investment Research, Inc. (Cambridge) has been subject to at least two customer complaints. According to a BrokerCheck report some of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In December 2018 a customer filed a complaint alleging that Dole violated the securities laws including the Virginia Securities Act, breach of fiduciary duty, negligence, negligent supervision, breach of contract and violation of FINRA rules by recommending oil & gas and insurance related investments causing $348,366 in damages. The claim is currently pending.

In December 2018 another customer filed a complaint alleging that Dole violated the securities laws including the Virginia Securities Act, breach of fiduciary duty, negligence, negligent supervision, breach of contract and violation of FINRA rules by recommending oil & gas and insurance related investments causing $497,691 in damages. The claim is currently pending.

Centaurus Financial Broker Ricky Mantei Subject to Complaints Over Unsuitable Investments

January 4, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Ricky Mantei (Mantei), currently employed by Centaurus Financial, Inc. (Centaurus Financial) has been subject to eight customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), most of Mantei’s customer complaints allege that Mantei made unsuitable recommendations in certain corporate debt or other securities.

Our firm has brought cases against brokers for misrepresenting the features of structured products or selling them as a bond alternative. Structured products are typically debt instruments where the payout is based on the underlying stock, equity index, currency, or any reference source. Many, but not all, structured products are advertised as having some principal protection component – meaning that the investor is guaranteed the return of some amount of their initial investment. However, studies have shown that structured products are often best used as a niche product for sophisticated investors employing complicated strategies. The typical investor cannot benefit from these products over traditional investments.

In November 2018 a customer alleged that the financial advisor recommended unsuitable investments and several other allegations. The complaint alleges $100,000 in damages and is currently pending.

In October 2018 a customer filed a complaint alleging that their investments were unsuitable based on their investment objectives. The claim alleges $233,238,000 in damages and is currently pending.

In May 2018 the beneficiaries of a deceased customer allege that the Mantei recommended the client make unsuitable investments. The claim alleges $100,000 in damages and is currently pending.

Raymond James Advisor Maria Hendershott Subject to Several Complaint Disclosures

December 21, 2018 | by Staff Attorney

According to BrokerCheck records financial advisor Maria Hendershott (Hendershott), currently employed by Raymond James & Associates, Inc. (Raymond James) has been subject to four customer complaints during her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Hendershott concern allegations of unsuitable investments and allegations of overconcentration.

In November 2018 a customer complained that Hendershott recommended investments that violated the securities laws including breach of contract, violation of provisions of The Texas State Securities Statutes, Ann. Tx Civil Statutes Art. 581-33, violation of The Texas Deceptive Trade Practices Act Bc. Code Ann. § 17.46 and Tex Bc. Code Ann. § 17.50, breach of fiduciary duty that took place from 01/15/2015 until 09/12/2016. The customer alleges $500,000 in damages and the claim is currently pending.

In October 2017 a customer complained that Hendershott recommended investments that violated the securities laws including during 06/30/2014 until 07/31/2015 claiming gross mismanagement of accounts, investor abuse, churning, breach of fiduciary duty, negligence, and violation of industry rules. The customer claimed $100,000 in damages. The case settled for $75,000.