investment fraud attorney

Advisor James Parrelly Accused of Churning and Sanctioned By Financial Regulator

August 10, 2020 | by Staff Attorney

According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker James Parrelly (Parrelly), formerly associated with Investment Planners, Inc. (Investment Planners), has been subject to at least eight customer complaints, three regulatory complaints, and one employment termination for cause during his career. Several of those complaints against Parrelly concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

In June 2020, Parrelly was terminated by Investment Planners which alleged that at time of his resignation Parrelly was on heightened supervision and was engaging or had engaged in activities in violation of firm policies and/or FINRA rules, including: (1) use of personal email and texts to communicate with firm clients regarding their accounts; (2) failing to abide by terms of his heightened supervision plan (by continuing to use his personal email and texts and by not providing copies of his personal emails and texts to the firm); and (3) unauthorized trading. Parrelly then resigned in response to the anticipated commencement of an internal review into his activities.

In May 2020, FINRA suspended Parrelly finding that he consented to findings that he executed discretionary transactions in the securities account of a customer pursuant to the customer’s prior verbal authorization, but without written authorization from the customer or written approval from his member firm.

In April 2019 a customer complained that Parrelly violated the securities laws by alleging that Parrelly engaged in sales practice violations related to churning, negligence of duty and unsuitable investments. The claim is currently pending and seeks $500,000 in damages.

Transamerica Advisor Gautam Arora Terminated Over Unapproved Securities Sales

May 27, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Gautam Arora (Arora) has been accused by his former employer engaging in unapproved investments among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Arora was terminated by his prior employer, Transamerica Financial Advisors, Inc. (Transamerica Financial) concerning his promissory note sales. If you have been a victim of Arora’s alleged misconduct our firm may be able to assist you in recovering funds.

In December 2019 Transamerica Financial terminated Arora after alleging that firm received information indicating that the representative solicited various individuals to participate in unapproved investments away from the firm. The firm further alleged that the representative entered into lending arrangements and promissory notes with these individuals without receiving prior approval from the firm.

Arora’s outside business activities disclosed on his publicly available BrokerCheck report include World Financial Group, Inc., Real estate broker, and Keller William Realty.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

Advisor Antonio Puente Barred Over Outside Business Activities – Investor Recovery

April 12, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Antonio Puente (Puente) has been accused by a securities regulator of potentially engaging in the sales of private securities among other allegations. Puente was barred by The Financial Industry Regulatory Authority (FINRA) concerning his private securities sales conduct. According to BrokerCheck records, Puente was formerly registered with FINRA member firm Valic Financial Advisors, Inc. (Valic Financial). If you have been a victim of Puente’s alleged misconduct our firm may be able to assist you in recovering funds.

In August 2018 Valic Financial terminated Puente alleging that he was terminated following conclusion of investigation into undisclosed outside business activity. Then in January 2020 FINRA found that Puente consented to sanctions and findings that he refused to provide testimony requested by FINRA in connection with its investigation into whether he potentially violated FINRA rules by engaging in undisclosed outside business activities and/or private securities transactions.

According to Puente’s publicly disclosed records the he has no disclosed outside business activities.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds. Continue Reading

Advisor William Baum Subject to Multiple Customer Disputes

January 6, 2020 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor William Baum (Baum), currently employed by Great American Investors, Inc. (Great American) was has been subject to at least eight customer complaints and one regulatory action during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Baum’s customer complaint alleges that Baum recommended unsuitable investments among other allegations of misconduct relating to the handling of their accounts.

In July 2017 FINRA brought a regulatory action against Baum that he settled consenting to findings that he sent 58 text messages relating to his securities business – including messages about investment strategies and specific securities – to sixteen customers over the course of a year. FINRA found that Baum prevented his member firm from supervising those communications, violated the firm’s policy about business correspondence, and contradicted his attestation that he would use his firm’s email system for all business correspondence and retain all correspondence with customers for the firm’s review.

In September 2019 a customer complained that Baum violated the securities laws by alleging that Baum engaged in sales practice violations over the period of 2014 through 2017 by failing to recommend appropriate investments, disclose all conflicts of interest and fully inform claimants about the associated risks. The claim alleges $87,000 in damages and the case settled for $20,000.

Advisor Brian Lockett Suspended By Regulator; Subject to Multiple Client Complaints

December 27, 2019 | by Staff Attorney

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

In November 2019 FINRA brought a regulatory action against Lockett that he settled consenting to findings that he participated in a private securities transaction without providing prior written notice to his member firm. FINRA found that one of Lockett’s customers invested a total of $50,000 in a private placement offering and that Lockett participated in the transaction by introducing the transaction to the customer, summarizing the reasons he liked the investment, meeting with the customer to review and sign the paperwork and causing the paperwork to be submitted. FINRA found that Lockett did not receive compensation for his participation in the transaction and that Lockett attempted to conceal his role in the transaction by suggesting to the customer that the customer communicate about the transaction with Lockett in the future via Lockett’s personal email address. According to FINRA, after the customer complained to the firm, it entered into a settlement to resolve the complaint.

Advisor Justine Zhou Accused of Selling Private Real Estate Investments – Recovery Options

December 26, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Jun (Justine) Zhou (Zhou) was discharged by her employer after being accused of offering securities not reported to the company. According to BrokerCheck records, Zhou is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm The Leaders Group. In addition, Zhou disclosed one regulatory complaint. If you have been a victim of Zhou’s alleged misconduct our firm may be able to assist you in recovering funds.

In November 2019 FINRA filed a regulatory action alleging that Zhou consented to the sanction and findings that she between April 2017 and June 2018, through a small real estate company she wholly owned and controlled, participated in the sale of $9,050,000 in membership interests in private real estate funds managed by a third party and $5,000,000 in a promissory note with that third-party fund manager. FINRA found that the fund membership interests and the promissory note were securities, involved 15 transactions, and seven investors. FINRA determined that Zhou’s real estate company received $179,000 in compensation from the third-party fund manager. In addition, FINRA alleged that on June 4, 2018, Zhou formed Zhou Fund I LLC (Zhou Fund), a private real estate fund managed by Zhou’s real estate company. Zhou is alleged to have subsequently filed a notice of exempt offering of securities with the Securities and Exchange Commission related to twelve transactions in June and July 2018 through which Zhou and her real estate company sold $2,000,000 in membership interests in Zhou Fund to twelve investors.

Advisor Timothy Johnson Accused of Diverting Client Funds – Recovery Options

December 7, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Timothy Johnson (Johnson) was discharged by his employer after being accused of diverting client funds. According to BrokerCheck records, Johnson is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm MML Investors Services, LLC (MML). In addition, Johnson disclosed one regulatory complaint. If you have been a victim of Johnson’s alleged misconduct our firm may be able to assist you in recovering funds.

In July 2019 MML discharged Johnson after alleging that he was terminated in connection with an investigation into the registered representative’s diversion of customer funds for his own use.

In September 2019 FINRA filed a regulatory action alleging that Johnson consented to the sanction and findings that he failed to provide documents and information requested by FINRA during the course of an investigation into the allegations made concerning his termination. FINRA’s suspension will automatically become a bar if Johnson fails to respond.

Broker Lawrence Delhagen Subject to Customer Complaints Over Investment Recommendations

October 18, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Lawrence Delhagen (Delhagen), currently employed by Stifel, Nicolaus & Company, Incorporated (Stifel Nicolaus) 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), Delhagen’s customer complaints alleges that Delhagen recommended unsuitable investments, negligence, fraud, misrepresentations, and breach of fiduciary duty among other allegations of misconduct relating to the handling of their accounts.

In September 2018 a customer complained that Delhagen violated the securities laws by alleging unsuitable investments, negligence, fraud, misrepresentations, breach of fiduciary duty, and violations of state and Federal securities laws. The claim settled for $30,000.

In June 2018 a customer complained that Delhagen violated the securities laws by alleging unsuitable investments, negligence, fraud, misrepresentations, breach of fiduciary duty, and violations of state and Federal securities laws. The claim settled for $270,000.

Advisor Robert Montes Investigated Over Missue of Elderly Investor’s Assets

October 11, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Robert Montes (Montes) engaged in undisclosed outside business activities (OBAs) and investment sales that were not approved by his brokerage firm. Montes, formerly registered with Morgan Stanley was subject to a regulatory investigation according to records kept by The Financial Industry Regulatory Authority (FINRA). In addition, Montes disclosed three customer complaints.

In July 2019, FINRA alleged that Montes accepted a bar from the financial industry, without admitting or denying the findings, that he refused to provide documents and information requested by FINRA in connection with an investigation into whether he potentially misused an elderly customer’s assets.

At this time it is unclear what the activity was that was the focus of FINRA’s investigation or the scope of Montes’ activities. Montes’ publicly available BrokerCheck information discloses several OBAs including a real estate venture and a company called R.J.R. Asset Management, LLC. It is unknown whether the activity investigated by FINRA involves any of these entities.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling fraudulent securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

Broker Thomas Marino Subject Allegations of Misusing Client Funds

October 10, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Thomas Marino (Marino), formerly employed by R.M. Stark & Co., Inc. (R.M. Stark) has been subject to at least three customer complaints, one regulatory sanction, one financial disclosure, and two terminations for cause. According to records kept by The Financial Industry Regulatory Authority (FINRA), Marino’s customer complaints alleges that Marino recommended unsuitable securities recommendations among other allegations of misconduct relating to the handling of their accounts.

In July 2019 Marino consented to the sanction and to the entry of findings that Marino refused to provide documents and information requested by FINRA in connection with its investigation into his possible misuse of funds from a senior customer. As a result, Marino drew an automatic bar from the industry.

In June 2019 Marino was discharged from R.M. Stark after the firm alleged that he engaged in inappropriate and unsuitable investments for a client’s risk tolerance and objectives.

In April 2019 a customer complained that Marino violated the securities laws by alleging that the financial advisor made inappropriate and unsuitable investments for her risk tolerance. The claim alleges $300,000 in damages and is currently pending.