negligence

Numerous Customer Complaints Against Herbert J. Sims Broker Robert Delguercio

August 3, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Robert Delguercio (Delguercio) has been the subject of at least eight customer complaints, two financial matters, and one employment separation. The customer complaints against Delguercio allege a number of securities law violations including that the broker made unsuitable investments, unauthorized activity, negligence, fraud, and misrepresentations among other claims.

One customer complaint filed in September 2013, alleged that from February 2007, through February 2012, that Delguercio made unauthorized transfers of funds from her account and the claimant’s now deceased husband and alleging $10,400,000 in damages. Another complaint filed in May 2012, alleged that Delguercio made unauthorized transactions and liquidations in the customers accounts leading to claims of over $1.2 million. After reading an earlier version of this article Mr. Delguercio reached out to our firm to comment stating that the woman in above arbitration provided a power of attorney to her husband and denies the charges made in the complaint. Mr. Delguercio stated that he expects that his position will be vindicated in a future arbitration hearing on this matter.

Delguercio entered the securities industry in 1995. From 2004, until January 2010, Delguercio was registered with PNC Investments (PNC). Upon termination from PNC the firm filed a Uniform Termination form (Form U5) stating that the reason for the firm’s termination of Delguercio was due to allegations by the firm that Delguercio received a verbal complaint from a customer alleging that Delguercio misrepresented a GNMA Bond. PNC then reviewed the complaint and Delguercio resigned at that time. Delguercio disputes PNC’s account of events. Thereafter, from December 2009, through February 2012, Delguercio was associated with UBS Financial Services Inc. Finally, Delguercio has been a registered representative with Herbert J. Sims & Co. Inc. since February 2012.

Gana LLP Investigation: Broker Duane Smith

July 31, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Duane Smith (Smith) has been the subject of at least two customer complaint and one employment separation. The customer complaints against Smith allege a number of securities law violations including that the broker made unsuitable investments, negligence, fraud, and breach of fiduciary duty among other claims.

Smith entered the securities industry in 1995 and is both a licensed broker and a principal. From 1995, until September 2008, Smith was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch). Upon termination from Merrill Lynch the firm filed a Uniform Termination form (Form U5) stating that the reason for the firm’s termination of Smith was due to allegations by the firm that Smith violated the firm’s policies by facilitating a client investment in an account that was held outside of Merrill Lynch, recorded information on blank authorization forms previously signed by a client, and failed to obtain supervisory approval for correspondence that he sent to multiple clients. Thereafter, in March 2014, Smith became associated with Neidger, Tuck, and Bruner, Inc. in Englewood, Colorado.

It is important for investors to know that all advisers have an obligation and responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

Broker Spotlight: Churning Claims Against Advisor Jason Klabal

July 30, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Jason Klabal (Klabal) has been the subject of at least eight customer complaints six of which have been filed since 2014. The customer complaints against Klabal allege a number of securities law violations including that the broker made unsuitable investments, engaged in churning (excessive trading), misrepresentations, negligence, fraud, and breach of fiduciary duty among other claims.

Klabal entered the securities industry in 1997. From 1999 through October 2008, Klabal was associated with J.P. Turner & Company, L.L.C. (JP Turner). Thereafter from October 2008, until January 2010, Klabal was registered with Mercer Capital LTD. From there, Klabal was associated with Buckman, Buckman & Reid, Inc from January 2010, until August 2011. Finally, Klabal became associated with Legend Securities, Inc. in August 2011.

Pace’s employment separation involved allegations by Global Arena Capital claiming that Pace allowed client information to be taken from the office by another person. The information was later returned to the firm.

Broker Spotlight: Alexander Capital Broker Anthony Pace

July 29, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Anthony Pace (Pace) has been the subject of at least six customer complaints and one employment seperation. The customer complaint against Pace allege a number of securities law violations including that the broker made unsuitable investments, engaged in churning (excessive trading), misrepresentations, negligence, fraud, breach of fiduciary duty, and failure to execute among other claims.

Pace entered the securities industry in 1994. From 2005 through May 2009, Pace was associated with J.P. Turner & Company, L.L.C. (JP Turner). Thereafter from May 2009, until September 2010, Pace was registered with vFinance Investments, Inc. From there, Pace was associated with Global Arena Capital Corp from September 2010, through April 2015. Finally, Pace became associated with Alexander Capital, L.P. in March 2015.

Pace’s employment separation involved allegations by Global Arena Capital claiming that Pace allowed client information to be taken from the office by another person. The information was later returned to the firm.

Broker Spotlight: Broker Clarence Patton Jr

July 27, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Clarence Patton Jr (Patton) has been the subject of at least four customer complaints. Customers have filed complaints against Patton alleging a number of securities law violations including that the broker made unsuitable investments, misrepresentations, negligence, fraud, breach of fiduciary duty, unauthorized trading, churning (excessive trading), and failure to execute among other claims.

Patton entered the securities industry in 1991. From 1999 to present Patton has been registered with J.P. Turner & Company, L.L.C. (JP Turner).

It is important for investors to know that all advisers have an obligation and responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.

Gana LLP Seeks Relief for Victim of Stanford Ponzi Scheme Against Clearing Broker, Pershing, LLC

March 19, 2014 | by Staff Attorney

Over the last several years, we have seen the collapse of frauds and the capture of fraudsters, who have perpetuated a mind-numbing blow to the market and its participants. When we talk about Ponzi Schemes, the first name that springs to mind is, of course, Bernard Madoff. However, two years later authorities honed in on R. Allen Stanford (Stanford) and his fraudulent empire, which may have more far-reaching consequences than people think.

While the ponzi scheme developed and operated by Stanford fleeced investors of “only” eight billion dollars, it was perhaps far more damaging than the Madoff scheme. Why? Because the Stanford case pertains to everybody—not just to Stanford investors, not just the government, and not just the upper echelon of wealthy individuals. The Stanford scheme exploited one of the oldest, safest, and most universally understood financial instruments on the market—the Certificate of Deposit (CDs).

The ultimate reality of the Stanford Financial Group was that it was a Ponzi scheme. Essentially, Stanford and his co-conspirators used the Stanford Financial Group and the promise of high-return CD’s to lure investor money into different Stanford companies, where the funds were then pooled together and used for undisclosed and impermissible purposes. Federal authorities ultimately discovered Stanford’s multi-billion dollar scheme, putting an end to Stanford Financial Group and charging Stanford, civilly and criminally, with multiple counts of fraud. In March 2012, Stanford was convicted on 13 of 14 counts by a federal jury following a six-week trial and approximately three days of deliberation. It was ultimately revealed that the Stanford Financial Group was “selling” CD’s, marketed as low-risk, high return investments, but in reality, were paying distributions with subsequent investments–the prototypical pyramid scheme.

FINRA Arbitration Panel Awards BBVA Securities’ Investors $1.2 Million

November 8, 2013 | by Staff Attorney

The Financial Industry Regulatory Authority (FINRA) Arbitration Panel has awarded damages to investors in the amount of $1.2 million in compensatory damages and cost of fees associated with the arbitration. The alleged claim was asserted against BBVA Securities of Puerto Rico, Inc. (BBVA Securities) and employees of the brokerage firm.

BBVA Securities is a brokerage firm in San Juan, Puerto Rico.

The Claimants asserted breach of fiduciary duty, unsuitable investments, churning and excessive trading, failure to supervise and gross negligence. These causes of actions related to allegedly unsuitable naked option trading strategy combined with the use of margin which caused losses in the investor’s accounts.