Stifel Nicolaus

Michael Fahsholtz Subject to 12 Customer Complaints Related to Investment Advice

August 31, 2022 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that broker Michael Anthony Fahsholtz (Fahsholtz), most recently employed by Stifel, Nicolaus & Company, Inc. (Stifel) has been subject to at least twelve customer complaints during the course of his career. Fahsholtz is no longer registered as a broker. According to records kept by The Financial Industry Regulatory Authority (FINRA), Fahsholtz’s customer complaints alleges that Fahsholtz recommended unsuitable investments in various investments including allegations involving debt-corporate securities, unit investment trusts, and variable annuities, among other allegations of misconduct relating to the handling of their accounts.

In September 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, and misrepresentations related to the risks of the recommended investments. The claim alleges $255,791 in damages and is currently pending.

In February 2021, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz engaged in unsuitable investment advice, negligence, and breach of fiduciary duty. Additionally, the customer alleges that Fahsholtz violated the Securities Act of Washington and FINRA Rule 3110. The damage amount requested was $106,000. The claim settled in the amount of $25,000.

In December 2020, a customer complained that Fahsholtz violated the securities laws by alleging that Fahsholtz purchase inappropriate securities for the customer, including stocks, bonds, and UITs. The damage amount requested was $40,000. The claim settled in the amount of $7,500.

Stifel, Nicolaus Advisor Steven Rodemer Barred From Industry Over Misappropriation of Funds

May 27, 2020 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Steven Rodemer (Rodemer) has been accused by his former employer and a financial regulator of taking money from a client account for his personal use among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Rodemer was terminated by his prior employer, Stifel, Nicolaus & Company, Incorporated (Stifel, Nicolaus) concerning his theft and misappropriation of client funds. If you have been a victim of Rodemer’s alleged misconduct our firm may be able to assist you in recovering funds.

In December 2019 Stifel, Nicolaus terminated Rodemer after alleging that he took money from a client account for his personal use without authorization.

Thereafter, in March 2020, FINRA brought a regulatory action and fount that Rodemer consented to sanctions and findings that he refused to provide on-the-record testimony requested by FINRA during its investigation into the conduct disclosed in a Form U5 submitted by his member firm. FINRA determined that the firm submitted the Form U5 terminating Rodemer for taking money from a client account for his personal use without authorization.

Advisor Joel Davidman Sanctioned By Regulator Over Trading Activity

December 19, 2019 | by Staff Attorney

The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Joel Davidman (Davidman), currently employed by Stifel, Nicolaus & Company, Incorporated (Stifel Nicolaus) has been subject to at least three customer complaints, one employment termination for cause, and two regulatory actions during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Davidman’s customer complaint alleges that Davidman recommended unsuitable investments in a variety of investment products including bonds among other allegations of misconduct relating to the handling of their accounts.

In May 2015 Davidman’s employer Morgan Stanley discharged Davidman alleging that the representative engaged in discretionary trades in a client’s account without authorization.

Thereafter, FINRA investigated the allegations and in July 2017 suspended Davidman after alleging that he consented to sanctions and findings that he exercised discretionary trading authority in the accounts of customers without obtaining prior written authorization from each of the customers or approval from his member firm to treat the customers’ accounts as discretionary. FINRA found that Davidman effected some of the trades using time and price discretion and the remaining occurred without Davidman discussing and receiving approval for the trades from the customers on the dates of the transactions.

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.

Ghazaleh Ebrahimi Subject to Investment Complaints

February 6, 2019 | by Staff Attorney

Advisor Ghazaleh Ebrahimi (Ebrahimi), currently employed by Stifel, Nicolaus & Company, Incorporated (Stifel, Nicolaus) has been subject to at least four 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 November 2018 a customer filed a complaint alleging that Ebrahimi violated the securities laws by violation of standards of reasonable basis suitability, just and equitable principles of trade, fraud, misleading statements, misleading omissions of material information; breach of fiduciary duty; negligent misrepresentation; negligence; breach of contract and warranty; third party beneficiary breach of contract; breach of the covenant of good faith and fair dealing; elder abuse; and aiding and abetting financial elder abuse. The customer alleged $1.3 million in damages and the claim is currently pending.

In June 2018 a customer filed a complaint alleging that Ebrahimi violated the securities laws by violation of breach of fiduciary duty; negligence; breach of contract; common law fraud and deceit; and violations of FINRA rules The customer alleged $1.3 million in damages and the claim is currently pending.

Stifel, Nicolaus Advisor Lynn Faust Subject to Investor Complaints

January 12, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Lynn Faust (Faust), currently employed by Stifel, Nicolaus & Company, Inc. (Stifel Nicolaus) has been subject to at least three customer complaints and one employment termination for cause during her career. According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Faust concern allegations of unsuitable investments in market linked notes.

In November 2018 a customer complained that Faust recommended investments that violated the securities laws concerning misrepresented market linked notes. The complaint alleges $59,000 in damages and is currently pending.

In October 2018 Faust was terminated by Raymond James & Associates, Inc. (Raymond James) due to allegations that the firm had concerns relating to the nature of advisor’s UIT activity.

John James Barred by FINRA Over Allegations of Outside Business Activity

July 13, 2018 | by Staff Attorney

The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker John James (James). According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), in March 2016, James was discharged by his firm, Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) based on allegations that James was engaging in outside business activities, private investments, and borrowing money from clients without disclosing the activities to the firm. Subsequently, in September 2016, James was also discharged from Stifel Nicolaus for providing inaccurate information on his employment application (U5) regarding the status of an internal inquiry at his prior firm, Merrill Lynch.

In December 2017, FINRA barred James from the industry after James failed to provide FINRA with requested documents and information regarding these allegations and activities. FINRA sought documents concerning the circumstances surrounding Jones’s termination from his member firm and of certain outside business activities that James was involved in while registered with the firm. After James refused to show up to an on-the-record testimony regarding these allegations, he was barred from the industry for being in violation of F1NRA Rule 8210, James violates FINRA Rules 8210 and 2010.

In addition, James has been subject to one customer complaint. In May 2009, a customer alleged that James recommended unsuitable investments. The case was settled at $160,000 in damages.

Coleman Devlin Sanctioned By FINRA Over Unauthorized Trading

December 9, 2017 | by Staff Attorney

According to BrokerCheck records financial advisor Coleman Devlin (Devlin), formerly associated with IFS Securities (IFS), has been subject to 14 customer complaints. In addition, Devlin has been subject to two regulatory matters and has been terminated by two firms for cause. In June 2016 Devlin was discharged from Stifel, Nicolaus & Company, Incorporated (Stifel, Nicolaus) on allegations of unauthorized trading. Thereafter, The Financial Industry Regulatory Authority (FINRA) conducted its own investigation of Devlin’s trading activities.

In October 2017, FINRA found that Devlin effected discretionary trades in five customer accounts without obtaining prior written authorization from the customers and without acceptance of the accounts as discretionary by his member firm.

Devlin has also been subject to numerous customer complaints over the course of his career. The most recent case was filed in November 2017 and alleged unsuitable investments. The customer seeks $600,000 in damages and the claim is currently pending.

Broker Martin Stevens Subject to Multiple Customer Complaints

December 7, 2017 | by Staff Attorney

According to BrokerCheck records financial advisor Martin Stevens (Stevens), currently associated with Stifel, Nicolaus & Company, Incorporated (Stifel Nicolause), has been subject to seven customer complaints. According to records kept by The Financial Industry Regulatory Authority (FINRA), in August 2017 a customer filed a complaint alleging that Stevens conduct breached his fiduciary duty, negligence, unsuitable investments, violations of Arizona’s Securities Fraud Statute, negligent misrepresentation, and breach of contract among other claims. The customer seeks $249,000 in damages and the claim is currently pending.

Also in August 2017 another customer filed a complaint alleging unsuitable investments causing $34,719 in damages. The claim is currently pending.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

Jon Schmidhammer Barred by FINRA Over Allegations of Misappropriation of Funds

January 20, 2017 | by Staff Attorney

Our firm is investigating claims made by Stifel, Nicolaus & Company, Incorporated (Stifel Nicolaus) when the firm terminated broker Jon Schmidhammer (Schmidhammer). According to the firm, Schmidhammer was discharged in July 2016 after allegation were made that Schmidhammer resigned after his arrest for allegedly stealing money from a client.

According to Schmidhammer’s brokercheck records Schmidhammer has no disclosed outside business activities. The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”. Often times brokers who engage in this practice use outside businesses in order to market their securities.

In October 2016 a customer filed a complaint alleging that Schmidhammer engaged in unsuitable management of their accounts, unauthorized trading, breach of fiduciary duty, and conversion. The complaint alleges damages of $500,000. The claim is currently pending.