Woodstock Financial Group

Woodstock Financial Group Broker John Tinnelly Subject to Churning Complaints

September 13, 2016 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker John Tinnelly (Tinnelly). According to BrokerCheck records Tinnelly has been the subject of at least ten customer complaints and one regulatory action. The customer complaints against Tinnelly allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, and churning (excessive trading) among other claims.

The most recent complaint was filed in April 2015 and alleged churning, unsuitable investments, unauthorized trading, breach of contract from July 2010 until November 2012 causing $168,924 in damages. The complaint settled with no contribution by the broker. In March 2015, another customer complaint alleged churning, unsuitable investments, unauthorized trading, breach of contract from February 2010 until March 2011 causing $118,375 in damages. The complaint is currently pending.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Broker Investigation: Customer Complaints Against Allan Montalbano

February 25, 2016 | by Staff Attorney

The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Allan Montalbano (Montalbano). According to BrokerCheck records Montalbano has been the subject of at least four customer complaints and one bankruptcy filing. The customer complaints against Montalbano allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, negligence, breach of fiduciary duty, and churning (excessive trading) among other claims.

In November 2015, Montalbano disclosed that he entered bankruptcy. The most recent customer complaint filed in June 2015 and alleged unsuitable recommendations and excessive trading claiming $250,000 in damages. The claim is still pending. In May 2013, another client filed a complaint alleging Montalbano failed to follow instructions. The claim closed.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

FINRA Sanctions Daniel Barthole Over Attempt to Privately Settle a Customer Complaint

December 7, 2015 | by Staff Attorney

The Financial Industry Regulatory Authority (FINRA) brought an enforcement action (FINRA No. 2012034393401) against broker Daniel Barthole (Barthole) resulting in a monetary sanction and a suspension. In addition, according to the BrokerCheck records kept by FINRA, Barthole has been the subject of at least 2 customer complaints. The customer complaints against Barthole allege unsuitable investments, churning (excessive trading), misrepresentations, fraud, and unauthorized trading among other claims. The most recent complaint against Barthole alleged $227,632 in damages concerning unauthorized ETF trading and churning from February 2012 through September 2014. The claim was later withdrawn.

FINRA’s findings stated that Barthole consented to a finding that he together with two other brokers attempted to settle a customer complaint away from their brokerage firm by agreeing to pay $4,000 to a customer and by sending $1,500 in cash to the customer.

Barthole entered the securities industry in 2009. From April 2009 until February 2015, Barthole was associated with Woodstock Financial Group, Inc. Since February 2015, Barthole has been registered with National Securities Corporation out of the firm’s New York, New York office location.

FINRA Files Complaint Against Former Woodstock Financial Group Broker David Wolk

October 13, 2015 | by Staff Attorney

According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker David Wolk (Wolk) has been the subject of an astonishing 13 customer complaints, 3 regulatory matters, one criminal matter, and 6 judgments and liens over the course of his career. Customers have filed complaints against Wolk alleging securities law violations that focus on churning and excessive trading. In addition to the churning claims, customers have complained of unsuitable investments, negligence, fraud, unauthorized trading, and misrepresentations, among other claims. In total the customer complaints allege several million dollars in damages.

The latest FINRA complaint (Disciplinary Proceeding No. 2012033981601) alleges that from November 2003, through January 2014, while Wolk was associated with Woodstock Financial Group, Inc. (Woodstock), Wolk was subject to six tax liens totaling over $810,000 and a state tax levy for $106,871.02. FINRA alleges that Respondent willfully failed to timely update his Form U4 to disclose these matters within FINRA’s 30-day reporting deadline. In addition, FINRA alleged that Respondent made a false attestation to Woodstock on an annual compliance questionnaire failing to disclose the liens. The latest FINRA complaint is only one of three total FINRA complaints. In October 2014, Wolk faied to pay fines associated with another FINRA matter. In August 2014, Wolk consented to FINRA’s findings that he attempted to settle a customer complaint without notifying his firm.

Wolk entered the securities industry in 1998. From February 2003 until September 2014, Wolk was associated with Woodstock out of the firm’s Garden City, New York office.