The Ninth Circuit ruled an fake attorney who chaired a FINRA arbitration panel prevented Move Inc. from having a fair hearing regarding accusations Citigroup Global Markets Inc. mismanaged $131 million of the real estate company’s funds, saying the deceitful arbitrator wrongfully influenced the proceedings. A three-judge panel found that a lower court erred in not vacating an [...]
FINRA fined eight firms a sum of $6.2 million and ordered five of them to pay an additional $6.3 million in restitution for failures in supervision that led to the sales of unsuitable variable annuity products. As part of the settlement, FINRA imposed sanctions against Voya Financial Advisors, five broker-dealer subsidiaries of Cetera Financial Group, Kestra [...]
The Certified Financial Planner Board of Standards has temporarily suspended Ash Narayan, an investment adviser in Irvine, California, for allegedly bilking professional athletes out of millions of dollars. The CFP Board says it reached its decision after Narayan was named in a SEC complaint alleging he misappropriated client funds and misrepresented his professional qualifications. The interim suspension took [...]
FINRA barred former FSC Securities Corporation broker Leonard Fox from acting as a broker or otherwise associating with firms that sell securities to the public. His BrokerCheck report shows that Fox has been the subject of four customer complaints and two regulatory actions. FINRA brought a regulatory action against Fox in August 2016, alleging that [...]
The SEC charged Broidy Wealth Advisors and its owner with overbilling clients and stealing assets from their trusts to pay for personal expenses, including leases on two luxury cars. The firm and owner Marc D. Broidy of Beverly Hills, California received over $1.4 million in illicit gains since February 2011, according to the commission. Allegedly, [...]
Following on the heels of the recent Wells Fargo scandal, FINRA is performing a sweep of broker-dealer firms to determine what kinds of cross-selling programs they have been offering. The regulator is seeking an extensive list of data from broker-dealers about the incentives they offer employees to promote bank products of an affiliate or parent [...]
Jamie Aguilar was terminated by Morgan Stanley for alleged conduct regarding private securities transaction. According the FINRA’s BrokerCheck, three customers have filed complaints against him. Morgan Stanley terminated Aguilar in May, alleging that an outside financial transaction between the financial advisor and a client of the firm that was not disclosed to the firm. Giving [...]
Stuart Dickinson, a former WFG Investments broker, was banned from the securities industry by FINRA after recommending that his clients invest in a Ponzi scheme. The regulatory body also ordered Dickinson to pay $924,000 in restitution to seven customers, according to a default decision notice FINRA released. The notice states that Dickinson failed to conduct [...]
Jens Pinkernell, a Dallas, Texas-based investment adviser, has been suspended for five years. According to Texas Securities Commissioner John Morgan, Pinkernell and J. Pinkernell Global Wealth LLC charged two clients excessive and unauthorized fees. According to the commission, J. Pinkernell Global Wealth overcharged the clients for advisory services. One client agreed to pay the firm 1.35% of [...]
Law enforcement authorities raided the headquarters of United Mortgage Trust ("UMT") in a suburb of Dallas, Texas this month, looking for documents pertaining to management of the company. A search warrant was issued by a federal magistrate of the United States District Court for the Northern District of Texas. Particular executive offices and employees were [...]
The Frankowski Firm is continuing its investigation into United Development Funding III and IV (UDF) on behalf of investors in the company's real estate investment trusts (REITs). The FBI recently raided the company's offices in Texas, and immediately afterward UDF IV's price dropped to $3.20 per share, more than 81% lower than its December 2015 [...]
FINRA issued a new investor alert warning that advertisements touting higher-than-average Certificate of Deposit yields might actually be a lure to trick investors into buying costly investments. "In light of today's low interest rates, these ads attract attention. Some may be legitimate marketing, but calls into our Securities Helpline for Seniors indicate that many such [...]
FINRA charged a broker for lying to a Native American tribe about the $11 million in commissions he charged when he sold the tribe $190 million in nontraded real estate investment trusts and business development companies. Between June 2011 and January 2015, broker Gopi Krishna Vungarala “regularly lied to his customer, a Native American tribe, regarding [...]
Stephens, Inc. submitted a letter of Acceptance, Waiver, and Consent to FINRA for failing to apply sales charge discounts to certain customers' eligible purchases of unit investment trusts ("UITs") between June 1, 2010 and May 31, 2015 in violation of FINRA's rules. Stephens alse failed to establish, maintain, and enforce a supervisory system and written [...]
The Frankowski Firm is currently investigating the possible wrongdoing of current UBS Financial Services broker Bradley Ross of Fort Lauderdale, Florida. According to FINRA's BrokerCheck, Ross has been the subject of a number of customer complaints. In 2015, a customer alleged Ross, while employed at UBS, recommended investments not consistent with their risk tolerance. The [...]
In July 2014, Michael Winegar, formerly a broker with Wedbush Securities, allegedly convinced an elderly customer to pay him $100,000. Winegar told the 85-year-old customer that he would use the funds to create an independent advisory firm through which Winegar would supposedly satisfy the $100,000 debt by providing the customer with free investment advice [...]
The Frankowski Firm is currently investigating the potential claims of people of who lost money investing with Glenn Guthrie, a former broker with Raymond James Financial Services in Birmingham, Alabama. According to FINRA's BrokerCheck report, Guthrie is the subject of a customer complaint and an employment separation after allegations of selling away. In 2015, a [...]
The SEC will reach the end of its case today against a financial adviser who refuses to defend herself in the agency's in-house enforcement proceeding, noting constitutional reasons. Dawn Bennett, CEO of Bennett Group Financial Services LLC in Washington, D.C., and her attorneys have blown off the proceeding which began on Wednesday and will close [...]
A Department of Labor rule that would raise investment advice standards for retirement accounts reached one step closer to being finalized last night. The DOL sent the measure to the Office of Management and Budget, who noted its receipt today on its website. The OMB will have 90 days to review the rule, but it [...]
Barry Carlton Taylor, operator of two companies in Franklin, North Carolina, pleaded guilty earlier this week to fraud by commodities pool operator and concealment of money laundering charges, after defrauding investors out of about $2.5 million. Beginning in at least August 2011, Taylor solicited investment funds from at minimum eighteen victims totaling roughly $2.5 million. [...]
