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KEVIN MCCALLUM HIT WITH $4.8 MILLION CUSTOMER CLAIM INVOLVING MEDLEY CAPITAL STOCK

Kevin McCallum, an Alabama-based stockbroker and financial advisor with Glacier Point Advisors, LLC, who was previously registered with LPL Financial, LLC and NBC Securities, Inc., has disclosed a $4.8 million arbitration claim filed by his customers related to their investment in Medley Capital Corporation. According to the customers’ complaint, McCallum exercised discretionary trading authority in the customers’ account and used over-concentrated the account in a large position in Medley Capital Corporation. Medley Capital holds itself out as a non-diversified closed-end management investment company whose business model was to attempt to generate income and capital appreciation by lending funds to privately-held middle-market companies, primarily through directly originated transactions. The customers alleged that by October 2018, the Medley Capital position constituted over 85% of the total value of their account even though they knew nothing about the company and had no role in the selection of the stock for their account. According to their allegations, McCallum’s customers had a moderate risk profile [...]

By |February 2nd, 2021|FINRA|
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Voya To Pay $3.1M Fine For Disclosure Violations

Voya Financial Advisors will pay nearly $3.1 million because of payments it got from its clearing broker in relation to mutual fund sales. The firm settled a cease-and-desist order from the SEC and will pay $2.6 million in disgorgement, $175,000 in prejudgment interest, and $300,000 in civil penalties. According to the Securities and Exchange Commission, Voya failed to disclose to its customers the compensation it got from its clearing firm for selling mutual funds. The firm's website states that Pershing LLC is its clearing broker. Fundamentally, the Commission stated that in its arrangement with Pershing, Voya would obtain a portion of the platform fee paid by mutual fund companies to Pershing in return for particular administrative services Voya performed. "These payments created a conflict of interest in that they provided a financial incentive for Voya Financial Advisors to favor the mutual funds in the clearing firm's no-transaction-fee mutual fund program over other investments when giving investment advice to its advisory [...]

By |March 9th, 2017|Uncategorized|
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John Rafal Barred From Securities Industry

The SEC barred Connecticut investment adviser John Rafal for hiding a referral fee from a client and then attempting to thwart the SEC's investigation. He was also pay $577,297 in penalties. Rafal, the former president and CEO of Essex Financial Services Inc. in Essex, Connecticut, obtained a new customer with accounts valuing over $100 million from Peter D. Hershman, a Connecticut attorney, according to the SEC order. Rafal agreed to pay Hershman $50,000 annually from the advisory fees paid to Essex by the client, an elderly widow, the order said. As part of the original agreement, Hershman was to become a registered investment adviser. But Hershman never took the test required to become an RIA, making him ineligible to receive the referral payments. Rather, between early 2011 and April 2013, Rafal and Hershman disguised the referral payments as fake invoices for legal services to the Essex client and did not disclose them to the client. When Essex stopped the arrangement, Rafal paid [...]

By |January 10th, 2017|Press Releases & News, SEC|
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Phil Fiore Jr. Fired By UBS For Multiple Violations

UBS Financial Services Inc. fired Phil Fiore Jr., one of its top brokers based in Stamford, Connecticut, for failing to keep the firm informed of outside business activities, even while he was under heightened supervision. Fiore was terminated at the close of November for violating firm policies, including not disclosing an unpaid directorship at a not-for profit entity affiliated with a client; not seeking approval to operate a charity golf tournament; and not seeking firm approval to make blog posts, according to his FINRA BrokerCheck report. He also failed to disclose to UBS that a new client had made an investment in Fiore's outside business, which had been approved by UBS, also according to BrokerCheck. Phil Fiore Jr. was a Senior Vice President and part of the FDG Institutional Consulting Group, in addition to being one of the top-ranked advisers in his state, according to Barron's magazine. Barron's also said the group had $8 billion in client assets in 2015. Fiore had [...]

By |December 29th, 2016|Broker Check, FINRA, Press Releases & News|
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