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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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Berthel Fisher On Thin Ice With FINRA For Supervisory Failures

In 2014, FINRA fined Berthel Fisher & Co. Financial Services Inc. and one of its affiliates $775,000 for a number of failures to supervise sales of nontraded REITs and leveraged ETFs between 2008 and 2012. Now the company is on thin ice with FINRA again for failing to supervise the sale of an investment product. This time the sale of unit investment trusts is the problem. In March, FINRA sued Berthel Fisher and its ex-broker Jeffrey Dragon for structuring sales from 2013 to 2014 of UITs to customers to allegedly avoid reaching levels at which breakpoint discounts would kick in, hurting clients while increasing the broker's commission. The firm terminated Dragon in September 2016 as it "believed he did not adhere to a term of his heightened supervision agreement, which required him to run all business, including fixed indexed annuities, through the firm's commission grid," Dragon's BrokerCheck states. FINRA's complaint alleges that he generated over $421,000 in commissions for himself and the [...]

By |April 24th, 2017|FINRA|
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FINRA January 2017 Disciplinary Actions

FINRA takes disciplinary actions against firms and individuals for violations of FINRA rules; federal securities laws, rules, and regulations; and the rules of the Municipal Securities Rulemaking Board. Below are a number of penalties announced by the regulator in January 2017. If you have been a victim of any of the below behavior, you may have legal recourse. Please contact attorney Richard Frankowski today at 888-741-7503 for a free consultation. FINRA censured and fined VFG Securities, Inc. of Culver City, California $50,000, $10,000 of which is joint and several with Jason Bryce Vanclef. According to FINRA, the firm and Vanclef distributed and listed for sale online Vanclef's self-published book, which contained, false, exaggerated, unwarranted, or misleading statements, and omitted material facts or qualifications where the omissions caused the communication to be misleading. The findings also state they provided customers with misleading personalized recommendation spreadsheets. Advisors Clearing Network, Inc. of Pasadena, California was also censured and fined $50,000. FINRA found that it [...]

By |January 24th, 2017|Broker Check, FINRA, Fraud, Legal Matters, Press Releases & News, SEC|
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Wells Fargo Fined $1M For Client Reports

FINRA fined Wells Fargo $1 million for failing to have instituted reasonable supervisory systems to watch advisors' creation of consolidated reports for clients. The fine and settlement referenced two Wells Fargo firms failing to enforce supervisory systems “for the use of consolidated reports generated by their registered representatives through a particular application that the firms made available” to brokers between June 2009 and June 2015. Consolidated reports are documents to clients by brokers that combine account information pertaining to clients' financial holdings, regardless of where those assets are held. The regulator's rules require consolidated reports, which are communications with the public, to be clear, accurate, and not misleading. The firms “failed to review the content of the consolidated reports generated using the application, including customized values for assets and accounts held away from the firms,” according to the settlement. “Further, the firms failed to provide a mechanism allowing their representatives to designate which application reports were actually provided to customers.” The two [...]

By |December 6th, 2016|FINRA, Press Releases & News|
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