Investor Lawyers Blog

Northstar Financial Services (Bermuda) To Liquidate After Extension Request Denied

Published on: April 15, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Investors Can Still Pursue Damages from Bankoh, Truist, and Ocean Financial Services

The Bermuda Supreme Court has turned down a request by Northstar Financial Services (Bermuda) Ltd.’s management asking for more time to pursue restructuring. Northstar had filed for Chapter 15 bankruptcy last year.

The Court’s ruling means that the company will be liquidated, with the proceeds going to creditors. Specifically, what this means for Northstar Financial Services (Bermuda) investors is that the Bermuda Supreme Court must approve such payments before they can be issued to them.

Portland Investor Files $500K Private Placement Fraud Claim Against Western International Securities

Published on: April 14, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Claimant Alleges Overconcentration, Unsuitability, Failure to Supervise

A Portland, Oregon semi-retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Western International Securities, Inc. and is seeking up to $500K in damages. The investor contends that a former financial advisor from the firm overconcentrated most of her retirement funds in illiquid private placements and caused her significant financial losses.

Our Portland investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this claimant in her private placement fraud case against Western International Securities.

SSEK Law Firm Investigates Bankoh Investment Services Brokers Over Northstar Financial Services (Bermuda) Sales

Published on: April 12, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Investors May Have Lost Up to $70M in Northstar Bermuda Products

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is continuing to speak to investors who suffered losses in Northstar Financial Services (Bermuda) products that were sold to them by Bankoh Investment Services brokers. The broker-dealer is the securities arm of the Bank of Hawaii.

Our investment fraud attorneys are also investigating claims of losses in Northstar Bermuda products from investors who worked with brokers from Truist Investment Services (SunTrust Investment Services), Ocean Financial Services, and any other firms. Unfortunately, investors may have collectively lost up to $70M.

SSEK Law Firm Investigates Ex-LPL Financial Broker Beliveau Bays For Unsuitable Non-traded REIT Recommendations

Published on: April 9, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Former Texas Stockbroker is Named in Two Pending Customer Disputes

Our Dallas non-traded real estate investment trust (non-traded REIT) fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are investigating claims of customer losses involving former LPL Financial registered representative, Beliveau Bays. The ex-Plano, Texas financial advisor is also the subject of pending customer disputes.

Call (214) 613-5306 to speak with one of our Dallas non-traded REIT fraud attorneys today if you are someone who worked with former LPL broker, Beliveau Bays. For elsewhere in the United States, you can reach SSEK Law Firm at (800) 259-9010.

Former Principal Securities Broker John Krohn Involved in $39M in Investor Fraud Claims

Published on: April 7, 2021 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Suspended Ex-Iowa Stockbroker in 2018 For Selling Away

John Michael Krohn, a former Iowa broker with Principal Securities, is named in three customer disputes in which the claimants are collectively pursuing over $39.2M in damages for losses they sustained while working with him.

The investors contend that Krohn engaged in selling away, which involves offering them investments that his then-brokerage firm of record never approved. They are pursuing damages against Principal Securities, where Krohn was a registered representative for 20 years.

Cambridge Investment Services, Securities America, and JW Cole Financial Fined Over LJM Preservation & Growth Fund Recommendations

Published on: April 6, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Broker-Dealers Collectively Will Pay $550K Fine and Over $3.3M in Restitution

The Financial Industry Regulatory Authority (FINRA) has fined and censured three brokerage firms after finding that they failed to supervise recommendations of the LJM Preservation and Growth Fund (LJMIX, LJMCX, LJMAX) and did not conduct the proper due diligence into the alternative mutual fund:

Cambridge Investment Services will pay a $400K fine plus more than $3M in restitution

Georgia Retiree Files Non-Traded REIT Fraud Claim Against MML Investors Services

Published on: April 5, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Allegedly Unsuitable Recommendations Caused Senior Investor Loss of Savings

A Brunswick, Georgia retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against broker-dealer MML Investors Services, LLC. The investor contends that a broker from the firm overconcentrated his IRA and a non-IRA account in CNL Lifestyle Properties, which is an illiquid, privately traded real estate investment trust (non-traded REIT).

This caused him to lose a large portion of his savings. Now, the investor is alleging failure to supervise, unauthorized transactions, securities fraud, broker negligence, breach of duty, breach of contract, violation of state securities laws, and other claims. He is seeking up to $100K plus interest and costs.

Archegos Capital’s Massive Forced Liquidation is a Hard Hit to Global Banks Credit Suisse, Nomura and Others

Published on: April 1, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Big Banks Anticipate Losses in the Billions

Last week, Archegos Capital Management, the $10 billion hedge fund founded by Bill Hwang, was forced to liquidate over $20 billion in equities including millions of shares in ViacomCBS, media company Discovery, and a number of Chinese tech companies.

The move came after Archegos, which had borrowed on margin while using derivatives, was met with demands by banks to post greater collateral so as to minimize losses.

Geneos Wealth Management Named in $1M GPB Investor Fraud Claim

Published on: March 30, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Brokerage-Dealer Accused of Unsuitable Investment Recommendation In Three GPB Funds

Geneos Wealth Management, a Denver, Colorado-based brokerage firm, is accused of inappropriately recommending that a customer invest in three GPB Capital funds: The GPB Holdings II LP, the GPB Automotive Portfolio, and GPB Waste Management. The investment fraud claim contends that the broker-dealer invited GPB Capital Holdings employees to give a presentation in order to get investors on board.

GPB Capital Holdings, a New York-based alternative assets firm, is now accused of operating a more than $1.8 billion Ponzi scam that enriched not just the company’s executives but also the dozens of brokerage firms and their registered representatives. These firms failed to carry out the proper due diligence when they unsuitably recommended and sold GPB private placements to customers.

Ex-Merrill Lynch Broker Marcus Boggs Pleads Guilty In $3M Investor Fraud

Published on: March 26, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Former Chicago Stockbroker Defrauded Customers To Fund Luxury Lifestyle

Marcus E. Boggs, an ex-Merrill Lynch, Pierce, Fenner & Smith registered representative, has pleaded guilty to wire fraud in the federal criminal case accusing him of defrauding former customers of $3M. The ex-Chicago financial advisor admitted to using the money to fund his lavish lifestyle. He faces up to 20 years in prison and will be sentenced in June.

Boggs spent his entire 12 years in the industry working for Merrill Lynch. Also a former registered investment advisor, he has 13 disclosures on his BrokerCheck, including bars from the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) in 2019 and 2020, respectively.