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Articles Posted in Broker Fraud

Customers Claim That Northstar Financial Services Products Were Touted As Low Risk & Safe 

If you are an investor who suffered losses while investing in Northstar Financial Services products that were recommended to you by a SunTrust Investment Services stockbroker, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm investorlawyers.com) today so that we can help you explore your legal options. 

Unfortunately, there are financial advisors who may have marketed Northstar Financial Services’ investments as stable, safe, low risk, and liquid – like a CD or a money market account – even when that has proven to be far from the case.  Now, Northstar Financial Services is in bankruptcy and undergoing liquidation proceedings. It is very likely that investors have lost most of, if not their entire, investment.  

Ex-Park Avenue Securities Stockbroker Was Allowed to Resign By Broker-Dealer Following Probe

If you suffered losses while working with Nicholas Richard Palumbo, our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) would like to talk to you. The previously registered financial representative is based in New York and he was a Park Avenue Securities broker from 1999 to 2020.

Nicholas Palumbo was allowed by the firm to step down in the midst of an investigation into whether he did not disclose an unapproved private securities transaction in which he solicited clients to participate. This practice is known as selling away. It typically involves a broker recommending that clients buy securities not held or offered by their brokerage firm of record. 

Triad Advisors and its Ex-Florida-Based Broker Placed Claimants Funds In Too Risky GPB Capital & REIT Investments  

Two Utah retirees have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Triad Advisors, Inc. over losses they suffered from investing in GPB private placements and privately traded real estate investment trusts (REITs), including American Realty Capital Trust. Now they are seeking up to $500K in damages. 

The couple worked with former Triad Advisors broker Michael Payne, who is now a broker with Proequities, Inc. in Longwood, Florida. He also is a financial representative with Payne Financial Group in Winter Springs, Florida. 

Former Kentucky-Based Merrill Lynch Broker Gets Eight Years in Prison

Christopher Lee Hibbard, a former stockbroker for Merrill Lynch and Pierce, Fenner & Smith is sentenced to eight years in prison. The ex-Kentucky stockbroker pleaded guilty to investment fraud and multiple counts of wire fraud earlier this year. 

Hibbard, who worked 18 years in the industry, has 14 disclosures on his BrokerCheck record, including several pending customer disputes. All of them, including the regulator and criminal cases, were filed over the last two years. 

Seeking Greater Yield and Safety, Muni Bond Customers Encounter Defaults 

Despite the fact that the coronavirus has taken a toll on city and state finances, this isn’t stopping investors from buying municipal debt in a bid for greater yield and more safety than the markets can provide at this time. Unfortunately, because many municipalities don’t have the money to pay interest on the bonds, these muni bonds are defaulting. This is bad news for investors. 

If you suffered losses from the municipal bonds that your broker recommended to you, you may have grounds for an investor claim to recover your losses. Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represents municipal bond fraud investors nationwide. We can help you explore your legal options. 

FINRA Suspended New York Broker After Senior Investor Lost More Than $69K

Mack Leon Miller, a Spartan Capital Securities broker in New York, was suspended by the Financial Industry Regulatory Authority (FINRA) earlier this year. The self-regulatory organization (SRO) found that Miller excessively traded in an older investor’s account while he was with Spartan and before that while registered as a broker with Dawson James Securities. 

Miller consented to the sanctions but without admitting to or denying the findings. In addition to the suspension, which lasted from May 4 to October 3, 2020, Miller was ordered to pay $2500 in restitution. According to his BrokerCheck record, now that his suspension is over, Mack Miller remains a registered Spartan Capital Securities stockbroker. 

Florida-Based Financial Management Company Employee Allegedly Stole Money 

Albertín Aroldis Chapman de la Cruz, the star relief pitcher for the New York Yankees, has filed an investment fraud lawsuit against Pro Management Resources and several individuals. The financial management and tax planning company reportedly has also been serving as Chapman’s business manager for almost a decade. Now, the MLB pitcher is accusing the company of stealing $3M.

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent investors in Florida that have suffered investment losses due to broker and financial fraud or negligence. Contact us at (813) 560-2992 or by using our online contact form so that we can help you explore your legal options.

Investors Who Were Sold Telecommunication Company’s Bonds Grapple with Losses 

In its second sale in two months, Frontier Communications Corp. wants to sell $2.8B in junk bonds to help pay for its exit from bankruptcy. 

According to sources that spoke with Bloomberg, this includes new $1.8B first-lien bonds at an about 5.25% yield and another $1B of second-lien notes at a 7 – 7.25% yield. The new bonds, along with an increase to an existing term loan, are meant to allow Frontier to pay back debt it owes that will mature in 2024 and 2026.

Retail Investors Were Allegedly Told To Hold Exchange-Traded Products for Too Long 

In separate settlements reached with the US Securities and Exchange Commission (SEC), Royal Alliance Associates, Securities America Advisors, Summit Financial Group, Benjamin F. Edwards & Co., and American Portfolio Financial Services / American Portfolio Advisers will pay over $3M in penalties and restitution for their allegedly unsuitable sales of exchange-traded products (ETPs) to customers between January 2016 and April 2020. The firms did not deny or admit to the findings. 

All of the respondents recommended and sold iPath S&P 500 VIX Short–Term Futures ETNs (VXX), which utilize short-terms futures contracts to try tracking the S&P 500 Index’s implied volatility. It also is considered one of the largest and most volatile ETPs and among the worst-performing from last year.

Banned Woodbury Financial Broker Allegedly Sold Fake Investments, Converted Client Monies

Ronald Walter Hannes, a Spokane, Washington-based investment advisor and former Woodbury Financial Services broker, is accused by the Washington State Department of Financial Institutions of defrauding 19 clients of over $2.9M. 

Hannes had operated out of Hannes Financial Services and he was also a registered Woodbury Financial Services broker for 25 years until 2019. He has 33 years of experience working in the industry. Hannes was fired by Woodbury Financial Services last December. Financial Industry Regulatory Authority (FINRA) barred him in February.

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