Broker Fraud

New York Yankees’ Aroldis Chapman Files $3M Investment Fraud Claim Against Pro Management Resources

Published on: November 30, 2020 | by Shepherd Smith Edwards & Kantas, LLP

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.

Frontier Communications to Sell $2.8B of Junk Bonds as Part of Bankruptcy Exit

Published on: November 27, 2020 | by Shepherd Smith Edwards & Kantas, LLP

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.

Royal Alliance, Securities America, & Other Firms To Pay $3M for Allegedly Unsuitable iPath S&P 500 VIX Short–Term Futures ETN & Other ETP Sales

Published on: November 23, 2020 | by Shepherd Smith Edwards & Kantas, LLP

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 https://www.investopedia.com/articles/investing/080715/etf-analysis-ipath-sp-500-vix-futures-vxx.aspto 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.

Hannes Financial Services’ Ronald Hannes Allegedly Defrauded Woodbury Financial Customers

Published on: November 20, 2020 | by Shepherd Smith Edwards & Kantas, LLP

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.

Global Investment Advisory Services’ Felipe Vargas is Named in Customer’s $1.3M Barclays Bank iPath Series B S & P 500 Short Term Futures ETN Claim

Published on: November 13, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Investor Contends Insigneo Securities Broker Unsuitably Handled Account

A former customer of Felipe Henao Vargas, an Insigneo Securities stockbroker, is pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm for $1.3M in damages related to the iPath Series B S & P 500 Short Term Futures ETN (VXX). Henao is also a registered investment advisor with Global Investor Advisory Services, LLC in Miami, Florida.

The investor said that Henao had placed a short-term trade for 20,000 of the Barclays exchange-traded note (ETN) in late February 2020 in the investor’s account and then made another trade a few weeks later to cover the short. The claimant reportedly wrote an email expressing concerns over the brokerage account’s performance, which had depreciated in value, and Henao’s lack of communication.

Chinese Tycoon Sues UBS for $500M Over Losses Involving Margin Loan

Published on: November 11, 2020 | by Shepherd Smith Edwards & Kantas, LLP

High Net Worth Individual Investor Alleges That UBS Group AG Persuaded Him To Buy On Margin

Guo Wengui, a rich Chinese businessman exiled in New York, has filed a lawsuit against UBS Financial Group after losing $500M.

Wengui contends that the bank pressured him into borrowing funds to invest in shares of Haitong Securities, Co., a brokerage firm in China. This high net worth institutional investor alleges that in 2015, UBS forced the stock’s sale during both a 45% drop in Haitong’s shares, which were traded in Hong Kong and a market route. Guo said that he lost his entire investment.

Investors Blame UBS Broker and Edinroc Financial Group Head Jose Cornide For Recommending YES Strategy

Published on: October 28, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Florida Financial Advisor is Named in at Least 10 FINRA Cases, Including One $25 Million Claim

If you suffered losses while working with UBS Financial Services (UBS) stockbroker, Jose Manuel Cornide, Jr., you may be able to file a Financial Industry Regulatory Authority (FINRA) arbitration claim for your losses. Cornide, who is based out of Coral Gables in South Florida, is the head of Edinroc Financial Group, which is a UBS private wealth management group.

Jose Cornide is named in multiple FINRA arbitration cases brought by customers for losses they suffered from the firm’s Yield Enhancement Strategy (YES Strategy). They are just some of the UBS clients who were sold on what was supposed to be a low-risk trading strategy that would allow them to earn enhanced yield. Instead, many of these UBS customers are now contending with significant losses.

Another Customer Files REIT Losses Claim Against Frank Briseno III of FSC Securities and Nettworth Financial

Published on: October 26, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Metairie, LA Broker Allegedly Made Unsuitable Recommendations to Retirees

If you suffered serious investment losses from working with FSC Securities Corp. stockbroker and Nettworth Financial investment advisor, Frank Briseno III, you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover your losses.

Briseno, who is a Metairie, Louisiana broker, also co-ran Nettworth Financial Group with another FSC Securities broker. The New Orleans investment advisory firm, which may no longer be in operation, has been accused by more than two dozen retirees of unsuitably selling them real estate investment trusts (REITs) while generating high commissions.

Ex-SagePoint Financial Broker Troy Baily Sold Future Income Payments Securities to Investors

Published on: October 23, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Suspends Nebraska Stockbroker Who Marketed An Alleged $300M Ponzi Scam to Customers

Troy Robert Baily, a former SagePoint Financial broker, has been suspended by the Financial Industry Regulatory Authority (FINRA) for six months. Baily, who is also a previously registered investment advisor, is based in Nebraska.

The suspension comes in the wake of allegations that Baily took part in unapproved and undisclosed private transactions and persuaded customers to invest in Future Income Payments (FIP), which federal prosecutors now say was a $300M Ponzi scam.

Customers Accuse Ex-Fortune Financial Services Broker Jonathan Freeze of Alternative Investment Fraud

Published on: October 13, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Former Canonsburg, Pennsylvania Stockbroker Faces Selling Away Allegations

Three years after the Financial Industry Regulatory Authority (FINRA) barred him, Jonathan Douglas Freeze remains the subject of eight pending customer disputes. Most of these investor claims accuse him of selling away and investing customers’ funds in Alternative Investment Holdings, a North Carolina real estate and investment holdings company, without Fortune Financial Services’ authorization.

Freeze worked 21 years in the industry. He also previously was a broker for Summit Brokerage Services, LPL Financial (LPLA), Lincoln Financial Advisors, and The Lincoln National Life Insurance Company.