Broker Misconduct

Shepherd Smith Edwards and Kantas Investigates Claims Involving Ex-Commonwealth Financial Network Broker Gerald Eaton

Published on: December 2, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Ex-Commonwealth Financial Network Broker

SSEK Law Firm is meeting with investors who suffered losses while working with former Commonwealth Financial Network broker, Gerald Allan Eaton, or another financial representative from the firm.

Eaton was recently barred by the Financial Industry Regulatory Authority (FINRA) in the wake of allegations that he fraudulently took money out of his clients’ accounts. Commonwealth fired him last month, claiming it had found that he’d engaged in “serious misconduct” that involved “fraudulently facilitated distributions” from accounts that were not for clients’ benefit and without letting them know or getting their permission.

Shepherd Smith Edwards and Kantas Investigates Claims Involving 1 Global Capital Investments

Published on: November 25, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigate Investment Fraud Claims Made Against 1 Global Capital

If you are someone who invested in 1 Global Capital notes at the recommendation of your broker or financial advisor, you may have grounds for filing an investment fraud claim. 1 Global is accused of operating a $322M scam and defrauding at least 3,600 investors including older investors who lost their retirement funds as a result.

Contact Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today so we can determine whether you have grounds for a broker fraud case to help you recover your money.

Summit Investment to Pay Investor $100K for LJM Preservation and Growth Fund

Published on: November 22, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Summit Investment Management To Pay Investor $100K

A Financial Industry Regulatory Authority (FINRA) panel said that Summit Investment Management and portfolio manager, Thomas Carroll, must pay one firm client $100K for investing his money in funds from the investment manager, LJM Partners, which is no longer in operation.

The LJM Preservation and Growth Fund (LJMIX) has been named in numerous complaints since early last year when it suffered a huge plunge in value of over 80% in two days. This happened after the CBO Volatility Index experienced a spike.

Shepherd Smith Edwards and Kantas Investigates Ex-Sigma Financial Broker Frederick Randhahn For Selling $625K of Woodbridge Promissory Notes

Published on: November 21, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Frederick Randhahn, a former Sigma Financial Corporation broker, is suspended by the Financial Industry Regulation Authority (FINRA) for nine months after he allegedly sold $625K of Woodbridge promissory notes to investors without the brokerage firm’s permission and approval to sell these products.

In a letter of acceptance, waiver and consent, Randhahn agreed to pay a $5K fine and disgorge the almost $32K in commissions plus interest that he made from the sales. However, he did not admit to or deny the self-regulatory authority’s (SRO) findings.

Randhahn Fired For Selling Unapproved Investments

Shepherd Smith Edwards and Kantas Investigates Investor Claims Involving Capital Financial Investments and Ex- Broker Sean Kelly

Published on: November 18, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigates Capital Financial Investments And Ex-Broker Sean Kelly Over Investor Claims

At the heart of recent investor claims against Capital Financial are allegations against one of its ex-brokers, Sean Kelly.

Sean Kelly was accused last year by the US Securities and Exchange Commission (SEC) of defrauding a dozen investors. These investors, including senior retirees, were defrauded of over $1M through three of his companies, including Lion’s Share and Associates, that is based out of Georgia.

Hong Kong Fines UBS Group $51M For Overcharging Clients

Published on: November 13, 2019 | by Shepherd Smith Edwards & Kantas, LLP

UBS Group Fined $51M By Hong Kong Securities Regulator

The Hong Kong Securities and Futures Commission (SFC) is ordering UBS Group AG (UBS) to pay a $51M fine for overcharging clients between 2008 and 2017. It is also ordering the Swiss banking giant to pay more than $25M in compensation to customers that were harmed.

According to the Hong Kong regulator, about 5,000 clients paid more than they should have in approximately 28,700 transactions. This happened after UBS advisors and assistants added padding to spreads involving bonds, as well as structured note trades and charging extra fees. UBS Group is accused of not disclosing to clients that they were paying these fees.

Shepherd Smith Edwards and Kantas Investigates Customer Claims Involving First Standard Financial and Brokers Philip J. Sparacino and Gabriel Block

Published on: November 7, 2019 | by Shepherd Smith Edwards & Kantas, LLP

The New Jersey Bureau of Securities has revoked the registration license of First Standard Financial Company, a broker-dealer based in Red Bank, NJ. The move comes in the wake of allegations that First Standard and its representatives engaged in improper short-term trading, causing them to illegally make over $28.7M in sales charges and commissions.

Meantime, there have reportedly been an increase in customer complaints and a “mass exodus” of First Standard representatives from the firm. The state’s securities regulator is accusing the brokerage firm of “pervasive unauthorized, unsuitable, and excessive trading” that cost customers money while “unjustly enriching First Standard and its agents.”

Our brokerage firm misconduct lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) are investigating claims of current and former customers of First Standard Financial Company and its brokers, including former licensed agents Philip Sparacino and Gabriel Block. Please contact us today so that we can help you explore your legal options.

Shepherd Smith Edwards & Kantas Investigates Ex-Raymond James & Associates Advisor Stuart Nichols

Published on: October 31, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Ex-Raymond James Advisor, Stuart Nichols

Another former Raymond James advisor has gotten into trouble over fraud allegations. The Financial Industry Regulatory Authority (FINRA) recently barred Stuart Nichols, a former broker with the firm, after he failed to participate in the self-regulatory authority’s probe into churning allegations made against him.

Churning involves engaging in excessive trading in a brokerage account for the purposes of making commissions.

Ex-Texas Broker With Morgan Stanley and Ameriprise Fined Over Allegedly Unauthorized Trades

Published on: October 28, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Financial Industry Regulatory Authority (FINRA) has fined former Texas broker Steven Yellen $25K for allegedly making unauthorized trades while he was a registered representative for both Ameriprise (AMP) and Morgan Stanley (MS). The self-regulatory authority (SRO) notes at least 30 instances in which Yellen executed trades without customer authorization.

After more than 30 years in the industry, he is no longer affiliated with any broker-dealer after Ameriprise fired him last year. According to FINRA, from 3/2013 to 12/2015, Yellen made 14 unauthorized trades while he was a Morgan Stanley broker, exercising unauthorized discretion in a client’s account. Meantime, when filling out compliance questionnaires, he neglected to disclose these activities.

In 2016, after 32 years with Morgan Stanley, Steven Yellen became an Ameriprise broker. During this time, he allegedly made 16 unauthorized trades in 10 customer accounts. These trades went beyond these customers’ risk levels that they’d authorized.

Shepherd Smith Edwards and Kantas Investigates Daniel Gordon Maughan and Financial West Group

Published on: October 23, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking into allegations against Financial West Group and its broker Daniel Gordon Maughan.

It is alleged that Maughan excessively traded and churned a client’s Trust Account at his member firm. A arbitration complaint has already been filed! According to his brokercheck, Maughan has also been banned by The Financial Industry Regulatory Authority Inc. (FINRA).

The complaint alleges that by churning the customer’s trust account, Maughan willfully: