Articles Posted in FINRA Settlements

Why Investors With Colorado Bankers Life Insurance Annuity Losses Should Contact Our Experienced Securities Lawyers 

Shepherd Smith Edwards and Kantas Colorado Annuity Loss Lawyers Has Already Filed Dozens of Annuity Loss Lawsuits Related to Greg Lindberg-Owned Entities

If you are an investor who purchased annuities issued by Colorado Bankers Life Insurance Company or Bankers Life Insurance Company, you may be wondering how to recover your money, especially in light of a court’s order in late 2022 that placed both entities into liquidation. Both insurers are Global Growth entities and are owned by beleaguered insurance magnate Greg Lindberg.

What To Know When Filing a FINRA Complaint Against Your Broker

The Difference Between A FINRA Lawsuit and a FINRA Complaint  

If you suspect that your financial advisor engaged in broker misconduct or negligence, then you may be considering filing a complaint with the Financial Industry Regulatory Authority Organization (FINRA). This non-profit organization, which regulates the US securities industry, investigates complaints brought against brokerage firms and their employees and, when warranted, issues disciplinary sanctions against them.

Recoup Your GPB Investor Losses in Securities Arbitration

If you are an investor who suffered losses in GPB Capital Holdings, you may be able to sue your broker-dealer for unsuitably recommending these private placements that allegedly were part of a more than $1.7B Ponzi scam. Unfortunately, over 17,000 investors, including many retail customers and older retirees, were purportedly persuaded by their broker-dealers that investing in one of the GPB Funds was a solid investment opportunity. Instead, they have suffered significant investment losses. Meanwhile, GPB Capital’s key executives are facing regulatory and criminal charges along with lawsuits brought by investors.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing GPB Capital investors in the Financial Industry Regulatory Authority (FINRA) arbitration against the broker-dealers that sold private placements in one or more of the GPB Funds to customers. Some of these brokerage firms have even been subject to related regulatory sanctions.

Investors Who Used or Currently Use Robinhood Financial May Have Grounds for a Claim

If you are someone who lost money while using Robinhood Financial to make investments, Shepherd Smith Edwards and Kantas (SSEK Law Firm) would like to speak with you to help you explore whether you have grounds for a claim.

Robinhood Financial offers commission-free trading of stocks, exchange-traded funds (ETFs), and other investments. Its website, along with its app, has executed tens of billions of dollars of trades since its inception in 2013.

Broker-Dealers Accused of Not Properly Supervising Custodial Accounts

The Financial Industry Regulatory Authority (FINRA) announced that it has fined five major firms $1.4M in total for not reasonably supervising custodial accounts. The broker-dealers are:

  • Citigroup (C), which will pay $300K.

Our investor lawyers at SSEK Law Firm are meeting with clients who’ve worked with Innovation Partners and suffered investment losses that they suspect may be due to fraud, negligence, or inadequate supervision. The North Carolina-based broker-dealer was recently fined $60K and censured by the Financial Industry Regulatory Authority (FINRA) after allowing its ex-co founder, president, CCO and CEO Patrick Emanuel Sutherland, to continue to have access to its email, other systems, records, and books, as well as engage in activities on its behalf, even after he was found guilty of multiple felonies in 2016.

Those felonies, including submitting a false tax return and obstruction of an official proceeding, should have disqualified him from associating with a member firm for a decade. Yet from approximately 10/28/2016 to 9/15/2019, Sutherland continued to remain involved with Innovation Partners, even discussing securities-related matters with associated persons at the brokerage firm and directing staff regarding commissions for transactions.

Meantime, Innovation Partners’ current CEO and President Yanique Elaine Lawrence reportedly knew about Sutherland’s continued involvement and was often copied on his direct communications with the firm’s registered representatives. Both Lawrence and Innovation Partners are accused of not setting up and enforcing a suitable supervisory system that should have prevented Sutherland from continuing to be involved with the firm.

If former Cetera Advisers broker James Christopher Hayne has handled your investments  and you suffered investment losses that you suspect were due to fraud or negligence, you should speak with an experienced stockbroker fraud law firm right away. Over the years, Hayne, a Texas broker, has been named in numerous customer arbitration claims brought  before the Financial Industry Regulatory Authority (FINRA).

With 17 years in the industry, Hayne, previously was a registered broker with Questar Capital, First Allied Securities, Edward Jones, and Morgan Stanley. His BrokerCheck record shows nine customer disputes, five of which were settled.

Most recently, there was the Financial Industry Regulatory Authority claim brought against Hayne by a customer that was resolved for $325K. The former client had requested $100K in damages. In that investor fraud case, Hayne  was accused of violating both the Texas Securities Act and California Corporate Securities Law, breaching contractual duties to the claimant, negligence in the way he handled the latter’s account, and causing the customer to suffer investment losses.

For alleged supervisory failures and excessive trading by one of its former brokers, Summit Brokerage Services, Inc. has been ordered to pay over $880K– $558K in restitution with interest to customers that were harmed,  as well as a $325K fine to the Financial Industry Regulatory Authority (FINRA). The broker-dealer consented to the entry of the findings but did not admit to or deny wrongdoing.

According to the SRO, from 1/2012 to 3/2017, Summit neglected to review certain automated alerts for the trading activities of its registered representatives, of which there are more than 700. Because of this, one of its brokers, was able to excessively trade in accounts belonging to 14 clients, including 533 trades on behalf of one customer. This compelled her to pay over $171K in commissions.

The broker’s excessive trading resulted in 150 alerts for this type of activity, none of which were purportedly reviewed by Summit. FINRA has since barred the former registered rep.

The Financial Industry Regulatory Authority (FINRA) announced that Buckman, Buckman & Reid, a New Jersey-based brokerage firm, will pay about $205K in restitution to seven clients to settle claims that it did not reasonably supervise two ex-registered representatives accused of recommending “excessive and unsuitable trades.” The self-regulatory authority (SRO) has already barred both former brokers from the industry.

Also dealing with sanctions are Buckman Senior VP and owner Harry John Buckman, Jr., who supervised the two former brokers. Mr. Buckman was suspended for three months, ordered to pay a $20K fine, and must fulfill continuing education hours related to fulfilling supervisory duties.

FINRA said that the brokerage firm and Buckman neglected to identify when one of the ex-representatives was taking part in short-term Unit Investment Trust (UIT) trading on a frequent basis, as well as engaging in “other long-term investments” that charged customers substantial, upfront expenses. As a result, between ’13 to ’14 Buckman customers that were harmed ended up paying about $201K in commissions while sustaining approximately $163K in losses. Meantime, although there were red flags indicating “potentially excessive trading” by this former broker, the firm is accused of not reviewing these warnings.

Virginia Regulator Fines UBS Financial After Its Broker Makes Unsuitable Recommendations

To settle charges brought by Virginia’s State Corporate Commission accusing a UBS (UBS) broker of making unsuitable recommendations involving gold and precious metals securities to 18 clients, UBS Financial Services will pay $319K—$289K to the clients and $30K to the state.

Virginia’s regulator contends that unsuitable recommendations were made in 2013 and 2014 and caused UBS clients to hold an overconcentration of these securities, which were not even suitable for some of them. The state said that this violated its securities rules.

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