FINRA

Shepherd Smith Edwards and Kantas Investigates Claims Involving Ex-Woodbury Financial Services Broker Robert Hayes Hoffman

Published on: December 26, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Barred Woodbury Financial Services Broker Accused of Misrepresentations and Fraud

If you are an investor who lost money while Robert Hayes Hoffman was your financial representative, our broker misconduct lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) would like to talk to you. Hoffman was barred by the Financial Industry Regulatory Authority (FINRA) in 2017 and the Indiana Securities Division in 2018. He was a Woodbury Financial Services broker from 2006 and 2017. After that, for less than a year, he was a Thurston, Springer, Miller, Herd & Titak broker until the FINRA bar.

Hoffman’s BrokerCheck record notes that he has already been the subject of at least three customer disputes. One claim, alleging unsuitability, misrepresentations, breach of fiduciary duty, and selling away, was settled for $250K. Another customer dispute, which made similar allegations, including churning, was settled for over $1M. A third dispute, which accused Hoffman of recommending a variable annuity that was not only unsuitable for the claimant but also resulted in tax consequences for her, was settled for nearly $48K.

Lek Securities Ex-CEO Samuel Lek Barred by FINRA and Major Exchanges

Published on: December 24, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Lek Securities Accused of Enabling Manipulative Trading

The Financial Industry Regulatory Authority (FINRA) and most major US securities exchanges have permanently barred broker Samuel Lek, who is also the former CEO of Lek Securities. Meanwhile, the broker-dealer was fined $900K.

The bars by the self-regulatory organization (FSRO), the New York Stock Exchange (NYSE), the Nasdaq Stock Market, Cboe Global Markets, and their affiliate exchanges were part of 10 distinct settlements. They came in the wake of allegations that Lek Securities gave foreign traders market access and that some of these traders proceeded to engage in manipulative trading and fraud. Lek and Lek Securities settled the charges but without denying or admitting to them.

Shepherd Smith Edwards and Kantas Investigates Claims Involving Ex-Pruco Broker Joseph Viet Duy Phan

Published on: December 16, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Former Pruco Securities Broker Accused of Borrowing Customers’ Money

The Financial Industry Regulatory Authority (FINRA) announced that it is barring Joseph Viet Duy Phan, an ex-Pruco Securities broker, after he did not appear at a hearing in the self-regulatory organization’s (SRO) probe into why he was fired by the broker-dealer. Phan was let go by Pruco for allegedly borrowing money from two clients’ accounts without firm approval. Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) is currently looking into potential investor claims against the former Pruco broker and his firm. If you lost money while working with Phan as your registered representative, contact our broker fraud lawyers today.

Phan was a Pruco broker from 2007 into 2018. Aside from allegedly borrowing money from clients’ accounts without authorization, he is also accused of trying to deposit one client’s insurance premium check into an account that was in his name.

First Broker Fraud Case Involving GPB Capital Investments Gears Up for Spring FINRA Hearing

Published on: December 12, 2019 | by Shepherd Smith Edwards & Kantas, LLP

GPB Capital Fraud Victim To Have Case Heard By FINRA

An investor who lost significant sums after she was sold GPB Capital private placements by an Arkadios Capital broker will get her case heard before a Financial Industry Regulatory Authority arbitration (FINRA) panel in April 2020.

This will likely be the first broker fraud complaint involving GPB investments to go before the self-regulatory organization’s (SRO’s) arbitrators.

9th Circuit Strikes Down JP Morgan Securities’ Wrongful Termination Win

Published on: November 6, 2019 | by Shepherd Smith Edwards & Kantas, LLP

A Ninth Circuit panel has struck down JP Morgan Securities’ arbitration win in a wrongful termination case brought by one of its former financial analysts. The appeals court found that the Financial Industry Regulatory Authority (FINRA) panel acted unreasonably when it refused to delay the rest of the arbitration proceedings after the firm’s ex-financial analyst, Bradley Sayre, and his lawyer both had medical emergencies.

Sayre couldn’t make part of the proceedings because his wife had a baby. Not only that, but his attorney wasn’t able to be present for all of the hearing after suffering a stroke.

Sayre asked for a continuance, but the FINRA panel denied his request, deciding that it could make an impartial ruling even without his presence or that of his lawyer. The arbitration panel ruled in favor of the financial firm.

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.

Newbridge Securities, Under Investigation for GPB Private Placement Sales, Fined $225K for Inadequate Supervision

Published on: October 30, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Newbridge Securities in Boca Raton, a Florida-based broker-dealer, is censured by the Financial Industry Regulatory Authority (FINRA) and has been fined $225K over its purported failure to adequately supervise the sale of exchange-traded funds, structured notes, and other complex securities.

The self-regulatory authority (SRO) also fined the firm’s investment banking director, Bruce Jordan, $5K for failing to properly supervise the sales. He is suspended for two months.

GPB Private Placement Lawyers

Shepherd Smith Edwards and Kantas Investigates Claims by Clients of Innovation Partners

Published on: October 29, 2019 | by Shepherd Smith Edwards & Kantas, LLP

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.

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 Complaints Involving Ex-Raymond James Broker John Wyshak

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

Former Raymond James (RJF) broker John Charles Wyshak is under scrutiny by our investor lawyers at SSEK Law Firm. If you are someone who previously worked with Wyshak as your financial representative while he was registered with Raymond James or any other broker-dealer, and you suffered substantial losses, your first consultation with us is a free, no obligation case assessment.

After over thirty years in the securities industry, Wyshak is no longer a registered broker or investment adviser. Recently, a Financial Industry Regulatory Authority (FINRA) arbitration panel ruled against Wyshak and in favor of Raymond James, ordering him to pay the firm nearly $1M for previous investor fraud claims involving his allegedly fraudulent actions and for breaching an agreement with the broker-dealer.

Wyshak left Raymond James last year. Now, the FINRA arbitrators want him to pay the firm more than $932K in compensatory damages, in addition to 10% interest and thousands of dollars in other fees.