Inadequate Supervision

Ex- Morgan Stanley Broker Pleads Guilty to $6M Investment Fraud

Published on: July 31, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Morgan Stanley Broker Admits To Criminal Investment Fraud, Faces SEC Charges

Michael Barry Carter, a former Morgan Stanley (MS) broker, has pleaded guilty to federal investment fraud and wire fraud charges involving a scam in which he defrauded five customers. This included at least one elderly client, of more than $6M. The scheme took place over 12 years. After his acts of broker fraud were uncovered, Carter took money from other investors to pay back his other victims.

Morgan Stanley fired Carter last year. He also is now facing parallel Securities and Exchange Commission (SEC) civil charges.

First Western Capital Management Allegedly Placed Over $666M of Customers’ Money into Investments Reserved for Qualified Institutional Buyers

Published on: July 22, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Colorado Investment Firm Fined $200K For Investing Unqualified Buyers Into Unsuitable Investments

The US Securities and Exchange Commission (SEC) has ordered First Western Capital Management Co. to pay a $200K fine over allegations that, over a 7-year period, it invested over $666M of clients’ funds into securities that they didn’t qualify for. As a result, 81 clients were placed in securities that were reserved for qualified institutional buyers (QIBs), which are investors that have at least $100M in assets.

The firm is a Denver-based investment adviser. Our Colorado investment fraud lawyers at Shepherd Smith Edwards and Kantas are offering free case consultations to customers that were harmed by these unsuitable investment recommendations and sales that the SEC says were initiated by at least nine of First Western’s investment adviser representatives. Contact us today at (720) 439-2827.

Northwestern Mutual Investment Services Fined $350K for Inadequate Supervision of Ex-Broker Sampson Pearson

Published on: July 16, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Former Financial Representative Is Facing Criminal Trial for Annuity Fraud

The Financial Industry Regulatory Authority (FINRA) has fined Northwestern Mutual Investment Services $350K for failing to properly supervise former stockbroker, Sampson Pearson, which enabled him to defraud customers of $570K. Northwestern Mutual Investment Services is the brokerage arm of Northwestern Mutual Life Insurance Co.

Pearson, who was barred by the self-regulatory organization (SRO) in 2017, is charged in federal court with aggravated identity theft, mail fraud, and filing false tax returns. According to his BrokerCheck record, he is named in 13 disclosures, including 11 customer disputes.

SagePoint Financial Ordered to Pay Over $1.6M for Early Unit Investment Trust Rollovers That Cost Investors

Published on: June 22, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Says SagePoint Financial Brokers Unsuitably Recommended Early UIT Rollovers

The Financial Industry Regulatory Authority (FINRA) is ordering SagePoint Financial to pay over $1.6M in fines and restitution after it executed over $895 million in unit investment trust (UIT) transactions that resulted in more than $17.2 million in sales charges.

Of these UIT transactions, over $203.7 million of the proceeds were from sales that occurred over 100 days before a UIT’s maturity date. FINRA found that these unsuitable early rollovers caused customers to pay over $1.3 million in sales charges that they wouldn’t have otherwise if only they’d held onto their UITs until they matured.

Retiree Sues Kovack Securities and Its Broker Susan Penney Over Investment Losses

Published on: June 8, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Elderly Investor Alleges Unsuitable Investment Recommendations Caused REIT Losses

An Oklahoma retiree is seeking up to $500K in damages for investment losses she suffered while working with Kovack Securities broker, Susan Penney.

The claimant contends that Penney and the broker-dealer misled her and made unsuitable recommendations when they persuaded her to invest a huge portion of her portfolio in non-public Real Estate Investment Trusts (REITs) and other risky investments that an inexperienced investor like her should never have been involved in.

Investors Accuse InSight Securities Broker Carlos Legaspy of StockBroker Fraud & Negligence

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

Illinois-Based StockBroker Faces Four Pending Customer Disputes

Carlos Legaspy, a longtime broker and the owner of InSight Securities, is the subject of four pending customer disputes. All disputes are accusing him of fraud and/or negligence, including one claim seeking up to $6M in damages.

If you are or were a customer of Legaspy’s or InSight Securities and you suffered substantial losses, contact our stockbroker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) right away so that we can help you explore your legal options. We work with investors throughout the US.

Shepherd Smith Edwards and Kantas Continues to Investigate Investor Losses Involving Robinhood Financial Outages Before COVID-19

Published on: April 6, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Robinhood Financial Apologizes To Investors For Outages

If you are an investor who recently sustained losses through Robinhood Financial’s investing platform, contact our investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) today.

Robinhood Financial, which provides an online platform that facilitates stock, exchange-traded funds (ETFs), and other investment trades without charging commissions, recently experienced technical snafus that caused major outages and prevented trading on March 2nd and March 3rd.

Broker Fraud and Investment Losses During The Time of The Coronavirus

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

Investment Losses During Recent Market Crisis May Be Recoverable

Investors throughout the United States are grappling with financial investment losses as markets continue to remain volatile in the wake of Coronavirus (COVID-19). The recent oil price drops, the rise in unemployment as businesses are forced to shutter and lay off employees, and a flailing economy has done nothing to assuage growing concerns.

Already, Shepherd Smith Edwards and Kantas (SSEK Law Firm) has spoken to a number of these investors to see how we might help.

SSEK Investigates Investment Loss Claims Involving Wells Fargo Broker Jeffrey Eiler

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

Wells Fargo Stockbroker Accused Of Overconcentration & Unsuitable Investments

Wells Fargo Clearing Services broker, Jeffrey Eiler, has been the subject of 12 customer investment loss disputes, most of which were settled and a few that were denied. If you are an investor who lost money while Eiler was your registered representative, our stockbroker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) want to offer you a free case assessment.

The customer disputes against Eiler go back more than twenty years. According to his BrokerCheck record, most of the settlements were paid by the firm where he was a registered representative.

Shepherd Smith Edwards and Kantas Investigates UIT Claims Involving Ex-Raymond James Broker

Published on: March 9, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Raymond James Broker Named In $500K UIT Investment Fraud Claim

Our stockbroker fraud lawyers are investigating claims involving Ameriprise (AMP) and former Raymond James broker, E. Kyle Davis. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today if you believe that you may have fallen victim to investment fraud.

Davis, who has worked over two decades in the securities industry, has been named in six disclosures including four customer disputes. Still pending is one customer claim seeking $500K in damages involving a unit investment trust (UIT) while Davis was a Raymond James Financial stockbroker. The customer is making a number of allegations, including the following: