Securities Fraud

Woodbury Financial Services Broker Robert Ginsberg Accused of Unsuitable Investment Recommendations

Published on: February 10, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Wallingford, Connecticut Investment Advisor Named in Four Pending FINRA Arbitration Cases

If you suffered investment losses while working with Woodbury Financial Services broker, Robert Scott Ginsberg, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com). The Woodbury Financial investment advisor, who is based in Wallingford, Connecticut, is named in four pending customer disputes.

He has been in the securities industry for 12 years. Prior to working for Woodbury Financial Services in 2016, where he is also a registered investment advisor, Ginsberg was a registered representative for Investors Capital Corp. and Investors Capital Advisory.

Investment Recommendations Don’t Always Equate To a Customer’s Best Interests

Published on: February 1, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SEC’s Regulation BI May Not Be Protecting Investors The Way They Think

It has been nearly seven months since the SEC’s Regulation Best Interest (BI), a rule mandating that brokers NOT market themselves as financial advisors unless they actually are dually registered to be one, went into effect. The aim of this distinction is to let investors know whether they are working with someone who is bound to act in their best interests or not.

While brokers are supposed only to recommend financial products to customers that are suitable for them, this recommendation can also be based on what product will earn them the highest commission. This potential conflict of interest can be financially disadvantageous to an investor.

Ex-Ameriprise Broker Angel Bardeche Accused of Earning $450K From Allegedly Unsuitable Mutual Fund Switches

Published on: January 29, 2021 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Suspends Cincinnati, Ohio Financial Advisor

The Financial Industry Regulatory Authority (FINRA) has suspended former Ameriprise (AMP) stockbroker, Angel W. Bardeche, for nine months over allegations that she engaged in unsuitable mutual fund switches over a two-year period that earned her $450K in commissions.

The self-regulatory organization (SRO) also contends that the ex-Ameriprise Financial broker made 109 trades in eight non-discretionary customer accounts without authorization. Bardeche will pay a $10K fine and $5K in disgorgement.

Customers Seeking $1.8M Over Investments Recommended By Western International Securities’ David Bibo

Published on: January 26, 2021 | by Shepherd Smith Edwards & Kantas, LLP

California Stockbroker Accused Of Unsuitability & Misrepresentations

David Omori Bibo, a Western International Securities, Inc. registered representative is named in two pending customer disputes collectively seeking $1.8M in damages. The San Jose broker has been part of the industry for 25 years. He has seven disclosures on his BrokerCheck record.

Our California securities fraud lawyers are looking into investor claims involving Western International Securities broker, David Bibo, or any other registered representative from the firm. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today so that we can help you determine whether you have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration case to recover your losses.

SunTrust Brokers May Have Unsuitably Recommended Northstar Financial Services (Bermuda) to Investors

Published on: January 14, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Customers Claim That Northstar Financial Services Products Were Touted As Low Risk & Safe

If you are an investor who suffered losses while investing in Northstar Financial Services products that were recommended to you by a SunTrust Investment Services stockbroker, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm investorlawyers.com) today so that we can help you explore your legal options.

Unfortunately, there are financial advisors who may have marketed Northstar Financial Services’ investments as stable, safe, low risk, and liquid – like a CD or a money market account – even when that has proven to be far from the case. Now, Northstar Financial Services is in bankruptcy and undergoing liquidation proceedings. It is very likely that investors have lost most of, if not their entire, investment.

LPL Financial Fined $6.5M by FINRA Over Inadequate Supervision

Published on: January 12, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Lax Oversight Purportedly Allowed An LPL Broker to Continue Defrauding Customers in Ponzi Scam

The Financial Industry Regulatory Authority (FINRA) has fined LPL Financial Holdings (LPLA) $6.5M due to purported supervisory inadequacies related to recordkeeping, fingerprinting employees that were non-registered representatives, and its financial advisers’ consolidated reports. The self-regulatory organization (SRO) found that due to weak oversight of these consolidated reports, an ex-broker was enabled to continue committing a $5M Ponzi scheme.

The former registered investment advisor, identified by Advisors Hub as ex-Norwalk, Connecticut broker James Thomas Booth, pleaded guilty to securities fraud in November. He was sentenced to 42 months behind bars. Booth has been named in 36 customer disputes.

Transamerica To Pay $8.8M Over Unsuitable Mutual Fund, 529 Plans, and Variable Annuity Sales

Published on: January 5, 2021 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Settlement Includes Restitution to More than 2,400 Customers

In an agreement reached with the Financial Industry Regulatory Authority (FINRA), Transamerica Financial Advisors consented to pay $8.8M over the unsuitable sales of mutual funds, variable annuities (VAs) and 529 savings plans to customers.

$4.4M of this is a fine and $4.4M is restitution to about 2,400 customers who were financially harmed. The firm settled with FINRA but without denying or admitting to its findings.

SEC Sanctions Voya Financial Advisors $23M Over Conflicts That Cost Customers

Published on: January 4, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Broker-Dealer’s RIA Accused of Violating Fiduciary Duty

The US Securities and Exchange Commission (SEC) and Voya Financial Advisors have arrived at a $22.9M settlement, including $13.9M in restitution and interest to customers that were harmed. Voya Financial Advisors is an independent brokerage firm that is run as both a broker-dealer and a registered investment advisor (RIA).

As a brokerage firm, Voya Financial Advisors charges commissions. As an RIA, it charges fees. The regulator contends that conflicts at Voya’s registered investment advisor arm caused the firm to violate and breach its fiduciary obligation to advisory clients. Voya’s RIA oversees nearly $16B in assets for customers.

Ex-Merrill Lynch Broker Gets Eight Years in Prison For Investor Fraud

Published on: January 3, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Former Kentucky-Based Merrill Lynch Broker Gets Eight Years in Prison

Christopher Lee Hibbard, a former stockbroker for Merrill Lynch and Pierce, Fenner & Smith is sentenced to eight years in prison. The ex-Kentucky stockbroker pleaded guilty to investment fraud and multiple counts of wire fraud earlier this year.

Hibbard, who worked 18 years in the industry, has 14 disclosures on his BrokerCheck record, including several pending customer disputes. All of them, including the regulator and criminal cases, were filed over the last two years.

Coastal Equities To Pay $280K To Elderly and Retiree Clients Over Allegedly Unsuitable Trades

Published on: December 7, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Coastal Equities Has Been The Subject of $3M in Investor Arbitration Claims

Coastal Equities, a mid-sized broker-dealer, recently arrived at a settlement with the Financial Industry Regulatory Authority (FINRA) in which it agreed to give $280K in restitution to several customers. The firm is accused of failing to reasonably supervise one of its registered representatives, who recommended trades that were allegedly excessive and unsuitable. Those who were harmed were retirees and senior investors.

It was just last year that Coastal Equities said in its filing with the US Securities and Exchange Commission (SEC) that investors had submitted $3M in arbitration claims against the firm.