Securities Fraud

SunTrust Investment Services to Pay $634K For Alleged Inadequate Supervision Of Unsuitable ETF Sales Practices

Published on: June 5, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Accuses SunTrust Investment Services of Failing to Properly Supervise Brokers

The Financial Industry Regulatory Authority (FINRA) has ordered SunTrust to pay $634K to settle charges accusing the broker-dealer of not properly supervising 17 of its brokers when they recommended that customers hold non-traditional exchange-traded funds (ETFs) for long periods–a practice that can lead to losses especially when there is market volatility.

Of this settlement, $50K is a fine and $584,466 is restitution. SunTrust Investment Services, which is owned by Trust Bank, agreed to the sanctions but without denying or admitting to the self-regulatory organization’s (SRO’s) findings.

Massachusetts Sues GPB Capital Holdings for Defrauding Investors of Over $14M

Published on: June 2, 2020 | by Shepherd Smith Edwards & Kantas, LLP

State Securities Regulator Claims GPB Capital Defrauded 180 Local Investors

Massachusetts Secretary of the Commonwealth, William Galvin, has filed a civil fraud lawsuit against GPB Capital Holdings accusing it of defrauding 180 local investors who purchased more than $14M of private placements in five of the GPB funds.

The alternative asset firm, which acquires waste management operations and auto dealerships, has been accused of operating a more than $1.5B Ponzi scam.

UBS YES Strategy Investors Say They Were Promised Low Risks But Suffered Huge Losses

Published on: June 1, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Investors Claim UBS YES Strategy Was Mismarketed To Them: SEC Looking Into the Allegations

If you are an investor whose UBS broker recommended that you employ the UBS YES (Yield Enhancement Strategy) and you’ve since suffered significant losses, you may have grounds for an investment fraud claim.

Unfortunately, UBS and its registered representatives may have been making unsuitable recommendations of this complex investment strategy to customers, as well as misrepresenting the risks involved.

Investor Sues Kestra Investment Services For IRA Losses Involving Barred Broker James Daughtry

Published on: May 29, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Alabama Retiree Lost Retirement Savings To Broker Fraud and Negligence

An investor in Alabama has filed a Financial Industry Regulatory Authority (FINRA) arbitration complaint against Kestra Investment Services, Inc. for retirement losses that she suffered while working with the now-former broker, James Daughtry.

The firm fired Daughtry earlier this year around the same time that FINRA barred him indefinitely after he refused to testify in the self-regulatory (SRO)’s probe into allegations that he engaged in potentially fraudulent and unauthorized transactions in customers’ accounts.

Investors of Preferred Stocks Suffer Losses As Market Undergoes Nearly 5% Drop

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

Unsuitability & Overconcentration May Lead to Unnecessary Investor Losses in Preferred Stocks

If you are an investor in preferred stocks or preferred stock funds, you may have suffered losses as the preferred-stock market had dropped almost 5% since its mid-Feb peak.

These stocks do carry some risk with them and they are not suitable for every investor. If you are wondering whether your investments were inappropriately recommended to you or your broker overconcentrated your portfolio with too many of them, contact our investor attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) today.

Structured Products Are Not For Everyone In San Francisco. Here’s Why

Published on: May 15, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Our San Francisco structured product fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) work with investors throughout the San Francisco Bay Area in helping them to recoup their losses.

Structured products are not for everyone, although investors find them very attractive because they can provide the opportunity to earn the high yield not likely to happen with more traditional types of investments.

Unfortunately, even though these market-linked investments should only be marketed to sophisticated investors that can handle a certain level of risk, brokers lured by the healthy commissions have been recommending them to retail investors, including senior investors and retirees, for years.

Securities Fraud In San Francisco: How You Can Protect Yourself

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

Becoming the victim of securities fraud in San Francisco can lead to devastating financial losses and there are steps that you can take to prevent that from happening. Even if your broker is registered with a known brokerage firm, there are questions you should ask and due diligence you can do to protect yourself and your investments.

How To Protect Yourself Against Securities Fraud

Below, we discuss the steps you need to put in place to ensure that you are fully protected when dealing with a broker or brokerage firm based in San Francisco.

National Securities Broker Michael Burkoff Accused of Unsuitable Investment Recommendations Involving Structured Products

Published on: May 11, 2020 | by Shepherd Smith Edwards & Kantas, LLP

National Securities Broker Investigated Over Unsuitable Investment Recommendations

Our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law firm) are looking into claims by investors who suspect that National Securities stockbroker Michael Burkoff recommended investments that were unsuitable for them. Burkoff is a registered representative with National Securities. He has been the subject of a number of customer complaints.

Our seasoned securities fraud attorneys have been successful at representing investors from all over the United States in cases of broker fraud. If you are interested in finding out how you can recover investment losses, get in touch with us today.

The Top Types of Securities Fraud All Investors Must Know

Published on: April 14, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Broker Fraud Along With The Coronavirus May Be Causing Investment Losses

Becoming the victim of securities fraud is a serious matter. With stocks plummeting and the markets fluctuating all over the place in the wake of COVID-19, investors may not realize that it’s not just the economic reverberations of the coronavirus that’s plaguing their portfolio.

They also may be losing money because their stockbrokers or investment advisor were fraudulent or negligent when handling their investments and placed them in an even more precarious financial situation with more losses than they would now be sustaining otherwise.

Some Brokers Are Taking Advantage Of Investors During The COVID -19 Coronavirus

Published on: March 24, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Watch Out for Brokers Looking to Make High Commissions During COVID-19

With the market crashing in the wake of the Coronavirus (COVID-19), many investors are suffering from massive losses in their portfolio and are looking to their brokers for investment advice.

Unfortunately, not all stockbrokers work with their customers’ best interests at heart, breaching their fiduciary duty in the process. There are also unscrupulous registered representatives who may even seek to take advantage of these hard times and try to persuade investors to buy into risky investments that charge high commissions. Such fraudulent and negligent behavior will lead to even more investment losses and ultimately, acts of stockbroker misconduct.