Investor Lawyers Blog

Merrill Lynch To Pay $11.6M To Settle FINRA Case Over Unsuitable Unit Investment Trust Rollovers

Published on: July 6, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Over 3,000 Customers May Have Been Charged More Than $8.4M in Excessive Sales Fees

The Financial Industry Regulatory Authority (FINRA) announced that Merrill Lynch, Pierce, Fenner & Smith will pay approximately $8.4M in restitution and an over $3.2M fine to settle charges alleging supervisory failures involving unit investment trust (UIT) rollovers.

The self-regulatory organization (SRO) contends that over 3,000 customers may have been excessively charged over $8.4M in sales fees related to early rollovers.

Hospitality Investors Trust Files For Chapter 11 Bankruptcy Protection

Published on: June 23, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Non-Traded REIT Seeks To Restructure $1.3B in Unsecured Debt

If you are an investor whose broker recommended that you invest in Hospitality Investors Trust (HIT), you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages.

Hospitality Investors Trust used to be called American Realty Capital Hospitality Trust (ARC Hospitality Trust). In May 2021, the publicly registered non-traded real estate investment trust (non-traded REIT) filed for Chapter 11 Bankruptcy protection as it seeks to restructure its $1.3B in unsecured debt.

Sigma Financial is Facing $4.5M in Possible Damages from Customer Claims Arbitration

Published on: June 22, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Recent Report to SEC Notes Four Pending Disputes Against Sigma Financial

InvestmentNews reports that according to Sigma Financial Corp.’s recent Focus Report to the Securities and Exchange Commission (SEC), the firm is contending with four pending Financial Industry Regulatory Authority (FINRA) arbitration claims from customers alleging damages of approximately $4.5M. The broker-dealer noted that it has put aside nearly $652K should these claims result in settlements or awards.

Our broker-dealer negligence lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing clients who have suffered losses because of the negligence or fraudulent actions of a Sigma Financial broker. Call us at (800) 259-9010 today.

Lion Street Financial Broker Richard Baer Named in Disputes Seeking $1.85M in Damages

Published on: June 22, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Customers of Lion Street Financial Broker Richard Baer Suffered Over $1.8m in Investment Losses

Lion Street Financial stockbroker, Richard Evan Baer, who is also a registered investment advisor with both React Investment Solutions, LLC and Legacy Capital California, has been named by investors in two pending complaints seeking $1.8M in damages for investment losses they suffered. Three other customer disputes have resulted in settlements.

Our California securities law firm is looking into other claims of losses by customers of Richard Baer. Please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyer.com) today to request your free, no-obligation consultation at (619) 550-4847.

Barred Mutual of Omaha Broker Edward Matthes Gets Over 5 Years in Prison For Investor Fraud

Published on: June 17, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Wisconsin Financial Advisor Bilked 27 Victims of $2.6M, Many of Them Older Investors

Edward Earl Matthes, an ex-Mutual of Omaha Investor Services broker, is sentenced to 63 months behind bars for defrauding over two dozen investors, most of them older customers, in a $2.6M investment scam. He had pleaded guilty to multiple counts of wire fraud.

Matthews was also the subject of a parallel Securities and Exchange Commission (SEC) lawsuit last year that ordered him to pay those he harmed $2.4M in restitution. The regulator permanently barred him from the industry.

SSEK Law Firm Continues to Investigate Broker-Dealers That Sold Northstar Financial Services (Bermuda) Products

Published on: June 16, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Northstar (Bermuda) Investors Likely to Only Recover Losses By Filing FINRA Arbitration Claims

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is continuing to speak with investors of Northstar Financial Services (Bermuda) who suffered significant losses because their broker failed to conduct the proper due diligence when they recommended these products.

Already, we have filed a number of Financial Industry Regulatory Arbitration (FINRA) claims against many of the broker-dealers whose registered representatives sold these offshore investments.

Customers of Ameriprise Financial Services Broker Kevin Houser Seek $1.6M in Alternative Investment Losses

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

Ameriprise Financial Services Investment Advisor Accused of Unsuitability, Misrepresentations

If you suffered investment losses while working with Ameriprise Financial Services stockbroker, Kevin Douglas Houser, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) right away.

The Center Valley, Pennsylvania financial advisor is already named in four substantial pending customer disputes over alternative investments.

Truist Investment Services Broker Stephen Berrocal Recommended Northstar Financial Services (Bermuda)

Published on: June 11, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Truist Investment Services Financial Advisor Named in $1.5M of Pending Customer Disputes

Stephen Berrocal, a Truist Investment Services broker and investment advisor based out of Coral Gables, Florida, is named in three active customer disputes. At least one of them appears to involve the allegedly unsuitable recommendation of Northstar Financial Services (Bermuda). The claimant in that case is seeking $500K in damages.

Truist Investment Services registered representatives sold Northstar Financial Services (Bermuda) products to customers, many of whom have now lost money in the wake of the company going bankrupt and into liquidation. Its owner, Greg Lindberg, is in prison. He is suspected of having funneled funds from Northstar Financial Services (Bermuda) to his other companies.

Former Cetera Advisors Network Broker David Rockwell Sentenced To Prison For Fraud

Published on: June 9, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Fort Meyers, Florida Financial Advisor Misappropriated $1.02M From Investors

A former Cetera Advisors Network registered representative, David Aaron Rockwell, has been sentenced to 63 months in federal prison for multiple counts of bank fraud and wire fraud. According to the US Justice Department, Rockwell defrauded investors of over $1.02M and used their money to pay his credit card debt and purchase a house.

Court documents state that while overseeing retirement and investment clients for customers, Rockwell began to take investors’ funds in 2017. He allegedly defrauded a federally insured bank by applying for $700K in credit lines under a client’s name without that person’s knowledge or consent. Rockwell is also accused of convincing another client to invest $400K in low-income housing and instead, using the money to cover his debt and buy the home.

Japanese Customers of Bankoh Investment Services Broker Yoko Farias Suffer Six-Figure Northstar Financial Services (Bermuda) Losses

Published on: June 7, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Japanese Couple Seeks Up To $500K in Northstar (Bermuda) Damages

A Japanese couple has filed an investor claim against Bank of Hawaii subsidiary, Bankoh Investment Services, Inc. for losses they suffered in Northstar Financial Services (Bermuda). The off-shore investment was recommended to them by broker Yoko Farias, who has been under scrutiny for some time for selling Northstar Financial Services (Bermuda) investment products to clients.

The claimants are an older couple who live in Japan where they set up a basic checking account at Bank of Hawaii’s branch in Tokyo. These inexperienced investors were introduced to Farias, who recommended that they invest their money differently.