Investor Lawyers Blog

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.

Morgan Stanley Pays $182K to Clients of Ex-Broker Justin Amaral

Published on: November 5, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Morgan Stanley Ordered To Pay Over $300K In Fines And Restitution

Secretary of the Commonwealth of Massachusetts, William Galvin, is ordering Morgan Stanley (MS) to pay a $200K fine, as well as $182K in restitution to four customers who suffered losses while working with former broker Justin E. Amaral.

The ex-Morgan Stanley financial advisor was barred by the Financial Industry Regulatory Authority (FINRA) in 2015.

SEC’s Broker-Dealer Fraud Case Against Cetera Advisors Reaches $21M

Published on: November 4, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Cetera Advisors Fraud Case Rises To $21M

Two months after suing Cetera Advisors for more than $10M for allegedly defrauding retail clients, the US Securities and Exchange Commission (SEC) has amended its complaint, adding another Cetera Financial Group firm as a defendant. The regulator is now seeking $21M.

According to the amended complaint, Cetera Advisors Network, also a registered broker-dealer and investment advisor, made over $10M in undisclosed compensation that retail advisory clients paid for in fees, mark-ups, administrative fees, and revenue sharing.

Shepherd Smith Edwards and Kantas Investigates Centaurus Financial Brokers Ricky Mantei and Cindy Chiellini

Published on: November 1, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Centaurus Financial Brokers

Our brokerage firm misconduct lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) are representing investors who were sold structured certificates of deposits (CDs) by Centaurus Financial brokers Cindy Chiellini and Ricky Mantei.

Both work out of Lexington, South Carolina and are the subject of numerous complaints by customers, many of whom are based in Colorado and were sold these CDs. Now, the Colorado Division of Securities is considering pulling Centaurus’s license in that state over its alleged failure to properly supervise Mantei and Chiellini.

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.

GPB Capital CCO Michael Cohn is Charged with Obstruction

Published on: October 25, 2019 | by Shepherd Smith Edwards & Kantas, LLP

GPB Capital News: Michael Cohn Facing Obstruction Charges

The US Department of Justice (DOJ) has filed criminal charges against Michael Cohn, the Chief Compliance Officer and Managing Director of GPB Capital Holdings. Cohn is a former US Securities and Exchange Commission (SEC) examiner.

The obstruction of justice charge is related to the regulator’s probe into the alternative asset firm, which is accused of operating a $1.5B Ponzi scam. Now, Cohn is accused of stealing information from the Commission before leaving the regulator last October to start his employment at GPB Holdings.

Shepherd Smith Edwards and Kantas Investigates Investor Claims Involving ex-Morgan Stanley Brokers Ami Forte and Charles Lawrence

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

SSEK Investigating The Ex-Morgan Stanley Broker, Ami Forte

Earlier this year, our investor lawyers reported that the Financial Industry Regulatory Authority (FINRA) had filed a lawsuit against former Morgan Stanley broker, Ami Forte. She allegedly made unauthorized trades in the now-deceased Home Shopping Network co-founder, Roy Speer’s, account while he was afflicted with dementia.

The self-regulatory authority has now announced that it is barring Forte. Shepherd Smith Edwards and Kantas (SSEK Law Firm) are currently investigating complaints and concerns by former customers of Ami Forte who are suspecting that their losses may be due to fraud.