Investor Lawyers Blog

As July 26th Hearing Date Approaches, SSEK Law Firm Continues To Investigate Northstar Financial Services (Bermuda)

Published on: July 20, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Investors’ Best Recourse For Financial Recovery is to Work With Experienced FINRA Attorneys

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) continues to zealously go after the brokerage firms whose registered representatives unsuitably recommended and sold Northstar Financial Services (Bermuda) products to their customers.

Already, we’ve filed several Financial Industry Regulatory Authority (FINRA) arbitration claims against broker-dealers on behalf of investors.

SSEK Investigates Claims That Charles Schwab Recommended Advisory Firms Market Vida Longevity Fund To Customers

Published on: July 19, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Charles Schwab Should Have Known RIAs Were Promoting the Fund

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is looking into losses suffered by Vida Longevity Fund, LP investors. Many investors were recommended this open-ended hedge fund by Creative Planning, Pin Oak Investment Advisors, or other registered investment advisors (RIAs) that Charles Schwab Corporation referred them to.

While it is not uncommon for Schwab to recommend RIAs to clients, the broker-dealer either knew or should have known that these firms were marketing the Fund to customers.

Securities America Advisors Fined $1.75M For Allegedly Failing to Protect Customers From Ex-Broker Hector May Who Stole $8M

Published on: July 15, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SEC Said Firm Didn’t Implement Proper Safeguards To Prevent Misappropriation

The Securities and Exchange Commission (SEC) has fined Securities America Advisors $1.75M for allegedly not doing enough to protect customers from having their money stolen by a former registered representative who misappropriated $8M from at least 15 client accounts. Hector May has pleaded guilty to investment advisor fraud.

Securities America Advisors is the RIA arm of Securities America, Inc., which is owned by Advisor Group Holdings Inc.’s Securities America Financial Corporation. Securities America has been the introducing broker for Securities America Advisors customers.

J.P. Morgan Securities’ Recommendation of Old Mutual Bermuda Causes Mexican Investor To Suffer Six-Figure Loss

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

Old Mutual Investor Seeks Up To $500K in Damages

An investor from Mexico has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against J.P. Morgan Securities over the losses she suffered in Old Mutual (Bermuda). The off-shore entity is owned by Greg Lindberg’s Global Bankers, which also owns Northstar Financial Services (Bermuda).

The latter is already the subject of many FINRA arbitration claims against the broker-dealers and their registered representatives that unsuitably recommended products from that off-shore entity to its customers.

David Lerner Associates Unsuitably Recommended Energy Resources 12 and Energy 11 To Disabled Widower

Published on: July 13, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Family of Senior Investor Pursues Up to $500K in Damages on His Behalf

The family of a Connecticut widower has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against David Lerner Associates after the older investor suffered a six-figure loss in Energy 11 and Energy Resources 12, which are sold exclusively by the brokerage firm to its customers.

The claimant, who suffers from diminished capacity and is not fluent in English, is an unsophisticated investor who should never have been invested in these oil and gas-related investments. Yet for whatever reason, a David Lerner Associates broker unsuitably recommended both of these financial products.

Japanese Investor Says Bancwest Investment Services Recommendation Northstar Financial Services (Bermuda) Caused Six-Figure Loss

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

Northstar (Bermuda) Investor is Seeking Up to $500K in Damages

An investor in Nagoya, Japan has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against Bancwest Investment Services after she suffered six-figure losses in Northstar Financial Services (Bermuda).

The claimant, who is an inexperienced investor, was referred to her Bancwest Investment Services broker by Bank of the West, which was her bank at the time. Now, she is requesting up to $500K in damages.

FINRA Bars Worden Capital Management Broker Salvatore Pizzimenti Following Churning Allegations

Published on: July 8, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SRO Was Investigating Trading Activity in Customers’ Accounts

The Financial Industry Regulatory Authority (FINRA) has barred Salvatore Pizzimenti from the industry. The ex-Worden Capital Management broker was under investigation for trades made in customers’ accounts. The industry bar came after Pizzimenti refused to give testimony in the self-regulatory organization’s (SRO’s) probe into the allegations.

Salvatore Pizzimenti, a former New York broker, has six disclosures on his BrokerCheck record. Aside from the bar, the other five are customer disputes.

David Lerner Associates Broker Martin Walcoe May Have Sold Energy 11, Energy Resources 12, and SOAEX to Customers

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

Syosset, NY Financial Advisor is Named in $920K of Pending Customer Disputes Alleging Unsuitability

Our energy, oil and gas investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are looking into allegations that David Lerner Associates broker, Martin Kevin Walcoe, may have unsuitably sold Energy 11 LP, Energy Resources 12, and Spirit of America Energy (SOAEX) investments to customers. All three investments have been sold exclusively by David Lerner Associates’ registered representatives to its customers.

Walcoe has spent his entire 34 years in the industry as a David Lerner Associates broker. He has five disclosures on his BrokerCheck record. Two of them are still pending, with customers seeking $920K in damages:

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.