Investor Lawyers Blog

UBS Ordered To Pay $371K Award to YES Strategy Customers

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

FINRA Panel’s Ruling is UBS Financial’s Third Loss Involving Yield Enhancement Strategy

In a Financial Industry Regulatory Authority (FINRA) arbitration ruling, UBS Financial Services (UBS) must pay an Ohio couple $371K for financial losses they sustained from the brokerage firm’s Yield Enhancement Strategy (YES).

This is the third UBS Yes Strategy arbitration claim that the broker-dealer has lost, including one award for $1M to two Denver investors this year. The first award against UBS over its Yield Enhancement Strategy, for $90K, was granted to an investor in December.

Merger Folds KMS Financial, Investacorp, and Securities Services Under Securities America Banner

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

Integration Instigated After Advisor Group’s Acquisition of Ladenburg Thalman

Securities America, which is a broker-dealer of the Advisor Group network, has completed integrating brokerage firms Investacorp, KMS Financial Securities, and Securities Services Network into its fold. All four were Ladenburg Thalman broker-dealers until Advisor Group acquired Ladenburg and its firms last year for $1.3B.

Triad Advisors, another former Ladenburg Thalman broker-dealer, will stay a standalone firm. The other Advisor Group broker-dealers include Woodbury Financial Services, FSC Securities, SagePoint Financial, Royal Alliance Associates, and FSC Securities Corporation.

Former Customers of SagePoint Financial Broker Christopher Bice Seek More Than $2M in Damages

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

Unsuitability Involving Private Placements Alleged

Our unsuitable investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are looking into customer complaints involving SagePoint Financial stockbroker, Christopher R. Bice.

His BrokerCheck record shows a number of pending investment fraud claims including at least two customer disputes involving private placements. The claimants are collectively seeking over $2M in damages. Bice, a Greensboro, North Carolina broker, is also an investment advisor.

Northstar Financial Services (Bermuda) to Liquidate After Extension Request Denied

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

Investors Can Still Pursue Damages from Bankoh, Truist, and Ocean Financial Services

The Bermuda Supreme Court has turned down a request by Northstar Financial Services (Bermuda) Ltd.’s management asking for more time to pursue restructuring. Northstar had filed for Chapter 15 bankruptcy last year.

The Court’s ruling means that the company will be liquidated, with the proceeds going to creditors. Specifically, what this means for Northstar Financial Services (Bermuda) investors is that the Bermuda Supreme Court must approve such payments before they can be issued to them.

Portland Investor Files $500K Private Placement Fraud Claim Against Western International Securities

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

Claimant Alleges Overconcentration, Unsuitability, Failure to Supervise

A Portland, Oregon semi-retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Western International Securities, Inc. and is seeking up to $500K in damages. The investor contends that a former financial advisor from the firm overconcentrated most of her retirement funds in illiquid private placements and caused her significant financial losses.

Our Portland investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this claimant in her private placement fraud case against Western International Securities.

SSEK Law Firm Investigates Bankoh Investment Services Brokers Over Northstar Financial Services (Bermuda) Sales

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

Bankoh Investment Services Investors May Have Lost Up to $70M in Northstar Bermuda Products

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is continuing to speak to investors who suffered losses in Northstar Financial Services (Bermuda) products that were sold to them by Bankoh Investment Services brokers. The broker-dealer is the securities arm of the Bank of Hawaii.

Our investment fraud attorneys are also investigating claims of losses in Northstar Bermuda products from investors who worked with brokers from Truist Investment Services (SunTrust Investment Services), Ocean Financial Services, and any other firms. Unfortunately, investors may have collectively lost up to $70M.

Former Principal Securities Broker John Krohn Involved in $39M in Investor Fraud Claims

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

FINRA Suspended Ex-Iowa Stockbroker in 2018 For Selling Away

John Michael Krohn, a former Iowa broker with Principal Securities, is named in three customer disputes in which the claimants are collectively pursuing over $39.2M in damages for losses they sustained while working with him.

The investors contend that Krohn engaged in selling away, which involves offering them investments that his then-brokerage firm of record never approved. They are pursuing damages against Principal Securities, where Krohn was a registered representative for 20 years.

Cambridge Investment Services, Securities America, and JW Cole Financial Fined Over LJM Preservation & Growth Fund Recommendations

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

Broker-Dealers Collectively Will Pay $550K Fine and Over $3.3M in Restitution

The Financial Industry Regulatory Authority (FINRA) has fined and censured three brokerage firms after finding that they failed to supervise recommendations of the LJM Preservation and Growth Fund (LJMIX, LJMCX, LJMAX) and did not conduct the proper due diligence into the alternative mutual fund:

Cambridge Investment Services will pay a $400K fine plus more than $3M in restitution

Georgia Retiree Files Non-Traded REIT Fraud Claim Against MML Investors Services

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

Allegedly Unsuitable Recommendations Caused Senior Investor Loss of Savings

A Brunswick, Georgia retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against broker-dealer MML Investors Services, LLC. The investor contends that a broker from the firm overconcentrated his IRA and a non-IRA account in CNL Lifestyle Properties, which is an illiquid, privately traded real estate investment trust (non-traded REIT).

This caused him to lose a large portion of his savings. Now, the investor is alleging failure to supervise, unauthorized transactions, securities fraud, broker negligence, breach of duty, breach of contract, violation of state securities laws, and other claims. He is seeking up to $100K plus interest and costs.

Archegos Capital’s Massive Forced Liquidation is a Hard Hit to Global Banks Credit Suisse, Nomura and Others

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

Big Banks Anticipate Losses in the Billions

Last week, Archegos Capital Management, the $10 billion hedge fund founded by Bill Hwang, was forced to liquidate over $30 billion in equities including millions of shares in ViacomCBS, media company Discovery, and a number of Chinese tech companies.

The move came after Archegos, which had borrowed on margin while using derivatives, was met with demands by banks to post greater collateral so as to minimize losses.