Investor Lawyers Blog

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.

Shepherd Smith Edwards and Kantas Investigates Daniel Gordon Maughan and Financial West Group

Published on: October 23, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking into allegations against Financial West Group and its broker Daniel Gordon Maughan.

It is alleged that Maughan excessively traded and churned a client’s Trust Account at his member firm. A arbitration complaint has already been filed! According to his brokercheck, Maughan has also been banned by The Financial Industry Regulatory Authority Inc. (FINRA).

The complaint alleges that by churning the customer’s trust account, Maughan willfully:

Shepherd Smith Edwards and Kantas Investigates Complaints Involving Ex-Raymond James Broker John Wyshak

Published on: October 22, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Former Raymond James (RJF) broker John Charles Wyshak is under scrutiny by our investor lawyers at SSEK Law Firm. If you are someone who previously worked with Wyshak as your financial representative while he was registered with Raymond James or any other broker-dealer, and you suffered substantial losses, your first consultation with us is a free, no obligation case assessment.

After over thirty years in the securities industry, Wyshak is no longer a registered broker or investment adviser. Recently, a Financial Industry Regulatory Authority (FINRA) arbitration panel ruled against Wyshak and in favor of Raymond James, ordering him to pay the firm nearly $1M for previous investor fraud claims involving his allegedly fraudulent actions and for breaching an agreement with the broker-dealer.

Wyshak left Raymond James last year. Now, the FINRA arbitrators want him to pay the firm more than $932K in compensatory damages, in addition to 10% interest and thousands of dollars in other fees.

Investor Funds Take on Big Losses Because of Argentina Stock Market Exposure

Published on: October 21, 2019 | by Shepherd Smith Edwards & Kantas, LLP

The Argentina Stock Market Exposure: Why U.S Investors Could Be Facing Big Losses

In August 2019, Argentina’s stock market dropped almost 50% after primary polls indicated that the current president of Argentina, Mauricio Macri (“Macri”), was in serious jeopardy of losing his October 27, 2019 re-election bid.

The large drop in Argentina’s stock market also sent shockwaves across the South American country’s debt market, as investors feared that Argentina was poised for another debt default, the second one in recent memory.

Shepherd Smith Edwards and Kantas Investigates ex-Wells Fargo Advisor Stephen Klinger

Published on: October 18, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Stephen Klinger, ex-Wells Fargo Advisor

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking into allegations against ex-broker Stephen Klinger for trading options for a client in his own account.

He then proceeded to lose the client’s money. Klinger was fired earlier this year by Wells Fargo. The client then sued Klinger and Wells Fargo. According to the broker’s CRD, his official record, Klinger then settled the lawsuit without telling Wells Fargo.

Shepherd Smith Edwards and Kantas Investigates Claims Involving Fired UBS Broker David Fagenson

Published on: October 17, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating David Fagenson, A Former UBS Brokerage Investment Advisor

If you are an investor who worked with former UBS broker, David Fagenson, and suffered substantial losses or suspect you may have been charged excessive fees and commissions, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today.

David Fagenson was suspended by the Financial Industry Regulatory Authority (FINRA) last year after he allegedly engaged in unsuitable trading in the accounts of three senior investors ranging in age from their 70s to mid-90s. However, this is not the first fraud allegation in which Fagenson has been involved.

Shepherd Smith Edwards and Kantas Investigating Claims Involving Ex-Hilltop Securities Broker Richard Cagle

Published on: October 16, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigates Richard Cagle

If you are an investor who suffered losses while working with former Hilltop Securities Independent Network broker Richard Earl Cagle, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today. With 28 years in the industry, Cagle, who was a Texas broker, was barred by the Financial Industry Regulatory Authority (FINRA) a few months ago after he refused to appear and testify in the self-regulatory authority’s probe into allegations that he made unsuitable investment recommendations and mismarked customer order tickets.

It was just earlier this year that Hilltop Securities fired Cagle. His BrokerCheck record shows two settled customer disputes, both alleging unsuitable recommendations. One case was settled for $20K. The other broker fraud case was settled for $230K.