Investor Lawyers Blog

Beechwood Bermuda Investor Seeks Up to $500K From Cetera and Broker Leo Li-Yuan Chien

Published on: March 28, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Beechwood Bermuda Investor Was Unsuitably Recommended Non-Traded REIT Healthcare Trust

Another Chinese investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Cetera Investment Services over losses suffered in Beechwood Bermuda (a Northstar Financial Services (Bermuda)-related product).

This investor also suffered investment losses in the non-traded real estate investment trust, Healthcare Trust Incorporated (HTIA). The claimant alleges negligence, unsuitability, poor supervision, and concentration, among other claims, and is seeking up to $500K in damages.

Ex-Kestra Broker Chadwick Collins’ Customers Seek Over $3.3M in Damages

Published on: March 23, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Stone Beacon Capital CEO Faces Unsuitability and Negligence Allegations

If you suffered investment losses while working with financial advisor Chadwick Charles Collins, please contact our California broker misconduct attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today at (619) 550-4847.

Collins, who was a Kestra Investment Services stockbroker and Kestra Private Wealth investment advisor from January 2017 to February 2022, is now with Wedbush Securities. He is also the CEO of Stone Beacon Capital. According to Chadwick Collins’ BrokerCheck record, he is currently named in two pending customer disputes in which the claimants are collectively requesting more than $3.3M in damages.

Ex-IFS Securities Broker Steven Schisler Barred Following Unsuitable Investment Recommendations

Published on: March 21, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Ex-IFS Securities Broker Recommended Promissory Note to Elderly Investors

The Financial Industry Regulatory Authority (FINRA) has barred ex-IFS Securities registered representative Steven Douglas Schisler beginning January 31, 2022. Schisler, who works out of the Greater Sacramento, California area, has been a financial planner and investment advisor for over 20 years. He is also the principal of Synergy Wealth Management.

The industry bar comes in the wake of allegations that Schisler unsuitably recommended a promissory note to an older married couple.

Arizona Retirees Win $2.6M FINRA Arbitration Award Against First Allied Securities

Published on: March 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Cetera Broker-Dealer Unsuitably Recommended Non-Traded REITs to Retired Couple

Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm at investorlawyers.com) and Menzer & Hill, PA, are pleased to announce that a Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded our clients a $2.6M award against First Allied Securities. This includes $1.1M in compensatory damages, $818K in market-adjusted damages, more than $660K in legal fees, and $40K in other expenses.

This was a unanimous decision by the three-person panel of arbitrators, which awarded the retired couple the total amount they requested. The arbitration panel was just as troubled as our knowledgeable broker misconduct attorneys were about the actions of First Allied Securities and its financial advisors. First Allied is a Cetera Financial Group broker-dealer.

Former Wells Fargo Broker Mario Rivero Charged With $500K Investment Fraud

Published on: March 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Wells Fargo Clearing Services Advisor Allegedly Misappropriated Funds from Elderly Investors

Mario Everildo Rivero is charged with two counts of wire fraud, one count of securities fraud, and one count of investment advisor fraud. He was arrested on March 14, 2022. The ex-Wells Fargo Clearing Services broker is accused of stealing more than $500K from clients. All of them were older investors.

Prosecutors contend that from April 2018 to November 2020, when Rivero was working as a Wells Fargo financial advisor, he misappropriated at least $529K from four customers. This allegedly included:

Infinity Q Founder James Velissaris Accused of Over $1B Valuation Fraud

Published on: March 14, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Brokerage Firms Sold Infinity Q Diversified Alpha Fund and Volatility Alpha Fund to Investors

The US Securities and Exchange Commission (SEC) has filed civil charges against James Velissaris, the founder and ex-chief investment officer of Infinity Q Capital Management. According to the regulator, Velissaris allegedly overvalued assets by over $1B while “pocketing” tens of millions of dollars in fees.

This is bad news for investors who were marketed and sold the Infinity Q Diversified Alpha mutual fund and the Volatility Alpha private fund by broker-dealers and their financial advisors. The two funds purportedly had about $3B in assets under management.

Ex-Garden State Securities Broker Joseph DeGregorio Allegedly Defrauded Elderly Investors

Published on: March 11, 2022 | by Samuel B. Edwards

SEC Says Older Seniors Were Defrauded of $1.2M by Garden State Securities Broker

The U.S. Securities and Exchange Commission (SEC) filed civil charges against former Garden State Securities financial advisor Joseph Orazio DeGregorio. The previously registered broker, who worked at 14 firms in 14 years, is accused of defrauding four elderly investors of $1.2M.

He has now settled the Commission’s charges with disgorgement, interest, and a penalty to be determined later. The U.S. Attorney’s Office for the Eastern District of New York has filed parallel criminal charges.

SSEK Law Firm Continues to Investigate Northstar Financial Services (Bermuda) Losses Involving East West Bank

Published on: March 11, 2022 | by Kirk G. Smith

Several East West Bank Customers Worked With Cetera Broker Linda Fang

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is continuing to investigate claims of losses involving East West Bank customers who invested in Northstar Financial Services (Bermuda) products.

East West Bank had signed a partnership agreement with Cetera Investment Services, LLC. The latter would offer “wealth management solutions and support” to the bank’s clients at several branches. East West Bancorp owns East West Bank. It was founded in Los Angeles in 1973 to cater to the Chinese American community in Southern California. It has branches in several U.S. states and China.

Advisor Group Broker-Dealers Facing $19.4M in GPB Capital Holdings Investor Claims

Published on: March 11, 2022 | by Samuel B. Edwards

In Focus Reports submitted to the US Securities and Exchange Commission (SEC) in February 2022, four brokerage firms from the Advisor Group network disclosed that they were respondents in 58 Financial Industry Regulatory Authority (FINRA) arbitration cases. These arbitration cases, from July 2019 through the end of 2021, were over GPB-related losses.

GPB Capital Holdings, LLC, which issued these private placements, is accused of operating an over $1.8B Ponzi scam that defrauded more than 17,000 thousand investors. GPB investors typically purchased these high-commission products in $50K to $100K tranches. They have since suffered substantial investment losses.

Distributions of GPB private placements were stopped in 2018. Ponzi fraud allegations, resulting investigations, and litigation followed. The GPB funds plunged in value. Meanwhile, dozens of brokerage firms marketed and sold these alternative investments to customers, earning many millions of dollars in commissions and fees.

FINRA Suspends Ex-Stifel Nicolaus Broker Andrew Elsoffer for Two Years

Published on: March 10, 2022 | by Kirk G. Smith

Ohio Financial Advisor Andrew Elsoffer Named in Multiple Customer Disputes

Andrew Bruce Elsoffer, who Stifel, Nicolaus & Co. fired in 2018, is suspended by the Financial Industry Regulatory Authority (FINRA) for two years, beginning March 7, 2022. The suspension comes in the wake of customer allegations that he exercised discretion in their accounts without their written authorization.

He also allegedly lent money to one client, his personal friend, for home renovations without the firm’s approval. The friend later repaid him.