Investor Lawyers Blog

$500K Northstar Financial Services (Bermuda) Claim Brought Against Truist Investment Services by Venezuelan Investors

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

Claimants are Older South American Investors Who Suffered Six-Figure Loss

Two investors have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Truist Investment Services, Inc., which is the broker-dealer unit of SunTrust Investment Services. The claimants, who are related, are seeking up to $500K plus interest and costs after they suffered investment losses in Northstar Financial Services (Bermuda). A panel of arbitrators will hear their case in Boca Raton, Florida.

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is representing these South American investors in fighting to recover their losses sustained after their Truist broker unsuitably recommended and sold Northstar Financial Services (Bermuda) products to them. If you too suffered similar losses, contact us today.

Brokerage Firms With History of Misconduct Will Have To Put Money Aside for Investor Claims

Published on: August 11, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SEC Approves New FINRA Rule That Will Designate Some Brokerage Firms as “Restricted”

The Financial Industry Regulatory Authority (FINRA) rule 4111, which will require certain brokerage firm members with histories of broker misconduct to put aside reserve funds to pay for both future and unpaid investor claims, has now been approved by the Securities and Exchange Commission (SEC).

These broker-dealers will be deemed “restricted” based on numeric thresholds to be determined by the self-regulatory organization (SRO) that involve six conditions including disclosure events involving the firm or its registered individuals, firings, and affiliated registered individuals from broker-dealers that already have been expelled.

Did GPB Capital Holdings Executives Improperly Use Investors’ Money To Fund Personal Spending?

Published on: August 10, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Federal Prosecutors Interviewed Alternative Asset Firm’s Former Auditor

Six months after the Justice Department filed criminal charges against ex-GPB Capital Holdings executives for operating an over $1.8B Ponzi scam that defrauded more than 17,000 investors, prosecutors have submitted a court filing disclosing that federal officials have interviewed Alan Materazo of Margolin Winer & Evens, an ex-auditor and accountant for the private placement firm.

Former GPB CEO and founder David Gentile, ex-managing partner Jeffrey Schneider, and Ascendant Capital owner Jeffrey Lash, who were charged with securities fraud, and conspiracy have also come under scrutiny for allegedly using investors’ money to pay for their own expenses. The interview of Materazo may have shed more light on whether this was, in fact, the case.

Inappropriate COVID-19 Loan Applications Led To FINRA Sanctions for Brokers From Wells Fargo, J.P. Morgan Securities, and Merrill Lynch

Published on: August 9, 2021 | by Shepherd Smith Edwards & Kantas, LLP

COVID Relief Loans Involved Undisclosed Business Outside Their Brokerage Firms

According to InvestmentNews, ex-J.P. Morgan Securities broker Gloria Willis, former Merrill Lynch stockbroker Evelyn Batista, and ex-Wells Fargo financial advisor Kenric Sexton have either been barred or suspended from the securities industry.

These Financial Industry Regulatory Authority (FINRA) sanctions were imposed after the self-regulatory organization (SRO) found that all three of them either inappropriately or incorrectly applied for federal COVID-relief loan programs geared towards small businesses in the wake of the coronavirus pandemic.

Senior Customer of Ex-NYLIFE Securities Broker Felix Chu Seeks Over $5M in Ponzi Scam Losses

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

Barred Stockbroker is Accused of Running Ponzi Scam That Defrauded Elderly Investors

Felix S. Chu, a former NYLIFE Securities registered representative, is currently facing at least two customer disputes in which the claimants are seeking $5,230,000 in damages. Chu was barred by the Financial Industry Regulatory Authority (FINRA) last year. He has been accused of running a Ponzi scam involving promissory notes that defrauded investors, including seniors.

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is investigating claims of losses by former investors of ex-NYLIFE Securities financial advisor, Felix Chu. If you are one of these investors, call (800) 259-9010 today.

Benefit Street Partners Realty Trust to Merge With Capstead Mortgage Corp.

Published on: August 3, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Benefit Street Partners Realty Trust Investors May Be Looking At More Losses

If you are an investor whose broker unsuitably recommended Benefit Street Partners Realty Trust, you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages.

On July 26, this publicly registered non-traded real estate investment trust (non-traded REIT) announced its merger with Capstead Mortgage Corporation. The combined company will be named Franklin BSP Realty Trust and is set to become the fourth biggest commercial mortgage REIT with a common stock that will trade on the New York Stock Exchange.

Another Ex-Worden Capital Management Broker, Joseph Todaro, is Accused of Excessive Trading

Published on: August 2, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Worden Capital Management Broker’s Customer is Seeking Over $200K in Damages

Joseph Paul Todaro, currently an SW Financial registered representative, is named in a customer dispute in which the claimant is reporting investment losses from excessive trading, failure to follow instructions, and poor services. The investor is seeking over $200K.

This is not the first customer of the Melville, New York-based broker to accuse Todaro of excessive trading. As a matter of fact, three other claims brought by his customers make similar allegations. Also, from 2018 to 2020, Todaro was a registered representative with Worden Capital Management, which last year was subject of a Financial Industry Regulatory Authority (FINRA) action related to the churning activities of its brokers.

American Trust Investment Services Broker David Geake Is Facing Over $500K in Unsuitability Claims

Published on: July 30, 2021 | by Shepherd Smith Edwards & Kantas, LLP

American Trust Investment Services Broker Accused of Recommending Unsuitable Investments to Investors

David Richard Geake, an Indiana-based broker and investment advisor with American Trust Investment Services, is currently facing three customer disputes in which the claimants are accusing him of making unsuitable investment recommendations. Geake, who has been in the industry for 22 years, has 12 disclosures on his BrokerCheck, including other customer disputes.

If you are an investor who has suffered losses while working with American Trust Investment Services broker David Geake, contact our Financial Industry Regulatory Authority (FINRA) arbitration attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.

Florida Retiree Files $500K REIT Arbitration Case Against Securities America

Published on: July 28, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Broker Alan Douglass Unsuitably Overconcentrated Investor’s Funds in Non-Publicly Traded Products

An investor based in Lutz, Florida has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Securities America. This investor suffered losses in real estate investment trusts (REITs) and other non-publicly traded investments. The claimant, who is a retiree, suffered up to $500K in investment losses, which he is seeking in damages.

Securities America broker, Alan Duane Douglass, was this claimant’s financial advisor. He not only unsuitably recommended private placements and real estate investment trusts (REITs) to this customer but also, overconcentrated the customer’s portfolio with these risky investments.

South American Retirees File $5M Northstar Financial Services (Bermuda) Investor Claim Against Raymond James & Associates

Published on: July 27, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Older Couple’s Broker Overconcentrated More Than $2.2M of Their Funds in Now Defunct Investment

An older retired couple from South America is pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim against Raymond James & Associates, Inc. after they suffered a seven-figure loss in Northstar Financial Services (Bermuda). Now, the senior investors are seeking up to $5M in damages, along with interest and costs.

Our Northstar (Bermuda) arbitration attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing these South American nationals in their FINRA arbitration claim that they filed against this US-based broker-dealer. A panel of arbitrators will hear this investor case in Boca Raton, Florida.