Investor Lawyers Blog

What Are The Risks of High-Yield “Junk” Bonds?

Published on: August 31, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Denver Investors May Be Facing Losses from High Yield Bonds

As the number of COVID-19 cases continues to increase in parts of the US, high-yield junk bonds have been underperforming.

Not only that, but according to The Wall Street Journal, in early July the growing concern that there may be a bigger wave of pandemic cases coming caused junk bond yields to reach their highest levels in weeks as the high-risk debt “underperformed” in certain credit markets.

SEC Says Joseph Stone Capital Broker Ross Barish Defrauded 16 Investors

Published on: August 27, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Barish Earned Over $400K in Commissions from Excessive Trading Strategy

The US Securities and Exchange Commission (SEC) has filed civil charges against Ross Adam Barish, a Joseph Stone Capital registered representative. The regulator contends that Barish engaged in an unsuitable in-and-out trading strategy in customers’ accounts without doing the necessary due diligence to make sure that this approach could at least deliver them minimal profits.

Instead, 16 retail investors collectively lost more than $800K while the Joseph Stone Capital broker earned more than $400K in commissions. Now, the SEC is seeking penalties, disgorgement with prejudgment interest, and injunctive relief.

More Than 20 Investor Fraud Complaints Have Involved Ex-Morgan Stanley Broker Michael Paesano

Published on: August 26, 2020 | by Shepherd Smith Edwards & Kantas, LLP

The Latest Customer Claim Accuses Investment Advisor of Excessive Trading

Once again, an investor is blaming former Morgan Stanley stockbroker, Michael Frank Paesano, for their investment losses. These latest allegations involve excessive trading.

Although Paesano is no longer a registered broker, he is still a registered investment advisor and he may be affiliated with Axiom Investment Management. During Paesano’s 26 years in the industry, there have been more than twenty customer complaints brought against him. While four of these cases were denied, all of the other resolved claims have led to significant settlements, including one for $1.2M.

Morgan Stanley Wealth Management To Pay Over $949K for Inadequately Supervising Ex-Broker Kevin Gunnip

Published on: August 25, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Morgan Stanley Settlement Includes FINRA Fine and Investor Restitution

According to the Financial Industry Regulatory Authority (FINRA), Morgan Stanley Wealth Management has consented to pay a $175K fine and more than $774K in restitution for allegedly failing to supervise its former broker Kevin Gunnip.

The Texas-based financial representative is accused of excessively trading in preferred securities and corporate bonds over five years, causing 10 customers to lose more than $900K.

Walter Valenzuela Is Another Kestra Investment Services Broker Facing Fraud Allegations

Published on: August 24, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Pending Customer Complaints Seek $250K and $1M, Respectively

If you or someone you love lost money while working with stockbroker Walter Roland Valenzuela, our investor attorneys want to speak with you.

Valenzuela, who became a Kestra Investment Services broker this year, has been the subject of 10 customer complaints during his 27 years in the industry. The latest claim, brought in June, alleges elder abuse, misrepresentation, excessive trading, and unsuitable investment recommendations. The customer is seeking $250K in damages.

My Stockbroker Breached Our Contract. What To Do Next?

Published on: August 20, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Legal Recourse for Denver, Colorado Investors Who’ve Suffered Contract Violations

If you are an investor whose broker or brokerage firm breached your agreement, causing you financial losses, you may have grounds for filing a Financial Industry Regulatory Authority (FINRA) arbitration claim for damages.

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our Denver breach of contract attorneys represent investors throughout the city and the state in their cases against broker-dealers and their registered representatives.

Investor Accuses Kestra Broker Stephen Curry in $7.7M FINRA Complaint

Published on: August 19, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Breach of Fiduciary Duty Involving Retirement Fund Alleged

Stephen Fergus Curry, a longtime Kestra Advisory Services registered representative, is named in a nearly $7.8M Financial Industry Regulatory Authority (FINRA) complaint accusing him of breach of fiduciary duty over services performed related to a retirement fund.

Curry has been with Kestra for 13 years. First, he was with Kestra Investment Services and now he’s with Kestra Advisory Services. He also is a registered investment adviser. Before he joined Kestra, Curry was a Waterstone Financial Group broker from 2006 to 2007. He also worked as an investment advisor with NFP Advisor Services from 2007 to 2016.

Former Hilliard Lyons Stockbroker Christopher Bennett Named in 15 Securities Fraud Claims

Published on: August 17, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Bars Ex-Registered Rep, Who Wouldn’t Cooperate In Investigation

Christopher Duke Bennett, an ex-Hilliard Lyons broker, is barred by the Financial Industry Regulatory Authority (FINRA). Bennett has been the subject of 15 numerous securities fraud customer disputes over the years.

The bar comes after he refused to cooperate in the self-regulatory organization’s (SRO’s) probe that was opened in the wake of several people accusing him of unauthorized trading and making unsuitable investment recommendations. Bennett also is no longer a registered investment adviser.

Concorde Investment Services Broker William Morrow Accused by Over A Dozen Investors of Stockbroker Fraud

Published on: August 12, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Morrow Allegedly Made Unsuitable Recommendations Involving Alternative Investments

In what is at least the thirteenth customer complaint naming him, Concorde Investment Services broker William Aubrey Morrow is once more accused of making unsuitable investment recommendations to an investor.

Morrow, who also operates under the name Financial Designs, LTD, has been involved in a number of broker fraud investor claims related to alternative investments including limited partnerships, real estate investment trusts (REITs) tenant-in-common (TIC) programs, and other investments.

BDC Scorecard Portfolio Series 18 Losses Potentially Caused by Broker Negligence

Published on: August 4, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Guggenheim Defined Portfolio Trust is Too Risky for Many Retail Investors

If you suffered losses after investing in the Guggenheim Defined Portfolio’s BDC Scorecard Portfolio Series 18 (CBDRX), our broker negligence and investment fraud attorneys at Shepherd Smith Edwards and Kantas would like to talk to you.

Unfortunately, this investment may have been recommended and/or sold to customers even when it was unsuitable for their portfolios. If this is the case, you may be able to recover your losses by filing a FINRA arbitration claim.