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Articles Tagged with broker fraud

Three Pending FINRA Arbitration Claims Accuse Triad Advisors Broker of Unsuitability

Lee Duckworth, the CEO of investment advisory firm Capital Wealth Management and a Triad Advisors stockbroker, was recently named in three Financial Industry Regulatory Authority (FINRA) arbitration claims accusing him of making unsuitable investment recommendations to customers. 

At least one of the disputes involves private placements from GPB Capital Holdings, an alternative asset firm accused of running a more than $1.5B Ponzi scam. Duckworth is a West Warwick, Rhode Island broker and investment advisor.

New Customer Dispute Seeks $250K In Damages

Ex-Puerto Rico stockbroker, Jaime Isaac Sanchez Rivera, was recently fired by First Southern Securities. The termination came in the wake of allegations that he didn’t notify the broker-dealer about a customer complaint right away, as well as accusations of copying and modifying documents without permission. Sanchez Rivera also was recently named in a $250K customer complaint. 

In June, the Financial Industry Regulatory Authority’s (FINRA) indefinite suspension of Sanchez Rivera went into effect. The suspended stockbroker also is a former registered investment adviser, most recently with SB Advisory and FSAM, LLC.

Investor’s FINRA Arbitration Claim Seeks Damages of Up to $100K

A Florida retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm, National Securities Corp. 

The claimant contends that agents of National Securities Corp overconcentrated his account in real estate investment trusts (REITs), privately traded securities, and private placements. This included a large position in GPB Capital Holdings, which is accused of operating an over $1.5B Ponzi scam.

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.

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. 

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. 

Former National Securities Stockbroker Named in Over 12 Customer Disputes

Thomas Edison Kelly, Jr., an Aegis Capital broker, has been the subject of a number of customer complaints between 2013 and 2020, three of which are still pending. 

Prior to working for Aegis Capital in 2018, Kelly was a National Securities broker for 10 years. Before that, he was with First Republic Group from 1998 to 2008. First Republic was expelled by the Financial Industry Regulatory Authority (FINRA) in 2019. According to a 2017 Reuters report analyzing FINRA data, National Securities is one of 48 firms that hire brokers with red flags on their record.

Diamond and Other Kalos Capital Brokers Are Accused of Broker Fraud 

Arni Diamond, who is now a registered representative with Dempsey Lord Smith,  is currently the subject of a pending $200K broker fraud claim accusing him of making unsuitable alternative investment recommendations reportedly while he was a Kalos Capital broker. 

Diamond is one of a number of financial representatives currently or formerly associated with Kalos who has been accused of marketing securities products to investors even when they were inappropriate for them.

State Securities Regulator Claims GPB Capital Defrauded 180 Local Investors

Massachusetts Secretary of the Commonwealth, William Galvin, has filed a civil fraud lawsuit against GPB Capital Holdings accusing it of defrauding 180 local investors who purchased more than $14M of private placements in five of the GPB funds. 

The alternative asset firm, which acquires waste management operations and auto dealerships, has been accused of operating a more than $1.5B Ponzi scam.

Investors Claim UBS YES Strategy Was Mismarketed To Them: SEC Looking Into the Allegations

If you are an investor whose UBS broker recommended that you employ the UBS YES (Yield Enhancement Strategy) and you’ve since suffered significant losses, you may have grounds for an investment fraud claim. 

Unfortunately, UBS and its registered representatives may have been making unsuitable recommendations of this complex investment strategy to customers, as well as misrepresenting the risks involved. 

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