failure to supervise

Hannes Financial Services’ Ronald Hannes Allegedly Defrauded Woodbury Financial Customers

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

Banned Woodbury Financial Broker Allegedly Sold Fake Investments, Converted Client Monies

Ronald Walter Hannes, a Spokane, Washington-based investment advisor and former Woodbury Financial Services broker, is accused by the Washington State Department of Financial Institutions of defrauding 19 clients of over $2.9M.

Hannes had operated out of Hannes Financial Services and he was also a registered Woodbury Financial Services broker for 25 years until 2019. He has 33 years of experience working in the industry. Hannes was fired by Woodbury Financial Services last December. Financial Industry Regulatory Authority (FINRA) barred him in February.

Former Customer of Ex-Raymond James Broker Paul Steffany Wins $320K Award

Published on: September 14, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Family Trust to Receive Compensatory Damages From Broker-Dealer

In its Financial Industry Regulatory Authority (FINRA) arbitration claim against Raymond James & Associates and former broker Paul Anthony Steffany, the Angelina J. Cuccaro Family Trusted was awarded $320K in compensatory damages.

The claimant contends that it was the victim of broker negligence and the firm’s failure to supervise. The former Connecticut broker was barred by the self-regulatory organization (SRO) in 2015.

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.

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.

Ex- Morgan Stanley Broker Pleads Guilty to $6M Investment Fraud

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

Ex-Morgan Stanley Broker Admits To Criminal Investment Fraud, Faces SEC Charges

Michael Barry Carter, a former Morgan Stanley (MS) broker, has pleaded guilty to federal investment fraud and wire fraud charges involving a scam in which he defrauded five customers. This included at least one elderly client, of more than $6M. The scheme took place over 12 years. After his acts of broker fraud were uncovered, Carter took money from other investors to pay back his other victims.

Morgan Stanley fired Carter last year. He also is now facing parallel Securities and Exchange Commission (SEC) civil charges.

Fired Ameriprise Broker Bryant Caveness is Accused of Stockbroker Fraud & Ethics Violation Allegations

Published on: July 30, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Bars Former Registered Representative Following Probe Into Accusations

Bryant Edwin Caveness, an ex-Ameriprise Financial Services stockbroker, has been barred by the Financial Industry Regulatory Authority (FINRA) after he stopped cooperating in the self-regulatory organization (SRO)’s probe into his firing by the firm.

According to his Form U5 termination letter, the broker-dealer let him go last month because he violated company policies involving “personal trade, ethics, and solicitation of exchange-traded products” resulting in stockbroker fraud and misconduct.

First Western Capital Management Allegedly Placed Over $666M of Customers’ Money into Investments Reserved for Qualified Institutional Buyers

Published on: July 22, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Colorado Investment Firm Fined $200K For Investing Unqualified Buyers Into Unsuitable Investments

The US Securities and Exchange Commission (SEC) has ordered First Western Capital Management Co. to pay a $200K fine over allegations that, over a 7-year period, it invested over $666M of clients’ funds into securities that they didn’t qualify for. As a result, 81 clients were placed in securities that were reserved for qualified institutional buyers (QIBs), which are investors that have at least $100M in assets.

The firm is a Denver-based investment adviser. Our Colorado investment fraud lawyers at Shepherd Smith Edwards and Kantas are offering free case consultations to customers that were harmed by these unsuitable investment recommendations and sales that the SEC says were initiated by at least nine of First Western’s investment adviser representatives. Contact us today at (720) 439-2827.

Northwestern Mutual Investment Services Fined $350K for Inadequate Supervision of Ex-Broker Sampson Pearson

Published on: July 16, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Former Financial Representative Is Facing Criminal Trial for Annuity Fraud

The Financial Industry Regulatory Authority (FINRA) has fined Northwestern Mutual Investment Services $350K for failing to properly supervise former stockbroker, Sampson Pearson, which enabled him to defraud customers of $570K. Northwestern Mutual Investment Services is the brokerage arm of Northwestern Mutual Life Insurance Co.

Pearson, who was barred by the self-regulatory organization (SRO) in 2017, is charged in federal court with aggravated identity theft, mail fraud, and filing false tax returns. According to his BrokerCheck record, he is named in 13 disclosures, including 11 customer disputes.

SagePoint Financial Ordered to Pay Over $1.6M for Early Unit Investment Trust Rollovers That Cost Investors

Published on: June 22, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Says SagePoint Financial Brokers Unsuitably Recommended Early UIT Rollovers

The Financial Industry Regulatory Authority (FINRA) is ordering SagePoint Financial to pay over $1.6M in fines and restitution after it executed over $895 million in unit investment trust (UIT) transactions that resulted in more than $17.2 million in sales charges.

Of these UIT transactions, over $203.7 million of the proceeds were from sales that occurred over 100 days before a UIT’s maturity date. FINRA found that these unsuitable early rollovers caused customers to pay over $1.3 million in sales charges that they wouldn’t have otherwise if only they’d held onto their UITs until they matured.

SunTrust Investment Services to Pay $634K For Alleged Inadequate Supervision Of Unsuitable ETF Sales Practices

Published on: June 5, 2020 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Accuses SunTrust Investment Services of Failing to Properly Supervise Brokers

The Financial Industry Regulatory Authority (FINRA) has ordered SunTrust to pay $634K to settle charges accusing the broker-dealer of not properly supervising 17 of its brokers when they recommended that customers hold non-traditional exchange-traded funds (ETFs) for long periods–a practice that can lead to losses especially when there is market volatility.

Of this settlement, $50K is a fine and $584,466 is restitution. SunTrust Investment Services, which is owned by Trust Bank, agreed to the sanctions but without denying or admitting to the self-regulatory organization’s (SRO’s) findings.