failure to supervise

Customers of Morgan Stanley Broker Michael Wagner Seek Over $20M in Damages

Published on: January 13, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Atlanta Financial Advisor Accused of Using an Unsuitable Options Investment Strategy

Michael John Wagner, a longtime Morgan Stanley broker, is currently under scrutiny in the wake of recent customer disputes in which the claimants are requesting over $20M in damages.

Based out of Atlanta, Georgia, Wagner has worked in the industry for 20 years. He has been a Morgan Stanley broker since 2012. Before that, he was a Merrill Lynch stockbroker and investment advisor.

FINRA Fines Merrill Lynch $1.2M and $950K

Published on: January 11, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Two Merrill Lynch Brokers Stole More Than $6M from 13 Clients

In December 2021, the Financial Industry Regulatory Authority (FINRA) fined Merrill Lynch in two separate matters.

One fine, of $950K, is because the firm allegedly failed to detect that two of its financial advisors had stolen more than $6M from 13 customers in schemes that occurred over several years. This purportedly involved the transmission of funds through automated clearing house (ACH) transfers that were “externally initiated.”

Ex-Voya Financial Advisors Broker Ronnie Metcalf Faces Over $6.5M in Current Customer Disputes

Published on: September 21, 2021 | by Shepherd Smith Edwards & Kantas, LLP

South Carolina Financial Advisor Named in Five Pending Customer Disputes

Cetera Advisors Network registered representative, Ronald Franklin Metcalf, Jr, is named in five pending customer disputes in which the claimants are seeking more than $6.5M in financial recovery.

All of them accuse Metcalf of failing to supervise other registered representatives while he was a Voya Financial Advisors broker. Two of those Financial Industry Regulatory Authority (FINRA) arbitration cases resulted in huge settlements, including one for $3.5M.

Sanctuary Wealth To Pay $530K Over Alleged Supervisory Failures Involving Exchange-Traded Fund Sales

Published on: July 26, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Sanctuary Wealth Ordered To Pay Over $370K in Restitution to ETF Customers

Independent broker-dealer Sanctuary Wealth, formerly David A. Noyes & Co., has been censured by the Financial Industry Regulatory Authority (FINRA). It must now pay a $160K fine and over $370K in restitution for its failure to supervise certain financial products, including leveraged and inverse exchange-traded funds (ETFs), and its brokers’ external activities.

According to the self-regulatory organization (SRO), going as far back as 2014 through the end of 2018 the brokerage firm failed to address in a “reasonable” manner the “unique features and risks” involving selling inverse and leveraged ETFs, which Sanctuary was required to do according to FINRA’s Rule 2111 regarding suitability.

NEXT Financial Group Reaches $750K Settlement Over Allegedly Unsuitable Short-Term Trading of Puerto Rico Bonds and Class A Mutual Funds

Published on: July 23, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based Brokerage Firm Accused of Overconcentration & Supervisory Failures

NEXT Financial Group has arrived at a $750K settlement with the Financial Industry Regulatory Authority (FINRA) to resolve claims that the Texas-based broker-dealer overconcentrated customer accounts in Puerto Rico municipal bonds and did not have the kind of supervisory system that could have identified unsuitable trades.

The self-regulatory organization (SRO) also contends that from January 2012 to February 2019 NEXT Financial Group did not set up, maintain, or enforce supervisory systems and written procedures that could have identified and stopped the short-term trading of Puerto Rico bonds and mutual funds when they were unsuitable for customers.

SSEK Law Firm Investigates Claims That Raymond James Financial Services Marketed Northstar Financial Services (Bermuda) Recommendations To Investors Through UNFCU

Published on: June 25, 2021 | by Shepherd Smith Edwards & Kantas, LLP

With Bermuda-Based Entity in Liquidation, Investors’ Best Bet For Financial Recovery is to File FINRA Arbitration Claims

Shepherd Smith Edwards and Kantas are investigating claims that Raymond James Financial Services marketed Northstar Financial Services (Bermuda) investments through the United Nations Federal Credit Union (UNFCU).

The latter is an American credit union that was founded in 1947. Its members include employees, retirees, consultants of the United Nations, various affiliated entities, as well as family members of UNFCU members.

Triad Advisors To Pay $194K For Supervisory Failures Involving Short-Term Trading of Mutual Fund Class A Shares

Published on: February 16, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Settlement in FINRA Case Involves Repaying Nearly $44K to Affected Customers

The Financial Industry Regulatory Authority (FINRA) has ordered Triad Advisors to pay a $150K fine for not adequately supervising both short-term trades involving Class A shares of mutual funds and variable annuity exchanges. The self-regulatory organization (SRO) also accused the Atlanta-headquartered broker-dealer of not making timely disclosures involving customer complaints and arbitration.

Triad Advisors, which is an Advisor Group network brokerage firm, consented to repay clients that were affected nearly $44k as part of its settlement for this case. It is not, however, denying or admitting to FINRA’s findings.

FINRA Orders Worden Capital Management to Pay Over $1.5M For Brokers’ Churning

Published on: January 19, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Worden Capital Management’s Settlement Includes $1.2M in Customer Restitution

In December 2020, Worden Capital Management, a New York-based broker-dealer, arrived at an over $1.5M settlement with the Financial Industry Regulatory Authority (FINRA) over excessive trades made by the firm’s registered representatives.

The self-regulatory organization (SRO) contends that from January 2015 to October 2019, the New York brokerage firm did not have the kind of supervisory system in place that would have allowed it to “achieve compliance” with rules having to do with churning and excessive trading.

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.