Articles Tagged with Misrepresentations and omissions

Pennsylvania Financial Advisor is Accused of Making Unsuitable Recommendations 

Austin Richard Dutton, Jr., an American Trust Investment Services stockbroker, is currently the subject of a Financial Industry Regulatory Authority (FINRA) arbitration case. The self-regulatory organization (SRO) has made a preliminary determination to recommend disciplinary action against him. The Doylestown, PA financial advisor is accused of violating FINRA Rules 2111,  2010, and 4511.  

FINRA announced its preliminary determination involving Dutton in March 2021. FINRA Rule 2111 has to do with suitability and requires broker-dealers and their registered representatives to only make recommendations that are suitable for each customer.  Rule 2010 mandates that members abide by high standards of commercial honor and fair and equitable principles of trade. Rule 4511 requires FINRA members to make records and books and preserve them for at least six years. 

New Jersey Financial Advisor’s Victims Included Older Investors Who Spoke Spanish

Ramon Arturo Herrera, a former Wells Fargo (WFC) registered representative, is sentenced to 27 months in prison and three years of supervised release. The former New Jersey financial advisor pleaded guilty to wire fraud for bilking approximately 40 clients of $450K.

Herrera worked five years in the industry. The entire time, he was a Wells Fargo broker until 2018. That is the same year that Financial Industry Regulatory Authority (FINRA) barred him from the industry.  The following year, Herrera was expelled by the New Jersey Bureau of Securities. 

Unsuitability, Misrepresentations and Omissions Are Among the Other Allegations

Ray Gene Reese, a Money Concepts Capital stockbroker and investment advisor based in Farmington, Missouri, is currently named in two pending Financial Industry Regulatory Authority (FINRA) arbitration claims seeking $600K in damages. Reese has been in the securities industry for 32 years. 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com), we represent investors with FINRA arbitration claims against the broker-dealers and registered representatives responsible for the financial harm they have suffered. 

California Stockbroker Accused Of Unsuitability & Misrepresentations

David Omori Bibo, a Western International Securities, Inc. registered representative is named in two pending customer disputes collectively seeking $1.8M in damages. The San Jose broker has been part of the industry for 25 years. He has seven disclosures on his BrokerCheck record.

Our California securities fraud lawyers are looking into investor claims involving Western International Securities broker, David Bibo, or any other registered representative from the firm. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today so that we can help you determine whether you have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration case to recover your losses.

Customers Claim That Northstar Financial Services Products Were Touted As Low Risk & Safe 

If you are an investor who suffered losses while investing in Northstar Financial Services products that were recommended to you by a SunTrust Investment Services stockbroker, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm investorlawyers.com) today so that we can help you explore your legal options. 

Unfortunately, there are financial advisors who may have marketed Northstar Financial Services’ investments as stable, safe, low risk, and liquid – like a CD or a money market account – even when that has proven to be far from the case.  Now, Northstar Financial Services is in bankruptcy and undergoing liquidation proceedings. It is very likely that investors have lost most of, if not their entire, investment.  

Risky, Illiquid Business Development Company Was Not Suitable for Many Investors

If you are someone who invested in the Sierra Income Corporation, you may have lost money. This business development company (BDC) is a non-traded investment. 

Earlier this year, Sierra Income suffered losses after its announced merger with Medley Capital Corp. and Medley Management Inc. was terminated because of the economic uncertainty caused by COVID-19. Not long after that, the company announced that it was suspending monthly redistributions.

Former Customers of Boca Raton, Florida Financial Advisor Request $700K in Damages

Two investors have filed separate Financial Industry Regulatory Authority (FINRA) arbitration claims against Noble Capital Markets registered representative, Joseph Menachem Hain, also known as Joey Hain. Based in Boca Raton, Hain is the broker-dealer’s investment banking director. He also is the co-founder of the advisory firm, Intrinsic Value Partners

Hain has worked in the industry for 14 years. Other firms where he used to be a broker include Paulson Investment Company, Aegis Capital Corp., Westpark Capital, Tejas Securities Group, Wynston Hill Capital, and Robotti & Co. 

Customer Files FINRA Arbitration Claim Against Ex-Berthel, Fischer & Co. Broker and the Firm 

Andrew Samuel Perri, the president of Pinnacle Wealth Management in Brighton, Michigan, and a former stockbroker has been named in a customer dispute, along with broker-dealer Berthel, Fischer, & Company Financial Services. 

In the Financial Industry Regulatory Authority (FINRA) arbitration case, brought in June, the claimant contends that Perri made negligent misrepresentations while selling investments that were unsuitable. The investor is accusing the brokerage firm of failing to properly supervise Perri and neglecting to conduct the proper due diligence.

Customers of Leach Claim They Suffered Six and Seven-Figure Losses 

Jeffrey Harold Leach, a Morgan Stanley broker and also of The Leach Group, which is based in Florida, has been accused by at least three investors of making unsuitable investment recommendations that cost them a significant amount of money. 

While one claim has already been settled by Morgan Stanley, two of the customer disputes, including one seeking $3M in damages, are still pending.

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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