unauthorized trading

Ex-Joseph Stone Capital Broker Joseph Ambrosole Faces Excessive and Unsuitable Trading Allegations

Published on: August 17, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Customer of Former New York Financial Advisor Is Requesting Over $850K in Damages

In July 2022, the Financial Industry Regulatory Authority (FINRA) permanently barred Joseph Albert Ambrosole after he refused to testify in the self-regulatory organization’s (SRO) probe. FINRA led this investigation concerning an amended Uniform Termination Notice by Joseph Stone Capital, one of the broker-dealers where he used to be registered. According to that member firm, Ambrosole, who resigned, was the subject of a customer complaint accusing him of allegedly engaging in unsuitable trading.

The ex-New York broker, who worked in the industry for eight years, was most recently a Joseph Stone Capital financial advisor between 2017 to 2021. Other firms where Ambrosole used to be a registered representative include Alexander Capital, Meyers Associates, Global Arena Capital, Laidlaw & Co., and Obsidian Financial Group.

Spartan Capital Securities Broker James Pecoraro Suspended Following Excessive Trading Allegations

Published on: August 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

New York Broker Allegedly Cost Customers Six-Figure Losses, Trading Costs, and Commissions

The Financial Industry Regulatory Authority (FINRA) has suspended Spartan Capital Securities financial advisor James Robert Pecoraro for nine months. FINRA ordered him to pay a $10K penalty and nearly $69K restitution for allegedly excessively unauthorized trading in customers’ accounts. The New York broker consented to the sanctions without denying or admitting to the findings.

According to the self-regulatory organization (SRO), Pecoraro recommended to certain clients a pattern of very costly, high-velocity trading that involved him making frequent stop loss orders, resulting in the liquidation of securities positions. At this point, he would allegedly recommend new purchases to the investors. FINRA said these trades were excessive and unsuitable for the investors, given their investing profiles. The trades cost them investment losses of over $166K and total trading costs of more than $184K, including over $165K in commissions.

Texas Investors Awarded $2.57M in Second FINRA Arbitration Win Against LPL

Published on: August 7, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Claimants also name former LPL Financial brokers Edward Miller and Antonio Reyna

Two investors were awarded $2.57m in their Financial Industry Regulatory Authority (FINRA) arbitration case against LPL Financial and Financial Resources Group. Also named as respondents but who were not ordered to pay damages are two former ex-LPL financial advisors. Antonio Reyna is now a Securities America broker in Texas, and Edward Bruce Miller is currently registered with Financial Resources Group Investment Services in South Carolina.

This is the investors’ second FINRA arbitration case against LPL Financial. They are alleging unauthorized trading, fraud, breach of fiduciary duty, and breach of contract. Financial Resources Group and LPL were both ordered to pay over $1.6M in compensatory damages and nearly $850K in the claimants’ legal fees. Arbitrators have recommended expunging the case from Reyna’s CRD while Miller continues to deny allegations.

Ex-Ameriprise Broker James Dunn is Accused of Unsuitability, Unauthorized Trading

Published on: December 17, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Former Ameriprise Financial Advisor is Named in Five Pending Customer Disputes

James William Dunn, an ex-stockbroker and investment advisor in Vienna, VA with Ameriprise Financial Services, is under scrutiny over losses suffered by customers. He is currently named in five customer disputes in which the damages sought range from six- to seven figures.

All of the Financial Industry Regulatory Authority (FINRA) arbitration claims involving Dunn were brought in 2021. The misconduct alleged was said to have occurred during this same year.

Ex-Raymond James Broker Guilford Nergard Is Accused of Making Unauthorized Trades

Published on: November 29, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Mesa, Arizona Financial Advisor Has Been Named in Multiple Customer Disputes

Ex-Raymond James broker, Guilford Ward Nergard, is facing at least one still pending customer dispute in which the claimant is alleging unauthorized trading.

This is not the only time that Nergard has been accused of broker misconduct. He was suspended by the Arizona Corporation Commission Securities Department from April through June 2021 over allegations that he made discretionary trades with customers without the required authorizations.

FINRA Bars Fired Cambridge Investment Research Broker David Melilli Over Alleged Unauthorized Trading

Published on: November 12, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Capstone Financial Investment Advisor Barred By FINRA

David John Melilli, an ex-Cambridge Investment Research stockbroker, was barred by FINRA beginning November 8th, 2021. This came in the wake of allegations that he traded in multiple clients’ accounts without written authorization. This included trading in the account of one deceased person.

Without denying or admitting to FINRA’s findings, David Melilli consented to the sanctions and the entry of findings that he did not produce the information requested by the self-regulatory organization (SRO). The bar came after Melilli refused to cooperate.

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.

Aegis Capital Broker Accused by Investors of Negligence, Unsuitable Investments and Unauthorized Trading

Published on: July 29, 2020 | by Shepherd Smith Edwards & Kantas, LLP

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.

Ex-Kestra Financial Broker Involved in Investor Fraud Claims and Accused of Unauthorized Trading

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

Barred Kestra Investment Services Stockbroker Accused of Unauthorized Trading

Our investor fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are currently speaking with former customers of ex-Kestra Investment Services broker, James Blake Daughtry. He was recently barred by the Financial Industry Regulatory Authority (FINRA).

The self-regulatory organization (SRO) issued the ban after Daughtry refused to testify during its investigation into allegations that he may have engaged in transactions that were potentially “fraudulent and unauthorized” in a number of customers’ accounts. Also, in the wake of FINRA’s order, Kestra fired him this month.

SSEK Investigates Stockbroker Eddie Lyons of Raymond James & Associates

Published on: September 30, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigates Eddie Lyons Of Raymond James & Associates

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking into allegations against Eddie Lyons as noted by FINRA. Lyons was a financial advisor registered with Raymond James & Associates, Inc. He was terminated, in part, due to allegations by his clients that he engaged in unauthorized trading of accounts.

FINRA then initiated an investigation in November 2017. The inquiry was based on several complaints from customers. The allegations ran the gambit of bad acts. These include, but may not be limited to, unauthorized trading.