Securities Lawyer Blog | Victim of Fraud?

Soreide Law Group is currently representing investors against Meyers Associates, a small New York firm which unfortunately, is known for having many of their registered representatives with negative marks on their employment records.

These negative marks or “disclosure events” often show up in FINRA’s BrokerCheck, which is a database available to the public located on FINRA’s website. Disclosure events are often seen as “red flags” by both investors and the financial industry. These events can be anything from a customer complaint, regulatory action, or a broker’s personal financial problems.

According to FINRA, at Meyers Associates, their registered representatives have five times the industry average for some type of disclosure event on their records.

In a recent article from InvestmentNews.com, reviewing Meyers Associates roster, of 75 brokers 47 have some type of disclosure event on their BrokerCheck. Which calculates to 63% of the firm’s reps have disclosure events on their BrokerCheck histories, the average being 4.5 per representative.

If you feel you have become a victim of stock/securities loss due to your broker’s recommendations, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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The Soreide Law Group, (888) 760-6552, obtained this summation of information located on FINRA’s website under “Disciplinary and Other FINRA Actions, March, 2014.”

Jack Richard Kelly (CRD #1994768, Registered Principal, Millington, Tennessee)

was barred by FINRA for allegedly converting $85,000 from his clients. FINRA’s findings said a client gave Jack Kelly checks totaling $40,000 that were to be invested in a fund which Kelly had said would provide 7 percent interest.

The $40,000 came from a fund that was to provide for the client’s disabled sister. Rather than invest the $40,000 in the account in which Kelly promised a high-yield, Kelly converted the funds for his own personal use.

Additionally, FINRA’s findings stated that an elderly client gave Kelly $45,000 to invest in a fund that Kelly had represented would also produce 7 percent interest. Kelly converted the funds from the client to his own personal use, instead of investing the $45,000 from the client.
(FINRA Case #2013037708301)

Jack Richard Kelly was previously registered with the following FINRA firm(s):

PFS INVESTMENTS INC. (CRD# 10111) – WATERLOO, IA
12/1989 – 07/2013

The summation of information available on FINRA’s website ends here.

Soreide Law Group, represents clients nationwide. For a free consultation with an attorney call (888) 760-6552.

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Mar/14

30

FINRA Orders Texas Firm to Pay $2.5 Million to Elderly Clients in Ponzi Scheme

Golden Beneficial Securities Corporation, a Texas securities firm, was ordered to pay $2.5 million to a couple who invested with the firm by the Financial Industry Regulatory Authority (FINRA) for failing to supervise their broker who was allegedly involved in a Ponzi scheme.

The Texas couple accused Golden Beneficial Securities Corp. of failing to safeguard their finances. The broker at Golden Beneficial told the couple he was investing their money into a bond fund, but instead their investments went into a Ponzi scheme. This couple was retired and lost their entire savings. The couple trusted the broker.

The firm is no longer registered with FINRA and has failed to produce proof of insurance. They also failed to participate in FINRA’s arbitration. The couple may have a hard time recovering their losses. Golden Beneficial’s membership with FINRA was canceled in January for failure to pay outstanding fees.

strong>Soreide Law Group represents clients nationwide. If you or a family member have become a victim of this or any other Ponzi Scheme, call for a free consultation on how to potentially recover those losses. To speak with an attorney call 888-760-6552.

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Mar/14

27

Did You Invest in Puerto Rican Bonds with Oriental Financial Services Corp.?

Soreide Law Group, based in Ft. Lauderdale, Florida, is currently investigating Oriental Financial Services Corp., which operates as a subsidiary of Oriental Financial Group Inc., on behalf of clients who have suffered losses in the risky Puerto Rican municipal bond funds. Oriental Financial is headquartered in San Juan, Puerto Rico. They offer financial services in Puerto Rico and Florida. The Oriental Financial Group has over 520 employees.

Puerto Rican bond investors have suffered substantial losses due to the high risk of default by the bond issuers. Bond investors need to be aware that in addition to the credit risk associated with the bonds recommended by Oriental Financial Services, those investors with longer term maturities also have substantial interest rate risk.

The Financial Industry Regulatory Authority, FINRA, is actively recruiting more arbitrators in Puerto Rico to handle the high number of cases that are being filed. FINRA can also send arbitrators from Florida or other nearby states.

Soreide Law Group, and attorney Lars Soreide, are actively filing cases against broker/dealers for the substantial losses sustained by Puerto Rican bond investments. Call (888) 760-6552, for a free consultation if you invested in Puerto Rico Bond Funds.

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Soreide Law Group, (888) 760-6552, has obtained this summation of information on FINRA’s website under “Disciplinary and Other FINRA Actions, March, 2014.”

Edward Shea Brokaw (CRD #1162997, Registered Principal, Darien, Connecticut)

was suspended for one year and fined $30,000 by FINRA. This following the SEC sustaining the sanctions following an appeal of a National Adjudicatory Council (NAC) decision.

According to the FINRA report, these sanctions were based on Brokaw engaging in conduct that was inconsistent with the principles of trade. He allegedly engaged in a manipulative scheme, and this also caused his firm’s books and records to be inaccurate.

Brokaw allegedly helped a friend who was an important client, Brokaw stood to personally gain $48,000, and his family to gain an additional $10,000. According to the SEC, Brokaw pushed traders to ‘hammer’ the stock and sell stock at the opening and closing of the market which could impact the Volume Weighted Average Price.

The suspension is in effect from January 21, 2014, through January 20, 2015.
(FINRA Case #2007007792902)

According to FINRA’s BrokerCheck, Edward Shea Brokaw, was previously registered with the following FINRA firm(s):

OPPENHEIMER & CO. INC. (CRD# 249) – STAMFORD, CT
08/2006 – 07/2010

DEUTSCHE BANK SECURITIES INC. (CRD# 2525) – GREENWICH, CT
01/2001 – 07/2006

DB ALEX. BROWN LLC (CRD# 17790) – BALTIMORE, MD
09/1997 – 01/2001

ALEX. BROWN & SONS INCORPORATED (CRD# 20) 11/1993 – 09/1997

STOVER HALEY BURNS, INC. (CRD# 31993) – STAMFORD, CT
06/1993 – 11/1993

NOYES PARTNERS INCORPORATED (CRD# 10128) – NEW YORK, NY
05/1992 – 06/1993

ALEX. BROWN & SONS INCORPORATED (CRD# 20) 09/1983 – 04/1992

This ends the summation of information available on FINRA’s website.

The Soreide Law Group, has represented clients nationwide. For a free consultation with a securities attorney call (888) 760-6552.

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Mar/14

26

FINRA Watching Trades in Latest Puerto Rican Bond Sales

The Financial Industry Regulatory Authority (FINRA) has said that it is examining the trading in the $3.5 billion of general-obligations that Puerto Rico sold this month in the largest ever high yield offering. These bonds are clearly not for the small investor.

Puerto Rico sold the debt on March 11th., giving the island enough cash to pay it’s bills through June 2015, as they work to revive Puerto Rico’s shrinking economy according to a recent article in Bloomberg. The securities will mature in July of 2035 and they are priced to yield approximately 8.73 percent.

Hedge funds made up the majority of buyers in this tax-exempt deal, stating on the sale documents that “the bonds shall be issued in the minimum denomination of $100,000 and any integral multiple of $5,000 in excess thereof,” unless one of the three largest rating companies raises Puerto Rico to investment grade.

However, since March 11th., there have been at least 75 transactions less than $100,000, from data that was compiled by Bloomberg. FINRA is aware of this situation and examining the bond trading activity. These trades should be for the institutional purchasers or people who can afford the risk. They should be able to invest at least $100,000 minimum.

A notice has been released by the Securities Industry and Financial Market Association, a New York-based trade group representing banks and investors, warning firms about trading the Puerto Rico bonds below $100,000.

Soreide Law Group is actively filing cases against brokers for losses sustained by Puerto Rican bond investments. Call (888) 760-6552 if you invested in Puerto Rico Bond Funds.

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Mar/14

26

LPL Financial Fined Again by FINRA

On March 24th., 2014, LPL Financial was fined $950,000 for supervisory failures in the sales of alternate investments by the Financial Industry Regulatory Authority (FINRA). The deficiency in supervision is related to oil and gas partnerships, non-traded REITS, hedge funds, to name a few, and other illiquid investments. This fine is the latest in a series of actions against LPL. Last March, FINRA also fined LPL $7.5 million for 35 email system failures. FINRA ordered LPL to make a $1.5 million fund to compensate customers who were affected by those system failures. Also, in 2013, LPL was fined $500,000 by the Massachusetts Securities Division and LPL offered to return $2 million for similar violations involving the sale of non-traded REITS that were unsuitable for certain clients.

With this latest fine, FINRA found that between Jan. 1, 2008, – July 1, 2012, LPL failed to adequately supervise the sales of alternative investments that violated investor concentration limits. LPL was using a manual process to review whether an investment complied with suitability requirements, sometimes relying on outdated and inaccurate information. Then an automated review system was installed, but the database was not updated enough to accurately reflect suitability standards. According to FINRA, LPL also failed to train its supervisory staff to analyze properly the state standards within their suitability reviews of such products.

If you have experienced losses through LPL Financial, call a Securities Arbitration Lawyer at Soreide Law Group for a free consultation on how to potentially recover your losses at 888-760-6552.

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Mar/14

26

Former Miami Merrill Lynch Broker Barred by FINRA

The following information was obtained on FINRA’s Website under “Disciplinary and Other FINRA Actions, March, 2014.”

Andres Enrique Rojas (CRD #4799671, Registered Representative, Miami, Florida)

has been barred by FINRA for allegedly participating in impersonating a customer and obtaining online access to the customer’s account. Andres Rojas also made a false statement to his firm regarding the scheme.

FINRA’s findings said that the impersonation scheme was so the customer would not discover the substantial loss in a personal holding company’s account. This was caused by another broker, but Rojas was allegedly aware of the purpose of the impersonation.

According to FINRA’s findings, this customer did not give authorization to Andres Rojas or the other broker for the impersonation or to access to his online accounts.

Rojas failed to appear for a FINRA interview.
(FINRA Case #2011027886901)

Andres Enrique Rojas was previously registered with the following FINRA firm(s) according to FINRA’s BrokerCheck:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD# 7691) – MIAMI, FL
09/2006 – 05/2011

STATETRUST INVESTMENTS INC. (CRD# 104651) – MIAMI, FL
06/2006 – 09/2006

MORGAN STANLEY DW INC. (CRD# 7556) – PURCHASE, NY
07/2004 – 06/2005

This ends FINRA’s information.

Fort Lauderdale-based Soreide Law Group has represented clients nationwide. If you have sustained a loss through financial fraud, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552.

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Fort Lauderdale-based Soreide Law Group, (888) 760-6552, obtained this summation of information from FINRA’s website listed under “Disciplinary and Other FINRA Actions, March, 2014.”

Jeffrey Griffin Lane (CRD #1663977, Registered Principal, Darien, Connecticut) and Robert Marcus Lane Jr. (CRD #1411773, Registered Principal, North Palm Beach, Florida)

FINRA has fined Jeffrey Lane $25,000, barred him from association with any FINRA member in any principal or supervisory capacity, and suspended Jeffrey Lane from association with any FINRA member in any capacity for two years.

FINRA has ordered Marcus Lane to pay $218,581 plus interest in disgorgement to clients, and barred him from association with any FINRA member in any capacity.

Sanctions were imposed by the NAC after an appeal of an Office of Hearing Officers (OHO) decision. These sanctions were because allegedly Marcus Lane engaged in an improper interpositionings. It is alleged that he charged clients unfair prices and excessive markups and failed to disclose the markups.

According to FINRA’s findings, Jeffrey Lane was responsible for supervising Marcus Lane and failed to question the markups charged to clients. Jeffrey Lane allegedly, also prepared deficient WSPs regarding procedures on monitoring for excessive markups.

Jeffrey Lane and Marcus Lane failed to respond to FINRA requests for information in a timely manner. This decision was appealed to the SEC and the sanctions, except for the bars, are not in effect pending review.
(FINRA Case #2007008204901)

Jeffrey Lane was previously registered with the following FINRA firm(s):

GREENWICH HIGH YIELD LLC (CRD# 38213) – NORTH PALM BEACH, FL
04/1995 – 04/2009

CREDIT RESEARCH AND TRADING LLC (CRD# 28830) – STAMFORD, CT
03/1992 – 08/1995

PRUDENTIAL SECURITIES INCORPORATED (CRD# 7471) – NEW YORK, NY
06/1990 – 06/1991

DEAN WITTER REYNOLDS INC. (CRD# 7556) – PURCHASE, NY
10/1989 – 06/1990

DEAN WITTER REYNOLDS INC. (CRD# 7556) – PURCHASE, NY
12/1988 – 09/1989

HAMBRECHT & QUIST INCORPORATED (CRD# 940) 08/1987 – 08/1988

BEAR, STEARNS & CO. INC. (CRD# 79) 04/1987 – 06/1987

Robert Lane was previously registered with the following FINRA firm(s):

GREENWICH HIGH YIELD LLC (CRD# 38213) – NORTH PALM BEACH, FL
04/1995 – 04/2009

CREDIT RESEARCH AND TRADING LLC (CRD# 28830) – STAMFORD, CT
03/1992 – 02/1995

ACCESS SECURITIES, INC. (CRD# 22455) – STAMFORD, CT
01/1990 – 04/1992

S.N. PHELPS & CO. (CRD# 18341) 10/1988 – 12/1989

CS FIRST BOSTON CORPORATION (CRD# 816) 10/1985 – 02/1988

This ends the summation of information available on FINRA’s website.

Soreide Law Group, represents clients nationwide. For a consultation with a securities attorney at no charge, call (888) 760-6552.

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Mar/14

25

Two Arrested in Insider Trading Scheme

A Morgan Stanley broker, Vladimir Eydelman, 42, and a law firm employee, Steven Metro, 40, managing clerk at Simpson Thacher & Bartlett LLP in New York, were charged with insider trading on March 19th.

Steven Metro, was accused of stealing confidential data on 13 corporate transactions and telling a middleman who then passed it on to broker Vladimir Eydelman. This included notes and napkins which were occasionally swallowed in Grand Central Station after the middleman was given the tip with the stock symbol of the company to be acquired.

Allegedly, Metro used the stolen data from Simpson Thacher’s computers, gave it to the middleman, and from February 2009 to February 2013, made for himself, family, friends and clients, more than $5.6 million.

Vladimir Eydelman, Colts Neck, NJ, allegedly began his illegal trading at Oppenheimer & Co., from March 2001-September 2012, then he began at Morgan Stanley and continued the scheme. They invested over $33 million in 13 transactions in four years.

Steven Metro, Katonah, New York, was charged with nine counts of securities fraud. Vladimir Eydelman is charged with eight counts of securities fraud. Also, both are charged with four counts of tender offer fraud and conspiracy to commit securities fraud.

Eydelman and Metro each face 25 years in prison.

According to FINRA’s BrokerCheck, Vladimir Eydelman was registered with the following FINRA firms:

MORGAN STANLEY (CRD# 149777) Registered with this firm since 9/7/2012, recently terminated.
55 EAST 52ND STREET, 28TH FLOOR, NEW YORK, NY 10055

OPPENHEIMER & CO. INC. (CRD# 249) – NEW YORK, NY
01/2003 – 09/2012

CIBC WORLD MARKETS CORP. (CRD# 630) – NEW YORK, NY
03/2001 – 01/2003

VANGUARD CAPITAL (CRD# 22081) – SAN DIEGO, CA
06/2000 – 03/2001

MORGAN WILSHIRE SECURITIES, INC. (CRD# 44807) – GARDEN CITY, NY
08/1998 – 06/2000

WALSH MANNING SECURITIES, LLC (CRD# 30826) 11/1996 – 08/1998

E. C. CAPITAL, LTD. (CRD# 37447) – MINEOLA, NY
04/1996 – 11/1996

Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained a loss through financial fraud, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552

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