Securities Lawyer Blog | Victim of Fraud?

David Lee Shafranek (CRD #2919901, Long Beach, New York)

was fined $10,000 and suspended by FINRA for 20 business days allegedly, without his member firm’s knowledge or approval, participated in private securities transactions by soliciting at least four of his firm’s clients to invest in a start-up company.

FINRA’s findings stated that the firm’s policies and procedures prohibited its registered representatives from participating in private securities transactions not associated with the firm.

The suspension was in effect from January 5, 2015, through February 2, 2015.
(FINRA Case #2014040781601)

David Lee Shafranek has been registered in the securities industry for 17 years and is currently registered with the following securities firm:

PROSPERA FINANCIAL SERVICES, INC. (CRD# 10740)
50 Main St., Suite 1000, White Plains, NY 10606

This broker was previously registered with the following securities firms:

05/2007 – 04/2014 CITIGROUP GLOBAL MARKETS INC. (CRD# 7059) – BRONX, NY

05/2004 – 05/2007 CITICORP INVESTMENT SERVICES (CRD# 23988) – BRONX, NY

02/2003 – 04/2004 BANC ONE SECURITIES CORPORATION (CRD# 16999) – CHICAGO, IL

12/1999 – 01/2003 CITICORP INVESTMENT SERVICES (CRD# 23988) – LONG ISLAND CITY, NY

10/1998 – 11/1999 MAY, DAVIS GROUP INC. (CRD# 35622) – NEW YORK, NY
FINRA expelled the firm in 06/2006
01/1998 – 10/1998 H.J. MEYERS & CO., INC. (CRD# 15609) – ROCHESTER, NY
FINRA expelled the firm in 03/1999
08/1997 – 12/1997 FIRST UNITED EQUITIES CORPORATION (CRD# 36398) – NEW YORK, NY

This summation of info obtained on FINRA’s website, “Disciplinary and Other Actions February 2015″ ends here.

Soreide Law Group represents clients nationwide before FINRA. Call and speak to an attorney at no cost on how to potentially recover your financial losses due to your broker/financial advisor’s recommendations: 888-760-6552.

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Randall A. Samson (CRD #2691518, Manteca, California)

was barred by FINRA for allegedly converting $10,000 from the 401(k) account of an employee, who was also a client, of his member firm.

FINRA’s findings stated that Samson, without the individual’s knowledge or consent, used his position as the plan’s trustee to complete a $10,000 distribution from the 401(k) account to his personal bank account. Samson used the proceeds to fund payroll and other overhead expenses for his company.

Also, FINRA’s findings stated that Samson provided false statements to his firm’s compliance staff in connection with an inquiry into the $10,000 distribution in an effort to conceal his misconduct.

(FINRA Case #2014040829901)

Randall A. Samson was registered in the securities industry for 18 years and was previously registered with the following securities firms:

01/1996 – 04/2014 AMERIPRISE FINANCIAL SERVICES, INC. (CRD# 6363) – OAKDALE, CA

01/1996 – 07/2006 IDS LIFE INSURANCE COMPANY (CRD# 6321) – MINNEAPOLIS, MN

This ends the summation from FINRA’s Website under “Disciplinary and Other Actions February 2015.”

Soreide Law Group represents clients nationwide before FINRAs. Call and speak to an attorney at no cost on how to potentially recover your investment losses due to your broker or financial advisor at 888-760-6552.

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Feb/15

26

New York Broker Fined, Suspended and Ordered to Pay $41K by FINRA

(Note to our readers: Soreide Law Group has filed 3 FINRA arbitrations against Dean S. Mustaphalli for our clients in New York totaling over $1 million in losses.)

Dean Sadrudin Mustaphalli (CRD #2792038, Commack, New York)

was assessed a deferred fine of $20,000, suspended from association with any FINRA member in any capacity for two years, and ordered to disgorge $41,800, plus interest, in management fees.

Allegedly, Mustaphalli formed and acted as managing director for a hedge fund through which he sold investments and received compensation, all without providing prior written notice to or receiving written acknowledgment from his member firm, regarding the private securities transactions, the outside business activity, or his expected compensation.

FINRA’s findings stated that as part of FINRA’s investigation into Mustaphalli’s conduct, he failed to provide a list of the hedge fund clients or unredacted account statements for the business account he controlled. Subsequent to FINRA’s filing of the complaint, Mustaphalli produced the documents FINRA requested.
The suspension is in effect from December 15, 2014, through December 14, 2016.
(FINRA Case #2013036880302)

Dean Sadrudin Mustaphalli was registered in the securities industry for 14 years and was previously registered with the following securities firm(s):

12/2009 – 09/2011 STERNE AGEE FINANCIAL SERVICES, INC. (CRD# 18456) – FOREST HILLS, NY

05/2007 – 12/2009 CITIGROUP GLOBAL MARKETS INC. (CRD# 7059) – JAMAICA, NY

07/1998 – 05/2007 CITICORP INVESTMENT SERVICES (CRD# 23988) – JAMAICA, NY

03/1997 – 02/1998 PRUDENTIAL SECURITIES INCORPORATED (CRD# 7471) – NEW YORK, NY

09/1996 – 11/1996 ROYCE INVESTMENT GROUP, INC. (CRD# 10494) – WOODBURY, NY

This ends the information from FINA’s February 2015 Disciplinary Report.

Listed below are some of the postings included in this blog on Dean Mustaphalli:

http://www.securitieslawyer.com/securitieslawyerblog/?p=4847

http://www.securitieslawyer.com/securitieslawyerblog/?p=5326

Soreide Law Group represents their clients nationwide before FINRA. If you have invested in with Dean Sadrudin Mustaphalli formerly of Sterne Agee Financial Services or Mustaphalli Capital Partners, and experienced losses, please call and speak to an attorney at no cost on how to potentially recover your losses at: 888-760-6552.

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Feb/15

26

FINRA Barred Rep Over Payment of Life Insurance Premiums

DEANNA R. MC CLEAN (CRD #4222057, Rock Island, Illinois)

was barred by FINRA for allegedly using her own personal funds to pay life insurance premiums for clients to ensure that their policies did not lapse and, to qualify for the highest possible commission rate paid by her member firm’s affiliate.

FINRA’s findings stated that McClean’s actions violated the affiliate firm’s policy and the Iowa Insurance Code. McClean paid many of the premiums with money orders and occasionally forged customer signatures on the money orders. As result of McClean’s misconduct, she received unwarranted commissions of at least $26,113, which she converted to her own use.

(FINRA Case #2013039581301)

FINRA has permanently barred this individual from acting as a broker or otherwise associating with firms that sell securities to the public.

DEANNA R. MC CLEAN was previously registered with the following securities firm(s):

12/2003 – 12/2013 ALLSTATE FINANCIAL SERVICES, LLC (CRD# 18272) – DAVENPORT, IA

02/2003 – 12/2003 AFS BROKERAGE, INC. (CRD# 25924) – AUSTIN, TX

07/2001 – 04/2002 AMERICAN EXPRESS FINANCIAL ADVISORS INC. (CRD# 6363) – MINNEAPOLIS, MN

07/2001 – 04/2002 IDS LIFE INSURANCE COMPANY (CRD# 6321) – MINNEAPOLIS, MN

08/2000 – 06/2001 METLIFE SECURITIES INC. (CRD# 14251) – NEW YORK, NY

08/2000 – 06/2001 METROPOLITAN LIFE INSURANCE COMPANY (CRD# 4095) – NEW YORK, NY

This ends the information from FINRA’s February 2015 Disciplinary Report.

If you have become a victim of life insurance fraud, contact an insurance fraud attorney at Soreide Law Group for a free consultation on how to recover your investment losses: 888-760-6552.

Soreide Law Group, PLLC, represents Insurance Fraud Victims in Federal Court, State Court and before the Financial Industry Regulatory Authority (“FINRA”).

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Feb/15

26

Texas Broker Barred by FINRA for Misusing Client Funds

William Charlton Mays (CRD #2693626, Corpus Christi, Texas)

was barred by FINRA and ordered to pay $10,000, plus interest, in restitution to a client for allegedly converting and misusing a client’s funds for his own benefit.

FINRA’s findings stated that Mays received a $50,000 check after soliciting the cleint to invest in stocks and commodities. Mays used at least $30,968.58 of the client’s money for personal purposes. When the client requested the return of the investment principal, Mays told the client that he would not be able to return the money, but later repaid the customer $40,000 of his $50,000 investment.

Also, FINRA’s findings stated that Mays, while associated with his member firm, was a registered agent and sole member of an entity and failed to disclose this outside business activity to his firm.

FINRA’s findings also included that Mays willfully failed to timely disclose a federal tax lien in the amount of $67,032.57 on his Form U4. FINRA found that Mays failed to respond to FINRA’s requests for information and documents related to its investigation into whether he had misappropriated funds, operated a Ponzi scheme, and engaged in unapproved outside business activities.
(FINRA Case #2013036238801)

Bill Mays was registered in the securities industry for 14 years and was previously registered with the following securities firm(s):

01/2011 – 11/2011 SWS FINANCIAL SERVICES, INC. (CRD# 17587) – CORPUS CHRISTI, TX

04/2009 – 12/2010 SUMMIT BROKERAGE SERVICES, INC. (CRD# 34643) – CORPUS CHRISTI, TX

09/2004 – 04/2009 LPL FINANCIAL CORPORATION (CRD# 6413) – CORPUS CHRISTI, TX

11/2000 – 10/2004 FROST BROKERAGE SERVICES, INC. (CRD# 17465) – SAN ANTONIO, TX

11/1998 – 11/2000 AXA ADVISORS, LLC (CRD# 6627) – NEW YORK, NY

11/1998 – 01/2000 THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES (CRD# 4039) – NEW YORK, NY

02/1997 – 04/1998 PRUCO SECURITIES CORPORATION (CRD# 5685) – NEWARK, NJ

08/1996 – 11/1996 H.J. MEYERS & CO., INC. (CRD# 15609) – ROCHESTER, NY
FINRA expelled the firm in 03/1999

The above summation obtained on FINRA’s Website under “Disciplinary and Other Actions February 2015″ ends here.

Soreide Law Group represents clients nationwide in FINRA arbitrations. Call to speak to an attorney for a consultation at no cost on how to potentially recover investment losses due to your broker or financial advisor at 888-760-6552.

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Daryl Richard Lemon (CRD #2473133, Los Angeles, California)

was barred by FINRA for allegedly executing 1,236 transactions in an elderly client’s discount brokerage account maintained at another broker-dealer without providing prior written notice, or any notice at all, to his member firm.

FINRA’s findings stated that Lemon periodically charged the customer amounts that he characterized as advisory fees.
(FINRA Case #2013036632201)

FINRA has permanently barred this individual from acting as a broker or otherwise associating with firms that sell securities to the public.

Daryl Richard Lemon was registered in the securities industry for 15 years and was previously registered with the following securities firm(s):

10/2005 – 07/2013 SAGEPOINT FINANCIAL, INC. (CRD# 133763) – CULVER CITY, CA

09/2005 – 10/2005 SUNAMERICA SECURITIES, INC. (CRD# 20068) – PHOENIX, AZ

03/2002 – 10/2005 SYNERGY INVESTMENT GROUP, LLC (CRD# 46035) – CHARLOTTE, NC

05/1995 – 01/1999 PRUDENTIAL SECURITIES INCORPORATED (CRD# 7471) – NEW YORK, NY

This ends the information summarized from FINRA’s February 2015 Disciplinary report.

Soreide Law Group represents clients nationwide in arbitrations before FINRA. For a free consultation on how to potentially recover your investment losses due to your broker/financial advisor’s recommendations call: 888-760-6552.

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The following summation information was found on FINRA’s website under “Disciplinary and Other FINRA Actions February 2015.” Call the Soreide Law Group, a Securities Arbitration Law Firm, at (888) 760-6552.

David Glenn Chapman (CRD #1702066, Holmdel, New Jersey)

was barred by FINRA for allegedly forging a deceased client’s signature on a document necessary to renew the client’s lapsed automobile insurance policy.

FINRA’s findings stated that Chapman arranged for his assistant to pay the client’s outstanding premium on the policy; and as a result of reinstating the client’s policy, he earned a quarterly bonus of $325 from his member firm.

Also, FINRA stated that Chapman provided false information to FINRA concerning the renewal of the customer’s automobile insurance policy.

(FINRA Case #2014039785201)

According to FINRA’s BrokerCheck, FINRA has permanently barred this individual from acting as a broker or otherwise associating with firms that sell securities to the public.

David G Chapman was registered in the securities industry for 25 years and was previously registered with the following securities firms:

06/1988 – 01/2014 PRUCO SECURITIES, LLC. (CRD# 5685) – MATAWAN, NJ

06/1988 – 12/1993 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA (CRD# 680) – NEWARK, NJ

02/1988 – 04/1988 F.D. ROBERTS SECURITIES, INC. (CRD# 693)

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

Call the Soreide Law Group for a free consultation with an attorney, 888-760-6552.

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James Francis Reid (CRD #2197427 Cypress, Texas)

was barred by FINRA for allegedly converting client funds for his own personal use by depositing cash and check insurance premiums, totaling more than $21,000, from clients of his member firm’s insurance affiliate into his personal checking account instead of applying the funds for the clients’ benefit.

FINRA’s findings stated that Reid failed to appear and provide FINRA-requested testimony regarding to its investigation into allegations that he misappropriated customer premiums.

(FINRA Case #2013037842501)

James Reid was registered in the securities industry for 17 years and was previously registered with the following securities firms:

03/2004 – 08/2013 FARMERS FINANCIAL SOLUTIONS, LLC (CRD# 103863) – HOUSTON, TX

04/1993 – 06/2001 CHARLES SCHWAB & CO., INC. (CRD# 5393) – SAN FRANCISCO, CA

11/1992 – 02/1993 BARABAN SECURITIES, INC. (CRD# 7659) – LOS ANGELES, CA

This summation of information obtained on FINRA’s “Disciplinary and Other FINRA Actions February 2015,” ends here.

If you are a victim of insurance fraud, contact an insurance fraud attorney for a free consultation on how to recover your investment losses at 888-760-6552.
Soreide Law Group, PLLC, represents Insurance Fraud Victims in Federal Court, State Court and before the Financial Industry Regulatory Authority (“FINRA”).

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Feb/15

23

Tampa Broker Fined and Suspended by FINRA Over Participation in Private Offering

David Leonard Potter (CRD #2991638, St. Petersburg, Florida)

was assessed a deferred fine of $15,000 and suspended by FINRA for five months for allegedly participating in a private offering before his member firm approved the offering and after the firm requested that he cease participation.

FINRA’s findings stated that Potter failed to file the offering documents with FINRA’s Corporate Finance Department and made negligent misrepresentations to investors regarding the financial statements attached to the private placement memorandum. Potter knew that the minimum contingency had not been and would not be met. Potter was also notified that the offering had significant regulatory deficiencies and therefore understood that the offering needed to be unwound, with the investor funds returned. Potter later returned the funds to investors.

The suspension is in effect from January 5, 2015, through June 4, 2015. (FINRA Case #2013035055102)

David L Potter was registered in the securities industry for 14 years and was previously registered with the following securities firms:

03/2010 – 05/2013 LASALLE ST SECURITIES, L.L.C. (CRD# 7191) – TAMPA, FL

09/2006 – 03/2010 ROYAL ALLIANCE ASSOCIATES, INC. (CRD# 23131) – TAMPA, FL

02/2002 – 09/2006 RAYMOND JAMES FINANCIAL SERVICES, INC. (CRD# 6694) – NORTH YORK

10/2001 – 03/2002 RAYMOND JAMES LTD (USA), INC. (CRD# 25853) – VANCOUVER, B.C.

05/1998 – 08/2001 TD SECURITIES (USA) INC. (CRD# 18476) – NEW YORK, NY

Florida-based Soreide Law Group, recently obtained the following information from FINRA’s website under “Disciplinary and Other FINRA Actions, January, 2015,” and that information ends here.

Call Soreide Law Group (888) 760-6552 for a free consultation with an attorney to on how to potentially recover your investment losses.

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Florida-based Soreide Law Group, (888) 760-6552, obtained the following summation of information from FINRA’s website under “Disciplinary and Other FINRA Actions, February, 2015.”

Brian Lewis Pittman (CRD #2963196, Naples, Florida)

was assessed a deferred fine of $7,500 and suspended by FINRA for four months for allegedly participating in private securities transactions, specifically the sale of oil and gas limited partnership interests that were not approved for sale by his member firm. Pittman did not provide prior written notice of his participation or obtained his firm’s approval of his participation in the transactions.

FINRA’s findings stated that Pittman referred his firm’s clients to invest in the private securities and received approximately $45,000 in compensation, but returned the compensation after his firm instructed him to do so.

The suspension is in effect from December 15, 2014, through April 14, 2015.
(FINRA Case #2012034304002)

Brian Pittman was registered in the securities industry for 13 years and was previously registered with the following securities firms:

10/2012 – 02/2014 SABADELL SECURITIES USA, INC. (CRD# 148137) – MIAMI, FL

02/2010 – 10/2012 WESTPORT RESOURCES INVESTMENT SERVICES, INC. (CRD# 24535) – NAPLES, FL

10/2007 – 02/2010 BONDS.COM, INC. (CRD# 43875) – NAPLES, FL

08/2007 – 10/2007 JVB FINANCIAL GROUP, LLC (CRD# 104412) – BOCA RATON, FL

07/2007 – 08/2007 PINNACLE BROKERAGE SERVICE, INC. (CRD# 107803) – CHARLOTTE, NC

03/2006 – 07/2007 SUNTRUST INVESTMENT SERVICES, INC. (CRD# 17499) – SARASOTA, FL

11/2003 – 02/2006 CITIGROUP GLOBAL MARKETS INC. (CRD# 7059) – NEW YORK, NY

12/1997 – 11/2001 ROBERT W. BAIRD & CO. INCORPORATED (CRD# 8158) – MILWAUKEE, WI

The information obtained from FINRA’s website ends here.

If you have investment losses because of your broker or financial advisor’s recommendations, please call Soreide Law Group for a free consultation with an attorney on a possible recovery of those losses: 888-760-6552.

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