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Archive for June 2012

Jun/12

25

Utah Rep Fined and Suspended by FINRA

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Brett Henderson (CRD #2420629, Registered Representative, North Salt Lake City, Utah)

was fined $95,000, which includes restitution of $82,505 payable to customers, and suspended from association with any FINRA member in any capacity for 11 months. Henderson consented to the described sanctions and to the entry of findings without admitting or denying the allegations, that he engaged in a pattern of unsuitable VA switch transactions, employing a “one-size-fits-all” investment strategy for his diverse customer base.

FINRA’s findings stated that Henderson justified these switches by using the same rationale that the new annuity provided better features without fully describing how it provided customers with better features.

These findings stated the customers paid significant surrender penalties of $82,505 for the annuity switches and Henderson received approximately $84,296 in commissions.

Allegedly, Henderson conducted inadequate independent research or analysis into the features of the VA he recommended or the different aspects and risks of the product before recommending it.

The suspension is in effect from April 16, 2012, through March 15, 2013.

(FINRA Case #2009019513902)

 

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you have investment losses call for a free consultation on how to potentially recover those losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

 

Soreide Law Group, PLLC., representing investors nationwide

 

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Jun/12

25

Sean K. Hannon, North Carolina Rep Barred by FINRA

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Sean K. Hannon (CRD #4296260, Registered Representative, Cary, North Carolina)

 

has submitted an Offer of Settlement in which he was barred from association with any FINRA member in any capacity.

Hannan, without admitting or denying FINRA’s allegations, consented to the described sanction and to the entry of findings that he failed to provide investigative testimony regarding allegations of misconduct asserted against him in two arbitrations filed against him.

(FINRA Case #2010022695501 )

This information was found on FINRA’s website under “Disciplinary and Other Actions, June, 2012.

Sean K. Hannan is listed as a “financial advisor for EPIC Advisors LLC.”

 

Soreide Law Group, PLLC, has represented clients before FINRA nationwide. If you or a family member have sustained investment losses because of your stock broker/dealer, or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jun/12

22

Orlando Ponzi Scheme Based on “Astrology”

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Soreide Law Group, PLLC, has begun investigating potential claims against Money Concepts Capital Corp. and broker, Gurudeo “Buddy” Persaud.

The Securities and Exchange Commission charged a former broker in Orlando, Fla., who defrauded investors in an astrology-based Ponzi scheme. The SEC alleges that Gurudeo “Buddy” Persaud lured family, friends, and others into investing in his firm, White Elephant Trading Company LLC, by falsely guaranteeing their money would be safe and yield high returns ranging from 6 to 18 percent. Persaud told investors he would invest in the debt, stock, futures, and real estate markets, but did not reveal that his trading strategy was based on his belief that markets are affected by gravitational forces. Allegedly, Persaud believed that the gravitational forces affect human behavior, and in turn, the stock market.

According to the SEC’s complaint filed in U.S. District Court for the Middle District of Florida, Persaud used investors’ money to make payments to other investors, commonly known as a Ponzi scheme. Persaud also lost $400,000 of investor funds through his trading, and diverted at least $415,000 to pay for his personal expenses, the SEC alleged. Persaud started using some of that money for his personal expenses allegedly from the beginning. Persaud created phony account statements, hiding his trading losses and giving investors a false sense of security.

Persaud was registered with Money Concepts Capital Corp., from November, 2003, through September, 2010. The alleged Ponzi scheme took place during this time.  Money Concepts was obligated to properly supervise Persaud during the time he was registered with the brokerage. Money Concepts Capital Corp. could possibly be liable for failing to supervise Persaud’s activities while registered with the firm.

If you or a loved one were clients of Gurudeo “Buddy” Persaud, White Elephant Trading Company and/or Money Concepts Capital Corporation, call Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

 

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Jun/12

22

Thomas Hammond, Fair Oaks, CA, Barred by FINRA

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Thomas Brown Hammond (CRD #2389080, Registered Representative, Fair Oaks, California)

was barred from association with any FINRA member in any capacity.  Hammond consented to the described sanction and to the entry of findings that he solicited both his brokerage firm customers and customers of his consulting business to invest funds in a fictitious private portfolio that would earn a steady interest rate in excess of their current investments, then converted those funds for his own use.

Hammond stole at least $546,650 from customers at his member firm and his consulting business. At least $492,250 was taken from Hammond’s customers at his firm.

FINRA’s findings stated that when his customers inquired about their investments, Hammond sometimes provided bogus updates of their investments, either orally or through false one-page account summaries.

One customer wanted to cash out $58,000 in the private portfolio, so Hammond told the customer it would take seven days for the money to be available. Hammond returned $48,000 to that client the next week. The money was fraudulently obtained from another customer.

(FINRA Case #2011026683401 )

This information was on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2012.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented numerous clients nationwide. Call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jun/12

22

B of A Merrill Lynch Fined $2.8 million by FINRA for Overcharging Customers

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FINRA announced Thursday that Bank of America Merrill Lynch was fined $2.8 million  for supervisory lapses that led to its overcharging customers $32 million for the past eight years.

According to the Financial Industry Regulatory Authority Inc. (FINRA) and the Bank of America Corp., Merrill Lynch has repaid 95,000 customers who were charged unwarranted fees due to computer coding issues from April, 2003, through December, 2011.

“Investors must be able to trust that the fees charged by their securities firm are, in fact, correct,” said Brad Bennett, Finra’s enforcement chief. “When this is not the case, investor confidence is threatened.”

FINRA also said that Merrill Lynch failed to send 230,000 customers timely confirmations on 10.6 million trades from July, 2006, through November, 2010, and failed to identify its role in at least 7.5 million mutual fund transactions.

According to FINRA, Bank of America brought these issues to their attention after its January 2009 acquisition of Merrill Lynch & Co. Inc. They have reimbursed the clients affected and improved the systems according to a Merrill Lynch spokesman.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented many clients nationwide. If you have investment losses through Merrill Lynch, please call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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

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Jun/12

21

North Carolina Rep Fined and Suspended by FINRA

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John Herman Fick (CRD #4197483, Registered Representative, Fuquay-Varina, North Carolina)

was fined $5,000 and suspended from association with any FINRA member in any capacity for 18 months. This fine must be paid either upon Fick’s reassociation with a FINRA member firm after his suspension, or before the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Fick has consented to the described sanctions and to the entry of findings that he signed customers’ names to insurance policy-related documents without the customers’ knowledge or consent.

The FINRA findings said Fick falsified an insurance application for a customer. Fick was no longer associated with a member firm, and he was unable to sell his former firm’s insurance products, and never submitted to the former firm the application that the customer had completed and returned to him. Fick filled out an insurance application for the customer from his present firm’s parent company, using an incorrect address for the customer’s residence address on the application and incorrect information for the customer on the application. Without authorization to do so, Fick signed the customer’s name on the insurance application and submitted it to the insurance company. An official from the company canceled it before a policy was issued. FINRA’s findings also stated that while associated with another member firm, Fick signed a customer’s name on an insurance policy receipt and a payment service form without authorization.  The firm terminated Fick when the unauthorized signatures were discovered.

The suspension is in effect from May 7, 2012, through November 6, 2013.

(FINRA Case #2010025071201 ) 

This information was on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2012. 

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients before FINRA nationwide. If you have sustained investment losses due to your stock broker/dealer, or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

 

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Jun/12

21

Mackinac Island Rep, Gary Cousino, Barred by FINRA

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Gary Lee Cousino (CRD #726486, Registered Representative, Mackinac Island, Michigan)

 

has been barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Cousino consented to the described sanction and to the entry of findings that he failed to respond to FINRA requests for information regarding its investigation of lawsuits and an arbitration action filed by a prior securities customer alleging, among other things, an unauthorized trade, fraud, unsuitability and breach of fiduciary duty by Cousino.

Cousino stated that through his attorney, he had sent FINRA a letter declining to respond in any manner to FINRA’s requests for information.

(FINRA Case #2010023057601 )

The information was obtained on FINRA’s website, “Disciplinary and Other Actions, June, 2012.”

Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained losses due to your stock broker or financial advisor’s recommendations, please call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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

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Jun/12

21

James Thomas Corne, South Carolina, Suspended and Fined by FINRA for Falsifying Customers’ Signatures

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James Thomas Corne (CRD #4184489, Registered Representative, Duncan, South Carolina)

 

fined $5,000 and suspended from association with any FINRA member in any capacity for three months.  Without admitting or denying the findings, Corne consented to the described sanctions and to the entry of findings that he falsified customers’ signatures on various securities and non-securities-related documents.

Accoding to the FINRA investigation, Corne directed his assistant to cut a customer’s signature from a variable universal life (VUL) application and affix it to another VUL application. These findings stated that there were other occasions, customers’ signatures were cut and pasted onto variable annuity (VA) applications, a fixed annuity application and automobile insurance policies.

These documents with the cut and pasted signatures were then submitted to Corne’s member firm or the relevant insurance company for processing.

FINRA’s suspension is in effect from May 7, 2012, through August 6, 2012.

(FINRA Case #2010022792501)

 

This information was on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2012. 

 

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. Call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

 

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Jun/12

21

Edward Jones & Co, St. Louis, Fined and Sactioned by FINRA

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Edward D. Jones & Co., L.P. dba Edward Jones (CRD #250, St. Louis, Missouri)

 

was censured, fined $55,000 and ordered to pay $13,231.52, plus interest, in restitution to customers. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that in corporate fixed income transactions for or with an individual customer, they failed to use reasonable diligence to arrive at the best inter-dealer market, and failed to buy or sell in such market so that the price to its customer was as favorable as possible under the prevailing market conditions.

FINRA’s findings stated that the firm’s supervisory system did not comply with the applicable securities laws, regulations and FINRA rules concerning the best execution of corporate fixed income transactions.

These findings also stated that the firm purchased municipal securities for its own account from a customer and/or sold municipal securities for its own account to a customer at an aggregate price. FINRA’s findings also included that the firm submitted incorrect short interest position reports to NASD® or FINRA.

(FINRA Case #2006005438901)

This information was obtained on FINRA’s website under “Disciplinary and Other Actions, June, 2012.”

 

Soreide Law Group, PLLC, has represented clients nationwide. If you have sustained investment losses due to Edward Jones, St. Louis, MO,  please call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

 

 

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Jun/12

20

Joel Carlson, Vadnais Heights, MN, Barred by FINRA

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 Joel William Carlson (CRD #2844760, Registered Representative, Vadnais Heights, Minnesota) 

was barred from association with any FINRA member in any capacity. Carlson consented to the described sanction and to the entry of findings that he solicited his member firm’s customers to give him a total of at least $734,000, fraudulently misrepresenting to the customers that he would invest their money safely in securities, but used the money for his own personal use.

The customers gave Carlson personal checks made payable to an entity that he controlled and deposited the customers’ checks in a bank account he controlled in the name of the entity.  Carlson has not re-paid the customers their moneywith the exception of one customer.

FINRA’s findings also stated that the clients who gave Carlson money, were between 68 and 90 years old;  all but one of the investors were retired. 

(FINRA Case #2012031202901)

 This information appeared on FINRA’s website under, “Disciplinary and Other Actions, June, 2012″

If you have sustained investment losses due to your stock broker or financial advisor’s recommendations, please call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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