Securities Lawyer Blog | Victim of Fraud?

TAG | stock broker fraud

Apr/13

15

New York Rep Barred by FINRA for Fraudulent Scheme

Comments off · Posted by Securities Lawyer in FINRA

The Soreide Law Group, PLLC, a Securities Arbitration Law Firm, (888) 760-6552, obtained the following information on FINRA’s website under “Disciplinary and Other FINRA Actions, April, 2013.”

Roman Jerzy Sledziejowski (CRD #3141438, Registered Principal, Ossining, New York)

was barred from association with any FINRA member in any capacity. Without admitting or denying the allegations, Sledziejowski consented to the described sanction and to the entry of findings that as part of a fraudulent scheme,
he converted and/or misused funds of his member firm’s customers and provided false account statements to some of those customers in an attempt to conceal the misconduct.

FINRA’s findings stated that during the course of Sledziejowski’s fraudulent scheme, a total of approximately $4.8 million was wired to a company that Sledziejowski owned from the bank and brokerage accounts of firm customers. These findings also stated that Sledziejowski provided some of the customers with account statements and account snapshots that displayed account balances consistent with what the customers believed to be in their firm brokerage account. Based on the actual account statements provided by the firm’s clearing firms, the statements Sledziejowski provided were fabrications and the values and holdings in the customers’ firm brokerage accounts differed significantly from what Sledziejowski led them to believe were in their brokerage accounts.

Sledziejowski has only returned approximately $1.5 million, to date, of those funds to the customers. Sledziejowski failed to cooperate with FINRA’s investigation and failed to appear for an on-the-record interview.
(FINRA Case #2012033559602)

It was listed on FINRA’s BrokerCheck that this broker was previously registered with FINRA at the following brokerage firms:

TWS FINANCIAL, LLC.
CRD# 128572
BROOKLYN, NY
08/2006 – 12/2012

WACHOVIA SECURITIES, LLC
CRD# 19616
NEW YORK, NY
07/2003 – 07/2006

PRUDENTIAL SECURITIES INCORPORATED
CRD# 7471
NEW YORK, NY
10/2002 – 07/2003

This ends the information from FINRA’s website.

Call Soreide Law Group, a Securities Arbitration Law Firm, for a free consultation with an attorney on how to potentially recover your investment losses at 888-760-6552.

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Jan/13

14

SEC’s Statistics Positive News for Investors

Comments off · Posted by Securities Lawyer in FINRA

The Securities and Exchange Commission, also known as the ‘SEC,’ has filed 734 enforcement actions the fiscal year that ended Sept. 30, 2012. That is one less than last year’s record of 735.

The SEC’s report should remind investors that investment fraud is still a threat to investors. The SEC filed 147 enforcement actions in 2012 against investment advisors and investment companies, one more than 2011’s record number. The SEC filed 134 enforcement actions related to broker-dealers, a 19% increase over 2011.

On the positive side for investors, the SEC was able to secure more payments for the victims of the fraud. The SEC was able to secure over $3 billion in penalties and disgorgement in 2012 for wronged investors. This is an increase of 11 % over the 2011.

In 2011 and 2012, the SEC obtained orders for $5.9 billion in penalties and disgorgement for the investors who became victims of fraud.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker 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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Dec/12

19

Were You a Client of Gary Harrison Lane?

Comments off · Posted by Securities Lawyer in FINRA

Securities Attorney, Lars Soreide, of Soreide Law Group was recently quoted in an article from the Reno Gazette-Journal, written by Jaclyn O’Malley regarding former broker Gary Harrison Lane. The quote reads as follows:

“Florida securities attorney Lars Soreide said Tuesday he has represented a few clients who have recently settled with broker firms connected to Lane, that he accused of negligently superivising Lane’s activities and “selling away” investments. He said he could not give specifics because the civil cases were resolved under confidential agreements. Soreide said had the brokers properly supervised Lane, they would have uncovered the fraud.”

Soreide Law Group first brought attention to Gary Lane in the website blog entitled, “ATTENTION CLIENTS OF GARY LANE,” dated October 7, 2011. Since then, Lane was indited on federal charges. The above article from the website blog listing the award for Mr. Soreide’s clients, was dated September 5, 2011.

Gary Harrison Lane had worked for Banc of America Investment Services in Reno, Nevada, from July 1999 through October 2009 and for Merrill Lynch in Reno, Nevada, from October 2009 through March 2011, where he was terminated for the alleged improprieties. Lane allegedly targeted inexperienced investors, and the elderly. He is accused of a Ponzi scheme which had bilked his clients over $2 million.

Securities Attorney, Lars Soreide, successfully settled the claims in favor of his clients though a FINRA arbitration.

If you or a loved one experienced financial losses because of Gary Harrison Lane, call Soreide Law Group, and speak to an attorney regarding potential recovery of YOUR losses. Please call 888-760-6552 or visit us on the web at http://www.securitieslawyer.com.

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Dec/12

13

$42 Million Ponzi-Like Scheme Shut Down by SEC

Comments off · Posted by Securities Lawyer in FINRA

The Securities and Exchange Commission (SEC) announced that it obtained an emergency court order to halt an alleged Ponzi-like scheme operated by Small Business Capital Corp. and its principal Mark Feathers, who raised $42 million by selling securities issued by Investors Prime Fund LLC and SBC Portfolio Fund LLC – two mortgage investment funds they controlled.

The SEC alleges that over 400 investors were promised that profits from mortgage investments would yield annual returns of 7.5 percent or more. When in fact, Feathers operated a Ponzi-like scheme by paying returns to investors that came partly from fund profits and partly from other investors.

“Feathers raised millions from investors by promising high returns,” said John McCoy, Associate Regional Director of the SEC’s Los Angeles Office. “The returns turned out to be too good to be true and were funded in part with new investors’ money.”

In the SEC article they allege that from 2009 to early 2012, Feathers improperly transferred more than $6 million from the funds to Small Business Capital to pay its expenses, including substantial payments to Feathers.

Additionally, the SEC alleges that investors were not told that in February and March 2012, the defendants caused one fund to sell mortgages to the other fund at an inflated price, thus generating a “profit” for the selling fund so it could pay Small Business Capital management fees of more than $575,000. The SEC charged Feathers and Small Business Capital for Small Business Capital’s effecting transactions in the funds’ securities without being registered as a broker-dealer with the SEC.

If your broker recommended you invest in this product, call and speak to an attorney at Soreide Law Group for a free consultation on how to potentially recover your investment losses. Call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Dec/12

13

SEC Charges in Oil Drilling Scam by South Floridian Joseph Hilton/Yurkin

Comments off · Posted by Securities Lawyer in FINRA

The Securities and Exchange Commission (SEC) recently announced that it has obtained an emergency court order to freeze the assets of a South Florida man who has been charged with fraudulently offering investments in oil drilling projects in an article posted on the SEC’s website.

The SEC’s complaint, unsealed in federal court in West Palm Beach, Fla., alleges that Joseph Hilton made numerous misrepresentations to investors while selling limited partnership units in two oil drilling projects earlier this year through his firm Pacific Northwestern Energy LLC. Hilton falsely told potential investors that Pacific acquired its wells from Exxon Mobil Corp., and he overstated Pacific’s experience in the oil and gas industry and the historical accomplishments of its drillers. Hilton raised approximately $789,000 from investors. The SEC’s action froze the assets of Hilton, Pacific, and the two limited partnerships — Rock Castle Drilling Fund LP and Rock Castle Drilling Fund II LP. Hilton’s securities offerings were not registered with the SEC as required under the federal securities laws.

In the SEC’s complaint, there were allegations against Hilton, Pacific, and another company that was controlled by Hilton called New Horizon Publishing Inc. Through Pacific and New Horizon, Hilton sold $2.5 million worth of investments in oil drilling projects sponsored by United States Energy Corp. while deceiving investors about his identity, the anticipated returns on the investments, the amount of oil being produced by U.S. Energy’s wells, and the existence of natural gas wells.

The SEC’s complaint adds that Hilton changed his name from Joseph Yurkin late last year following a final judgment for fraud in a previous SEC enforcement action against him for securities offerings he made through another company he worked for — Homeland Communications Corp.

It was reported that the SEC is seeking disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions against Hilton and his entities.

If you or a family member were sold oil and gas offerings by Joseph Hilton (aka Joseph Yurkin) or any of the above companies, and experienced financial losses, contact an attorney at Soreide Law Group for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552, or visit http://www.securitieslawyer.com.

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Dec/12

7

Did You Invest in Behringer Harvard REIT I?

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group, PLLC, is conducting an investigation into Behringer Harvard REIT I.

Earlier this year, Behringer Harvard REIT I lost two properties in Minnesota and St. Louis to foreclosure. At midyear, the company listed $3.98 billion in assets and $2.509 billion in liabilities.

There are now lawsuits stating that share values in the REIT have fallen from about $10 in the original offering to currently as little as $2.40 in the secondary market. Some of the claims in the lawsuit allege that the Behringer Harvard REIT’s officers misrepresented its financial results and prospects. Other claims in the suit state that officers charged excessive fees and “compensated themselves handsomely out of the proceeds they have raised from the offerings.”

If your stock broker or financial advisor sold you Behringer Harvard Strategic Opportunity Fund I, and you sustained a significant loss of your investment, call Securities Lawyer, Lars Soreide, at 888-760-6552 for a free consultation, or visit Soreide Law Group’s website at: http://securitieslawyer.com.

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Nov/12

29

St. Petersburg, FL, Bank Manager Barred by FINRA for Misappropriation of Funds

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, November, 2012.”

Brennan R. Lollar (CRD #5287737, Registered Representative, St. Petersburg, Florida)

was barred from association with any FINRA member in any capacity. The sanction was based on findings that Lollar misappropriated funds from a bank where he worked as a branch manager.

FINRA’s findings stated that without the bank’s permission or authority, Lollar transferred funds into customers’ accounts and labeled the transfers as refunds of bank fees. No bank fees had ever been assessed to the customers, and Lollar knew the customers we’re not entitled to any refunds. Through a series of several small transactions, Lollar misappropriated a total of $3,242.90 into customers’ accounts.

The FINRA findings also stated that Lollar admitted to the bank that he issued the false refunds and claimed that he did so to assist, or to curry favor with, certain customers. The bank obtained reimbursement through the liquidation of Lollar’s retirement fund.

The findings also included that other than Lollar providing FINRA with a photocopy of a written statement previously provided to the bank admitting to certain aspects of his misconduct, he did not respond to FINRA requests for information and failed to appear for a FINRA on-the-record interview.

(FINRA Case #2010024098101)
This ends the information from FINRA’s website.

Securities Lawyer, Lars Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker 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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Nov/12

29

Jacksonville, FL, Rep Suspended and Fined for Insurance Scam

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, November, 2012.”

Evan Coley Eggers (CRD #5205969, Registered Representative, Jacksonville, Florida)

fined $5,000 and suspended from association with any FINRA member in any capacity for six months. Without admitting or denying the findings, Eggers consented to the described sanctions and to the entry of findings that
he made premium payments for his customers’ life insurance policies, using his personal funds to make the payments.

FINRA’s findings stated that each payment was submitted to his member firm via a money order, a practice forbidden by company policy. On each money order, Eggers falsified the customer’s signature. On a couple of occasions, Eggers falsified the customer’s signature to reduce the value of a life insurance policy.

The FINRA findings also stated that all insurance policies at issue were less than one year old. By continuing payment of the premiums, all policies remained active through a period of 13 months, thus qualifying Eggers for potential remuneration.

The suspension is in effect from October 1, 2012, through March 31, 2013. (FINRA Case #2011026438701)

If you or a family member have become alleged victims of annuity or insurance fraud, contact an attorney at Soreide Law Group for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552, or visit http://www.securitieslawyer.com.
Soreide Law Group, PLLC, representing Insurance Fraud Victims in Federal Court, State Court, and before the Financial Industry Regulatory Authority (“FINRA”).

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Nov/12

29

Roman Sledziejowki Defrauded Fellow Poles $4 mill

Comments off · Posted by Securities Lawyer in FINRA

FINRA, the Financial Industry Regulatory Authority, alleges Roman Sledziejowski, the Polish president and owner of TWS Financial, LLC, in Brooklyn, N.Y., used customer funds for his own use and gave false statements to clients from June, 2009, through August, 2012.

FINRA alleges Sledziejowski defrauded three Polish customers of more than $4 million by taking money out of their accounts, and in other cases, having them transfer funds that he said would be invested in a Polish vodka company. Mr. Sledziejowski refused to testify and cooperate with FINRA.

Sledziejowski told one client that his funds were being put into a Polish bank and the stock of a Polish vodka maker, but no such investments were ever made. Two other customers said they didn’t authorize the wire transfers that he made from their accounts to Innovest Holdings, LLC, which Sledziejowski controlled.

“In order to mask his misconduct, Sledziejowski provided customers with falsified account statements or ‘account snapshots,’ which were fictional accounts of their holdings in their TWS brokerage accounts or the values of those accounts,” FINRA said.

Sledziejowski was previously registered with Wachovia Securities LLC, Prudential Securities Inc. and Salomon Smith Barney Inc., according to FINRA’s BrokerCheck. TWS Financial filed to withdraw its broker-dealer registration on Nov. 9th.

If you have invested with Roman Sledziejowki, TWS Financial, LLC, or Innovest Holdings, LLC, and experienced financial losses, call and speak at no charge to a securities attorney who may potentially help you recover those losses. 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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Nov/12

28

Tampa Rep, Rafael Calleja, Censured and Barred by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, November, 2012.”

Rafael Antonio Calleja (CRD #2777245, Registered Representative, Tampa, Florida)

submitted a Letter of Acceptance, Wavier and Consent in which he was censured and barred from association with any FINRA member in any capacity. Calleja consented to the described sanctions and to the entry of findings that he falsely told a customer that he had transferred 14 accounts from a previous member firm to his new member firm in accordance with the customer’s instructions when he had already closed four of the accounts at the previous firm and opened only 10 accounts at his new firm.

Calleja continued to make false representations to the customer that all the accounts existed and that certain trades and transfer of funds and securities
were effected in the accounts that no longer existed.

FINRA’s findings stated that Calleja recommended and effected hundreds of securities transactions that were inconsistent with the customer’s objectives for his accounts and risk tolerance. Calleja recommended that the customer open a Loan Management Account (LMA) with the bank affiliated with
his firm. Without the customer’s knowledge or consent, Calleja transferred funds from the LMA to the customer’s various securities accounts, including accounts that Calleja opened two weeks prior to the LMA application and funded with nominal amounts of money.

After a few months, the customer’s LMA balance was $531,863.11, all of which had been transferred to the accounts the customer pledged as collateral. With the proceeds from the LMA deposited into the various securities accounts, Calleja recommended and effected numerous unsuitable transactions in the customer’s securities accounts at his firm.

The FINRA findings also stated that at the time the customer transferred his accounts to Calleja’s firm, the customer’s securities accounts were opened as fee-based accounts rather than commission-based accounts, and Calleja received a percentage of the fees charged to the customer’s accounts. Calleja falsely told the customer that he was no longer receiving any compensation related to servicing the customer’s securities accounts. The customer told
Calleja that he wanted him to receive compensation so that Calleja would closely monitor his accounts and provide quality customer service.

FINRA’s findings also included that the customer agreed to allow Calleja to withdraw funds each week from one of his accounts using an automated teller machine (ATM) card linked to that account, based on the false premise that the funds would compensate Calleja for his services. Calleja withdrew $67,300
for his personal use.

FINRA found that without the customer’s knowledge or consent, Calleja funded the account to make these withdrawals by transferring money from the customer’s other securities accounts and from the LMA, thereby incurring interest expenses for the customer in addition to the money being withdrawn.

Although the customer told Calleja to stop making withdrawals from his accounts, Calleja continued to make such withdrawals until the customer told him that he would contact Calleja’s supervisor about the withdrawals.

FINRA also found that Calleja began to repay the customer the money he had withdrawn from the account; to prevent his firm from becoming aware of any such payments to the customer, Calleja instructed the customer to open an account at another bank where Calleja would deposit the repayment. Calleja wired $45,000 to one of the customer’s accounts from an account he controlled, which did not list his name because he did not want his firm to learn that he was wiring money to a firm customer. Although Calleja repaid the funds to the customer, at the time he took the money, he had no intention of repaying the customer and falsely represented to him that the money was for services rendered.

In addition, FINRA determined that Calleja effected securities transactions in the customer’s account without the customer’s knowledge or authorization. When the customer saw the account statement reflecting the stock purchases, he confronted Calleja and eventually sold the stocks.
(FINRA Case #2008015214901)
This ends the information from FINRA’s website.

If you invested with Rafel Antonio Calleja, call and speak at no charge to a securities attorney who may potentially help you recover your losses. Call 888-760-6552, or visit http://www.securitieslawyer.com.

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

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