A group of investors from Resource Horizons Group, Atlanta, was awarded more than $4 million by the Financial Industry Regulatory Authority, Inc. (FINRA). Allegedly, Resource Horizons Group failed to meet regulatory net capital requirements. Resource Horizons Group has approximately 220 brokers and financial advisors. The FINRA arbitration panel held the firm responsible for $3.5 million […]

With the growing number of our citizens reaching 60 or above, we are also seeing a growing number of victims of investment fraud in this age group. In fact, people over the age of 60 account for over thirty percent of investment fraud victims. Most seniors are living on a fixed income. These investment losses […]

Soreide Law Group has filed several FINRA arbitration claims against financial advisors who were allegedly involved in a 'pump-and-dump' scheme involving shares of Cubed, Inc., The Staffing Group Ltd., CodeSmart, and StarStream Entertainment Inc. In a 'pump-and-dump' scheme, the broker/financial advisor pumps up the price of the stock to their clients to give the appearance […]

Feltl & Co., based in Minneapolis, paid a $1 million fine for alleged supervisory failures, among other things, while overseeing penny stock, and it has now replaced several executives, including it's general counsel, chief compliance officer, head trader, and a branch manager. FINRA reported that Feltl also failed to comply with customer-suitability, disclosure, and record-keeping […]

JOSEPH R. GALLARDO (CRD# 4100045A), 48, formerly from Bartonsville, Pennsylvania, pled guilty in federal court to mail fraud, a charge stemming from an investment fraud which caused his clients a combined loss of $1.8 million. According to court documents, allegedly Gallardo persuaded clients to invest in Blue Meadow Group LLL, which was his own personal […]

Many Soreide Law Group clients, and readers of our blog, often hear us refer to "FINRA." FINRA is the abbreviation of the Financial Industry Regulatory Authority, Inc. In case you are wondering what FINRA is and what they do, we will give you a very brief synopsis. FINRA is responsible for regulating it's member firms […]

BLAKE B. RICHARDS (CRD# 4051402) of Buford, Georgia, was accused May 2013 of misappropriating money from elderly investors and ordered to repay $1.8 million. This was ordered in a judgment by the Securities and Exchange Commission (SEC). An additional $80,000 was added as a civil penalty according to a press release from the SEC. The […]

JOHN M. BABIARZ (CRD# 3047247), a former broker from Peabody, Massachusetts, was sentenced to four years in federal prison and could lose his home, car, his investment account and $645,000 he admitted stealing from his elderly clients. Babiarz, 40, plead guilty in May to wire fraud and aggravated identity theft. Babiarz contacted several of his […]

Joe Mitchell McCartney (CRD #1349989, Redmond, Washington) was suspended by FINRA for three months. McCartney allegedly borrowed $60,000 from a client and did not obtain his firm’s approval for the loans. FINRA's findings stated that the firm’s procedures required prior written approval from the firm's personnel for any lending relationships with clients. McCartney denied the […]