Month: March 2021

HANLEY LAW INVESTIGATES MICHAEL EDWARD MAGILL OF BOCA RATON FLORIDA

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According to the Financial Industry Regulatory Authority (“FINRA”) Michael Magill has been barred from the industry. (FINRA Case #2024663)

FINRA began an investigation into the sales practices of Michael Magill after it received a tip in 2019. FINRA Rule 3280 prohibits associated person from participating in private securities transactions unless the associated person first provides written notice to his member firm that describes in detail the proposed transaction, his role in the transaction, and whether he has received or may receive selling compensation in connection with the transaction. The practice of a broker selling an investment that is not approved by his member firm is called “selling away”. Rule 3280 defines a private securities transaction as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.” Selling away violates FINRA Rule 3280.

In 2018 while registered with Foreside, Magill began working on behalf of a private issuer to find potential investors for a principal-protected note offered by the issuer. Magill contacted prospective investors, gave them marketing materials and information, and then asked them to view the issuer’s website to fill out the documents necessary to invest. Magill told the potential investors that this investment was only available for a short time and that it offered higher interest rates for immediate investments. FINRA alleged that Magill failed to conduct reasonable diligence to understand the features and risks of investing in the note. In February 2019, federal authorities shut down the private issuer’s offices. An executive of the private issuer and Magill’s supervisor at the private issuer both pled guilty to conspiracy to commit wire fraud and were sentenced to prison. Magill provided no written notice to his member firm, Foreside, and received no written approval to participate in the sale on behalf of the private issuer. This conduct is commonly referred to as selling away and Magill violated FINRA Rules 3280 and 2010.

Michael Edward Magill entered the securities industry in 1990. Michael Magill (CRD # 2024663) has been registered with the following firms:

Hibbard Brown & CO., Inc.
CRD # 468
New York, NY
05/18/1991- 11/16/1992

John Hancock Distributors, Inc.
CRD # 6390
Boston, MA
07/31/2009 – 02/15/2012

John Hancock Mutual Life Insurance Company
CRD # 5181
Boston, MA
05/18/1991-11/16/1992

Continental Capital Group, Inc.
CRD # 29823
06/02/1994-11/16/1994

Phoenix Securities, Inc.
CRD # 10507
San Rafael, CA
07/25/1995 – 01/04/1996

TCC Securities Corp.
CRD # 20842
01/26/1996-01/17/1997

Davis Distributors, LLC
CRD# 7975
Tucson, AZ
01/14/2000-01/05/2005

Davis Distributors, LLC
CRD# 7975
Tucson, AZ
01/14/2000-01/05/2005

Janus Distributors, LLC
CRD # 7975
Denver, CO
12/17/2004-12/21/2015

Crossroads Capital Distributors, LLC
CRD# 171776
Newport Beach, CA
08/31/2016-07/19/2017

Foreside Fund Services, LLC
CRD# 46106
Portland, ME
08/16/2017-01/24/2019

HANLEY LAW

Hanley law represents individual investors nationwide with significant losses in their portfolios, retirement plans or investment accounts. The firm is dedicated to assisting investors to recover losses suffered by unsuitability, selling away, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent. The firm handles cases against Wall Street broker dealers.

Let Hanley Law work for you. Call (239)877-4330 or contact the firm through our Website to arrange a free confidential consultation with an attorney to discuss your experiences with your stockbroker or financial advisor which resulted in investment losses.

Sara Hanley Awarded PIABA Service Award

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Awarded to one or more PIABA Members annually, “the PIABA Outstanding Service Award honors the very best in the PIABA Membership,” said Robin Ringo, PIABA Executive Director. “An incredible amount of personal time is dedicated by members to serving PIABA through its committees and investor protection initiatives. It is with a deep sense of gratitude that we thank Teresa J. Verges, William B. Young, Jr., and Sara E. Hanley for their dedication to PIABA and advancing the rights of public investors.”

Sara E. Hanley has been a member of PIABA since 2013. Having completed her year as Editor-in-Chief in October 2020, Ms. Hanley served on the PIABA Bar Journal Board of Editors from 2017-2020. She focuses her practice on representing investors nationwide who have lost their savings and retirement funds as a result of their brokerage accounts being mishandled. Ms. Hanley is the founder of Hanley Law which focuses exclusively on representing investors in claims against their brokers, broker dealers, investment advisors, financial advisors and insurance companies. She is experienced in providing representation for investors who have been the victims of financial fraud, negligence and unsuitable investments, as well as experience in prosecuting claims against the major Wall Street brokerage firms.

 

HANLEY LAW INVESTIGATES INVESTMENT ADVISOR ROBERT HALLDIN OF FT. LAUDERDALE FLORIDA

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According to the Financial Industry Regulatory Authority (“FINRA”) Robert Halldin has been barred from the industry. (FINRA Case #2017056119601).

FINRA alleged that their investigation originated from a review of a series of Form U5 amendments filed by American Portfolios Financial Services outlining the complaints and arbitrations filed against Halldin alleging that he traded securities in individuals’ brokerage accounts held outside of his member firm. As a result, FINRA sent Halldin a request for an on-the-record interview. Halldin acknowledged receipt of FINRA’s request, but refused to appear for an interview. Halldin consented to the sanction of a bar from associating with any FINRA member firm in any capacity.

Robert James Halldin entered the securities industry in 1986. Robert Halldin (CRD # 1458098) has been registered with the following firms:

American Portfolios Financial Services, Inc.
CRD # 18487
Newington, CT
02/28/2012 – 07/06/2017

Pacific West Securities, Inc.
CRD # 6390
Windsor, CT
07/31/2009 – 02/15/2012

Banc of America Investment Services, Inc.
CRD # 16361
West Hartford, CT
11/10/2005 – 08/03/2009

Bancnorth Investment Group, Inc.
CRD # 31299
St. Cloud, MN
01/01/2005-11/11/2005

Primevest Financial Services, Inc.
CRD # 15340
St. Clound, MN
03/04/2003 – 01/01/2005

National Planning Corporation
CRD # 29604
Los Angeles, CA
08/23/2000 – 03/06/2003

Webster Investment Services, Inc.
CRD # 46588
Kensington, CT
06/26/2000 – 08/28/2000

Mechanics Investment Services, Inc.
CRD # 42738
Hartford, CT
06/30/1997 – 06/23/2000

U.S. Clearing Corp.
CRD # 13071
Dallas, TX
12/12/1994 – 07/17/1997

Banca IMI Securities Corp.
CRD # 19418
New York, NY
04/30/1991 – 12/13/1994

Mabon, Nugent & Co.
CRD # 2617
06/13/1988 – 04/30/1991

ISFA Corporation
CRD # 12984
11/24/1987 – 06/14/1988

Dean Witter Reynolds
CRD # 7556
03/19/1986 – 11/20/1987

HANLEY LAW

Hanley law represents individual investors nationwide with significant losses in their portfolios, retirement plans or investment accounts. The firm is dedicated to assisting investors to recover losses suffered by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent. The firm handles cases against Wall Street broker dealers, including American Portfolios Financial Services, Inc.

Let Hanley Law work for you. Call (239)877-4330 or contact the firm through our Website to arrange a free confidential consultation with an attorney to discuss your experiences with your stockbroker or financial advisor which resulted in investment losses.

Hanley Law Investigates Transamerica Financial Advisors, Inc.’s of St. Petersburg, Florida

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Transamerica Failed to Reasonably Supervise Representatives’ Variable Annuity Recommendations

Transamerica Financial Advisors, Inc. was recently censured and fined $4,400,000 and ordered to pay $4,354,160 in restitution to customers.  Transamerica consented to the findings that it failed to reasonably supervise its registered representatives’ variable annuity recommendations and made disclosures that contained materially inaccurate information or failed to disclose material information when making variable annuity recommendations. The Financial Industry Regulatory Authority (FINRA) Letter of Acceptance, Waiver and Consent’s (AWC) findings provided that the firm and its representatives received compensation from new variable annuity sales, trails and subsequent contributions in the form of commissions in excess of $591 million which made up more than 40 percent of the firm’s total revenue. FINRA found that from May 2010 to May 2016 Transamerica failed to reasonably supervise its representatives’ variable annuity recommendations. Importantly, the firm failed to detect that certain of its registered representatives made thousands of misstatements to customers in recommending variable annuity exchanges, understanding the benefits of the existing variable annuity and overstating the benefits of the new variable annuity.

Transamerica Failed to Reasonably Supervise Representatives’ Sale of Certain Mutual Funds and Failed to Reasonably Supervise Representatives’ 529 Share-class Recommendations.

FINRA also found that the firm failed to reasonably supervise representatives’ sale of certain mutual funds.  Transamerica relied on it registered representatives to determine the applicability of sales charge waivers to customers’ mutual fund purchases, but the firm did not provide guidance to the registered representatives to assist them in making the determination and failed to establish a system to confirm whether waivers were properly applied to the clients’ accounts.  Additionally, FINRA found that Transamerica failed to reasonably supervise representatives’ recommendations to customers to purchase particular share classes of 529 savings plans.  Transamerica failed to provide guidance to registered representatives about the importance of considering share-class differences when recommending 529 plans.  The firm did not provide supervisors with information necessary to properly evaluate the suitability of 529 share-class recommendations.

Transamerica Financial Advisors maintains its home office in St. Petersburg, Florida.  The firm currently has approximately 3,400 registered representatives and over 350 branch offices.  Transamerica Financial Advisors conducts general securities business with an emphasis in annuity and mutual fund products. (See, FINRA AWC No. 2015048250401.)

HANLEY LAW

Hanley law represents individual investors nationwide with significant losses in their portfolios, retirement plans or investment accounts.  Hanley Law is dedicated to assisting investors to recover losses suffered by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent.  Hanley Law represents clients nationwide in cases against the major Wall Street broker-dealers and has experience representing clients in claims to recover their losses related to unsuitable annuity sales.  If a Transamerica registered representative recommended an annuity to you, and you lost principal or a death benefit, contact Hanley Law today.

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact Hanley Law to discuss your legal options. Contact Hanley Law at (239)877-4330 or contact us through our Website to arrange a free confidential consultation with an attorney to discuss your experiences with your stock broker which resulted in investment losses.