Author: finralawyer

Former Huntington Bank Broker of Columbus Ohio Barred by FINRA for Misappropriation of Client Funds

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Bryan A. Carnahan (CRD No. 3103811), a former broker with Huntington Bank in Hilliard, Ohio, was barred by FINRA for misappropriation of funds from a Huntington customer.

FINRA alleged that between September 2013 and March 2015, Carnahan converted approximately $169,500 from one of his customers by causing fund transfers to be made on five occasions from the customer’s brokerage account to her bank account at the Firm’s affiliated bank. FINRA further alleged that Carnahan then had his client withdraw funds from her bank account and get cashier’s checks for supposed investments. FINRA alleged that after Carnahan took possession of the cashier’s checks, he fraudulently caused them to be re-issued in the form of multiple cashier’s checks (totaling approximately $169.500) that were payable to his own accounts and to the accounts of at least 13 of his other customers who had suffered investment losses. (See FINRA AWC No. 2015044908301)

According to FINRA’s Broker Check, Bryan A. Carnahan was permanently barred by FINRA from acting as a broker or otherwise associating with firms that sell securities to the public. Carnahan was registered in the securities industry for sixteen (16) years with the following firm(s):

THE HUNTINGTON INVESTMENT COMPANY
CRD #16986
COLUMBUS, OH
02/1999 – 03/2015

JOHN HANCOCK DISTRIBUTORS, INC.
CRD #486
BOSTON, MA
08/1998 – 12/1998

If you have suffered financial losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law represents investors nationwide and is dedicated to helping investors who have been victims of securities fraud. If you have been a victim of securities fraud, you may be entitled to recover your investment losses. Contact the Hanley Law toll free at (239) 649-0050 for a complimentary initial consultation.

New York Broker Jonathan A. Francis Barred by FINRA for Issuing Unauthorized ATM Cards to Clients

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The Hanley Law (239) 649-0050 recently discovered that according to FINRA’s Disciplinary and Other FINRA Actions Publication, Jonathan A. Francis (CRD #5204602) allegedly issued unauthorized ATM cards as part of a scheme to convert funds from bank customers’ accounts.
FINRA alleged that between 2012 and 2013 while registered with Chase Investment Services Corp., J.P. Morgan Securities, LLC, and the affiliated banks, Francis allegedly issued seven (7) ATM cards in the accounts of six (6) deceased customers. The ATM cards were used to withdraw approximately $210,000 from the accounts of the customers. FINRA further alleged that Francis failed to cooperate with FINRA’s investigation by refusing to respond fully to requests for documents and information.

According to FINRA’s Broker Check, Jonathan A. Francis has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. (See FINRA Disciplinary Proceeding No. 2013038988301)

Francis was registered in the securities industry for three (3) years with the following firms:

J.P. TURNER & COMPANY, LLC
CRD #43177
BROOKLYN, NY
10/2013 – 11/2013

J.P. MORGAN SECURITIES, LLC
CRD #79
BROOKLYN, NY
10/2012 – 10/2013

CHASE INVESTMENT SERVICES CORP.
CRD #25574
BROOKLYN, NY
04/2010 – 10/2012

If you have suffered financial losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have been a victim of securities fraud, you may be entitled to recover your financial losses. Contact the Hanley Law toll free at (239) 649-0050 for a complimentary initial consultation.

North Carolina Broker Charles Caleb Fackrell Formerly of LPL Financial Barred by FINRA

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The Hanley Law (239) 649-0050 recently discovered that according to FINRA’s Disciplinary and Other FINRA Actions publication, Charles Caleb Fackrell (CRD #5369665) allegedly converted customer funds and sold private securities offerings away from his brokerage firm, without the firm’s approval. FINRA further alleged that Fackrell failed to cooperate with FINRA’s investigation by not providing requested documents and information. (See FINRA AWC No. 20140437052).

According to FINRA’s Broker Check, Fackrell has been permanently barred by FINRA from acting as a broker or otherwise associating with firms that sell securities to the public.

Charles Caleb Fackrell was registered in the securities industry for six (6) years with the following member firm(s):

LPL FINANCIAL, LLC
CRD #6413
YADKINVILLE, NC
06/2010 – 12/2014

WELLS FARGO ADVISORS, LLC
CRD #19616
HIGH POINT, NC
12/2009 – 06/2010

SUNTRUST INVESTMENT SERVICES, INC.
CRD #17499
YADKINVILLE, NC
07/2008 – 12/2008

MORGAN STANLEY & CO., INC.
CRD #8209
WINSTON-SALEM, NC
08/2007 – 02/2008

If you have suffered losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have been a victim of securities fraud, you may be entitled to recover your financial losses. Contact the Hanley Law toll free at (239) 649-0050 for a complimentary initial consultation.

FINRA Sanctions and Fines Indiana Based Firm OneAmerica Securities, Inc

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According to FINRA’s Disciplinary and Other FINRA Actions publication, OneAmerica Securities, Inc. was censured and fined $75,000 for failing to adequately supervise a registered representative and failing to establish supervisory systems and procedures.

FINRA alleges that OneAmerica failed to make reasonable inquiries or otherwise follow-up on multiple red flags that indicated a registered representative associated with the firm, was making unsuitable options recommendations and causing improper and/or unauthorized transfer of funds to a third party. FINRA’s findings also state that OneAmerica lacked an adequate system and procedures to supervise options trades and transmittals to third parties. As a result of failed supervision, the registered representative was able to improperly cause $51,800 to be transferred from a client’s OneAmerica account to a different client’s account at a different member firm. (See FINRA AWC No. 2013036026902)

If you feel that your investment account has been mishandled by your broker or brokerage firm, contact the Hanley Law to discuss your legal options. If you have suffered financial losses as a result of your broker’s or brokerage firm’s misconduct, you may be able to recover your investment losses. Contact Hanley Law toll free at (239) 649-0050 for a complimentary initial consultation.

FINRA Bars Ft. Lauderdale FL Broker, Aaron Parthemer, for Failure to Disclose Outside Business Activities

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The Hanley Law (239) 649-0050 recently discovered that according to FINRA’s Disciplinary and Other FINRA Actions publication, Aaron Parthemer (CRD No. 2546369) was barred from associating with any FINRA member after he failed to disclose his outside business activities.
FINRA alleged that from 2009 to 2013 Parthemer failed to disclose his involvement in the nightclub, Club Play. Additionally, Parthemer allegedly did not disclose his involvement with an internet branding set up and a tequila marketing operation. Furthermore, Parthemer made unapproved loans to clients in connection with the club and advised clients to invest in the branding startup. (See FINRA Case No. 2011030405801)

Aaron Parthemer was an active broker for 20 years with the following member firm(s):

WELLS FARGO ADVISORS, LLC
CRD # 19616
FORT LAUDERDALE, FL
10/2011 – 4/2015

MORGAN STANLEY SMITH BARNEY
CRD # 149777
FORT LAUDERDALE, FL
6/2009 – 11/2011

CITIGROUP GLOBAL MARKETS, INC.
CRD # 7059
FORT LAUDERDALE, FL
11/2006 – 6/2009

BANC OF AMERICA INVESTMENT SERVICES, INC.
CRD # 16361
FORT LAUDERDALE, FL
4/1998 – 11/2006

BARNETT INVESTMENTS, INC.
CRD # 14897
JACKSONVILLE, FL
5/1997 – 4/
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
CRD # 7691
NEW YORK, NY
10/1995 – 3/1997

L.C. WEGARD & CO., INC.
CRD # 3722
NEW YORK, NY
10/1994 – 10/1995

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.

FINRA Fines Royal Bank of Canada (RBC) over $1 Million for Sale of Reverse Convertible Securities

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The Hanley Law (239) 649-0050 recently discovered that according to FINRA’s Disciplinary and Other FINRA Actions publication, Royal Bank of Canada (CRD No. 31194) was fined $1,000,000.00 and ordered to pay approximately $434,000.00 in restitution after allegedly selling improper structured investment products to more than 200 investors.

FINRA alleged that between January 2008 and December 2010 Royal Bank of Canada’s capital markets unit failed to adequately supervise 99 of its financial advisors in the sale of 364 reverse convertible securities in 218 accounts that were unsuitable for those customers. The customers involved lost approximately $1.1 million. (See FINRA AWC No. 2010022918701)

FINRA has issued warnings to investors regarding these risky and complex products. A reverse convertible is a structured product that typically consists of a high-yield, short-term note of the issuer that is linked to the performance of an unrelated reference asset, usually common stock, a basket of stocks, an index or another instrument. Reverse convertibles can have complex pay-out structures involving multiple variables that can make it difficult for registered representatives and their customers to accurately assess their risks, costs and potential benefits.

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.

FINRA Bars Douglas Jay Melzer for Soliciting $2million from Clients for Investment Outside of Firm

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The Hanley Law (239) 649-0050 recently discovered that according to FINRA’s Disciplinary and Other FINRA Actions publication, Douglas Jay Melzer (CRD No. 5438362) was barred from associating with any FINRA member after allegedly soliciting clients to invest $2,000,000.00 in an outside investment, without providing his firm prior written notice or receiving written approval. Furthermore, Melzer was compensated at least $26,500.00 for his participation in the transactions.

Additionally, FINRA alleged that Melzer misappropriated funds from his firm for his personal benefit. Melzer caused the registered representative code on certain customer accounts to be changed, which resulted in the firm to pay him more than $9,500.00 in commissions that should have been paid to his partners. (See FINRA AWC No. 2013035601301)

Douglas Jay Melzer was an active broker for 6 years with the following member firm(s):

PARK AVENUE SECURITIES, LLC
CRD #46173
PITTSBURGH, PA
3/2013 – 1/2015

WELLS FARGO ADVISORS, LLC
CRD # 19616
SEWICKLEY, PA
1/2008 – 1/2013

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.

Former Financial Advisor, Matthew Katke, Pleaded Guilty

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According to the Department of Justice, Matthew Katke (CRD No. 4679645) pleaded guilty to conspiracy to commit securities fraud in Hartford, CT Federal Court for his alleged participation in a multimillion dollar securities fraud scheme. Katke was registered with RBS Securities, Inc. (RBS Securities), during the time of the DOJ’s investigation. Katke was associated with Nomura Securities International, Inc. from August 2013 until April 2015.

The Department of Justice alleged that between April 2008 and August 2013 Katke was a managing director at RBS Securities in Stamford, Connecticut. Katke and other members of RBS’s Asset Backed Products division traded fixed income investment securities in residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs) through RBS trading floor. Katke admitted in his guilty plea that he and others conspired to increase RBS’s profits on CLO bond trades at the expense of their own customers by, among other things, making misrepresentations to induce customers to pay inflated prices and telling customers to accept deflated prices for CLO bonds. Furthermore, Katke misrepresented the CLO seller’s asking price to the buyer and kept the difference between the price paid by the buyer and the price paid to the seller for RBS. In another device used by Katke he misrepresented to the CLO buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller invented by Katke, which allowed Katke to charge extra commission. The Department of Justice’s investigation found several fraudulent transactions that cost at least 20 victims millions of dollars.

Matthew Katke was an active broker for 11 years with the following member firm(s):

NOMURA SECURITIES INTERNATIONAL, INC.
CRD # 4297
NEW YORK, NY
8/2013 – 4/2015

RBS SECURITIES, INC.
CRD # 11707
STAMFORD, CT
7/2008 – 6/2013

BEAR, STEARNS & CO.
CRD # 79
NEW YORK, NY
8/2003 – 7/2008

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.