Author: finralawyer

Financial Advisor Pasquale “Pat” Vitucci -Variable Annuity Sales Complaints

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s BrokerCheck, Pasquale Vitucci (CRD No. 29604) has been the subject of at least nineteen customer complaints alleging that he made unsuitable investments, primarily in variable annuity related products. Additional claims involving Vitucci include allegations of misrepresentations, breach of fiduciary duty, churning and fraud. In total investors have complained of over $1 million in investment losses.

Over the last several years the notoriety of annuities have grown and annuities are often the subject of sales practice complaints. The reason for this is simple, annuities are often sold to customers because the selling commission is among the highest of all financial products available for sale to retail customers and because the commission is paid by the insurance company directly to the broker. The high commissions stockbrokers generate on variable annuities is just one of the reasons why annuities are recommended to customers. Annuities also provide a steady stream of commissions and sales charges to both the broker and the insurance company. Indeed, stockbrokers who sell annuities are often also paid an ongoing trailing commission. Annuities are also laden with administrative fees and mutual fund sub-account management fees.

According to public records Vitucci operates out of a DBA business called Vitucci & Associates Insurance Services. He has been an active broker for 22 years with the following member firm(s):

NATIONAL PLANNING CORPORATION
CRD # 29604
WALNUT CREEK, CA & SAN JOSE, CA
10/2008 – PRESENT

AIG FINANCIAL ADVISORS, INC.
CRD # 133763
WALNUT CREEK, CA
10/2005 – 10/2008

SUNAMERICA SECURITIES, INC.
CRD # 20068
PHOENIX, AZ
7/2000 – 10/2005

SECURITIES AMERICA, INC.
CRD # 10205
LAVISTA, NE
5/1994 – 7/2000

CALIFORNIA ONE INVESTMENTS
CRD # 27037
12/1992 – 6/1994

The Securities Law Firm of Hanley Law is experienced in helping investors who have been victims of negligent misrepresentations and fraud related to the solicitation or sale of variable annuities, index annuities, fixed annuities, variable life insurance and other insurance products. If a broker failed to discuss with you the risks of variable annuities or other insurance products or if the type of investment was unsuitable for you given your age, financial situation, and other factors, you may be able to recover your financial losses.

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.

LPL Financial Advisor Karl Romero and LaeRoc Income Fund

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s BrokerCheck, Karl Romero (CRD No. 6413) has been the subject of at least nine customer complaints alleging that he made unsuitable investments, mainly in private placements and alternative investment related products. The claims against Romero include breach of fiduciary duty and unsuitable investments. Some of the unsuitable investment claims may involve Romero’s recommendations to invest in the LaeRoc Income Fund, which is a troubled real estate private placement.

The LaeRoc Funds manage more than $650 million in assets and focus on income producing properties in the Western United States. In 2011 the LaeRoc 2005-2006 Income Fund LP tried to raise $11 million – $14.5 million to pay off approximately $49 million in debt.

According to public records, Romero operates out of a DBA business called Karl H. Romero & Associates, Inc. He has been an active broker for 43 years with the following member firm(s):

LPL FINANCIAL GROUP, INC.
CRD # 6413
SANTA ANA, CA
12/1989 – PRESENT

LINSCO FINANCIAL GROUP, INC.
CRD # 524
10/1987 – 12/1989

COOPERATIVE FINANCIAL PLANNERS, LTD.
CRD # 16891
5/1986 – 10/1987

FINANCIAL NETWORK INVESTMENT CORPORATION
CRD # 13572
7/1983 – 10/1987

FNI CAPITAL CORPORATION
CRD # 14814
6/1984 – 9/1985

THE VARIABLE ANNUITY MARKETING COMPANY
CRD # 5081
2/1973 – 5/1985

UNIVERSITY SECURITIES CORPORATION
CRD # 6518
5/1979 – 9/1983

TRAVELERS EQUITIES SALES, INC.
CRD # 833
4/1973 – 12/1980

THE VARIABLE ANNUITY MARKETING CO. OF SOUTHERN
CRD # 1000002

FINRA Takes Action Against Delray Beach FL Broker

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, Wendy Ann Wurst aka Wendy Ann Minerd, Wendy A Minero and Wendy Ann Minero (CRD No. 1902879) was fined $50,000.00 and suspended from associating with any FINRA member for three months, and suspended in any principal capacity for six months, after allegedly failing to reasonably supervise her firm’s registered representative’s involvement with three outside business that operated as unregistered broker-dealers.

FINRA alleged that as the CCO and registered principal Wurst failed to reasonably supervise a registered representative’s activities. As such, FINRA alleged that the registered representative effectuated securities transactions for compensation away from the firm through entities that were not registered as broker-dealers.
Furthermore, FINRA alleged that Wurst made misleading and inaccurate statements concerning the unregistered broker-dealers to corporate bond dealers in connections with the opening of certain delivery-versus-payment brokerage accounts for the unregistered broker-dealers. (See FINRA AWC No. 2012033514202)

Wendy Ann Wurst’s suspension in any capacity is in effect from March 2, 2015 to June 1, 2015 and her suspension in any principal capacity is in effect from March 2, 2015 to September 1, 2015. Wurst has been an active broker for 21 years with the following member firm(s):

PMK SECURITIES & RESEARCH, INC.
CRD # 40145
DELRAY BEACH, FL
11/2003 – 5/2014

STANFORD GROUP COMPANY
CRD # 39285
HOUSTON, TX
8/2003 – 11/2003

STERLING FINANCIAL INVESTMENT GROUP, INC.
CRD # 41506
BOCA RATON, FL
6/2002 – 8/2003
FINRA EXPELLED THE FIRM IN 1/2008

PMK SECURITIES & RESEARCH, INC.
CRD # 40145
DELRAY BEACH, FL
3/2000 – 7/2002

DMG SECURITIES, INC.
CRD # 15480
GREAT FALLS, VA
5/1994 – 3/2000

JWGENESIS SECURITIES, INC.
CRD # 33832
BOCA RATON, FL
7/1998 – 3/2000

JWGENESIS FINANCIAL SERVICES, INC.
CRD # 11025
ST. LOUIS, MO
1/1994 – 3/2000

JWGENESIS FINANCIAL GROUP, INC.
CRD # 38166
BOCA RATON, FL
2/1999 – 3/2000

GSG SECURITIES, INC.
CRD # 38166
BOCA RATON, FL
4/1995 – 12/1998

STOWE INVESTMENT COMPANY
CRD # 8528
WINTER HAVEN, FL
3/1995 – 3/1995

Former Delray Beach FL Broker, Roger Kumar, Fined and Suspended by FINRA

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, Roger Kumar Jr. (CRD No. 2702488) was fined $50,000.00 and suspended by FINRA for one year after he allegedly made misleading and inaccurate statements to numerous corporate bond dealers so that he could participate in and obtain allocations of bonds for an unregistered proprietary trading firm.

FINRA alleged that Kumar operated three disclosed, but unregistered, outside businesses entities for the sole purpose of purchasing securities, mainly IPOs. Kumar allegedly misrepresented the nature of the entities’ business operations, value of assets under management and status, as a minority business qualified institutional buyer and/or institutional account. (See FINRA AWC No. 2012033514201)

Roger Kumar Jr. is not currently registered in the securities industry. His suspension is in effect from March 2, 2015 to March 1, 2016. Prior to his suspension from the industry, he was an active broker for 18 years with the following member firm(s):

HENNION & WALSH, INC.
CRD # 25766
DELRAY BEACH, FL
12/2013 – 3/2015

PMK SECURITIES & RESEARCH, INC.
CRD # 40145
DELRAY BEACH, FL
10/1996 – 5/2014

FINRA Takes Action Against Miami Firm Souza Barros Securities, Inc. for Failing to Implement Adequate Anti-Money Laundering Program

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA, Souza Barros Securities, Inc. (CRD No. 149032) was censured and fined $75,000.00 after failing to implement an adequate Anti-Money Laundering program designed to detect and report suspicious transactions, which is required under the Bank Secrecy Act and its implementing regulations.

FINRA alleged that some of Souza’s foreign institutional clients engaged in activity, like high-turnover securities and trading and high-volume cash movement. Additionally, FINRA alleged that other firm clients engaged in intra-day bond trading and trading of US dollar denominated foreign bonds. Souza allegedly failed to adequately investigate such activity. Furthermore, FINRA alleged that Souza did not consistently monitor account activity, review and investigate alerts or maintain and preserve all electronic correspondence. (See FINRA AWC No. 2012033169201.)

FINRA Censured and Fined Morgan Stanley $675,000 Over Bond Interest Payments

Posted by finralawyer on November 14, 2017 with 0 Comment

The Financial Industry Regulatory Authority (FINRA) fined and censured Morgan Stanley Smith Barney (CRD No. 149777) and Morgan Stanley & Co. (CRD No. 8209) after the firms allegedly misrepresented municipal bond interest paid to clients as tax-exempt when in actuality the interest payments were taxable.

FINRA alleged that between July 2009 and December 2013 Morgan Stanley paid clients approximately $880,000.00 in interest, which customers believed was tax-exempt interest from municipal bonds that were held in their accounts. FINRA alleged that during the relevant period, Morgan Stanley generated or held more than 1,500 short positions in tax-exempt municipal securities that corresponded to long positions in customer accounts. FINRA alleged that the short positions resulted primarily from trading and operational errors. In these instances, Morgan Stanley paid the interest to the customer and the interest was therefore taxable.

As a result of the foregoing, FINRA alleged that during the relevant period Morgan Stanley failed to disclose to customers that, because the firm was short on the security, they were not receiving tax exempt interest from the issuers of the municipal securities reflected on their account statements. FINRA further alleged that the firm also sent inaccurate account statements and Forms 1099s to at least 1,500 customers who were receiving firm-paid interest. FINRA alleged that these customers’ monthly and yearly account statements inaccurately stated that the interest they received was “tax exempt income” and the year-end Forms 1099s that Morgan Stanley sent to these customers inaccurately stated that the interest paid by the firm was “tax-exempt interest”. (See FINRA Case No. 2013038306401)

FINRA Bars Former LPL Financial and Fifth Third Cincinnati, OH Securities Broker Matthew R. Quinn for Alleged Theft from Elderly Clients

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA, Matthew R. Quinn (CRD No. 4478751) of Cincinnati Ohio was barred from associating with any FINRA member after he allegedly withdrew funds the accounts of elderly clients and refused to testify in FINRA’s investigation into the claims.

FINRA alleged that Quinn withdrew funds from the accounts of three elderly clients. Thereafter, FINRA requested Quinn testify pursuant to FINRA Rule 8210. However, Quinn informed FINRA he would not cooperate with the investigation. Respondent’s conduct violated FlNRA Rules 8210 and 2010. (See FINRA Case No. 2013038835001)

Matthew R. Quinn was an active broker for 3 years with the following member firm(s):

FIFTH THIRD SECURITIES, INC.
CRD # 628
CINCINNATI, OH
5/2013 – 11/2013

LPL FINANCIAL, LLC
CRD # 6413
CINCINNATI, OH
7/2010 – 3/2013

SEC charges Los Angeles based firm, Pacific West Capital Group, Inc., and it’s owners with Fraud Relating to the Sale of Life Settlements

Posted by finralawyer on November 14, 2017 with 0 Comment

On April 8, 2015 the Securities and Exchange Commission (“SEC”) filed a complaint against Pacific West Capital Group, Inc., Andrew B. Calhoun IV, Brenda Christine Barry, Andrew B. Calhoun Jr., Eric Christopher Cannon, Michael Wayne Dotta and Caleb Austin Moody. The SEC complaint alleges that Pacific West Capital Group and its owners committed fraud in the sale “life settlement” investments. A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit.

The SEC alleged that since 2004 Pacific West and Calhoun raised approximately $100 million from life settlement investors. Furthermore, the SEC alleges that in 2012 Pacific West and Calhoun defrauded investors by using the proceeds from the sales of new life settlements to fund life settlement investments sold years earlier. However, this was not disclosed to the investors at Pacific West. The SEC complaint alleges that Pacific West and Calhoun made life settlement investments appear successful when in reality the primary reserves were used to pay premiums on the policies. As such, the SEC has alleged that Pacific West and Calhoun violated the antifraud, securities registration and broker-dealer registration provisions of the federal securities laws. (See Complaint Case No. 2:15-cv-02563 United States District Court Central District of California.)

FINRA Arbitration Panel Awards Claimant $1.3 Million in Damages

Posted by finralawyer on November 14, 2017 with 0 Comment

A Financial Industry Regulatory Authority (FINRA) Arbitration Panel awarded $1.3 million in damages to a Mississippi investor who filed an arbitration action over the mishandling of her investments by Lanis Dale Noble (CRD No. 858005). Lanis Dale Noble is a former broker of Stifel Nicolaus & Co Inc. The Claimant is Noble’s former daughter-in-law.

The arbitration was commenced in August 2012, and Claimant made allegations against Noble for churning; breach of fiduciary duty; failure to supervise; fraudulent inducement and concealment; vicarious liability; negligence and other causes of action. The claim involved allegations surrounding the use of margin, and the purchases of variable annuities from SunLife and ManuLife and a Friedman Billings Ramsey real estate investment trust (REIT). (See FINRA Case No. 12-02897)

According to FINRA BrokerCheck Lanis Dale Noble has five disclosures on his FINRA report. One disclosure is a criminal case and the other four are customer disputes. Noble is not currently registered with any FINRA firm.

Lanis Dale Noble was an active broker for 27 years with the following member firm(s):

STIFEL, NICOLAUS & COMPANY, INC.
CRD # 793
RIDGELAND, MS
9/2000 – 11/2013

STERNE, AGEE & LEACH, INC.
CRD # 791
BIRMINGHAM, AL
9/1995 – 9/2000

UNION PLANTERS BROKERAGE SERVICES, INC.
CRD # 27348
2/1993 – 10/1995

PRUDENTIAL SECURITIES, INC.
CRD # 7471
NEW YORK, NY
9/1991 – 1/1993

DEAN WITTER REYNOLDS, INC.
CRD # 7556
PURCHASE, NY
8/1987 – 9/1991

PRUDENTIAL-BACHE SECURITIES, INC.
CRD # 7471
12/1985 – 9/1987

FINRA Takes Action Against Broker Brian Michael Seifert for Allegedly Forging Insurance Documents

Posted by finralawyer on November 14, 2017 with 0 Comment

The Hanley Law (239) 649-0050 recently discovered that according to FINRA’s Disciplinary and Other FINRA Actions publication, Brian Michael Seifert (CRD No. 4547658) was barred from associating with any FINRA member after allegedly failing to provide FINRA with on-the-record testimony involving an investigation into allegations that he forged documents and falsified client insurance information.

FINRA alleged that while Seifert was employed with Capital Management Company he forged and/or falsified customer information. Following the accusations Seifert failed to appear for on-the-record FINRA interview in violation of FINRA rules. (See FINRA Case No. 2012033920601)

Brian Michael Seifert was an active broker for 7 years with the following member firm(s):

COUNTRY CAPITAL MANAGEMENT COMPANY
CRD # 12060
ROCHESTER, MN
3/2008 – 8/2012

LIBERTY LIFE SECURITIES, LLC
CRD # 47737
EAGAN, MN
1/2007 – 3/2008

EQUITRUST MARKETING SERVICES, LLC
CRD # 5309
WEST DES MOINES, IA
4/2003 – 2/2005