SEC warns of “Red Flags” when Making Investment Decisions

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The Securities and Exchange Commission recently issued an Investor Alert to help older Americans identify signs that what is offered as an investment may actually be a fraud. The SEC’s Office of Investor Education and Advocacy warned that older Americans are often targets of investment fraud, and advised that there are five (5) “red flags” seniors should look out for when making investment decisions:

  1. Promises of High Returns with Little or No Risk. A classic warning sign of investment fraud is the promise of a high rate of return, with little or no risk. The SEC advised that every investment carries some degree of risk, and the potential for greater returns generally comes with greater risk. The SEC warns investors to avoid putting money into “can’t miss” investment opportunities or those promising “guaranteed returns.”
  2. Unregistered Persons. The SEC advises investors to check whether the person offering to sell you an investment is registered or licensed, even if you know him or her personally. Unregisterd/unlicensed persons who sell securities commit many of the securities frauds that target older investors. It is free to research the background of the individuals and firms selling you investments, including their registration/license status and disciplinary history. There are several way you can research the individuals selling you investments:
  • Search the SEC’s Investment Adviser Public Disclosure (IAPD) online database.
    • Search the Financial Industry Regulatory Authority (FINRA)’s BrokerCheck online database.
    • Contact your state securities regulator.
    • Contact the SEC’s Office of Investor Education and Advocacy directly at (800) 732-0330 to help research the person and firm selling you the investment.
  1. Red Flags in the Financial Professional’s Background. The SEC advises investors to be aware of potential red flags in their advisor’s or broker’s background, including: (1) employment at firms that have been expelled from the securities industry; (2) personal bankruptcy; (3) termination; (4) being subject to internal review by an employer; (5) a high number of customer complaints; (6) failed industry qualification examinations; (7) federal tax liens; and (8) repeatedly moving firms. Investors can search the records of the SEC, FINRA, and state securities regulators to identify red flags.
  2. Pressure to Buy Quickly. The SEC warns that if an investment professional attempts to pressures you into making an investment decision quickly, you should walk away as you could potentially be at risk for becoming a victim of investment fraud. The SEC cautions investors that no reputable investment professional should push you to make an immediate decision about an investment, or tell you that you’ve got to “act now.”
  3. Free Meals. The SEC further warns investors to be cautious of “free lunch” seminars. The ultimate goal of investment professionals in offering free meal investment seminars is typically to attract new clients and to sell investment products. The SEC advises investors that even if the free meal does not come with a high-pressured sales pitch, investors should expect the “hard sell” during later contacts from the investment advisor or broker selling the investment.

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 nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

Broker Tricia Willis Barred for Allegedly Misappropriating Client’s Funds and Forging Signatures

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According to FINRA’s Disciplinary and Other FINRA Actions publication, former Connecticut broker Tricia Denise Willis aka Tricia Denis Liparelli (CRD No.5703572) was barred by FINRA for allegedly converting a client’s funds from a home equity line of credit (HELOC) that the customer maintained at People’s Bank, and for signing the client’s name on withdrawal slips without authorization.

FINRA alleged that Willis withdrew $2,500 from the customer’s HELOC by preparing four (4) withdrawal slips, signing the customer’s name on the slips, and processing them at Willis’ own teller window at the Bank. FINRA alleged that Willis withdrew an additional $17,400 from the client’s HELOC by preparing twenty eight (28) additional withdrawal slips without authorization, and used those funds for her own personal use and benefit. (See FINRA AWC No. 20130392989)

According to FINRA’s Broker Check, Tricia Denise Willis has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Willis was registered in the securities industry for three (3) years, and was registered with the following firm(s):

PEOPLE’S SECURITIES, INC.
CRD #13704
WILLIMANTIC, CT
01/2010 – 12/2013

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 nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

Former J.P. Morgan Securities Broker Barred by FINRA for Conversion of Client Funds for Personal Use

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Louis James Deeley (CRD No. 583067) of California was barred by FINRA for allegedly converting $24,014 from the bank account of a customer for his own personal benefit.

FINRA alleged that between June 2014 and November 2014, Deeley submitted withdrawal slips to a bank teller containing a signature of which appeared to be that of the client. Deeley provided the teller with instructions to allocate part of the withdrawal amount indicated on the slip to a cashier’s check and the remainder to him in cash. FINRA further alleged that Deeley then deposited the cashier’s check into the customer’s brokerage account, but retained the cash for himself. (See FINRA AWC No. 20140437239)

According to FINRA’s Broker Check, Louis James Deeley has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Deeley was registered in the securities industry for four (4) years and was registered with the following firm(s):

J.P MORGAN SECURITIES, LLC
CRD #79
SANTA ROSA, CA
10/2012 – 12/2014

CHASE INVESTMENT SERVICES CORP.
CRD #25574
SANTA ROSA, CA
08/2010 – 10/2012

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 nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

Former Barclays Capital New York Broker Barred by FINRA Over Allegations of Concealing Trading Losses

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Chia-Ming Hu (CRD #5368992) was barred by FINRA for failure to provide on-the-record testimony requested by FINRA involving an investigation into allegations that Hu and another Barclays representative took certain actions to conceal trading losses.

According to FINRA’s Broker Check, Chia-Ming Hu has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Hu was registered in the securities industry for six (6) years with the following firm:

BARCLAYS CAPITAL INC.
CRD #19714
NEW YORK, NY
11/2008 – 12/2014

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 nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

Broker Joel Blum of New York Fined by FINRA

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Joel Eziekel Blum (CRD No. 4905379), a New York Ameriprise Financial Services’ broker, was fined $10,000 and suspended for twenty (20) days for allegedly exercising discretion without written authorization in three (3) client accounts.

FINRA alleged that Blum executed a total of eight (8) discretionary transactions in the accounts of three (3) customers without written authorization to do so. FINRA further alleged that Blum mismarked two (2) order tickets in connection with these transactions indicating that the trades were unsolicited when, in fact, the trades were solicited.

Joel Blum’s suspension was in effect from April 6, 2015, through April 25, 2015. (See FINRA AWC No. 2014040186601)

According to FINRA’s Broker Check, Joel Eziekel Blum has been registered in the securities industry for ten (10) years. Blum is currently registered with the following firm:

AMERIPRISE FINANCIAL SERVICES, INC.
CRD #6363
GOSHEN, NY
02/2014 – present

Blum was previously registered with the following firm(s):

MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
CRD #7691
MIDDLETOWN, NY
05/2008 – 02/2014

CITIGROUP GLOBAL MARKETS INC.
CRD #7059
GOSHEN, NY
03/2005 – 05/2008

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 nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

Former J.P. Morgan Broker Barred by FINRA for Allegedly Forging Clients’ Signatures

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Sam Marshall Stull (CRD No. 5268858), a former Texas and Florida broker, was barred by FINRA for allegedly forging the signatures of clients on member firm documents.

FINRA alleged that Stull forged clients’ signatures on documents including beneficiary information sheets, investment switch letters, and account profile confirmations. FINRA further alleged that Stull failed to provide documents and information requested by FINRA, relating to an investigation into the forgery. (See FINRA AWC No. 2014042589601)

According to FINRA’s Broker Check Sam Marshall Stull was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Stull was registered in the securities industry for seven (7) years with the following firm(s):

TD AMERITRADE, INC.
CRD #7870
FORT WORTH, TX
09/2014 – 10/2014

J.P. MORGAN SECURITIES, LLC
CRD #79
BOYNTON BEACH, FL
08/2013 – 08/2014

TD AMERITRADE, INC.
FT. LAUDERDALE, FL
CRD #7870
09/2010 – 07/2013

FIDELITY BROKERAGE SERVICES, LLC
CRD #7784
WESTLAKE, TX
11/2007 – 06/2007

M & W FINANCIAL, INC.
CRD #131743
SOUTHLAKE, TX
02/2007 – 06/2007

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 nationwide. If you have lost money as a result of your broker’s recommendations, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary initial consultation.

Miami Broker Raymond Sardina Suspended by FINRA for Borrowing Money from Client

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According to FINRA’s Disciplinary and Other Actions publication, broker Raymond Sardina (CRD No. 3068885) of Raymond James and Associates, Inc. was suspended by FINRA for allegedly borrowing money from a client.

FINRA alleged that Sardina borrowed $10,000 from a customer of his member firm without notifying the firm he had received the loan or obtaining approval to do so. FINRA also alleged that Sardina falsely represented on the Firm’s annual questionnaire that he had not received any loans from Firm customers.

FINRA rules and policies prohibit registered persons from borrowing from or lending to any customer of his or her member firm employer.

The suspension was in effect from April 20, 2015 through May 19, 2015. (See FINRA AWC. No. 2013038581401)

According to FINRA’s Broker Check Raymond Sardina has been registered in the securities industry for fourteen (14) years and is currently registered with:

RAYMOND JAMES & ASSOCIATES, INC.
CRD #705
CORAL GABLES, FL

Raymond Sardina was previously registered with:

MORGAN STANLEY DW INC.
CRD #7556
MIAMI, FL
09/2000 – 03/2007

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 nationwide 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.

Former Merrill Lynch and Wells Fargo Advisors Broker Barred by FINRA for Alleged Conversion of Clients’ Funds

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Tammy Charlene Petersen (CRD No. 4161501), a former Merrill Lynch and Wells Fargo Advisors broker based out of Virginia, was barred by FINRA for the conversion of Clients’ funds for her personal benefit.

FINRA alleged that Petersen converted approximately $107,378 from her member firm clients for her personal benefit without the clients’ knowledge or consent. Peterson allegedly facilitated wire transfers from customers’ bank accounts to accounts that she controlled. (See FINRA AWC No. 20140438720)

According to FINRA’s Broker Check, Peterson has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Tammy Charlene Petersen (aka Tammy Charlene Barber and Tammy Charlene Broussard) was registered with the securities industry for twelve (12) years with the following firm(s):

MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
CRD #7691
NEWPORT NEWS, VA
11/2010 – 11/2014

WELLS FARGO ADVISORS, LLC
CRD #19616
NORFOLK, VA
09/2009 – 01/2010

WELLS FARGO ADVISORS, LLC
CRD #19616
NORFOLK, VA
06/2004 – 08/2009

AMERICAN FUNDS DISTRIBUTORS, INC.
CRD # 6247
LOS ANGELES, CA
07/2000 – 05/2003

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 nationwide 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.