Category: Broker Investigations

Miami Florida Broker Michael Borja Formerly of Wells Fargo Advisors Fined and Suspended by FINRA Over Wire Transfer

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Michael Vincent Borja (CRD #5451360) formerly of Wells Fargo Advisors, LLC was fined $5,000 and suspended for 45 days by FINRA for processing wire transfer requests without first obtaining verbal confirmation from the client.

FINRA’s findings allege that Borja falsely represented in the Firm’s records that he verbally confirmed the wire requests with the customer and also provided fictitious reasons for the customer’s transfer requests. As a result of such actions, FINRA alleged that Borja caused his FINRA regulated broker-dealer to maintain false books and records concerning these wire transfer requests.

According to FINRA’s Broker Check, Borja is not currently licensed to act as a broker or as an investment adviser. The suspension is in effect from February 2, 2015, through March 18, 2015. (See FINRA AWC No. 2013037029901)

Michael Vincent Borja was licensed in the securities industry for 5 years with the following firm(s):

WELLS FARGO ADVISORS, LLC
CRD #19616
MIAMI, FL
01/2012 – 05/2013

OPPENHEIMER & CO. INC.
CRD #249
MIAMI, FL
02/2009 – 01/2012

UBS INTERNATIONAL, INC.
CRD #107726
CORAL GABLES, FL
02/2008 – 02/2009

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 Hanley Law toll free at (239) 649-0050 for a complimentary initial consultation.

FINRA Takes Disciplinary Action Against Florida Based Former LPL Financial Broker Kevin Luby for Failure to Disclose Outside Business Activities with Member Firms

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Kevin Luby (CRD #4568246) was suspended for 10 months and fined $25,000 by FINRA, for failing to disclose to his member firms certain outside business activities he engaged in on behalf of an elderly firm customer.

FINRA alleged that from 2009 to 2013 Luby was a successor co-trustee of a customer’s trust and co-personal representative of her estate. Additionally, FINRA alleged that Luby also assisted this customer in the management of certain rental properties.

Luby failed to disclose the fiduciary appointments and involvement with the rental properties to one of his member firms, and failed to disclose his involvement with the rental properties to the other firm. Furthermore, FINRA affirms that Luby provided false answers on one of the firm’s compliance questionnaires and annual certifications regarding being named the beneficiary of any client’s estate or holding any fiduciary positions for a client.

According to FINRA’s Broker Check Luby is not currently licensed to act as a broker (buying or selling securities on behalf of customers) or as an investment advisor (providing advice about securities to clients). Luby’s suspension is in effect from January 20, 2015, through November 19, 2015. (See FINRA AWC No. 2013038108802)

Kevin Luby was previously registered with the following securities firms:

LPL FINANCIAL, LLC
CRD #6413
SOUTH DAYTONA, FL
03/2012 – 08/2013

STIFEL, NICOLAUS & COMPANY, INC.
CRD #793
DAYTONA BEACH, FL
08/2009 – 03/2012

UBS FINANCIAL SERVICES, INC.
CRD #8174
DAYTONA BEACH, FL
02/2007 – 08/2009

EDWARD JONES
CRD #250
ORMOND BEACH, FL
09/2002 – 02/2007

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 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 Hanley Law toll free at (239) 649-0050 for a complimentary initial consultation.

FINRA Fines Fidelity Brokerage Services, LLC for Overcharging Customer Accounts

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Fidelity Brokerage Services, LLC (CRD #7784) was censured and fined $350,000 by FINRA for overcharging client accounts. (See FINRA AWC No. 2012034916901)

FINRA alleged that at various times from January 2006 through September 2013, Fidelity Brokerage Services, LLC overcharged 20,663 customer accounts approximately $2.4 million. FINRA further alleged that the firm did not have reasonable supervisory systems or procedures to ensure that customers were charged accurate fees for accounts managed by third-party investment advisors. As such, this resulted in erroneous and duplicate fees charged in certain clients accounts utilizing asset-based pricing, duplicate fees in certain customer accounts managed by third-party wrap providers, and erroneous markups on certain fixed income investments.

FINRA’s findings also allege that Fidelity failed to establish an adequate supervisory system and written procedures reasonably designed to ensure that customers received accurate disclosures relating to the Asset-Based Pricing Program for accounts managed by third-party investment advisors. FINRA further alleged that Fidelity failed to monitor billing in these fee-based brokerage accounts to ensure that customers were charged in accordance with Fidelity’s disclosures.

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 lost money 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 Takes Action Against New Jersey Broker Sergey Pustelnik

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New Jersey broker Sergey Pustelnik was barred by FINRA for failure to cooperate with the investigation of suspicious trading activities. (See AWC No. 2011029713003)

During the period of October 1, 2010 through December 31, 2013, FINRA’s Department of Market Regulation conducted an investigation of suspicious trading activities occurring through a FINRA-member firm. In conducting this investigation, FINRA requested that Respondent Pustelnik provide a copy of a .pst file containing emails in a Gmail account used by Pustelnik for business and personal purposes.

FINRA stated that Pustelnik refused to produce all of the emails requested, and as a result engaged in misconduct violating FINRA rules. As a result, according to FINRA’s Broker Check Sergey Pustelnik (CRD #4439199) was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Sergey Pustelnik was an acting broker for 8 years and was previously registered with the following firm(s):

LEK SECURITIES CORPORATION
CRD #33135
NEW YORK, NY
03/2011 – 01/2015

GENESIS SECURITIES, LLC
CRD #46992
NEW YORK, NY
01/2002 – 09/2010

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

New Jersey Broker Harvey Meldrum of BCG Securities Sanctioned by FINRA

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According to FINRA’s Disciplinary Actions publication, New Jersey broker Harvey Herman Meldrum (CRD No. 1804905) of BCG Securities, Inc. was fined $5,000 and suspended from association with any FINRA member for three (3) months for violation of FINRA rules and by-laws.

Meldrum entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while associated with BCG Securities, Inc., he failed to disclose five (5) federal tax liens on FINRA reporting forms in violation of FINRA. FINRA alleged that upon receiving notice of the liens Meldrum should have updated the disclosures within thirty days, but failed to do so. (See FINRA Case No. 2014040319701)

Meldrum was registered with BCG Securities, Inc. from 2/2006 – 2/2014.

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

Florida Broker Darrell Vanpamel Suspended and Fined by FINRA for Outside Business Activity

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According to FINRA’s Disciplinary Actions publication, Florida broker Darrell Robert Vanpamel of Gradient Securities, LLC was suspended for one month and fined $5,000 for his involvement in outside business activities.

FINRA alleged that during the period from April 2013 to May 2013, Vanpamel engaged in outside business activities with four insurance clients who paid him a total of $1,400 for his activities. Specifically, Vanpamel received $500 each from two clients for “account set-up fees” in connection with the clients’ purchases of equity indexed annuities, received $150 from another client for a “social security report,” and received $250 from a final client for, among other things, work that he performed at the client’s home. Vanpamel did not provide written notice to his employer member firm prior to engaging in the aforementioned outside business activities and accepting compensation for such activities. (See FINRA Case No. 2013037723101)

Darrell Robert Vanpamel (CRD No. 5117737) was an active broker in the securities industry for 8 years and was registered with the following securities firm(s):

GRADIENT SECURITIES, LLC
CRD # 103857
PUNTA GORDA, FL
08/2013 – 02/2015

USA FINANCIAL SECURITIES CORPORATION
CRD # 103857
PRUDENVILLE, MI
03/2006 – 07/2013

If you have suffered financial losses, please contact the Law Office of Hanley Law to explore 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 able to recover your financial losses. Contact us toll free at (239) 649-0050 for a free initial consultation.

Illinois Broker Andrew DeVine Barred by FINRA for Misappropriation of Clients Funds

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Andrew James DeVine of Country Capital Investment Company was barred by FINRA for allegedly misappropriating funds from clients. According to FINRA’s Disciplinary and Others FINRA Actions publication, DeVine took advantage of his position as agent of a member firm to use customer funds for his own benefit rather than applying them towards insurance premiums. FINRA alleged that DeVine misappropriated over $700 in customer funds.

Andrew James DeVine was a registered broker for 7 years, and was recently affiliated with the following firms:

COUNTRY CAPITAL INVESTMENT COMPANY
CRD #12060
O’FALLON, IL
03/2009 – 08/2013

NATCITY INVESTMENTS, INC.
CRD #17490
BRENTWOOD, MO
06/2008 – 01/2009

AXA ADVISORS, LLC
CRD #6627
CLAYTON, MO
01/2006 – 06/2008

If you have suffered investment losses, please contact the Hanley Law to explore 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 complimentary initial consultation.

FINRA Takes Action Against New York Broker Chris Fulco for Participating in Sales Without Firm’s Approval

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According to FINRA’s Disciplinary and other FINRA Actions publication, New York Broker Chris Fulco of vFinance Investments, Inc. was barred by FINRA for his involvement in sales of a non-public company’s shares away from his member firm without approval.

FINRA found that Fulco solicited the sale of US Coal shares away from the firm. Fulco allegedly conveyed to the buyer, either directly or indirectly, a stock purchase agreement with wiring instructions. As a result of facilitating such transactions, FINRA affirms that Fulco received wires transfers totaling $601,159.

Fulco allegedly lied to FINRA regarding his involvement in these sales by falsely testifying that the wire transfers he received were not payments relating to the transactions. Fulco also reportedly encouraged the primary seller of US Coal securities not to appear for his scheduled testimony or, if he did, to falsely testify about the transactions in order to support Fulco’s false testimony.
Chris Fulco was an acting broker for 10 years and has been registered with the following securities firms:

CHELSEA FINANCIAL SERVICES
CRD #47770
STATEN ISLAND, NY
06/2013 – 11/2013

AVENIR FINANCIAL GROUP
CRD #148490
NEW YORK, NY
10/2012 – 04/2013

JOHN CARRIS INVESTMENTS, LLC
CRD #145767
HOBOKEN, NJ
06/2012 – 10/2011

OLSON, CROSS & ALAMO, LLC
CRD #157249
NEW YORK, NY
02/2012 – 04/2012

CALDWELL INTERNATIONAL SECURITIES
CRD #104323
FISCHER, TX
04/2011 – 12/2011

CHARLES MORGAN SECURITES, INC.
CRD #138887
NEW YORK, NY
07/2010 – 02/2011

VFINANCE INVESTMENTS, INC.
CRD #44962
NEW YORK, NY
06/2007 – 06/2010

BRILL SECURITIES, INC.
CRD #18565
NEW YORK, NY
06/2006 – 06/2007

CLARK DODGE & CO., INC.
CRD #23288
NEW YORK, NY
02/2006 – 06/2006

GREAT EASTERN SECURITIES, INC.
CRD #2061
NEW YORK, NY
07/2005 – 02/2006

ROYAL ALLIANCE ASSOCIATES, INC.
CRD #23131
NEW YORK, NY
06/2005 – 07/2005

INDEPENDENT SECURITES INVESTORS CORPORATION
CRD #43598
CHIPLEY, FL
11/2014 – 05/2005

J.P. TURNER & COMPANY, L.L.C.
CRD #43177
ATLANTA, GA
06/2004 – 12/2004

NATIONAL SECURITIES CORPORATION
CRD #7569
SEATTLE, WA
09/2003 – 06/2004

BISHOP, ROSEN & CO., INC.
CRD #1248
NEW YORK, NY
04/2003 – 08/2003

LEGEND SECURITIES, INC.
CRD #44952
NEW YORK, NY
10/2002 – 04/2003

FIRST MONTAUK SECURITIES CORP.
CRD #13755
RED BANK, NJ
04/2002 – 10/2002

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

FINRA takes Disciplinary Action Against New Jersey Broker David Chapman for Forging the Signature of Deceased Client

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According to FINRA’s “Disciplinary and Other FINRA Actions” publication, David Glenn Chapman of PRUCO SECURITIES, LLC was recently barred for forging the signature of a deceased client in effort to renew the client’s insurance policy. Chapman also provided false information to FINRA regarding the renewal of the client’s policy.

FINRA found that Chapman signed the deceased client’s name to a letter without authority or consent, and submitted the letter to the insurance company to renew the client’s insurance policy. Chapman further arranged for his assistant to pay the outstanding premium on the policy using the assistant’s personal credit card. FINRA also states that Chapman claimed that the deceased client’s sister-in-law both signed and paid the premium for the renewal of the insurance policy; both statements allegedly false. As a result of such actions, Chapman earned a quarterly bonus of $325 from PRUCO SECURITIES.

According to FINRA’s Broker Check, David Glenn Chapman (CRD #1702066) of PRUCO SECURITES, LLC has been permanently barred as a broker or from otherwise associating with any FINRA member.

David Glenn Chapman was an acting broker for 25 years with the following securities firm(s):

PRUCO SECURITIES, LLC.
CRD #5685
MATAWAN, NJ
06/1988 – 01/2014

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
CRD #680
NEWARK, NJ
06/1988 – 12/1993

F.D. ROBERTS SECURITIES, INC.
CRD #693
02/1988 – 04/1988

If you or anyone you know has been a client of David Glenn Chapman or any of the above referenced securities firms and have suffered financial losses, please contact The Hanley Law to explore your legal rights. 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 able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation