Tag: FINRA attorneys

Former Merrill Lynch Broker Thomas Buck Barred by FINRA Over Numerous Allegations of Misrepresentations and Misconduct

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According to FINRA’s Disciplinary and Other FINRA Actions publication, former top Merrill Lynch Broker Thomas Buck (CRD #1024868) of Indianapolis, Indiana, was barred by FINRA over numerous allegations of engaging in misrepresentations and other misconduct in the handling of customer accounts.

Allegations stated that Buck held customer assets in commission-based accounts rather than fee-based accounts in order to generate higher revenues. According to FINRA, registered representatives are required to assess the comparative costs to customers of commission-based or fee-based accounts, and discuss those alternatives with their customers, which Buck failed to do. FINRA alleges that Buck not only failed to fully assess the suitability of the fee structure for certain clients, but in fact decided to use commission-based accounts despite knowing that it would have been less expensive for those clients to maintain fee-based accounts. As such, Buck allegedly misled customers regarding the relative costs of commission-based or fee-based trading for their accounts, in order to keep them in higher-cost commission-based accounts.

Furthermore, allegations also stated that Buck exercised discretion and made unauthorized trades in customer accounts without prior authorization from the customers or his member firm, Merrill Lynch. Allegedly, Buck placed trades in customer accounts without obtaining his customers’ consent in advance or even after placing the trade, exercised discretionary authority without obtaining authorization, and placed trades which he assumed the customers would want without obtaining their authorization to do so. As a result of engaging in such conduct, Buck, according to FINRA, directly violated FINRA rules and his obligation to observe high standards of commercial honor and just and equitable principles of trade

According to a recently published InvestmentNews Article, Buck has been Merrill Lynch’s top broker in Indiana since at least 2009, overseeing approximately $1.3 billion in assets. Since that time, Buck has allegedly pursued unethical and improper business practices which generated increased revenues and commissions, which in turn enhanced his status as a top-producing broker. Buck has accrued nearly a dozen customer complaints for unsuitable investments and unauthorized trading.

According to FINRA’s Broker Check, Thomas Buck (CRD #1024868) has been permanently barred by FINRA from acting as a broker or otherwise associating with firms that sell securities to the public. Buck was registered in the securities industry for thirty three (33) years, and was registered with the following firm(s):

RBC CAPITAL MARKETS, LLC
CRD #31194
INDIANAPOLIS, IN
Registered with this firm since 04/2015

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
CRD #7691
INDIANAPOLIS, IN
12/1981 – 04/2015

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 Alabama Advisor, Keith Rogers, Barred by FINRA After Allegations of Theft

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According to FINRA’s Disciplinary and Other FINRA Actions publication and the State of Alabama, Keith Michael Rogers (CRD No. 4987615), a former Alabama Financial Advisor, was the subject of a Cease and Desist Order based on allegations that Rogers engaged in selling away, the sale of unregistered securities, unauthorized fund transfers and conversion. (See Administrative Order No. CD-2014-0016) FINRA further alleged that Rogers misappropriated funds by improperly diverting funds from the bank accounts of certain customers to an account he controlled. (See FINRA AWC No. 2014041532601)

According to FINRA’s Broker Check, Keith Michael Rogers has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Rogers was registered in the securities industry for seven (7) years, and was registered with the following firm(s):

G.L.S & ASSOCIATES, INC.
CRD #47502
HUNTSVILLE, AL
01/2006 – 01/2013

G.L.S. & ASSOCIATES, INC.
CRD #47502
HUNTSVILLE, AL
01/2006 – 01/2006

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.

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.

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

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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

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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

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.

5 Most Common Types of Fraud Identified by FINRA

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The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Avoiding Investment Scams which described common types of fraud. Below are the 5 most common types of fraud identified by FINRA:

  1. Pyramid Schemes: Fraudsters claim that they can take a small investment and turn it into large profits in a short amount of time. However, participants make money solely by recruiting new participants and the schemes quickly fall apart when new participants are no longer available. Pyramid schemes may appear to be legitimate multi-level marketing programs.
    2. Ponzi Schemes: Fraudsters recruit new investors and use their funds to pay earlier-stage investors, instead of investing the funds as promised. This type of scam is named after Charles Ponzi, who in the 1920s tricked thousands of investors to place their funds in a price arbitrage scheme involving postage stamps. Ponzi schemes are similar to pyramid schemes with the exception that in ponzi scheme investors do not have to recruit new investors to earn a share of profits. Ponzi Schemes usually collapse when new investors cannot be attracted or when too many investors try to cash out.
    3. Pump-and-Dump: Fraudsters buy shares of a low priced stock from an unknown company and then trump up interest in the stock to increase the stock’s price. Investors are tricked into believing they are getting a good deal and create buying demand at high prices. At this point the fraudsters sell their shares at the high prices and disappear, leaving the unsuspecting investors with worthless stock. Previously, these schemes were conducted by cold callers, facsimiles or online newsletters, but now the most common medium is through spam emails or text messages.
    4. Advance Fee Fraud: The scams starts by an offer placed to buy a worthless stock for a high price, but to facilitate the deal the investor must send a fee for the service. Once the fee is sent, the investor never hears from the fraudster again.
    5. Offshore Scams: These scams include any of the above mentioned scams and may also involve Regulation S. Offshore scams can be difficult for U.S. law enforcement agencies to investigate or rectify.

If you and 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 able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Common Sales Pitches Used in Investment Scams

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The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Avoiding Investment Scams which describes common sales pitches used in investment scams.

Investment fraudsters make their living by making sure the investments they pitch sound good and true. Additionally, fraudsters tailor their pitches to the investor by first gaining background information on the investor and using that information to lure them in. FINRA has identified the following five (5) most common sales pitch tactics:

  1. Phantom Riches Tactic: Entice investors with promises of wealth.
    2. Source Credibility Tactic: Build credibility with claims of having expertise, experience and being from a reputable firm.
    3. Social Consensus Tactic: Lead investors to believe that other savvy investors have already invested.
    4. Reciprocity Tactic: Offer to do a small favor for investor in return for the investor doing a large favor.
    5. Scarcity Tactic: Create a false sense of urgency by claiming limited supply of product.

If you and 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 able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.