Tag: RECOVER INVESTMENT LOSSES

Hanley Law Files FINRA Arbitration Involving broker Ronald Radner Former Registered Representative at the Delray Beach Florida Branch of Edward Jones

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Hanley Law recently filed a FINRA arbitration claim alleging that Ronald Radner a broker formerly registered with Edward Jones solicited an elderly client into transferring his investment portfolio to his care after Radner hosted a “free lunch” seminar at a local deli.  The client alleges that Ronald Radner convinced him to surrender his American National annuity and to allow Ronald Radner to manage the funds from the surrendered annuity.  The client alleges that Ronald Radner convinced him that he could earn a greater rate of return on the funds, and therefore would be able to provide him with additional growth and income through retirement.

The client alleges that because of the recommendation of Ronald Radner and Edward Jones he incurred a large surrender charge, and also lost his substantial death benefit of nearly $400,000 when Mr. Radner surrendered his American National Annuity.  Furthermore, the client alleges that he incurred a large tax consequence because of Ronald Radner’s and Edward Jones’ recommendation that he surrender his American National annuity.  Additionally, the client alleges that he lost significant principal on the investments Ronald Radner purchased with his annuity proceeds.

The Boynton Beach, Florida retiree client alleges that Edward Jones violated industry rules, including but not limited to FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110. The client further alleges that Edward Jones violated its duty of care and was negligent and that Edward Jones breached the contract it entered into with its client. The client alleges that Edward Jones also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients.  The client alleges that Edward Jones’ misconduct constitutes common law fraud.  Moreover, the client alleges that the accounts at issue were handled negligently and Edward Jones was negligent in their hiring, retention, and supervision of their employees.

According to FINRA’s Brokercheck, Ronald Radner was registered with the securities industry for 9 years, and was registered with the following firm(s) and has multiple customer complaints:

Raymond James Financial Services, Inc.
CRD 6694
Delray Beach, FL
3/29/2019 – present

Edward Jones
CRD 250
Delray Beach, FL
9/30/2011 – 4/1/2019

Morgan Stanley Smith Barney
CRD 149777
Delray Beach, FL
10/4/2010 – 9/7/2011

HANLEY LAW

Hanley law represents individual investors nationwide with significant losses in their portfolios, retirement plans or investment accounts.  Hanley Law is dedicated to assisting investors to recover losses suffered by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent.  Hanley Law represents clients nationwide in cases against the major Wall Street broker dealers, including Edward Jones.

If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact Hanley Law to discuss your legal options. Contact Hanley Law at (239)649-0050 or contact us through our Website to arrange a free confidential consultation with an attorney to discuss your experiences with your stock broker which resulted in investment losses.

 

AEGIS CAPITAL CENSURED, FINED AND ORDERED TO PAY RESTITUTION

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FINRA recently issued an Acceptance Waiver and Consent (“AWC”) with Aegis Capital in which Aegis Capital was censured, fined $27,500, ordered to pay $620.30, plus interest, in restitution to customers, and required to revise its written supervisory procedures. (See FINRA Case #2016048939201). Aegis consented to the sanctions and to the entry of findings that it failed to execute orders fully and promptly. FINRA’s findings stated that the firm failed to use reasonable diligence to ascertain the best inter-dealer market and failed to buy or sell in such a market so that the resultant price to its customer was as favorable as possible under prevailing market conditions. FINRA’s findings also stated that the firm’s supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to certain applicable securities laws and regulations and FINRA rules. FINRA further found that Aegis Capital’s written supervisory procedures failed to sufficiently provide for one or more of the minimum requirements for adequate FINRA compliance.

FINRA found that in 22 instances, Aegis Capital failed to execute orders fully and promptly. Additionally, for 11 of the above-referenced 22 orders, the firm failed to use reasonable diligence to ascertain the best inter-dealer market and failed to buy or sell in such market so that the resultant price to its customer was as favorable as possible under prevailing market conditions. FINRA found that Aegis Capital’s supervisory system did not provide for supervision reasonably designed to achieve compliance with respect to certain applicable securities laws and regulations and the Rules of FINRA.

Aegis Capital Corp. was founded in 1984 and is a full service retail and institutional broker-dealer located in New York City.  Aegis Capital Corp.’s main office is located at 810 7th Ave. 18th and 22nd Floor New York, NY 10019.

HANLEY LAW 

Our law firm represents individual investors nationwide with significant losses in their portfolios, retirement plans or investment accounts.  Our securities team is dedicated to assisting investors to recover losses suffered by unsuitability, over-concentration, fraud, misrepresentation, self-dealing, unauthorized trades or other wrongful acts, whether intentional or negligent.  We have experience handling cases against the major Wall Street broker dealers.

Let our team work for you. Call us at (239) 649-0050 or contact us through our Website to arrange a free confidential consultation with an attorney to discuss your experiences with your stock broker which resulted in investment losses.

FINRA Bars Brokers George Johnson and Joseph Mahalick and Suspends Broker Christopher Wynne

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The Financial Industry Regulatory Authority (FINRA) recently announced that it has barred broker George Johnson (CRD # 2245802) from the securities industry for engaging in a manipulative trading scheme to artificially inflate the market price and trading volume for the common stock of IceWEB, Inc. (OTCBB: IWEB). FINRA also sanctioned Christopher Wynne (CRD # 7654), Johnson’s supervisor, suspending him for two years in all capacities, barring him in a principal capacity, and fining him $25,000. Joseph Mahalick (CRD # 5563167), another broker who worked with Johnson and Wynne, was suspended for six months and fined $20,000 for falsifying firm records and has been barred from the securities industry in a separate action. Johnson, Wynne and Mahalick all worked for Meyers Associates L.P. in that firm’s Chicago branch office during the time period of the misconduct.

FINRA found that Johnson manipulated the market for IWEB by recommending that certain of his customers buy at increasingly higher and artificially inflated prices while also recommending his other customers sell their shares, frequently matching trades between the customers. FINRA found that among Johnson’s motives for manipulating the stock was the fact that he wanted to obtain business from the issuer for which he would anticipate receiving compensation in connection with a future private offering. Johnson coordinated a campaign with a stock promoter to attempt to increase the stock’s share price to a level that would allow for the exercise of certain warrants.

Brad Bennett, FINRA’s Executive Vice President and Chief of Enforcement, said, “Any broker engaging in manipulative activity poses a threat to market integrity and has no place in the securities industry. The branch office manager, who was the first line of defense in supervising George Johnson’s activities, completely failed to supervise his transactions to ensure compliance with securities laws and FINRA rules.” FINRA also found that Johnson and Wynne sent customers sales materials that omitted information concerning material conflicts of interest and material risks concerning IWEB’s business, and contained misleading, exaggerated and unwarranted information. Moreover, Johnson disclosed confidential information to potential purchasers concerning another offering.

In addition to the IWEB scheme, FINRA found that Johnson committed fraud by recommending that certain of his customers purchase shares of another penny stock without disclosing to them that he was liquidating his own personal positions of the security from his own brokerage accounts. Furthermore, FINRA’s investigation found that to cover up Johnson’s violations of state securities registration requirements, Johnson, Mahalick and Wynne agreed to the practice of entering false information on more than 100 order memoranda, indicating that Wynne or Mahalick was responsible for the account or transactions, instead of Johnson.

George Johnson was registered with the securities industry for twenty three (23) years, and was registered with the following firm(s):

Newport Coast Securities, Inc.
CRD # 16944
Chicago, IL
4/2013 – 2/2016

Meyers Associates L.P.
CRD # 34171
Chicago, IL
11/2011 – 5/2013

Anderson & Strudwick, Inc.
CRD # 48
Chicago, IL
7/2010-12/2011

Jesup & LaMont Securities Corp.
CRD # 39056
Chicago, IL
11/2009-7/2010

Garden State Securities, Inc.
CRD #10083
Chicago, IL
5/2005 – 11/2009

Stifel, Nicolaus & Co.
CRD #793
St. Louis, MO
3/2001-5/2005

Auerbach, Pollak & Richardson, Inc.
CRD # 29824
Stamford, CT
12/2000-3/2001

American Fronteer Financial Corp.
CRD # 1398
Denver, CO
10/1998 – 12/2000

H.J. Meyers & Co., Inc.
CRD# 15609
Rochester, NY
7/1992-10/1998

Christopher Wynne was registered with the securities industry for sixteen (16) years, and was registered with the following firm(s):

Newport Coast Securities, Inc.
CRD # 16944
Chicago, IL
4/2013-2/2016

Meyers Associates, L.P.
CRD # 34171
Chicago, IL
11/2011-5/2013

Anderson & Strudwick, Inc.
CRD 48
Chicago, IL
7/2010-12/2011

Jesup & LaMont Securities Corp.
CRD 39056
Chicago, IL
11/2009-7/2010

Garden State Securities, Inc.
CRD 10083
Chicago, IL
5/2005–11/2009

Stifel, Nicolaus & Co.
CRD 793
St. Louis, MO
3/2001-5/2005

Auerbach, Pollak & Richardson, Inc.
CRD 29824
Stamford, CT
12/2000-3/2001

American Fronteer Financial Corp.
CRD 1398
Denver, CO
11/1999-12/2000

Joseph Mahalick was registered with the securities industry for seven (7) years, and was registered with the following firm(s):

Newport Coast Securities, Inc.
CRD 16944
Chicago, IL
4/2013-10/2015

Meyers Associates, L.P.
CRD 34171
Chicago, IL
11/2011 – 5/2013

Anderson & Strudwick, Inc.
CRD 48
Chicago, IL
7/2010-12/2011

Jesup & LaMont Securities Corp.
CRD 39056
Chicago, IL
11/2009-7/2010

Garden State Securities, Inc.
CRD 10083
Chicago, IL
9/2008-11/2009

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 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.

Fraud Charges Filed Against Owners of Jay Peak Ski Resort Relating to Millions of Dollars Solicited under the EB-5 Immigrant Investors Program

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The Securities and Exchange Commission recently announced fraud charges and an asset freeze against a Vermont-based ski resort and related businesses allegedly misusing millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program. The Securities and Exchange Commission filed a complaint for Injunctive and Other Relief against Ariel Quiros, William Stenger, Jay Peak, Inc., Q Resorts, Inc., Jay Peak Hotel Suites L.P., Jay Peak Hotel Suites Phase II L.P., Jay Peak Hotel Suites Phase II L.P., Jay Peak Management, Inc., Jay Peak Penthouse Suites L.P., Jay Peak GP Services, Inc., Jay Peak Golf and Mountain Suites L.P., Jay Peak GP Services Golf, Inc., Jay Peak Lodge and Townhouses, L.P., Jay Peak GP Services Lodge, Inc., Jay Peak Hotel Suites Stateside L.P., Jay Peak GP Services Stateside, Inc., Jay Peak Biomedical Research Park L.P., and AnC Bio Vermont GP Services, LLC. The SEC’s case was unsealed in federal court in the United States District Court Southern District of Florida, and the court has appointed a receiver over the companies to prevent any further spending of investor assets.

The SEC alleges that Ariel Quiros of Miami, Florida, William Stenger of Newport, Vermont, and their companies made false statements and omitted key information while raising more than $350 million from investors to construct ski resort facilities and a biomedical research facility in Vermont. According to the SEC complaint, investors were told they were investing in one of several projects connected to Jay Peak Inc., a ski resort operated by Quiros and Stenger, and their money would only be used to finance that specific project. The SEC complaint alleges that instead, in Ponzi-like fashion, money from investors in later projects was misappropriated to fund deficits in earlier projects. The SEC complaint alleges that more than $200 million was used for other-than-stated purposes, including $50 million spent on Quiros’s personal expenses and in other ways never disclosed to investors.

According to the SEC’s complaint, Quiros improperly tapped investor funds for such things as the purchase of a luxury condominium, payment of his income taxes and other taxes unrelated to the investments, and acquisition of an unrelated ski resort. The SEC’s complaint charges Quiros, Stenger, Jay Peak, and a company owned by Quiros called Q Resorts Inc., as well as, seven limited partnerships and their general partner companies with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Four other companies are named as relief defendants in the SEC’s complaint for the purpose of recovering investor funds transferred into their accounts.

If you have suffered investment losses contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors nationwide. You may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a complimentary 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.

J.P. MORGAN Broker Permanently Barred for Misappropriation of Funds

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Former J.P. Morgan Broker Alen Alic was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Prior to becoming associated with J.P. Morgan Securities, LLC as a securities broker, Alic was a retail bank employee with JPMorgan Chase Bank, N.A., an affiliate of J.P. Morgan Securities. While working as a retail bank teller, Alic allegedly misappropriated $3,000 in cash from his teller drawer and converted it for his personal use without the bank’s knowledge or consent. (See FINRA Case #2014043420501)

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