Tag: recover your investment losses

Former Huntington Bank Broker of Columbus Ohio Barred by FINRA for Misappropriation of Client Funds

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According to FINRA’s Disciplinary and Other FINRA Actions publication, Bryan A. Carnahan (CRD No. 3103811), a former broker with Huntington Bank in Hilliard, Ohio, was barred by FINRA for misappropriation of funds from a Huntington customer.

FINRA alleged that between September 2013 and March 2015, Carnahan converted approximately $169,500 from one of his customers by causing fund transfers to be made on five occasions from the customer’s brokerage account to her bank account at the Firm’s affiliated bank. FINRA further alleged that Carnahan then had his client withdraw funds from her bank account and get cashier’s checks for supposed investments. FINRA alleged that after Carnahan took possession of the cashier’s checks, he fraudulently caused them to be re-issued in the form of multiple cashier’s checks (totaling approximately $169.500) that were payable to his own accounts and to the accounts of at least 13 of his other customers who had suffered investment losses. (See FINRA AWC No. 2015044908301)

According to FINRA’s Broker Check, Bryan A. Carnahan was permanently barred by FINRA from acting as a broker or otherwise associating with firms that sell securities to the public. Carnahan was registered in the securities industry for sixteen (16) years with the following firm(s):

THE HUNTINGTON INVESTMENT COMPANY
CRD #16986
COLUMBUS, OH
02/1999 – 03/2015

JOHN HANCOCK DISTRIBUTORS, INC.
CRD #486
BOSTON, MA
08/1998 – 12/1998

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 represents investors nationwide and 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 investment losses. Contact the Hanley Law 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.

Former Financial Advisor, Matthew Katke, Pleaded Guilty

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According to the Department of Justice, Matthew Katke (CRD No. 4679645) pleaded guilty to conspiracy to commit securities fraud in Hartford, CT Federal Court for his alleged participation in a multimillion dollar securities fraud scheme. Katke was registered with RBS Securities, Inc. (RBS Securities), during the time of the DOJ’s investigation. Katke was associated with Nomura Securities International, Inc. from August 2013 until April 2015.

The Department of Justice alleged that between April 2008 and August 2013 Katke was a managing director at RBS Securities in Stamford, Connecticut. Katke and other members of RBS’s Asset Backed Products division traded fixed income investment securities in residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs) through RBS trading floor. Katke admitted in his guilty plea that he and others conspired to increase RBS’s profits on CLO bond trades at the expense of their own customers by, among other things, making misrepresentations to induce customers to pay inflated prices and telling customers to accept deflated prices for CLO bonds. Furthermore, Katke misrepresented the CLO seller’s asking price to the buyer and kept the difference between the price paid by the buyer and the price paid to the seller for RBS. In another device used by Katke he misrepresented to the CLO buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller invented by Katke, which allowed Katke to charge extra commission. The Department of Justice’s investigation found several fraudulent transactions that cost at least 20 victims millions of dollars.

Matthew Katke was an active broker for 11 years with the following member firm(s):

NOMURA SECURITIES INTERNATIONAL, INC.
CRD # 4297
NEW YORK, NY
8/2013 – 4/2015

RBS SECURITIES, INC.
CRD # 11707
STAMFORD, CT
7/2008 – 6/2013

BEAR, STEARNS & CO.
CRD # 79
NEW YORK, NY
8/2003 – 7/2008

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 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.

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.

Identifying Risk Factors that Make Investors Susceptible to Fraud

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The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called Avoiding Investment Scams which described risk factors that make investors susceptible to investment fraud and provides tips to avoid being scammed.

FINRA has identified the 5 following risk factors for investors falling prey to fraudsters:

  1. Owning high-risk investments.
    2. Relying on friends, family, co-workers for advice.
    3. Being open to new investment information.
    4. Failing to check the background of an investment or investment professional.
    5. Inability to spot persuasion tactics used by fraudsters.

FINRA urges investors to ask questions about investments and investment professionals by doing the following:

  1. Perform a Background Search on the Investment Professional: Ask if the investment professional is licensed to sell you the investment and confirm which regulator issued their license. Additionally, ask if and when their license has ever been revoked or suspended. A legitimate securities salesperson must be properly licensed, and his or her firm must be registered with FINRA, the SEC or a state securities regulator—depending on the type of business the firm conducts. An insurance agent must be licensed by the state insurance commissioner where he or she does business. To verify the investment professional’s response use FINRA BrockerCheck, contact National Association of Insurance Commissioners or contact North American Securities Administrators Association.
  2. Check Out Investments: Ask whether the investment is registered and, if so, with which regulator. Usually companies register their securities before they can sell shares to the public. You can find out whether a product is registered with the SEC by using the EDGAR database. Additionally, you can also use FINRA’s ScamMeter to determine whether an investment might be a scam.

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.