Tag: Stock attorney

AEGIS CAPITAL CENSURED, FINED AND ORDERED TO PAY RESTITUTION

Posted by finralawyer on November 27, 2017 with 0 Comment

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 7^th Ave. 18^th and 22^nd 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.

Tallahassee Florida Broker Barred by FINRA for Misuse of Customer Funds

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, William Oscar Hardy Jr. (CRD #1444999) was barred by FINRA for misusing customer insurance premium funds which caused the customer’s policy to lapse. FINRA alleged that Hardy misused $658 in customer funds by applying them to various insurance policies held by the customer’s daughter and son-in-law, and depositing some of the funds into his personal business checking account, instead of paying the customer’s premium payments for his fixed life insurance policy. As a result, the customer’s policy lapsed. (See FINRA AWC. No. 2014039881901)

According to FINRA’s Broker Check, William Hardy has been permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. Hardy was registered in the securities industry for twenty eight (28) years with the following firm(s):

NYLIFE SECURITIES LLC
CRD #5167
TALLAHASSEE, FL
05/2002 – 03/2014

MUTUAL OF OMAHA INVESTOR SERVICES, INC.
CRD #611
OMAHA, NE
12/1985 – 03/2002

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.

Wells Fargo Advisors, LLC Fined and Required to Revise Written Supervisory Procedures

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, Wells Fargo Advisors, LLC (CRD #19616) of St. Louis, Missouri, was censured, fined $35,000, and required to revise its Written Supervisory Procedures (WSPs). The Firm allegedly accepted and held customer market orders, traded for its own account at prices that would have satisfied the customer market orders, and failed to immediately thereafter execute the customer market orders.

FINRA alleged that the firm failed to show the correct time of execution on the memorandum of numerous different brokerage orders, which was a direct violation of FINRA rules. FINRA’s findings also allege that the firm’s Written Supervisory Procedures did not provide for reasonable supervision designed to achieve compliance with respect to the applicable securities laws and regulations, and FINRA rules. (See FINRA AWC. No. 20120352228-01)

Ft. Lauderdale Florida Broker Sylvester King Suspended and Fined by FINRA for Concealing Customer Loans

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, Sylvester King Jr. (CRD #4011622) of Miramar, Florida, was suspended for eighteen (18) months and fined $35,000 for allegedly helping another broker conceal hundreds of thousands of dollars in customer loans. FINRA alleged that from the period of July 2009 through November 2012 while registered with Morgan Stanley and then later Wells Fargo Advisors, King circumvented Wells Fargo’s policies and procedures by allegedly helping another registered representative conceal approximately $399,500 in loans of three (3) clients who were professional athletes in the NFL and NBA, loaned $25,000 to a firm customer without permission from his firm, participated in a private securities transactions that were undisclosed, and provided false information to Morgan Stanley on two separate questionnaires. (See FINRA AWC No. 2013036262101)

According to FINRA’s Broker Check, Sylvester King Jr. is not currently licensed to act as a broker or as an investment adviser. King was registered in the securities industry for fifteen years (15), and was registered with the following firm(s):

WELLS FARGO ADVISORS, LLC
CRD # 19616
FORT LAUDERDALE, FL
10/2011 – 05/2015

MORGAN STANLEY SMITH BARNEY
CRD #149777
FORT LAUDERDALE, FL
11/2006 – 06/2009

CITIGROUP GLOBAL MARKETS INC.
CRD #7059
FORT LAUDERDALE, FL
11/2006 – 06/2009

BANC OF AMERICA INVESTMENT SERVICES, INC.
CRD #16361
FORT LAUDERDALE, FL
10/1999 – 11/2006

Boca Raton Florida Broker Barred by FINRA for Allegedly Converting Funds from Clients’ Accounts

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, Richard W. Ohrn (CRD No. 5106991) of Boca Raton, was barred by FINRA for allegations of theft from his elderly clients. FINRA’s findings alleged that Ohrn converted a total of $15,250 from two (2) of his elderly clients at Chase Investment Services Corporation. Allegations also stated the Ohrn forged or falsified the signatures of four (4) customers at Chase Investment Services Corporation, on nine (9) separate documents, and also changed the addresses of these clients so that their statements would be mailed to Ohrn’s firm or his firm’s bank. (See FINRA Disciplinary Proceeding No. 2012030987301)

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

WELLS FARGO ADVISORS, LLC
CRD #19616
BOCA RATON, FL
06/2011 – 08/2012

CHASE INVESTMENT SERVICES CORP.
CRD #25574
BOCA RATON, FL
07/2009 – 06/2011

USF SECURITIES, L.P.
CRD #37942
PALM BEACH, FL
08/2006 – 12/2007

Miami Florida Broker Fined and Suspended by FINRA for Allegedly Borrowing Funds from Client

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions Publications, Miami broker Patrick McGrath III (CRD #1251254), also known as Pat McGrath, was fined $10,000 and suspended for four (4) months for allegedly borrowing $210,000 from a customer. Allegedly McGrath defaulted on the loan and his client filed a lawsuit to recover the funds owed.

FINRA alleged that McGrath was prohibited from borrowing funds from clients, other than family members, by his firm’s written supervisory procedures. FINRA also alleged that McGrath submitted three (3) compliance questionnaires to his brokerage firm which falsely stated he had not borrowed funds from a Firm customer, when he in fact had. (See FINRA AWC No. 2013037238901)

According to FINRA’s Broker Check, Patrick McGrath III has been registered in the securities industry for thirty one (31) years. McGrath is currently registered with the following firm:

NORTHEAST SECURITIES, INC.
CRD #25996
MIAMI, FL
02/2014 – PRESENT

McGrath has previously been registered with the following firm(s):

OPPENHEIMER & CO., INC.
CRD #249
MIAMI, FL
04/2009 – 01/2014

WACHOVIA SECURITIES, LLC
CRD #19616
CORAL GABLES, FL
07/2003 – 04/2009

PRUDENTIAL SECURITIES INCORPORATED
CRD #7471
NEW YORK, NY
05/2001 – 07/2003

UBS PAINEWEBBER INC.
CRD #8174
WEEHAWKEN, NJ
07/1990 – 05/2001

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
CRD #7691
NEW YORK, NY
05/1984 – 08/1990

Former Pennsylvania Stockbroker Accused in Ponzi Scheme and Barred by FINRA

Posted by finralawyer on November 14, 2017 with 0 Comment

According to a Press Release from the U.S. Securities and Exchange Commission (SEC), Malcolm Segal (CRD #1723563), a former stockbroker of Aegis Capital, was charged with conducting a Ponzi Scheme and stealing investor money to use for his own benefit.

The SEC alleged that Segal fraudulently sold certificates of deposits (CDs) to his customers by assuring them that they were FDIC-insured and claiming that he could get them higher interest rates of return than otherwise available to the general public. Segal then allegedly purchased CDs for his clients, but without their knowledge or consent, sold the CDs and kept the proceeds for himself. The SEC further alleged that Segal eventually began stealing directly from his customers by forging letters of authorization to facilitate the transfer of customer funds to personal accounts he controlled. The SEC further alleged that Segal stole directly from his customers’ brokerage accounts. Segal allegedly raised $15.5 million from investors, which he either spent on himself or used to pay interest and principal repayments to earlier investors in a Ponzi scheme fashion.

According to FINRA’s Disciplinary and Other FINRA Actions publication, Segal also failed to provide documents and information and appear for testimony as requested by FINRA. (See FINRA AWC No. 2014041990901)

According to FINRA’s Broker Check, Malcolm Segal has been permanently barred from acting as a broker or otherwise associating with firms to sell securities to the public. Segal was registered in the securities industry for twenty five (25) years with the following firm(s):

AEGIS CAPITAL CORP.
CRD #15007
NEW YORK, NY
04/2011-07/2014

CUMBERLAND BROKERAGE CORPORATION
CRD #13409
LANGHORNE, PA
01/1989-04/2011

Arizona Broker Attempts to “Inherit” $1.8 Million Trust Account from Customer with Alzheimer’s

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, FINRA filed a complaint against John A. Waszolek (CRD #800403) for allegedly taking advantage of his client who suffered from Alzheimer’s disease, dementia, and memory loss. From the period of 2008 through 2009 Waszolek was registered with FINRA first through UBS Financial Services, Inc. and later through Morgan Stanley Smith Barney. While registered with UBS in 2009, Waszolek allegedly took advantage of his client by having her assign him as beneficiary to her trust, even though at the time, she was unable to protect herself from exploitation. Indeed, FINRA alleged that in December 2008, an estate planning attorney informed Waszolek that she would not amend the client’s trust to make Waszolek a beneficiary because a psychologist had concluded that the client lacked sufficient testamentary capacity.

FINRA alleged that despite this knowledge, Waszolek (through a separate attorney) procured an appointment as successor trustee and residual beneficiary of the client’s trust account. Waszolek allegedly further violated his member firm’s written procedures by failing to disclose that he had been appointed as a beneficiary to a customer’s trust account, successor trustee of the client’s trust, or that he had received a healthcare power of attorney over the client. (See FINRA Disciplinary Proceeding No. 2012031181001)

According to FINRA’s Broker Check, John A. Waszolek has been registered in the securities industry for thirty nine (39) years. Waszolek is currently registered with the following firm:

RAYMOND JAMES & ASSOCIATES, INC.
CRD #705
SCOTTSDALE, AZ
02/2012 – PRESENT

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

MORGAN STANLEY SMITH BARNEY
CRD #149777
SCOTTSDALE, AZ
06/2009 – 01/2012

MORGAN STANLEY & CO. INCORPORATED
CRD #8209
SCOTTSDALE, AZ
03/2009 – 06/2009

UBS FINANCIAL SERVICES INC.
CRD #8174
SCOTTSDALE, AZ
09/1979 – 01/1980

PAINE, WEBBER, JACKSON & CURTIS INCORPORATED
CRD #640
10/1979 – 01/1980

SECURITY FIRST FINANCIAL, INC.
CRD #6695
10/1978 – 10/1979

MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
CRD #572
10/1974 – 06/1977

Florida Broker Terminated for Allegedly Using Customer Funds for His Own Personal Benefit

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions Publication, Giovanni L. Acevedo (CRD No. 2508321) of Voya Financial Advisors, formerly known as ING Financial Partners, was terminated for allegedly stealing money from his clients and for providing false information to FINRA during its investigation.

FINRA alleged that Acevedo converted more than $160,000 from three (3) customers for his own personal use rather than investing the clients’ funds. Acevedo allegedly took checks from his clients, altered the payee line, and deposited them into his personal account rather than investing the funds. (See FINRA Disciplinary Proceeding No. 2014041529001)

According to FINRA’s Broker Check, Giovanni L. Acevedo is not currently licensed to act as a broker or as an investment adviser. Acevedo was registered in the securities industry for twenty years (20) with the following firm(s):

VOYA FINANCIAL ADVISORS, INC.
CRD #2882
WILTON MANORS, FL
08/2006 – 09/2014

QUESTAR CAPITAL CORPORATION
CRD #43100
FORT LAUDERDALE, FL
02/2000 – 08/2006

FIRST UNION BROKERAGE SERVICES, INC.
CRD #8112
CHARLOTTE, NC
07/1994 – 02/2000

New Jersey Broker Fined and Suspended by FINRA Over Recommendations of Non-Traditional Exchange Traded Funds (ETF’s)

Posted by finralawyer on November 14, 2017 with 0 Comment

According to FINRA’s Disciplinary and Other FINRA Actions publication, Daniel Grieco (CRD #1222747) was fined $7,500 and suspended by FINRA for fifteen (15) business days for allegedly recommending non-traditional exchange-traded funds (ETFs) to clients without having reasonable grounds to believe the funds were suitable for his clients.

FINRA’s findings state that the ETFs were designed to achieve their objectives over the course of a single day only, but were held for much longer periods, in some cases for more than five (5) years. FINRA alleges that by these extended holding periods, Grieco failed to appreciate the nature of the ETFs as they were not designed to achieve their objectives for extended holding periods. As such, FINRA further alleges that Grieco did not have reasonable grounds to believe his recommendations were suitable. (See FINRA AWC No. 2013035076201)

According to FINRA’s Broker Check, Daniel Grieco has been registered in the securities industry for thirty one (31) years. Grieco is currently registered with the following firm:

FIRST ALLIED SECURITIES, INC.
CRD #23121
EATONTOWN, NJ
08/2010 – PRESENT

Grieco was previously registered with the following firms
ROYAL ALLIANCE ASSOCIATES, INC.
CRD #23131
WEST ORANGE, NJ
04/2007 – 08/2010
FIRST MONTAUK SECURITIES CORP.
CRD #13755
RED BANK, NJ
08/1997 – 04/2007
ARGENT SECURITIES, INC.
CRD #15297
ATLANTA, GA
06/1996 – 07/1997
PATTERSON TRAVIS, INC.
CRD #16540
ENGLEWOOD, CO
01/1995 – 07/1996
FINRA Expelled the Firm in 06/2003
ROBERT TODD FINANCIAL CORP.
CRD #7423
NEW YORK, NY
11/1994 – 12/1994
WESTFIELD FINANCIAL CORPORATION
CRD #8143
NEW YORK, NY
10/1994 – 11/1994
HIBBARD BROWN & CO., INC.
CRD #18246
NEW YORK, NY
06/1988 – 09/1994
FINRA Expelled this Firm in 02/1996
SHERWOOD CAPITAL, INC.
CRD #10474
02/1987 – 05/1988
FIRST JERSEY SECURITIES, INC.
CRD #6621
01/1984 – 01/1987
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.