April 2014 - Page 2 of 2 - Law Offices of Robert Wayne Pearce

Apr 10, 2014

UBS Puerto Rico Investor Claims For Unsuitable Investments

The UBS Puerto Rico stockbroker has been the client’s primary broker for many years and knows the client’s age, employment status, and financial condition. The stockbroker knew that the client’s life savings were deposited with UBS Puerto Rico and in his hands. The client has been a passive investor and relied exclusively on his stockbroker to make all of the investment decisions in his UBS Puerto Rico account. As a result of the UBS Puerto Rico stockbroker’s recommendations and decisions, the client’s account became highly concentrated (100%!) in Puerto Rico bonds.

Apr 7, 2014

FINRA Suspends Marylin Myers for Selling Away On The Edge Marketing Notes

Marylin T. Myers, a former Bayview, Texas-based registered principal employed by Lincoln, Nebraska-based Allstate Financial Services, LLC, submitted a Letter of Acceptance, Waiver and Consent in which she consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that she participated in the sale of a privately held company’s promissory notes to investors without notifying her firm or obtaining the firm’s written approval. FINRA’s findings stated that Ms. Myers recommended that investors, who were not the firm’s customers, invest in On The Edge Marketing LLC notes. Ms. Myers helped facilitate their purchases and invested $16,000 of her own money in the notes. Collectively, the investors and Ms. Myers invested more than $1,000,000 in the notes. To date, On The Edge Marketing has failed to repay the principal and interest due to the investors and Ms. Myers. FINRA’s findings also stated that on the firm’s annual compliance questionnaires, Ms. Myers inaccurately stated that she had not engaged in any private securities transactions and inaccurately stated that she had not engaged in soliciting, referring, or recommending any private placements or private securities products.

Apr 4, 2014

FINRA Fines and Suspends Allen St. Amour for Selling Away Equity Indexed Annuities

Allen Wayne St. Amour, a former Traverse City, Michigan-based registered representative employed by Springfield, Massachusetts-based MML Investors Services, LLC and New York, New York-based NYLIFE Securities LLC, was fined and suspended based on the Financial Industry Regulatory Authority’s (FINRA) findings that he sold equity indexed annuities to his member firm’s customers without giving prior written notice to the firm. Mr. St. Amour allegedly received a total of $114,030 in compensation for the sales. FINRA’s findings also stated that Mr. St. Amour signed a customer’s name on documents related to the purchase of variable annuities in contravention of his firm’s rules and without receiving the customer’s written authorization to sign the customer’s name. Mr. St. Amour allegedly submitted the documents to his firm without informing anyone that he had signed the customer’s name. FINRA’s findings further stated that Mr. St. Amour failed to amend his Form U4 to disclose a fine the Indiana Commissioner of Insurance had imposed.

Apr 3, 2014

FINRA Accuses Bruce Supanik of Misappropriating Customer’s Funds

Bruce Francis Supanik, a former Miami, Florida-based registered representative employed by Cincinnati, Ohio-based The O.N. Equity Sales Company, submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he failed to provide documents and information FINRA had requested and failed to appear and provide on-the-record testimony in relation to the events surrounding his member firm’s termination of his employment for allegations that he transferred the balance of a customer’s account. The balance was allegedly transferred to the joint checking account he shared with the customer and totaled $506,450.32. According to FINRA, Mr. Supanik then withdrew the balance from the joint checking account and deposited it into his personal bank account. FINRA stated that in view of Mr. Supanik’s failure to comply with FINRA’s requests for documents, information, and testimony, he hindered FINRA’s ability to fully investigate the matters at issue in this investigation. Mr. Supanik was barred from association with any FINRA member in any capacity.

Apr 2, 2014

Brian Brunhaver Named in FINRA Complaint Alleging a Number of Industry Violations

Brian Harris Brunhaver, a former Snohomish, Washington-based registered principal employed by Boston, Massachusetts-based LPL Financial LLC, was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he used an unauthorized email account to communicate with customers and his assistant regarding his securities business. The complaint alleges that LPL Financial issued an adviser alert informing its registered representatives that they would be required to use either a firm-provided email address or an address approved by its compliance officers hosted with a firm-approved email host vendor. However, Mr. Brunhaver allegedly used both his firm-provided email address and a personal email account following the adviser alert for business communications without obtaining his firm’s permission. Mr. Brunhaver also allegedly allowed his assistant to use her personal email account for business communications.

Apr 1, 2014

FINRA Permanently Bars Stockbroker Ariel Hernandez

Until recently, Ariel Luis Fernandez was a registered stockbroker with Liberty Partners Financial Services, LLC (Liberty Partners) and a registered Investment Advisor with Liberty Partners Capital Management, LLC in Pembroke Pines, Florida. Rather than face the music, it appears that Mr. Hernandez entered into an agreement with the Financial Industry Regulatory Authority (FINRA) to be barred from any future registration in the securities industry for noncompliance with an industry rule. The FINRA Rule he agreed that he violated was Rule 8210. It requires that registered persons cooperate with ongoing investigations by producing documents and giving testimony. By agreeing not to cooperate, Mr. Hernandez closed down the investigation and avoided severe sanctions.