Stockbrokers In The News - Law Offices of Robert Wayne Pearce

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.

Mar 31, 2014

Merrill Lynch Brokers Andres Rojas and Giancarlo Ciocca Barred for Impersonation of Customers

The Financial Industry Regulatory Authority (FINRA) has permanently barred Andres Enrique Rojas (Rojas) and Giancarlo Ciocca (Ciocca), former Merrill Lynch Pierce Fenner and Smith, Inc. (Merrill Lynch) stockbrokers, for impersonation of a customer to obtain online access to the customer’s account to prevent the customer from detecting substantial losses. According to the recent decision of a FINRA Hearing Officer, Mr. Rojas was terminated by Merrill Lynch for “conduct including diverting a client’s account statements.” Mr. Rojas did not answer or otherwise defend the complaint. FINRA previously barred Mr. Ciocca for the same misconduct

Mar 28, 2014

Stuart Siegel Named in FINRA Complaint Alleging Conversion of Funds

Stuart James Siegel, a former Bradenton, Florida-based registered representative employed by Morgan Stanley, was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging conversion of funds. Mr. Siegel was appointed president of a foundation established after the death of one of his customers and opened a brokerage account at his firm to fund its activities. FINRA’s complaint alleges that Mr. Siegel obtained his firm’s permission to serve as president, but firm policies prohibited him from receiving any compensation and from serving as the registered representative for the foundation’s brokerage account. In addition to Mr. Siegel’s duty to review grants, donations, and placing trades, he had access to the foundation’s checking account, could withdraw funds, and had authority to use its debit card. Mr. Siegel allegedly converted more than $76,000 of the foundation’s funds to repay personal loans, pay his children’s school tuition, and pay personal life insurance policy premiums without informing or seeking permission from foundation officers or board members. After Morgan Stanley discovered the alleged conversion, Mr. Siegel reimbursed the foundation for the expenditures.

Mar 27, 2014

FINRA Complains That Reginald Berthiaume Jr. Failed to Disclose Outside Business Activities

Reginald Maurice Berthiaume Jr., a former Orlando, Florida-based registered representative formerly employed by Boston, Massachusetts-based Moors & Cabot, Inc. and later at Ft. Lauderdale, Florida-based Kovack Securities, Inc., was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he failed to timely disclose to each of his member firms his involvement in outside businesses. The complaint alleges that Mr. Berthiaume failed to timely respond to FINRA requests for documents and information concerning known associates of one of the businesses and business-related electronic communications and correspondence relating to two businesses. The complaint also alleges that Mr. Berthiaume made an incomplete response to one request for information and documents by only providing some printed emails and copies of checks. FINRA received additional, but incomplete, production of documents after Mr. Berthiaume received a Wells notice – a letter that a regulator sends to people or firms when it is planning to bring an enforcement action against them. The complaint further alleges that Mr. Berthiaume failed to appear for on-the-record testimony.

Mar 25, 2014

FINRA Accuses Karen Lee Chafe of Altering Variable Annuity Documents

The Financial Industry Regulatory Authority (FINRA) has filed a complaint against Karen Lee Chafe, a Berthel, Fisher & Co. Financial Services, Inc. (Berthel Fisher) representative in its Melbourne Beach, Florida offices of altering at least 61 variable annuity withdrawal forms and IRA distribution/withdrawal request forms for over 14 customers. According to FINRA, Ms. Chafe obscured information, added new information to the forms, and then submitted the forms as new forms being filed for customers at her brokerage firm. The recycled distribution/withdrawal request forms were altered in various ways and were not re-signed by any of the customers. Ms. Chafe allegedly admitted to FINRA staff members her misconduct. FINRA claims the altered forms caused Berthel Fisher and the annuity company to maintain inaccurate books and records. Ms. Chafe has been charged with multiple violations of NASD Conduct Rule 2110 and FINRA Rule 2010.

Mar 24, 2014

Violeta Godoy Barred by FINRA for Misappropriating Customer’s Funds

Violeta Maria Godoy Zuniga, a former Doral, Florida-based registered representative employed by New York, New York-based J.P. Morgan Securities, LLC, submitted a Letter of Acceptance, Waiver and Consent in which she consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that she misappropriated $7,000 from a bank customer for personal use. FINRA’s findings stated that after Ms. Godoy assisted a bank customer in opening a new savings account, the customer instructed Ms. Godoy to withdraw $8,000 from an existing account and deposit the funds in the newly opened account. Further, Ms. Godoy deposited $1,000 and kept the remaining $7,000 for personal use. During the customer’s next visit to the bank, Ms. Godoy allegedly approached and informed him that she had taken the funds from his account but would return the funds to him. Ms. Godoy then supposedly asked the customer not to report the misappropriation to management. J.P. Morgan Securities terminated Ms. Godoy after the customer filed a police report, and the customer was reimbursed. Ms. Godoy was barred from association with any FINRA member in any capacity.

Mar 20, 2014

Phillip Gainey Fined and Suspended by FINRA for Selling Away Equity-Indexed Annuities

An annuity is a form of insurance that offers a series of payments for a period of time. The traditional annuities are either fixed or variable. Fixed annuities are invested in conservative investments, and the return to investors may vary, but a minimum rate of return is established. Variable annuities are higher in risk when compared to fixed annuities and depend on how the stock market is performing. Variable annuity buyers have the option to allocate the cash invested into different asset classes such as mutual funds, indices, fixed income investments or bonds, and money market.