Library - Law Offices of Robert Wayne Pearce

Former Meyers Associates Broker Named in FINRA Complaint for Allegations of Excessive Trading

Craig Gary Langweiler, a Philadelphia, Pennsylvania-based registered representative formerly employed with Meyers Associates, L.P., n/k/a Windsor Street Capital, was named a Respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he excessively traded the account of his customer, generating high commissions for himself and substantial losses for his customer. According to the FINRA complaint, Mr. Langweiler executed 257 trades in his customer’s account during the relevant period, which was a mere 193 days. FINRA alleges that Mr. Langweiler generated approximately $27,092 in commissions, whereas his customer incurred losses in excess of $33,000. FINRA found that Mr. Langweiler exercised control over the customer’s account through his use of discretion, for which he allegedly never sought, nor obtained, written authorization.

Sep 29, 2017

FINRA Bars Morgan Stanley Broker for Knowingly Misrepresenting Customer Account Values

Kim Dee Isaacson, a former registered representative with Morgan Stanley, submitted an Offer of Settlement to the Financial Industry Regulatory Authority (FINRA) in which he consented to, but did not admit to or deny, FINRA’s findings that he knowingly misrepresented his customer’s account value by more than $3.1 million and willfully executed trades in his customer’s accounts despite express orders not to do so. During the relevant period, Kim Dee Isaacson, of Farmington, Utah, earned nearly $400,000 in commissions and fees from his customer’s accounts, which were valued at approximately $27 million. Although Mr. Isaacson and his client spoke on the phone nearly every day regarding the accounts’ performance, Mr. Isaacson began providing false and inflated account values to hide the accounts’ losses. According to FINRA, Mr. Isaacson’s customer believed his accounts held $3.1 million more than their actual value because of his misrepresented account valuations. Further, FINRA found that Mr. Isaacson continued to purchase securities and long-term bonds despite his customer’s instructions not to do so. FINRA also found that Mr. Isaacson engaged in unauthorized trading in the accounts, effecting approximately 360 transactions without consent. Consequently, Kim Dee Isaacson was permanently barred from association with any FINRA member in any capacity.

Sep 27, 2017

FINRA Hits Morgan Stanley with $13 Million in Fines and Restitution for Inadequate Supervision of UITs

The Financial Industry Regulatory Authority (FINRA) announced today that it ordered Morgan Stanley Smith Barney LLC (Morgan Stanley) to pay $13 million in fines and restitution for failing to supervise the sales of unit investment trusts (UITs). FINRA found that from January 2012 through June 2015, hundreds of Morgan Stanley brokers executed short-term UIT rollovers in thousands of customer accounts. Further, FINRA found that Morgan Stanley failed to adequately supervise its representatives’ sales by failing to provide sufficient guidance or training to detect unsuitable short-term UIT trading.

Sep 21, 2017

Allstate Financial Broker Suspended by FINRA for Selling Unapproved Insurance Products

David Panetta, a representative formerly employed with Allstate Financial Services, LLC (Allstate), submitted a Letter of Acceptance, Waiver, and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he engaged in outside business activities without his firm’s approval. FINRA’s findings state that while employed by Allstate, David M. Panetta, of Clark, New Jersey, sold nine unapproved insurance products through an entity unaffiliated with Allstate. Mr. Panetta allegedly received $12,000 in compensation for the prohibited sales, but failed to disclose the sales or his compensation to his member firm. Further, FINRA found that Mr. Panetta falsely answered “no” on the firm annual attestations to the questions asking if he had any outside business activities or accepted compensation from any unapproved entity. Mr. Panetta was assessed a deferred fine of $7,500 and suspended from association with any FINRA member in any capacity for two months. The suspension was in effect from June 5, 2017 through August 4, 2017.

Sep 8, 2017

MetLife Securities Broker Suspended by FINRA for Impersonating Customer for Wire Transfer

Jose Perez, a representative formerly employed with MetLife Securities, Inc. (MetLife), submitted a Letter of Acceptance, Waiver, and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he directed his assistant to impersonate his customer, while he impersonated the customer’s brother, in order to effect a transfer of funds. FINRA’s findings state that while employed by MetLife Securities, Jose J. Perez, of Orland Park, Illinois, was advised that his customer was retiring and asked that he transfer pension funds held by a third-party company to her MetLife account. In an attempt to accommodate the customer’s request, Mr. Perez and his assistant telephoned the third-party company and, instead of using their real names, Mr. Perez allegedly impersonated the customer’s brother and his assistant allegedly impersonated the customer. According to FINRA, Mr. Perez and his assistant directed the third-party company to transfer funds to the MetLife account, but failed to realize that the customer held two retirement accounts with the company. Consequently, the funds transferred were funds from the customer’s 401(k) account rather than the pension account.

Sep 5, 2017

Wells Fargo Broker Permanently Barred for Failing to Respond to FINRA Investigation into Undue Influence of Elderly Client

James Schaedler, Jr., former registered representative with Wells Fargo Clearing Services (Wells Fargo), has been barred by the Financial Industry Regulatory Authority (FINRA) for refusing to produce information and documents requested by FINRA in connection with an investigation into allegations that he exercised undue influence over an elderly former client and improperly received a $200,000 gift from another elderly client. FINRA began an investigation in January 2016, into allegations that James Robert Schaedler, Jr., of Corona, California, exercised undue influence over a former elderly client, who ultimately amended her trust to make Mr. Schaedler a partial beneficiary and residual beneficiary of her $2.3 million dollar estate. Further, FINRA expanded its investigation to include allegations that Mr. Schaedler improperly received a gift of $200,000 from a second elderly client.

Sep 1, 2017

FINRA Bars Girard Securities Broker for Misuse of Customer Funds and other Violations

Former Girard Securities broker Jason LeBlanc, of Fulshear, Texas, has been barred by the Financial Industry Regulatory Authority (FINRA) for numerous violations, including misuse of customer funds, failure to disclose outside business activities, and engaging in private securities transactions without the firm’s approval. According to FINRA, Jason Hyson LeBlanc violated FINRA rules by engaging in private securities transactions without his firm’s knowledge or approval by selling numerous promissory notes and partnership interests in a coffee shop. FINRA also found that Mr. LeBlanc misused customer funds when he sold a customer a $23,000 promissory note to invest in the coffee shop, returned $3,000 to the customer, and invested the remaining $20,000 in a real estate investment company without her knowledge or consent. Further, Mr. LeBlanc was found by FINRA to have commingled customer and personal funds to pay bills for various business entities and his personal expenses. Without admitting or denying FINRA’s findings, Mr. LeBlanc was barred from associating with any FINRA member in any capacity.

Aug 29, 2017

Former Cetera Advisor Networks Broker Permanently Barred by FINRA for Failing to Respond to Investigation into Unsuitable Trading

Former Cetera Advisor Networks broker Mark Koehler has been barred by the Financial Industry Regulatory Authority (FINRA) for refusing to produce information and documents requested by FINRA in connection with an investigation into unsuitable trading in a senior customer’s accounts, including short-term mutual fund switching and excessive trading. FINRA began an investigation in April 2014, upon receipt of a tip that Mark Charles Koehler, of Chadds Ford, Pennsylvania, had engaged in unsuitable trading in the accounts of a senior customer. In the course of its investigation, FINRA reviewed trading in other of Mr. Koehler’s customer accounts and sought to investigate the following: whether Mr. Koehler engaged in unsuitable short-term mutual fund switching and excessive trading; whether he placed undue influence on a customer before her death; and whether Mr. Koehler failed to disclose his status as beneficiary in the same customer’s will.

Aug 25, 2017

Cetera Advisors to Pay More Than $600K in Restitution for Mutual Fund Overcharges

Cetera Advisors LLC has agreed to pay more than $628,000 in restitution to customers who were overcharged in certain mutual fund purchases. According to the Financial Industry Regulatory Authority (FINRA), between July 1, 2009 and January 1, 2017, Cetera Advisors disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares of certain mutual funds without a front-end sales charge. The customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. Cetera Advisors is headquartered in Denver, Colorado, with approximately 1,788 registered representatives and 961 branch offices. According to the Letter of Acceptance, Waiver and Consent (AWC) submitted to FINRA, Cetera Advisors failed to reasonably supervise the application of the sales charge waivers to the eligible mutual fund sales, relying on its financial advisors to determine the applicability of sales charge waivers. Further, Cetera Advisors allegedly failed to adequately notify and train its financial advisors regarding the availability of mutual fund sales charge waivers for eligible customers. Without admitting or denying the findings, Cetera Advisors was censured, required to provide a remediation plan to FINRA, and agreed to pay restitution to eligible customers who were overcharged an estimated $628,040.

Aug 23, 2017

Guggenheim Securities Broker Permanently Barred by FINRA for Conversion

John Regan, a registered representative formerly employed with Guggenheim Securities, LLC, has been permanently barred by the Financial Industry Regulatory Authority (FINRA) amid findings that he converted funds for his personal use. According to FINRA, John Emmett Regan, of New York, New York, converted approximately $25,000 in firm funds between September 2012 and March 2014. Mr. Regan allegedly falsely submitted approximately 90 personal expenses for reimbursement as business expenses. Conversion of funds is a violation of FINRA Rule 2010. Conversion is the intentional and unauthorized taking of ownership over property by one who neither owns the property nor is entitled to have it. Without admitting or denying FINRA’s findings, Mr. Regan was permanently barred from association with any FINRA member in any capacity.

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