Unsuitable Recommendations - Page 2 of 67 - Law Offices of Robert Wayne Pearce

663 search results found for “Unsuitable Recommendations”

Jan 23, 2019

NYLife Securities Broker Suspended for Unsuitable Recommendations

David Raymond Colflesh submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended and ordered to pay 34,546.98 in deferred disgorgement of commissions received. David Colflesh, of Tarkio, Missouri, was registered with NYLife Securities from 1982 until 2016 as a variable contract representative and a direct participation programs representative. From October 2014 to July 2015, Mr. Colflesh allegedly recommended nondiversified mutual funds to ninety customers without having basis to believe that his recommendations were suitable because he did not understand the funds’ complexity or potential risks. According to FINRA, the customers purchased 250 funds worth $4.5 million and Mr. Colflesh earned $34,546.98 in commissions. FINRA also stated Mr. Colflesh’s recommendations exposed his customers to a level or risk that was unsuitable, given their investment objectives. Based on the foregoing, FINRA concluded David Colflesh violated FINRA Rules 2111 and 2010.

Jan 18, 2019

Maxim Group Stockbroker Suspended for Unsuitable Recommendations

Eric Howard Kunis, of South Setauket, New York, submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which Kunis was assessed a deferred fine of $2,500, suspended for two months and ordered to pay $2,189.78 in restitution to his customers. From 2002 through 2018, Kunis was registered with Maxim Group as a General Securities Principal. According to FINRA, between February 2012 and January 2017 Kunis engaged in an unsuitable pattern of short-term trading in the accounts of eleven customers. FINRA stated that Kunis repeatedly recommended his customers purchase and sell unit investment trusts (UITs) before their maturity date, causing the customers to incur unnecessary sales charges. Based on the foregoing, FINRA concluded that Kunis violated NASD Rule 2310 along with FINRA Rules 2111 and 2010.

Jan 16, 2019

Financial West Stockbroker Barred for Churning and Unsuitable Recommendations

John Scott Simoncic of Carlsbad, California submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for willfully violating Section 10(b) of the Securities Exchange Act of 1934, Exchange Act Rule 10b-5 and FINRA Rules 2020, 2111 and 2010. From May 2014 until November 2016 Simoncic was registered with Financial West as a General Securities Representative and Supervising Principal. According to FINRA, while registered with Financial West, Mr. Simoncic was responsible for churning, engaging in excessive trading, and making unsuitable recommendations in five accounts held by two customers. FINRA stated that the customers gave Mr. Simoncic de facto control over the accounts and relied upon him completely to advise the accounts. Mr. Simoncic allegedly charged the customers commissions and fees totaling $79,000, earning 88 percent of his gross commission solely from the accounts, and caused the customers to exceed losses of $105,000.

Jan 2, 2019

Wells Fargo Stockbroker Suspended for Unsuitable Recommendations

Richard Stephen Hughes submitted a submitted of Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for unsuitable recommendations. In October of 2011, Hughes registered as a General Securities Representative and General Securities Principal with Wells Fargo. According to FINRA, between April 2015 and May 2016 Hughes made unsuitable recommendations to a customer resulting in short-term switches between Unit Investment Trusts (UITs) and Class A-share mutual funds. The findings stated these recommendations were unsuitable because of the frequency and cost of the transactions. The findings also stated that the customer’s account incurred over $34,000 in excessive commissions and fees and that Hughes created a script containing false statements for the customer to use if contacted by the firm about the transactions made. Hughes’ conduct violated FINRA Rules 2111 and 2010.

Mar 13, 2018

Spencer Edwards Broker Suspended for Unsuitable Recommendations

Richard Seefried, of Spokane, Washington, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for unsuitable recommendations of convertible notes. FINRA found that while employed with Spencer Edwards, Inc., Richard Seefried failed to adequately investigate representations made by the issuer of convertible promissory notes. According to the FINRA AWC, Mr. Seefried failed to investigate discrepancies in materials provided by the issuer of the notes and failed to investigate the background of the officers of the issuer, who had prior litigation alleging securities fraud. Mr. Seefried made unsuitable recommendations to two of his customers, sold $200,000 of the notes and received commission of $13,600.

Oct 18, 2017

RBC Capital Representative Barred Amid Allegations of Unsuitable Recommendations

Paul Blum, a former registered representative with RBC Capital Markets, LLC (RBC Capital), submitted a Letter of Acceptance, Waiver and Consent in which he was barred by the Financial Industry Regulatory Authority (FINRA) for failing to appear for on-the-record testimony which was requested amid an investigation into customer complaints and arbitration claims alleging unsuitable recommendations and excessive trading. FINRA Rule 8210 requires registered representatives to appear for on-the-record testimony at any time. According to FINRA, Mr. Blum acknowledged that he received FINRA’s request for his testimony in conjunction with the investigation into customer complaints and arbitration claims, but he refused to appear. Mr. Blum’s BrokerCheck report notes that there are nine pending customer disputes and 11 settled disputes involving allegations of, among other things, unsuitable recommendations and excessive trading. Consequently, Paul Vincent Blum, of Jupiter, Florida, was barred from association with any FINRA member in any capacity.

Apr 24, 2017

LPL Financial Broker Suspended for Unsuitable Recommendations to Elderly Customers

Adam Fritzsche, a stockbroker formerly registered with LPL Financial Corporation (LPL Financial), submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was suspended for one year for allegedly making unsuitable recommendations of a speculative, illiquid investment to three elderly retirees. According to FINRA, Adam Stuart Fritzsche, of Canterbury, Connecticut, recommended that three of his customers purchase an investment in a business development company, which was a speculative, illiquid investment that was suitable only as a long-term investment for those with no need for liquidity. His customers were ages 81, 89, and 61 at the time of Mr. Fritzsche’s recommendations.

Feb 23, 2017

LPL Financial Broker Suspended for Unsuitable Recommendations to Elderly Widow

Scott Goldman, a stockbroker formerly registered with LPL Financial Corporation (LPL Financial), submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $10,000 and suspended for 20 days for allegedly making unsuitable recommendations of a leveraged, overconcentrated precious metals investment to an elderly widow. According to FINRA, Mr. Goldman used several different investment strategies (referred to as “Champion Models” by Mr. Goldman) in which he invested his customers’ accounts in mutual funds with a mutual fund family or through subaccounts of a variable annuity. FINRA found that one of Mr. Goldman’s Champion models was the “Champion Precious Metals Model,” which was identified as the most risky due to the fact that it was concentrated in the volatile precious metals sector. Further, the Champion Precious Metals Model used leveraged mutual funds, furthering the risk to investors.

Feb 13, 2017

FINRA Suspends Former Dougherty & Co. Broker for Unsuitable Recommendations to the Elderly

Jeffrey A. Hill, a stockbroker formerly registered with Dougherty & Co. LLC, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $5,000, suspended for 15 months, and ordered to pay $45,000 in disgorgement of the commissions he received. Without admitting or denying FINRA’s findings, Jeffrey Alan Hill, of Bemidji, Minnesota, consented to the entry of findings that he recommended unsuitable bond investments and exercised discretion in the accounts of two elderly customers. Between January 2010 and June 2014, Mr. Hill allegedly initiated hundreds of trades for two elderly customers without their explicit permission. FINRA found that Mr. Hill contacted the customers only half of the time, and recommended dozens of transactions that were unsuitable, such as short-term trading of corporate and municipal bonds. According to FINRA, Mr. Hill recommended his elderly customers sell bonds shortly after buying them, or initiated the transactions for them. Those transactions were unsuitable for any customer, particularly in light of the commissions the customers ended up paying. Further, the trades were inconsistent with the customers’ financial situations, needs, and objectives. Mr. Hill was suspended by FINRA for 15 months and assessed a fine of $5,000, and required to pay $45,000 in disgorgement of commissions received. The suspension is in effect from December 19, 2016 through March 18, 2018.

Feb 6, 2017

UBS and Ameriprise Broker Suspended for Unauthorized Trading and Unsuitable Recommendations

John Burns, a stockbroker formerly registered with UBS Financial Services, Inc. (UBS) and Ameriprise Financial Services, Inc. (Ameriprise), submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was assessed a deferred fine of $17,500 and suspended for 14 months. Without admitting or denying FINRA’s findings, John E. Burns, of St. Charles, Missouri, consented to the entry of findings that he engaged in a pattern of unauthorized trading in customer accounts and made unsuitable, risky investments in the account of an elderly couple. Between December 2013 and August 2015, while registered with UBS and Ameriprise, John Burns allegedly executed 100 unauthorized trades in nine customer accounts. Mr. Burns did not have written discretionary authority to place the trades in any of these customer accounts. FINRA found further that Mr. Burns made over 50 unsuitable and unauthorized investments in the account of a senior retired couple. According to FINRA, these transactions involved repeated high-risk investments in stocks which were unsuitable for the customers given their moderate risk tolerance and investment profile. As a result of Mr. Burns’ unsuitable investment strategy, the elderly couple sustained losses exceeding $50,000. Consequently, John Burns was suspended by FINRA for 14 months and assessed a deferred fine of $17,500. The suspension is in effect from December 5, 2016 through February 4, 2018.

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663 search results found for “Unsuitable Recommendations”