508 search results found for “Boca Raton Florida Stockbroker Misconduct Attorney”

Aug 17, 2020

Former Edward Jones Stockbroker Thomas S. Martin Suspended for Exercising Discretion Without Approval

Thomas S. Martin of Glorieta, New Mexico submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in unauthorized transaction in violation of NASD Rule 2510 and FINRA Rule 2010. In 2002, Thomas S. Martin joined Edward Jones as a General Securities Representative and General Securities Principle. According to the FINRA findings, Mr. Martin exercised discretion in four accounts held by four separate customers. The FINRA findings stated that although the customers knew Mr. Martin placed 19 discretionary trades in the accounts and the trades did not result in any losses, he did not have written authorization to do so. In addition to the findings, Mr. Martin allegedly failed to request or obtained approval from Edward Jones and had previously received written reprimands from the firm for exercising discretion without written authority.

Continue Reading

Aug 12, 2020

International Assets Advisory Stockbroker Robert James D’Andria Suspended for Unsuitable Recommendations

Robert James D’Andria of Manasquan, New Jersey 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 in violation of FINRA Rule 2111 and 2010. In July 2010, Robert James D’Andria joined International Assets Advisory (“IAA”) as a General Securities Representative. According to the FINRA findings, Mr. D’Andria recommended 21 non-traditional exchange traded products (NT-ETPs) to five IAA customers without having a sufficient understanding of the risks and features associated with these products. The FINRA findings stated that the average holding period was 327 days and the customers held them for periods ranging from 30 to 758 days. Due to the extended holding periods, the customers incurred approximately $93,000 in losses. In addition to the findings, IAA agreed to supervision charges and agreed to a fine and order of restitution to be paid to the affected customers in relation to the unsuitable recommendations.

Continue Reading

Aug 10, 2020

Former First Standard Financial Stockbroker Robert Frank Spiegel Suspended for Excessive and Unsuitable Trading

Robert Frank Spiegel of Staten Island, New York submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in excessive and unsuitable trading in violation of FINRA Rules 2111 and 2010. From October 2014 through November 2018, Robert Frank Spiegel was registered with First Standard Financial as a General Securities Representative. According to the FINRA findings, Robert Frank Spiegel allegedly engaged in quantitatively unsuitable trading in the account of a 70-year-old customer. The FINRA findings stated that the customer followed Mr. Spiegel’s recommendations, giving him de facto authority over the account and while doing so resulted in a high turnover rate of 34 and an annualized cost-to-equity ratio of 113%. In addition to the FINRA findings, the customer paid $18,047 in commissions and fees to Mr. Spiegel and incurred losses of $77,334.

Continue Reading

Aug 5, 2020

Former Berthel Fisher Stockbroker Mason Wayne Gann Suspended for Unsuitable Recommendations

Mason Wayne Gann of Dallas, Texas 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 in violation of FINRA Rule 2111 and 2010. From June 2012 until February 2018, Mason Wayne Gann was registered with Berthel Fisher as a General Securities Representative. According to the FINRA findings, Mr. Gann allegedly recommended and effected a risky options-trading strategy in the account of a senior customer. The FINRA findings stated that Mr. Gann knew the customer had limited income, modest retirement savings, and minimal investment knowledge and lacked a reasonable basis for believing that his recommendations were suitable. The findings also stated that Mr. Gann recommended the customer begin trading options to generate more income in his account which was valued at approximately $205,000. The customer began withdrawing $1500 each month and after two years, his account declined to approximately $120,000 with a loss of more than $12,500 as a direct result of the unsuitable options strategy because he did not produce enough income or gains to offset his withdrawals. In addition to these findings, the combined effect of investment losses and steady withdrawals reduced the customers account to below $20,000 over a 3-year period.

Continue Reading

Aug 3, 2020

Former Century Securities Stockbroker Daniel R. Castoriano Suspended for Unauthorized Trading

Daniel R. Castoriano of New Orleans, Louisiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been fined and suspended for allegedly engaging in unauthorized trading in violation of NASD Rule 2510(b) and FINRA Rule 2010. From December 2003 until June 2019, Daniel R. Castoriano was registered with Century Securities Associates, Inc. (Century) until they filed a Form U5 reporting that Mr. Castoriano was permitted to resign in connection with exercising discretion in a customers account.  According to the findings, FINRA began investigating Mr. Castoriano after the Form U5 was filed alleging that he used discretion to execute six trades pursuant to an investment strategy without written authorization from the customer or permission from the firm.  The FINRA findings stated that Century payed the customer $1,844 to settle a complaint about the trades and associated losses in the account.

Continue Reading

Jul 31, 2020

Dakota Securities International Expelled & Former Owner Bruce Martin Zipper Barred for Misconduct

Dakota Securities International (Dakota) and Bruce Martin Zipper (Mr. Zipper) appealed a National Adjudicatory Council (NAC) decision to the Securities and Exchange Commission (SEC). The Hearing Panel imposed three expulsions on Dakota for allegedly failing to maintain accurate books and records, failing to supervise, and allowing Mr. Zipper to associate with them and engage in activities requiring registration while suspended. The Hearing Panel also imposed two bars on Mr. Zipper for associating with Dakota and engaging in the particular activities while suspended and intentionally misidentifying the representative of record on customer transactions. In 2004, Mr. Zipper founded Dakota and was the majority owner until January 2018, when he sold his ownership. According to the NAC findings, Mr. Zipper executed then later tried to withdraw from an AWC that was final and non-appealable due to his failure to disclose three unsatisfied judgments on his Form U4. The findings stated that FINRA informed Mr. Zipper of his suspension, and during his absence he allegedly arranged for Dakota to continue operations without him for the three months. During the same period, Dakota did not restrict Mr. Zipper’s access to the firm’s email system or to the firm’s trading system in which he engaged and recommended transactions while suspended. In addition to the NAC findings, Mr. Zipper admitted that he intentionally misidentified the representative of record on hundreds of trades caused Dakota to maintain inaccurate books and records. Dakota Securities International was expelled from FINRA membership and Mr. Zipper was barred from association with any FINRA member in all capacities.

Continue Reading

Jul 29, 2020

CV Brokerage Inc. Censured and Fined for Misconduct

CV Brokerage in Williamstown, New Jersey submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which the firm was censured and fined $100,000 for allegedly failing to establish and maintain a supervisory system, and written supervisory procedures (WSPs) reasonably designed to achieve compliance with applicable FINRA rules regarding the participation of Firm-registered representatives in private securities transactions in violation of FINRA Rules 3110(a) and (b), 3280, and 2010. According to the FINRA findings, a General Securities Principal with CV Brokerage, engaged in outside business activities and unapproved private securities transactions (PSTs). The FINRA findings stated that the representative formed an investment fund away from CV Brokerage and received substantial compensation from the transactions between multiple financial institutions and exchanges. During the same period, the WSPs permitted the representative to supervise her own compliance with the PSTs.  CV Brokerage could have hired other principals to review or disapprove her participation in the PSTs but failed to do so.  In addition, CV Brokerage allegedly failed to supervise the representatives participation in the PSTs, failed to supervise the securities trading conducted by the investment fund as if it was executed by the firm and failed to record the securities transactions for the fund on the Firm’s books and records.

Continue Reading

Jul 24, 2020

Former Dakota Director Carlos Ricardo Fuenmayor Suspended for Misconduct

Carlos Ricardo Fuenmayor of Key Biscayne, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly acting as a General Securities Principal and a General Securities Representative without being registered in either capacity, in violation of NASD Rules 1021 and 1031, and FINRA Rule 2010. From September 2013 through October 2016, Carlos Ricardo Fuenmayor was associated with Dakota Securities International, Inc. (Dakota) as Director and 20% owner. According to FINRA, Fuenmayor securities licenses had lapsed in September 2013 when he purchased 20% ownership interest in Dakota. The findings stated that Fuenmayor did not become registered as a General Securities Principal or a General Securities Representative until 2015 but was actively engaged in Dakota’s securities business and in the management of its securities business. In addition to the FINRA findings, Fuenmayor was primarily responsible for the hiring and management of personnel at Dakota, advised registered representatives about different types of trading strategies and ordered the registered representatives to execute trades.

Continue Reading

Jul 6, 2020

Former PHX Financial Stockbroker Halil Kozi Suspended for Excessive Trading

In an Offer of Settlement, Halil Kozi, of North Middletown, New Jersey has been suspended for two years by the Financial Industry Regulatory Authority (FINRA) for excessive trading, known as churning, and unsuitable options recommendations and trades. From June 2013 through February 2015, Halil Kozi was associated with PHX Financial, Inc. (PHX).  According to FINRA, Mr. Kozi recommended transactions in a customer’s account that were quantitatively unsuitable and excessive and inconsistent with the customer’s risk profile or financial situation.  FINRA found that Mr. Kozi recommended risky, speculative equity and options transactions that generated commissions of more than $135,000 while causing the customer to incur losses of $72,000.  By recommending quantitatively unsuitable excessive trading for the customer’s account, Mr. Kozi allegedly violated FINRA Rules 2111 and 2010.  Without admitting or denying FINRA’s findings, Halil Kozi consented to the sanctions and was suspended from association with any FINRA member for two years.  The suspension is in effect from April 6, 2020 through April 5, 2022.  No monetary sanctions were issued due to Mr. Kozi’s financial status.

Continue Reading

Jul 1, 2020

Former Wells Fargo Stockbroker Demaurio Clark Barred for Theft

Demaurio Cortez Clark, of Acworth, Georgia submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for converting an elderly customer’s funds for his personal use. Demaurio Clark was registered with Wells Fargo Clearing Services, LLC (Wells Fargo) as an investment company and variable contracts product representative.  From July 2018 to July 2019, FINRA found that Mr. Clark converted $16,560 from an elderly customer and used the money for his personal use.  According to FINRA, Mr. Clark opened a brokerage account for his customer without the customer’s knowledge or consent and transferred the $16,560 into his own personal checking account.  These transfers were made without the customer’s knowledge or consent.  FINRA Rule 2150(a) provides that no “person associated with a member [firm] shall make improper use of a customer’s securities or funds.” Conversion of customer funds is a violation of FINRA Rule 2150(a) and FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”  By converting customer funds for his personal use, Mr. Clark allegedly violated FINRA Rules 2150(a) and 2010.  Without admitting or denying FINRA’s findings, Demaurio Cortez Clark consented to the sanctions and has been barred from association with any FINRA member in all capacities.

Continue Reading