Capital Financial Unsuitable Investment Lawyer - Page 6 of 12

113 search results found for “Capital Financial Unsuitable Investment Lawyer”

Mar 9, 2020

Recover Your Steepener Investment Losses!

Robert Wayne Pearce, P.A. is investigating and representing investors nationwide that were sold steepeners, which are notes or CDs that pay varying levels of interest depending on the steepness or flatness of the yield curve. When the yield curve flattened in 2018, these steepeners rapidly declined in value and either stopped paying interest or paid much less interest. In 2019, the yield curve inverted and short term interest rates rose to a higher level than long term interest rates. This yield curve inversion caused even more losses. The negative impact on investors in the following types of structured products has been significant: Structured CDs, Market-Linked CDs, Leverage Callable CMS Curve Linked Notes, Callable Quarterly CMS Spread-Linked Notes, Callable Variable Rate Range Accrual CDs, Callable Interest Rate Spread CDs, Callable CMS Spread Notes, and Senior Callable CMS Steepener Notes.

Mar 4, 2020

Recover Your GPB Capital Investment Losses!

Robert Wayne Pearce, P.A. is investigating and representing investors against brokerage firms and financial advisors who offered and sold securities issued by affiliates of GPB Capital. GPB Capital Holdings, based out of New York, organized and manages the following nine private placements: GPB Automotive Portfolio, LP; GPB Cold Storage LP; GPB Holdings, LP; GPB Holdings II, LP; GPB Holdings III, LP; GPB Holdings Qualified, LP; GPB NYC Development, LP; and GPB Waste Management Fund, LP. GPB Capital’s two most significant investment funds are GPB Holdings II and GPB Automotive Portfolio. These two funds have collectively paid brokers $100 million in commissions at a rate of 7.9%! Over the last year, it has been the subject of a series of federal, state, and self-regulatory agency investigations and other bad news. For example, in September 2018, Massachusetts Secretary of the Commonwealth, William Galvin, announced an investigation into 63 broker-dealer firms that sold private placements sponsored by GPB Capital Holdings. More recently, in July 2019, David Rosenberg, a former business partner and chief executive of Prime Automotive Group, filed a lawsuit against GPB Capital Holdings, alleging severe financial misconduct. According to a Boston Globe article, Rosenberg allegedly accused GPB Capital Holdings of running a Ponzi-like scheme, in which it used investor money to prop up the performance of the auto dealerships it owns, as well as to finance payments to other investors.

Feb 12, 2020

Former Worden Capital Stockbroker Barred for Churning and Unsuitable Recommendations

Gregory Thomas Dean of Seaford, New York submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was barred for allegedly violating Section 10(b) of the Exchange Act and Rule 10b-5 and FINRA Rules 2020, 2111, and 2010 by churning and engaging in unsuitable trading. In November 2014, Gregory Thomas Dean joined Worden Capital as a General Securities Representative, General Securities Principal and an Operations Professional. According to FINRA, Dean churned and excessively traded seven customers’ accounts resulting in more than $1,834,832 in losses while he received more than $715,930 in commissions. The FINRA findings stated that Dean exercised de facto control over these customers’ accounts. The findings also stated that Dean’s trading in the customers’ accounts was conducted with reckless disregard for the customers’ interests resulting in high turnover rates and cost-to-equity ratios. According to FINRA, due to the level of trading in these accounts, it was impossible for customers to generate trading profits.

Mar 8, 2018

Accelerated Capital Group Named in FINRA Complaint for Failure to Supervise Violations

Costa Mesa, California-based Accelerated Capital Group (Accelerated Capital) was named in a Financial Industry Regulatory Authority (FINRA) complaint alleging that the firm failed to establish and maintain a proper supervisory system to detect unsuitable, excessive, or unauthorized trading in customers’ accounts. FINRA’s complaint goes on to make numerous allegations regarding failures in the firm’s supervisory system. According to the FINRA complaint, Accelerated Capital Group failed to properly monitor, through its supervisory system and written supervisory procedures (WSPs), mutual fund switches, exchanges, and sales for suitability, and failed to appropriately identify or respond to red flags of broker misconduct. The complaint also alleges that the firm’s supervisory procedures failed to ensure that customers understood the differences in fees among mutual fund products. Further, FINRA’s complaint alleges that due to the inadequate supervisory systems, a registered representative was able to churn his customers’ accounts, allegedly resulting in customers sustaining more than $900,000 in trading losses and improper sales loads.

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.

Jul 3, 2017

Accelerated Capital Broker Suspended for Unauthorized Mutual Fund Exchanges

Jeffrey Scheibner, a stockbroker formerly employed by Accelerated Capital Group, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $5,000 and suspended for 3 months for allegedly making unauthorized mutual fund exchanges without the customers’ authorization or discretionary authority over their accounts. FINRA found that between August 24, 2015 and September 16, 2015, Jeffrey Lloyd Scheibner, of Ladera Ranch, California, exchanged 303 mutual fund positions into corresponding money market funds across 36 accounts. Mr. Scheibner allegedly did so without prior customer authorization and had no discretionary authority over the accounts. Without admitting or denying FINRA’s findings, Mr. Scheibner was suspended by FINRA for 3 months and assessed a fine of $5,000. The suspension is in effect from May 15, 2017 through August 14, 2017.

Jun 19, 2017

Former Vanguard Capital Broker Suspended for Unsuitable ETF Recommendations

John Amador Blakezuniga, a former registered representative with Vanguard Capital, submitted a Letter of Acceptance, Waiver, and Consent (AWC), in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he made unsuitable ETF recommendations in 85 of his customers’ accounts. John Amador Blakezuniga, of Gurabo, Puerto Rico (a/k/a John Anthony Blake and John A Zuniga), allegedly recommended approximately 1,280 transactions in inverse and inverse-leveraged ETFs. Mr. Blakezuniga recommended that the non-traditional ETFs be held in his customers’ accounts for periods ranging from 30 days to several years, despite the warning in the prospectuses that “investment results for a single day only, not for longer periods.” The ETFs allegedly recommended by Blakezuniga were intended to be short-term trading vehicles and were not meant to be long-term investments.

Apr 12, 2017

FINRA Suspends Ultralat Capital Markets Broker for Unsuitable and Overconcentrated Bond Recommendations

Mauricio Jaramillo, a stockbroker formerly registered with Ultralat Capital Markets, Inc., submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined $7,500 and suspended for four months. Without admitting or denying FINRA’s findings, Mauricio Jaramillo, of Bogota, Colombia, consented to the entry of findings that he recommended unsuitable and overconcentrated short-term trading in bonds in the accounts of three customers. Ultralat Capital Markets (Ultralat) provides retail brokerage services for customers based in Latin America referred by Ultrabursatiles S.A. Comisionista de Bolsa. While registered with Ultralat as a foreign associate, Mr. Jaramillo allegedly engaged in short-term bond trading which included bond swap transactions. According to FINRA, due to Mr. Jaramillo’s recommendations, the customers’ accounts were almost totally (98%) concentrated in bonds denominated in Brazilian Reais. Further, FINRA alleged the customers had significant margin balances in their accounts as well. Mr. Jaramillo allegedly had no basis for such short-term, unsuitable, and overconcentrated bond recommendations, especially in light of the fact that two of the three customers involved had conservative investment objectives. Consequently, Mr. Jaramillo was assessed a deferred fine of $7,500 and suspended for four months. The suspension is in effect from January 17, 2017 through May 16, 2017.

Jan 27, 2017

Investors Capital Corp. Fined for Failing to Apply Sales-Charge Discounts to UIT Customers

Investors Capital Corporation (Investors Capital) of Lynnfield, Massachusetts, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly failing to apply sales-charge discounts to certain customers’ eligible purchases of unit investment trusts and for failing to establish, maintain, and enforce a proper supervisory system with respect to certain registered representatives’ unsuitable recommendations of unit investment trusts (UITs). FINRA found that Investors Capital, through some of its registered representatives, recommended unsuitable short-term trading of UITs without reasonable grounds for believing the recommendations were suitable for customers, resulting in customer losses of approximately $242,892. FINRA also found that Investors Capital failed to apply sales charge discounts to approximately 1,995 customers’ purchases of UITs, resulting in excessive sales charges of $472,876. The firm’s supervisory system allegedly failed to ensure the customers received appropriate sales charge discounts, relying solely on its representatives to ensure customers received the discounts. Without admitting or denying FINRA’s findings, Investors Capital was censured, fined $250,000 and required to pay restitution of $841,532.97 to the affected customers.

Sep 28, 2016

Craig Scott Capital Broker Permanently Barred for Excessive & Unsuitable Trading

According to a Default Decision recently issued by the Financial Industry Regulatory Authority (FINRA), David Cannata, formerly employed by Craig Scott Capital, has been permanently barred from working as a stockbroker in the securities industry. Mr. Cannata was named in a FINRA Complaint for allegedly engaging in a pattern of unsuitable and excessive trading in accounts of three customers, one of whom was a 92 year old retiree, causing the clients to collectively suffer losses of $1,566,298.14. According to FINRA, Mr. Cannata had de facto control over the customers’ accounts and employed a trading strategy which generated extraordinary levels of activity and disregard of his customers’ interests and financial objectives, thereby maximizing his own compensation. For example, FINRA alleged with respect to the account of the 92 year old retiree, Mr. Cannata engaged in 128 trades in a span of 5 months, generating over $95,000 in commissions and fees. In another customer’s account, Mr. Cannata allegedly engaged in 1,680 trades in a nine month time span, generating over $690,000 in commissions and fees.

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113 search results found for “Capital Financial Unsuitable Investment Lawyer”