Articles Tagged with Boca Raton Florida Broker Misconduct Lawyer

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James Scullin of Miami, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly placing an unauthorized trade in a customer’s account in violation of FINRA Rule 2010. Mr. Scullin was a general securities representative for FINRA member firm UBS Financial Services (UBS) from June 2011 through November 2014.

FINRA Rule 2010 reads that “a member, in the conduct of his business, shall observe high standards of commercial honor and just and equitable principles of trade.” In mid-2011, Mr. Scullin became a registered representative at UBS for the account of a firm customer. FINRA investigators found that on or about September 12, 2014, Mr. Scullin placed a $5,000,000 trade without informing the two individuals with authority to place trades in the customer account or seeking their authorization. Mr. Scullin did not have discretionary authority for any of the customer’s accounts.

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Michael DeBoer of Trinity, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly not disclosing his participation in a transaction that recommended customers make an unsuitable securities transaction. Mr. DeBoer was registered with former FINRA member firm Dalton Strategic Advisors Investment Services Inc. (Dalton Strategic) from November 2009 to April 2013.

In June 2010, while registered with Dalton Strategic, Mr. DeBoer recommended that two customers invest a total of $200,000 in securities offered by a software development company. Mr. DeBoer received $32,000 in commissions for the securities transaction. However, the investors ultimately lost the entirety of their investments in the securities. FINRA alleged the securities were not offered through Dalton Strategic, and Mr. DeBoer did not disclose his participation in the transactions to his associated firm. FINRA further alleged that before making his recommendation, Mr. DeBoer also failed to reasonably investigate the software company or its securities and therefore lacked a reasonable basis to believe the securities were suitable investments for his clients.

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Bradley Rozema of Greenwood, Indiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority for executing securities transactions without his customers or firms written approval. Mr. Rozema first became associated with FINRA through a member firm in 1980 as a General Securities Representative (GSR). From 2009 to 2014, Mr. Rozema acted as a GSR for Wells Fargo Advisors, LLC (Wells Fargo).

FINRA found that Mr. Rozema, while associated with Wells Fargo, effected discretionary trades for three clients. Mr. Rozema received verbal authorization to execute the trades which followed the customer’s investment objectives. However, Mr. Rozema allegedly did not obtain written authorization from either his clients or Wells Fargo in violation of NASD Rule 2510(b).

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Jason Figueroa of Coral Springs, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in unsuitable transactions in leveraged and inverse leveraged exchange traded funds (ETF’s) that he did not understand. Mr. Figueroa first became associated with FINRA through The GMS Group, LLC (GMS) in 2006. In March 2015, Mr. Figueroa was terminated by GMS due to a series of client complaints and settlements.

In June 2009, FINRA released a regulatory notice pertaining to ETF’s. It stated that it was the responsibility of the firm and its representatives to understand the unique features of ETFs and their typical holding period (one day). In 2011, Mr. Figueroa revised his investment strategy for 4 client accounts who were inexperienced in investing and had moderate risk tolerance.

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Denny Darmodihardjo of Roswell, Georgia submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly recommending and making unstable investments on behalf of a client. Mr. Darmodihardjo first became associated with FINRA through a member firm in 1995. From 2006 through 2015, Mr. Darmodihardjo was a General Securities Representative (GSR) through Rockwell Global Capital LLC (Rockwell).

FINRA found that between 2009 and 2011, Mr. Darmodihardjo engaged in excessive trading in three of a client’s accounts. FINRA further alleged that Mr. Darmodihardjo recommended unsuitable short selling and margin use to his customers’ in violation of FINRA and NASD conduct rules. At the time of these investments, Mr. Darmodihardjo had limited experience in margin trading and was recommending investments that did not comply with his clients risk tolerance and objectives. In October 2010, Mr. Darmodihardjo executed thirteen short sales accounting for $897,057 traded on margin.  This excessive trading resulted in four margin calls in that month alone, and further losses in the account.

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Randy Burke of Ferguson, North Carolina submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly engaging in private securities transactions without his employer member firm’s knowledge.

Mr. Burke first became registered with FINRA in 1996. In 2002 Mr. Burke became register through Synergy Investment Group (Synergy). After his termination in 2011, Mr. Burke registered with Capital Investment Group, Inc. (CIG) and remained there until 2013. Mr. Burke is currently registered with Calton & Associates, Inc. (Calton).

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Carmine Capone of Fort Lauderdale, Florida and The GMS Group (GMS) of Livingston, New Jersey submitted an Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority for allegedly failing to supervise one of their registered representatives. A FINRA member since 1979, GMS has 7 branch offices and over 100 registered representatives. Mr. Capone has been associated with GMS since August 1985 and is a General Securities Sales Supervisor for the firm.

FINRA found, that between 2011 through 2013 a registered representative, who was supposed to be under Mr. Capone’s supervision, recommended and engaged in several unsuitable trades in ETF’s in four customer accounts. During the relevant period, FINRA found that the registered representative for GMS did not understand the unique features and specific risks of the ETF transactions. All four clients realized thousands of dollars in losses while the GMS representative generated commissions of $210,754. FINRA alleged that the ETF’s were nontraditional and exposed the clients to more risk than they could tolerate.

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Zahir Walji of Austin, Texas submitted an Acceptance, Waiver and Consent (AWC) in which he was assessed a fine by the Department of Enforcement for the Financial Regulatory Authority (FINRA) and suspended from association with any FINRA member for a period of three months for allegedly failing to provide proper written notice about his outside business activities and failing to disclose two outside business activities.

Walji has been associated with two FINRA member firms since entering the industry in 2006. From January 2006 through October 2012, Walji was associated with UBS Financial Services, Inc. (UBS). On October 12, 2012, UBS filed a Form U5 terminating Walji for “engaging in unapproved outside business activities and private securities transactions with firm clients”. Walji was a representative for Oppenheimer & Co. Inc. from October, 2012 until his termination in May, 2014. Continue reading →

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Patrick Terrell of Mystic, Connecticut submitted a Letter of Acceptance, Waiver and Consent Agreement (AWC) for the purpose of settlement. Without admitting or denying the findings, Terrell was alleged by the Department of Enforcement for the Financial Industry Regulatory Agency (FINRA) to have falsified bank statements.

Terrell first became registered with FINRA as a General Securities Representative (GSR) in March 1998. From 1998 through November, 2011, Terrell acted as a GSR for several FINRA member firms. Beginning November 28, 2011, Terrell was a registered as a GSR through Stifel, Nicolaus, & Co until June 26, 2014. Continue reading →

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The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) received an Offer of Settlement to a complaint that alleged James Scott of Fort Worth, Texas knowingly and substantially aided and abetted another individual engaged in the offer and sale of securities transactions in Texas when the individual was not registered as a stockbroker with the State of Texas or FINRA.

Scott became a FINRA member in 1997 and was associated with eleven different FINRA and NASD members throughout his career. Between March 28, 2012 and December 18, 2012, Scott was registered with FINRA through FSC Securities Corporation (FSC) as a General Securities Representative (GSR) and between August and December 2012, acted as a General Securities Principal (GSP). Continue reading →