Articles Tagged with Stockbroker Fraud Attorney

Frank Roland Dietrich of Fairfax Station, Virginia submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) and agreed to be barred for allegedly engaging in private securities transactions in violation of NASD Rule 3040 and FINRA Rules 3280 and 2010.

Frank Roland Dietrich was registered with Quest Capital Securities as a General Securities Representative from March 2013 through April 2019. According to FINRA, Dietrich engaged in private securities transactions totaling more than $10.8 million without written notice or approval from his firm. The FINRA findings stated Dietrich solicited investors to purchase promissory notes relating to the Woodbridge Group of Companies LLC (“Woodbridge”), a purported real estate investment fund, which later filed a voluntary Chapter 11 Bankruptcy petition. FINRA stated that he sold $10,831,645 in the funds’ notes to 58 investors, 30 of whom were customers of Quest Capital and received $260,864 in commissions in connection with the transactions. Continue Reading

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. Continue Reading

Christopher Michael Herrmann of Greenwood, Indiana 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 $10,000 and suspended.

From September 2011 to May 2015, Herrmann was employed with Key Investment Services (KIS) as a General Securities Representative. According to FINRA, in September 2013 and October 2014, Mr. Herrmann recommended annuity transactions to retired and elderly customers. The findings stated that Mr. Herrmann failed to facilitate the transactions as a tax-free 1035 exchange, resulting in significant tax liability to the customers. Mr. Herrmann allegedly circumvented KIS’s compliance procedures and supervision by concealing these switch transactions and providing false information. Based upon the foregoing, FINRA concluded that Christopher Herrmann violated FINRA Rules 4511, 2111 and 2010. Continue Reading

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. Continue Reading

Guy Conger, a registered representative with Money Concepts Capital Corp. (Money Concepts), 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 exercised discretion more than 200 times in two customer accounts without the necessary written authorization.

FINRA found that Guy Charles Conger, of San Antonio, Texas, improperly used discretion in two customer accounts to place trades without written authority or acceptance from his member firm of the account as discretionary.  According to FINRA, Mr. Conger also mismarked approximately 2,000 order tickets as “unsolicited” when they were “solicited,” and mismarked at least 200 order tickets as not discretionary when they were discretionary.  Further, FINRA’s findings state that Mr. Conger made misleading and unwarranted statements in his e-mail communications with customers. Continue Reading

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.  Continue Reading

Eric Ott, a broker formerly registered with MML Investors Services, LLC, 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 forged a customer’s signature on life insurance applications without the customer’s knowledge or consent.

According to FINRA, Eric Eugene Ott, of Union Kentucky, discussed the possibility of his customer applying for life insurance, but had not gotten her consent or approval to submit the applications.  Mr. Ott, however, allegedly signed the customer’s name to the applications and paid the initial premiums without the customer’s knowledge.  The customer became aware of the fraudulently obtained insurance policies only when she received correspondence from the issuing company, whereupon she called to complain. Continue Reading

Craig David Dima, a stockbroker formerly employed with K.C. Ward Financial, submitted an Offer of Settlement to the Financial Industry Regulatory Authority (FINRA) in which he was barred from association with any FINRA member.  Without admitting or denying FINRA’s allegations, Craig Dima consented to the entry of findings that he made unauthorized and unsuitable trades in the IRA account of an elderly retiree.

According to FINRA, Mr. Dima sold nearly all of his 73-year old customer’s Colgate-Palmolive stock, which she had accumulated during her 28 years of employment with the company.  FINRA alleged that on 11 occasions, Mr. Dima sold the customer’s shares without permission and even after the customer told him not to sell the stock.  When Mr. Dima’s elderly customer confronted him about the sales, he misrepresented to her that the transactions were caused by a computer glitch.  As a result of Mr. Dima’s unauthorized sales, the customer was charged more than $375,000 in mark-ups, mark-downs, and fees.  Further, the customer was deprived of substantial dividends she would have received had she held the Colgate shares as she had intended. FINRA found that the unauthorized, unsuitable trades executed by Mr. Dima totaled approximately $15 million in his customer’s retirement account.  In the Order Accepting Offer of Settlement, Mr. Dima was barred from association with any FINRA member in any capacity. Continue Reading