Stockbroker Misconduct Lawyer - Law Offices of Robert Wayne Pearce

Mar 1, 2018

Wells Fargo Representative Barred for Unsuitable Investment Strategy

Charles Frieda, a former registered representative with Wells Fargo Clearing Services, LLC (f/k/a Wells Fargo Advisors, LLC), submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was barred by the Financial Industry Regulatory Authority (FINRA) for recommending an investment strategy which was over-concentrated in energy-sector securities and unsuitable for his clients. FINRA found that Mr. Frieda’s unsuitable recommendations resulted in millions of dollars in losses to his clients. FINRA found that Charles Henry Frieda (along with another Wells Fargo representative) recommended an over-concentration of energy-sector securities, some of which were speculative, to more than 50 customers. Because of the speculative nature of the energy-sector securities, the volatility of the energy market, and the highly over-concentrated levels in the clients’ accounts, Mr. Frieda’s customers were exposed to significant losses. According to FINRA, Mr. Frieda failed to properly consider his customers’ investment profiles, including their investment experience, risk tolerance, investment time horizon, net worth, and liquidity needs. Even when the energy market began a downturn in 2015, Mr. Frieda continued to unsuitably recommend that his clients adhere to his investment strategy. Due to his highly unsuitable recommendations, Mr. Frieda’s customers suffered millions of dollars in aggregate losses. Without admitting FINRA’s findings, Charles H. Frieda, of Anaheim, California, was barred from association with any FINRA member in all capacities.

Oct 13, 2017

Oppenheimer Broker Suspended by FINRA for Borrowing Money from Customers

Jason Likens, a former registered representative associated with Oppenheimer & Co., Inc. (Oppenheimer), submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he consented to, without admitting or denying, the findings that he borrowed money from his customers and did not begin to repay the loans until repeated requests were made. Jason Hunter Likens, of Asheville, North Carolina, allegedly approached an elderly customer with significant health issues to borrow $5,000 on two separate occasions in a month’s time. The customer provided the loans to Mr. Likens in both instances. Mr. Likens failed to repay the loans on schedule and did not do so until the customer and his family made repeated requests. FINRA found further that Mr. Likens approached another customer to borrow $13,500 and that customer, too, provided the loan. Once again, FINRA found that Mr. Likens failed to repay the loan until the customer made repeated requests.

Oct 6, 2017

Ameritas Broker Fined and Suspended by FINRA for Borrowing Money from Elderly Customer

Thomas Lawrence, a former registered representative associated with Ameritas Investment Corp. (Ameritas), submitted an Offer of Settlement to the Financial Industry Regulatory Authority (FINRA) in which he consented to, without admitting or denying, the findings that he borrowed money from a 96 year old customer and has not repaid the loan. Thomas H. Lawrence III, of Chapel Hill, Tennessee, allegedly borrowed more than $39,000 from one of his customers, a 96 year old retiree. The elderly customer allegedly agreed to provide the loan and Mr. Lawrence drafted and signed a promissory note stating the terms of repayment. According to FINRA, Mr. Lawrence did not repay any portion of the loan, nor did he have any discussion with the customer about repaying the loan. Further, FINRA found that Mr. Lawrence hasn’t even spoken to the elderly customer since early 2014. Mr. Lawrence never notified his member firm before obtaining the loan, as it was prohibited except for immediate family members. Due to the afore-mentioned misconduct, Thomas Lawrence was suspended from association with any FINRA member for two years, fined $5,000, and ordered to pay restitution of $41,332.65, plus interest to the affected customer.

Aug 23, 2017

Guggenheim Securities Broker Permanently Barred by FINRA for Conversion

John Regan, a registered representative formerly employed with Guggenheim Securities, LLC, has been permanently barred by the Financial Industry Regulatory Authority (FINRA) amid findings that he converted funds for his personal use. According to FINRA, John Emmett Regan, of New York, New York, converted approximately $25,000 in firm funds between September 2012 and March 2014. Mr. Regan allegedly falsely submitted approximately 90 personal expenses for reimbursement as business expenses. Conversion of funds is a violation of FINRA Rule 2010. Conversion is the intentional and unauthorized taking of ownership over property by one who neither owns the property nor is entitled to have it. Without admitting or denying FINRA’s findings, Mr. Regan was permanently barred from association with any FINRA member in any capacity.

Mar 13, 2017

Network 1 Financial Broker Fined for Failure to Disclose Outside Securities Accounts

Keith Testaverde, a registered representative with Network 1 Financial Securities, Inc. has been fined $25,000 and suspended from association with any Financial Industry Regulatory Authority (FINRA) member in any capacity for six months for allegedly failing to disclose the existence of outside securities accounts which he owned or controlled at another firm. Without admitting or denying FINRA’s findings, Keith Testaverde consented to the findings that he neglected to disclose to his member firm, Network 1 Financial Securities (Network 1 Financial), that he maintained control over and executed trades in a securities accounts which were held at another member firm. According to FINRA, Mr. Testaverde made approximately 121 trades in one of the accounts, many of which were on Network 1 Financial’s “watch list,” meaning that they required preapproval. FINRA found that 12 of the trades made by Mr. Testaverde were prohibited outright. Further, Mr. Testaverde falsely represented on his firm’s annual compliance questionnaire that he did not have any undisclosed outside securities accounts. Due to the foregoing misconduct, FINRA assessed a fine of $25,000 and suspended Mr. Testaverde for six months. The suspension is in effect from January 17, 2017 through July 16, 2017.