Broker Misconduct - Law Offices of Robert Wayne Pearce

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.

Oct 4, 2017

LPL Broker Permanently Barred for Failing to Respond to FINRA Investigation into Alleged Fraud and Unsuitability Claims

Roger Zullo, a former registered representative with LPL Financial LLC, has been barred by the Financial Industry Regulatory Authority (FINRA) for refusing to produce information and documents requested by FINRA in connection with an investigation into allegations of fraud, falsifying client suitability profiles and unsuitable variable annuity sales. FINRA’s investigation arose from a complaint, and subsequent Consent Order, by the Massachusetts Securities Division against Mr. Zullo and LPL Financial. FINRA began an investigation in January 2017 following allegations made in the complaint filed by the Massachusetts Securities Division. That complaint alleged that Mr. Zullo, of Boston, Massachusetts, “fabricated the financial suitability profiles of numerous LPL clients, selling them scores of large, illiquid, unsuitable, high-commission variable annuities, at substantial upfront profits to himself and LPL.” Further, the complaint alleged that Mr. Zullo prematurely switched out his clients’ existing annuities (which were also sold by Mr. Zullo), caused unnecessary surrender charges, and disregarded his clients’ investment profiles at an enormous profit to himself and LPL. The complaint states, “Over the course of three years, Zullo and LPL received more than $1,825,000 in variable annuity commissions alone; of this amount, more than $1,791,000, or 98%, represented commissions from the sale of the same annuity product, the Polaris Platinum III (B Shares) variable annuity.”

Oct 2, 2017

Former Meyers Associates Broker Named in FINRA Complaint for Allegations of Excessive Trading

Craig Gary Langweiler, a Philadelphia, Pennsylvania-based registered representative formerly employed with Meyers Associates, L.P., n/k/a Windsor Street Capital, was named a Respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he excessively traded the account of his customer, generating high commissions for himself and substantial losses for his customer. According to the FINRA complaint, Mr. Langweiler executed 257 trades in his customer’s account during the relevant period, which was a mere 193 days. FINRA alleges that Mr. Langweiler generated approximately $27,092 in commissions, whereas his customer incurred losses in excess of $33,000. FINRA found that Mr. Langweiler exercised control over the customer’s account through his use of discretion, for which he allegedly never sought, nor obtained, written authorization.

Sep 29, 2017

FINRA Bars Morgan Stanley Broker for Knowingly Misrepresenting Customer Account Values

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.

Sep 21, 2017

Allstate Financial Broker Suspended by FINRA for Selling Unapproved Insurance Products

David Panetta, a representative formerly employed with Allstate Financial Services, LLC (Allstate), submitted a Letter of Acceptance, Waiver, and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he engaged in outside business activities without his firm’s approval. FINRA’s findings state that while employed by Allstate, David M. Panetta, of Clark, New Jersey, sold nine unapproved insurance products through an entity unaffiliated with Allstate. Mr. Panetta allegedly received $12,000 in compensation for the prohibited sales, but failed to disclose the sales or his compensation to his member firm. Further, FINRA found that Mr. Panetta falsely answered “no” on the firm annual attestations to the questions asking if he had any outside business activities or accepted compensation from any unapproved entity. Mr. Panetta was assessed a deferred fine of $7,500 and suspended from association with any FINRA member in any capacity for two months. The suspension was in effect from June 5, 2017 through August 4, 2017.

Sep 8, 2017

MetLife Securities Broker Suspended by FINRA for Impersonating Customer for Wire Transfer

Jose Perez, a representative formerly employed with MetLife Securities, Inc. (MetLife), submitted a Letter of Acceptance, Waiver, and Consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he directed his assistant to impersonate his customer, while he impersonated the customer’s brother, in order to effect a transfer of funds. FINRA’s findings state that while employed by MetLife Securities, Jose J. Perez, of Orland Park, Illinois, was advised that his customer was retiring and asked that he transfer pension funds held by a third-party company to her MetLife account. In an attempt to accommodate the customer’s request, Mr. Perez and his assistant telephoned the third-party company and, instead of using their real names, Mr. Perez allegedly impersonated the customer’s brother and his assistant allegedly impersonated the customer. According to FINRA, Mr. Perez and his assistant directed the third-party company to transfer funds to the MetLife account, but failed to realize that the customer held two retirement accounts with the company. Consequently, the funds transferred were funds from the customer’s 401(k) account rather than the pension account.

Sep 5, 2017

Wells Fargo Broker Permanently Barred for Failing to Respond to FINRA Investigation into Undue Influence of Elderly Client

James Schaedler, Jr., former registered representative with Wells Fargo Clearing Services (Wells Fargo), has been barred by the Financial Industry Regulatory Authority (FINRA) for refusing to produce information and documents requested by FINRA in connection with an investigation into allegations that he exercised undue influence over an elderly former client and improperly received a $200,000 gift from another elderly client. FINRA began an investigation in January 2016, into allegations that James Robert Schaedler, Jr., of Corona, California, exercised undue influence over a former elderly client, who ultimately amended her trust to make Mr. Schaedler a partial beneficiary and residual beneficiary of her $2.3 million dollar estate. Further, FINRA expanded its investigation to include allegations that Mr. Schaedler improperly received a gift of $200,000 from a second elderly client.

Sep 1, 2017

FINRA Bars Girard Securities Broker for Misuse of Customer Funds and other Violations

Former Girard Securities broker Jason LeBlanc, of Fulshear, Texas, has been barred by the Financial Industry Regulatory Authority (FINRA) for numerous violations, including misuse of customer funds, failure to disclose outside business activities, and engaging in private securities transactions without the firm’s approval. According to FINRA, Jason Hyson LeBlanc violated FINRA rules by engaging in private securities transactions without his firm’s knowledge or approval by selling numerous promissory notes and partnership interests in a coffee shop. FINRA also found that Mr. LeBlanc misused customer funds when he sold a customer a $23,000 promissory note to invest in the coffee shop, returned $3,000 to the customer, and invested the remaining $20,000 in a real estate investment company without her knowledge or consent. Further, Mr. LeBlanc was found by FINRA to have commingled customer and personal funds to pay bills for various business entities and his personal expenses. Without admitting or denying FINRA’s findings, Mr. LeBlanc was barred from associating with any FINRA member in any capacity.

Aug 29, 2017

Former Cetera Advisor Networks Broker Permanently Barred by FINRA for Failing to Respond to Investigation into Unsuitable Trading

Former Cetera Advisor Networks broker Mark Koehler has been barred by the Financial Industry Regulatory Authority (FINRA) for refusing to produce information and documents requested by FINRA in connection with an investigation into unsuitable trading in a senior customer’s accounts, including short-term mutual fund switching and excessive trading. FINRA began an investigation in April 2014, upon receipt of a tip that Mark Charles Koehler, of Chadds Ford, Pennsylvania, had engaged in unsuitable trading in the accounts of a senior customer. In the course of its investigation, FINRA reviewed trading in other of Mr. Koehler’s customer accounts and sought to investigate the following: whether Mr. Koehler engaged in unsuitable short-term mutual fund switching and excessive trading; whether he placed undue influence on a customer before her death; and whether Mr. Koehler failed to disclose his status as beneficiary in the same customer’s will.

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.