Broker Misconduct - Law Offices of Robert Wayne Pearce

Feb 19, 2016

Winter Park, Florida Representative Suspended & Fined for Alleged Fraud

Anthony Grey of Winter Park, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly charging excessive mark-ups to his clients and engaging in other fraudulent activity. Mr. Grey entered the securities industry in the early 1980s and later became associated with Gardnyr Michael Capital, Inc. (GMCI) in 1994. During a routine FINRA member conduct examination in 2009, a FINRA examiner discovered a pattern of trades that revealed Mr. Grey artificially inflated prices of bonds for his retail customers. FINRA found that on ten occasions, Mr. Grey charged his customers unfair mark-ups ranging from 5.36% to 19.12%. In seven of the occasions FINRA further alleged that Mr. Grey charged fraudulently excessive mark-ups that he failed to disclose.

Feb 17, 2016

Former UBS Financial Representative Suspended and Fined

Christian Harkness of La Crosse, Wisconsin submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly violating his broker-dealer conduct rules. Mr. Harkness entered the securities industry in 1998 as a General Securities Representative (GSR). Mr. Harkness became associated with UBS Financial Services Inc. (UBS) in 2007 and later in 2009 to Stifel, Nicolaus & Co. (Stifel) as a GSR. FINRA found that Mr. Harkness violated NASD Rule 2370 and FINRA Rules 3240 and 2010 by borrowing money from a firm client on two occasions as well as failing to disclose outside business activities. FINRA alleged that Mr. Harkness did not receive written permission from his broker-dealer to participate in either of the activities and thereby violated FINRA conduct rules.

Feb 8, 2016

Halcyon Cabot Partners Broker Barred by FINRA for False and Misleading Offering Documents

Jason Lee Reid, a former broker at the New York-based Halcyon Cabot Partners, LTD (Halcyon Cabot), submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he created and solicited private securities offering documents which contained materially false and misleading information. FINRA found that Jason Lee Reid, of New York, NY, knew or should have known that the private offering documents he created and used to solicit investors contained false and misleading information and failed to discuss material facts. According to FINRA, the offering documents failed to note the material risks posed by investing in the company and contained false and misleading statements regarding the company’s future business prospects.

Feb 5, 2016

Commonwealth Financial Network Broker Suspended by FINRA for Securities Investment Misrepresentations

James Johnson, a former broker at the Waltham Massachusetts-based Commonwealth Financial Network, submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanction and the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he made negligent misrepresentations and omissions regarding a securities investment. FINRA found that James Michael Johnson, of Richmond Virginia, discussed with his member firm customers a purchase of a 10% interest in West Virginia Farm Properties, LLC, a company formed to develop rural land into a residential neighborhood in West Virginia. Mr. Johnson misrepresented to the customers that all development costs had been covered; that the infrastructure for building the homes was already in place; that the houses were ready to be built on the property; and that the customers’ investment would allow the company to begin building homes immediately.

Jan 18, 2016

New York du Pasquier & Co. Representative Suspended for Misrepresenting Material Fact

Conrad Huss of Airmont, New York submitted an Offer of Settlement to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly misrepresenting material facts in the sale of promissory notes. Mr. Huss first became associated with FINRA through a member firm in November 1989. From January 15, 2005 through October 31, 2006, Mr. Huss was a registered representative with du Pasquier & Co., Inc. (DPC). While associated with DPC, FINRA found that Mr. Huss made misrepresentations in the solicitation and sale of $1.4 million worth of promissory notes in a private offering to 14 DPC customers. According to FINRA, the notes were issued by Economic Development Finance Corporation (EDFC), a Massachusetts real estate development company. After the offering (between March 2006 and August 2006) EDFC defaulted under the EDFC Notes and failed to pay DPC’s customers the principal due. This resulted in significant losses for many of the DPC customers.

Jan 15, 2016

Raymond James Representative Barred For Alleged Forgery and Misappropriation

Paul Steffany of Stamford, Connecticut submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly falsifying documents and converting funds for his own personal use. Mr. Steffany entered the securities industry in October 1982. In 2007 Mr. Steffany became associated with FINRA through broker-dealer Raymond James & Associates, Inc. (Raymond James) as a general securities representative (GSR). In May 2014 Mr. Steffany was terminated from Raymond James after violating company policy. While associated with Raymond James, Mr. Steffany served as the trustee of a testamentary trust established by an estate customer. As the trustee, Mr. Steffany was responsible for paying legal bills, signing tax returns and distributing funds to the beneficiaries of the trust. Mr. Steffany estimated that he spent no more than 43 hours annually dealing with trust related matters.

Jan 13, 2016

Uhlmann Price Securities Representative Barred for Undisclosed Activities and Misrepresentations

Clifford Morgan of Chesterton, Indiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly participating in numerous unauthorized business activities. Mr. Morgan first became associated with FINRA in January 2004 as an Investment Company and Variable Contracts Products Representative, a State Securities Agent, and a General Securities Representative (GSR). From January 2007 through December 2014, Mr. Morgan was associated with FINRA member firm Uhlmann Price Securities (Uhlmann Price). FINRA found that between November 2011 and December 2014, while associated with Uhlmann Price, Mr. Morgan participated in private securities transactions without written approval from his member firm. Additionally FINRA alleged that Mr. Morgan made material misrepresentations to Uhlmannn Price customers and also failed to comply with FINRA’s requests for information regarding the allegations.

Jan 11, 2016

UBS Financial Services Representative Suspended and Fined for Document Falsifications

Qui Lam of Houston, Texas submitted a Letter of Acceptance, Waiver and Consent to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for alleged document falsifications. Ms. Lam first became associated with member firm Pruco Securities in 2000 as an Investment Company Products/Variable Contracts Representative. In 2011, Ms. Lam became a registered representative for UBS Financial Services, Inc. (UBS) but was terminated in 2014 due to allegations of document falsification. Prior to being associated with UBS, Ms. Lam was a representative for Morgan Stanley and Citigroup. FINRA found, during her association with UBS, Ms. Lam altered documents of a client’s account without their knowledge and consent. While working as an administrator for a wealth management team at UBS in 2014, Ms. Lam altered the risk tolerances of four customer accounts. Ms. Lam allegedly increased the four clients risk tolerances and submitted them without the client’s prior knowledge or consent.

Jan 8, 2016

Ameriprise Financial Services Representative Suspended for Unsuitable Recommendations

Karen Tautges-Parisian of Minnetonka, Minnesota submitted a Letter of Acceptance, Waiver and Consent (AWC) to Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly making unstable investment recommendations to a customer. Ms. Tautges-Parisian first became associated with FINRA in July 2001 for Ameriprise Financial Services, Inc. (Ameriprise). In December 2013, Ms. Tautges-Parisian voluntarily resigned from Ameriprise. FINRA found that in May and November 2009, Ms. Tautges-Parisian made unsuitable investment recommendations to a Ameriprise customer involving penny stocks. In May 2009 Ms. Tautges-Parisian recommended a customer to invest $14,904 in 8,000 shares of Oceanfreight, Inc. (OCNF) at $1.83 per share. The client was a 50 year old who annually made $20,000 and had no investment experience. By November 2009, the price of OCNF shares dropped to $.99 per share. In an attempt to increase the price per share, Ms. Tautges-Parisian recommended the customer to invest another $7,000 in OCNF shares. In June 2010 the client sold his shares for a total loss of $16,032.52.

Jan 6, 2016

Former Wells Fargo Representative Suspended for Unauthorized Trades

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).