Stockbrokers In The News - Law Offices of Robert Wayne Pearce

May 14, 2020

Joseph Stone Capital Representative David Braeger Barred for Misconduct

David Braeger of Bayside, Wisconsin was issued a complaint from the Financial Industry Regulatory Authority (FINRA) that outlined several alleged misconducts. While registered with Joseph Stone Capital, FINRA alleged that Braeger converted customer funds that were intended to be invested. The FINRA findings stated that an elderly customer gave a $200,000 check to Braeger to be invested in a private placement, but instead transferred the money to a bank which he later deposited in his account. FINRA further alleged that Braeger used this money to buy a home and continued to lie to his customer about their investment. According to FINRA’s investigation, Braeger provided false or misleading testimony in connection to the case in violation of FINRA Rule 8210. Additionally, the FINRA investigation concluded that Braeger converted customer funds in violation of FINRA Rules 2150 and 2010. Without admitting or denying the FINRA findings, Braeger was barred from association with any FINRA member in any capacity.

May 1, 2020

Thrivent Investment Stockbroker Paul W. Petrillo Barred By Securities Industry

Paul William Petrillo of Volo, Illinois submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for alleged misconduct. While serving as a General Securities Representative for Thrivent Investment Management, FINRA alleged Paul Petrillo made at least 333 discretionary orders to buy or sell in customers’ accounts without his firm’s knowledge. This conduct is in violation of NASD Rule 3050 and FINRA Rule 2010. Furthermore, FINRA alleged that Petrillo participated in 14 private securities transactions in customer accounts without his firm’s knowledge in violation of FINRA Conduct Rule 3280. Finally, while FINRA was conducting its investigation, Paul Petrillo was questioned to identify the customers he had done the trades with but failed to do so by providing false responses. Without admitting or denying the FINRA findings, Paul Petrillo agreed to be barred from association with any FINRA member in any capacity.

Apr 29, 2020

Allstate Financial Stockbroker Jesse Gil Barred By FINRA for Conversion

Jesse Gil of Corpus Christi, Texas accepted an offer of settlement from the Financial Industry Regulatory Authority (FINRA) for his alleged misconduct while associated with Allstate Financial Services as a General Securities Representative (GSR). FINRA alleged that while Gil was associated with FINRA member Allstate Financial Services, he converted approximately $2,500 from a senior customer without their knowledge for his own personal gain. FINRA alleged that Jesse Gil used the converted funds on spa trips, sporting goods and even using it to pay his own credit cards. Additionally, FINRA’s investigators alleged Gil persuaded the customer to add him to their credit card as part of the bank’s policy and would even exchange financial advice for compensation. This was while Gil was associated with another firm and in direct violation of FINRA Conduct Rules. Furthermore, FINRA found that Jesse Gil gave false answers on compliance certifications in correlation with the investigation. Without admitting or denying the FINRA findings, Jesse Gil agreed to the sanctions and was barred from association with any FINRA member in any capacity.

Apr 27, 2020

Former Fidelity Masonic Temple Advisor John Chrysadakis Barred by FINRA

John Chrysadakis of Fairfield, Connecticut submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for the purpose of settling his alleged misconduct. FINRA alleged that while Chrysadakis was an Investment Company and Variable Contracts Products Representative for Fidelity Masonic Temple Association, he converted approximately $100,000 unbeknownst to the firm. The firm upon discovery allowed Chrysasakis to resign, but FINRA’s investigation into fraudulent activity required oral testimony and documentation. While Chrysadakis acknowledged he received FINRAs requests, he failed to provide anything. For this conduct, FINRA found that John Chrysadakis violated FINRA Conduct Rule 8210 and 2010. Without admitting or denying the alleged conduct, John Chrysadakis accepted the sanctions and was barred from association with any FINRA member in any capacity.

Apr 24, 2020

Janney Montgomery Scott Stockbroker John J. Cahill Barred from FINRA

Mahwah, New Jersey stockbroker John Joseph Cahill submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was barred from association with the Financial Industry Regulatory Authority in all capacities for failing to appear for an on-the-record testimony or provide documentation in connection to an ongoing FINRA investigation. FINRA alleged that while Mr. Cahill was a General Securities Representative (GSR) for Janney Montgomery Scott LLC, he allegedly converted funds belonging to an elderly customer. After being terminated from his firm, an investigation began which required Cahill to provide documents, information, and testimony in connection with the investigation. While Cahill acknowledged he received the requests from FINRA to provide this information, he refused to provide anything. In refusing to produce documents and information as requested, Cahill violated FINRA Rules 8210 and 2010. Without admitting or denying the FINRA findings, Cahill also consented to the imposed sanctions and was barred from association with any FINRA member in any capacity.

Apr 20, 2020

EDI Financial Stockbroker William Stafford Thurmond Suspended for Misconduct

William Stafford Thurmond of El Paso, Texas submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been fined and suspended for allegedly making unsuitable recommendations and unauthorized transactions in violation of NASD Rule 2310 and FINRA Rules 2111, 4511, and 2010. From October 1997 until his termination in November 2016, William Stafford Thurmond was registered with EDI Financial as a general securities representative and general securities principal. According to FINRA’s findings, Thurmond recommended unsuitable transactions and executed various unauthorized trades in a customer’s account totaling approximately $328,000. The findings stated that Mr. Thurmond placed eighteen trades without obtaining authorization or approval from the customer or his power of attorney. FINRA also stated that the customer’s desire was to achieve higher returns than he would receive in a savings account, but wanted limited risk to his principal. Instead, the account held the leveraged and inverse leveraged ETFs for an average of over 150 days, which exceeded the recommendations in the ETFs’ prospectuses and FINRA’s NTM 09-31. In addition, Thurmond received $42,724 in commissions from the unsuitable recommendations and caused the customer to generate losses of $212,731.00.

Apr 17, 2020

Former Kestra Stockbroker Michael Thomas Lee Fined and Suspended for Engaging in Outside Business Activities

Michael Thomas Lee of Darien, Connecticut submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been fined and suspended for allegedly engaging in an outside business activity in violation of FINRA Rules 3270 and 2010. From June 2014 until February 2017, Michael Thomas Lee was registered with Kestra Investment Services (Kestra) as a General Securities Representative. According to the FINRA findings, Lee engaged in an outside business activity known as the Origin Fund, a prospective ETF fund, without notice or approval from his firm. The findings stated that Lee allegedly solicited potential investors and distributed written materials prepared by his business partner using his personal e-mail and an e-mail address associated with the fund. FINRA stated that although none of the individuals invested in the fund, the materials falsely represented that the Origin Fund was a hybrid registered investment advisor with $20 million in assets and that Kestra was sponsoring and providing services to the fund. In addition to those FINRA findings, Lee allegedly falsely attested his use of an undisclosed email address to conduct securities business on two annual compliance questionnaires.

Apr 15, 2020

Taylor Capital Management Stockbroker Mark Gregory Raezer Suspended for Misconduct

Mark Gregory Raezer of Colorado Springs, Colorado submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for participating in unapproved private transactions in violation of FINRA Rules 3280 and 2010. In 2015, Mark Gregory Raezer joined Taylor Capital Management as an Investment Company and Variable Contracts Products Representative. According to the FINRA findings, Raezer participated in nine private securities transactions, $911,000 in securities issued by a purported real estate investment Company without notice or approval from his firm. The findings stated that Raezer discussed the investment and helped investors with complete applications and subscription paperwork. According to the FINRA findings, Raezer did not receive direct compensation but benefited indirectly from a profit-sharing arrangement he had with the leader representative in the retirement planning, life insurance, and tax preparation business.

Apr 13, 2020

Former Independent Financial Group Stockbroker Jeffrey Schwebach Suspended for Engaging in Private Transactions

Jeffrey Schwebach of Sioux Falls, South Dakota submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been suspended for allegedly engaging in unapproved private securities transactions in violation of FINRA Rules 3280 and 2010. From November 2010 to June 2018, Mr. Schwebach was registered with Independent Financial Group (IFG) as a General Securities Representative and Investment Company Products/Variable Contracts Representative. According to the FINRA findings, Jeffrey Schwebach sold $895,000 Woodbridge promissory notes to 18 investors, 13 of whom were his firm’s customers and received $19,534 in commissions. The findings also stated that Schwebach never sought approval from his firm to sell the promissory notes and instead disclosed Woodbridge as an outside business activity involving first position mortgages, not as private transactions. In addition to the FINRA findings, Schwebach allegedly falsely stated that he had not engaged in unapproved private securities transactions on annual compliance questionnaires.

Apr 10, 2020

Former America Northcoast Securities Stockbroker Dominic A. Tropiano Barred for Misconduct

Dominic Anthony Tropiano of Lyndhurst, Ohio submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been barred for allegedly engaging in unauthorized transactions and making unsuitable recommendations in violation of FINRA Rules 2111 and 2010. In February 2004, Dominic Anthony Tropiano entered the securities industry in February 2004 as a General Securities Representative. In May 2015, Tropiano became an associated person with America Northcoast. According to the findings, while not properly registered with FINRA, Dominic Anthony Tropiano made certain recommendations to at least 47 customers in 866 separate transactions without having a reasonable basis to believe those transactions were suitable in light of their investment profiles. In addition, FINRA also stated that Tropiano placed 52 unauthorized transactions in two additional customers’ accounts.