Stockbrokers In The News - Law Offices of Robert Wayne Pearce

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).

Jan 4, 2016

Cetera Financial Representative Suspended for Outside Business Activities

John Oates Jr. of Yardley, Pennsylvania submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in outside business activities without his firm’s approval. Mr. Oates first became associated with FINRA in 1997 as an Investment Company Products and Variable Contracts Representative. From 2004 through 2014, Mr. Oates was a General Securities Representative (GSR) for Cetera Financial Specialists LLC (Cetera Financial). According to FINRA Rule 3270, all representatives must notify and obtain written approval to participate in outside business activities. FINRA found that between March 2011 and October 2011, while registered with Cetera Financial, Mr. Oates participated in the purchase of approximately $1.4 million in alternative investment products to two customers (one was a Cetera Financial client). FINRA alleged that Mr. Oates received approximately $69,000 in compensation for participation in the transaction. Mr. Oates did not obtain written approval from Cetera Financial to engage in this outside business and therefore violated FINRA Rules 3270 and 2010.

Jan 1, 2016

Edward Jones Representative Barred for Misappropriation

Anthony Gray of Baton Rouge, Louisiana submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for allegedly misappropriating funds from two elderly client bank accounts. Mr. Gray first became associated with FINRA in 2012 through a member firm. In July 2013, Mr. Gray became registered with Edward Jones; he remained there until his termination in October 2015. FINRA found, between December 2013 and September 2015, Mr. Gray misappropriated $138,000 from two Edward Jones customers. Mr. Gray allegedly convinced the clients to transfer funds from their firm account to their personal banking account as well as provide him with blank checks to pay for alleged firm fees. Instead of using the blank checks to his alleged intention, FINRA found that Mr. Gray made the checks payable to himself or a business he is affiliated to.

Dec 31, 2015

Coral Springs, Florida GMS Group Representative Barred for Misconduct

Jason Figueroa of Coral Springs, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in unsuitable transactions in leveraged and inverse leveraged exchange traded funds (ETF’s) that he did not understand. Mr. Figueroa first became associated with FINRA through The GMS Group, LLC (GMS) in 2006. In March 2015, Mr. Figueroa was terminated by GMS due to a series of client complaints and settlements. In June 2009, FINRA released a regulatory notice pertaining to ETF’s. It stated that it was the responsibility of the firm and its representatives to understand the unique features of ETFs and their typical holding period (one day). In 2011, Mr. Figueroa revised his investment strategy for 4 client accounts who were inexperienced in investing and had moderate risk tolerance.

Dec 25, 2015

Roswell, Georgia Representative Suspended and Fined for Excessive Trading

Denny Darmodihardjo of Roswell, Georgia submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly recommending and making unstable investments on behalf of a client. Mr. Darmodihardjo first became associated with FINRA through a member firm in 1995. From 2006 through 2015, Mr. Darmodihardjo was a General Securities Representative (GSR) through Rockwell Global Capital LLC (Rockwell). FINRA found that between 2009 and 2011, Mr. Darmodihardjo engaged in excessive trading in three of a client’s accounts. FINRA further alleged that Mr. Darmodihardjo recommended unsuitable short selling and margin use to his customers’ in violation of FINRA and NASD conduct rules. At the time of these investments, Mr. Darmodihardjo had limited experience in margin trading and was recommending investments that did not comply with his clients risk tolerance and objectives. In October 2010, Mr. Darmodihardjo executed thirteen short sales accounting for $897,057 traded on margin. This excessive trading resulted in four margin calls in that month alone, and further losses in the account.

Dec 23, 2015

Former Calton & Associates, Synergy Investment Group and Capital Investment Group Representative Barred

Randy Burke of Ferguson, North Carolina submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority for allegedly engaging in private securities transactions without his employer member firm’s knowledge. Mr. Burke first became registered with FINRA in 1996. In 2002 Mr. Burke became register through Synergy Investment Group (Synergy). After his termination in 2011, Mr. Burke registered with Capital Investment Group, Inc. (CIG) and remained there until 2013. Mr. Burke is currently registered with Calton & Associates, Inc. (Calton).

Dec 18, 2015

Boca Raton, Florida GMS Supervisor Suspended and Fined

Carmine Capone of Fort Lauderdale, Florida and The GMS Group (GMS) of Livingston, New Jersey submitted an Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority for allegedly failing to supervise one of their registered representatives. A FINRA member since 1979, GMS has 7 branch offices and over 100 registered representatives. Mr. Capone has been associated with GMS since August 1985 and is a General Securities Sales Supervisor for the firm. FINRA found, that between 2011 through 2013 a registered representative, who was supposed to be under Mr. Capone’s supervision, recommended and engaged in several unsuitable trades in ETF’s in four customer accounts. During the relevant period, FINRA found that the registered representative for GMS did not understand the unique features and specific risks of the ETF transactions. All four clients realized thousands of dollars in losses while the GMS representative generated commissions of $210,754. FINRA alleged that the ETF’s were nontraditional and exposed the clients to more risk than they could tolerate.