Stockbrokers In The News - Law Offices of Robert Wayne Pearce

Jul 20, 2015

Former Connecticut Stifel Nicolaus Representative Suspended for Alleged Falsifications

Patrick Terrell of Mystic, Connecticut submitted a Letter of Acceptance, Waiver and Consent Agreement (AWC) for the purpose of settlement. Without admitting or denying the findings, Terrell was alleged by the Department of Enforcement for the Financial Industry Regulatory Agency (FINRA) to have falsified bank statements. Terrell first became registered with FINRA as a General Securities Representative (GSR) in March 1998. From 1998 through November, 2011, Terrell acted as a GSR for several FINRA member firms. Beginning November 28, 2011, Terrell was a registered as a GSR through Stifel, Nicolaus, & Co until June 26, 2014.

Jul 17, 2015

Fort Worth Texas FSC Securities Representative Barred for Alleged Misconduct

The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) received an Offer of Settlement to a complaint that alleged James Scott of Fort Worth, Texas knowingly and substantially aided and abetted another individual engaged in the offer and sale of securities transactions in Texas when the individual was not registered as a stockbroker with the State of Texas or FINRA. Scott became a FINRA member in 1997 and was associated with eleven different FINRA and NASD members throughout his career. Between March 28, 2012 and December 18, 2012, Scott was registered with FINRA through FSC Securities Corporation (FSC) as a General Securities Representative (GSR) and between August and December 2012, acted as a General Securities Principal (GSP).

Jul 15, 2015

Former New York Cetera Investment Broker Barred for Alleged Fraud

David Santos of Niskayuna, New York submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) after allegedly falsifying letters that enabled an imposter to fraudulently transfer funds from a client and execute unauthorized sales of stocks. Santos entered the securities industry in 1991 when he became associated with a FINRA member firm. In March 1998, Santos became a General Securities Representative (GSR). Between 1998 and 2006, Santos was a GSR with three different FINRA member firms. On September 2, 2006, Santos became registered as a GSR with Cetera Investment Services, LLC (Cetera). Santos later became a General Securities Principal with Cetera in April 2010 and remained there until he was terminated in May 2014.

Jul 13, 2015

Former Fort Lauderdale Morgan Stanley and Wells Fargo Representative Barred

Aaron Parthemer of Fort Lauderdale, Florida submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Agency (FINRA) for the purpose of settlement for allegedly engaging in several outside business activities without his firm’s prior written knowledge. Parthemer first became registered with FINRA as a General Securities Representative (GSR) in October 1994. From June 2009 through October 2011, Parthemer was registered with Morgan Stanley Smith Barney LLC (Morgan Stanley) as a GSR. On November 4, 2011 Morgan Stanley filed a Uniform Termination Notice for Securities Industry Registration (Form U5) under Parthemer’s request. From October 21, 2011 to present, Parthemer has been registered through Wells Fargo Advisors, LLC (Wells Fargo) as a GSR.

Jul 10, 2015

Miami Florida Oppenheimer & Co. Representative Fined and Suspended

Miami, Florida resident Patrick McGrath III submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) with the purpose of settling the alleged violations that he borrowed funds from his member firm’s client and made false statements while under investigation. McGrath entered the securities industry in 1984 and has been associated with several FINRA-regulated broker dealers throughout his career. In April 2009, McGrath became associated with Oppenheimer & Co., Inc. (Oppenheimer) as a registered representative. However, in January 2014, Oppenheimer filed a Uniform Termination Notice for Securities Industry Registration (Form U5) reporting that McGrath failed “to timely finalize arrangements to repay loans he received” from a Oppenheimer customer.

Jul 1, 2015

Commonwealth Capital Securities CEO Barred for Misappropriating Funds

The Department of Enforcement for the Financial Industry Regulatory Authority (FINRA) has brought disciplinary action to Kimberly Springsteen-Abbott of Holiday, Florida for improperly allocating funds. Mrs. Springsteen Abbott served at Commonwealth Capital Securities Corp. as a Chief Executive Officer (CEO), Chairperson, and Chief Compliance Officer (CCO) granting her control of funds at the firm. Mrs. Springsteen-Abbott had the authority to allocate the expenses to investment funds that were incurred in operating the business. After hearing the evidence, the FINRA hearing Panel found that Mrs. Springsteen-Abbott misused investors’ funds for three years by improperly allocating unrelated business expenses to investment funds that she controlled.

Jun 29, 2015

Complaint Filed Against Former Voya Financial Advisors Representative for Fraud and Conversions

FINRA filed a complaint against Giovanni Acevedo of Wilton Manors, Florida for allegedly converting client funds for his own personal use. While no longer registered with a firm, Acevedo served as the registered agent, manager and authorized agent for ACE Capital Investments (a Florida liability company) and was the sole owner of ACE between 2010 and 2014. At the time, he was registered with Voya Financial Advisors, also known as ING Financial Partners. FINRA alleges that between January 2009 and March 2014 Acevedo converted $160,000 of customers’ funds for his own personal use. The allegations are that Acevedo recommended at least one client to invest in “ACI Capital Investment” and represented that he would invest the client’s funds via check on her behalf. The client allegedly gave Acevedo a personal check for $68,000 which he was to deposit in ACI Capital Investment. However, Acevedo allegedly changed the payee line to read ACE Capital Investment (his Florida liability company). In addition, Acevedo allegedly created false document for his client that reflected an open balance of $68,000 and a 7.5% semi-annual return or a period of 36 months while those funds were never actually invested.

Jun 24, 2015

Legend Securities Stockbroker Receives Complaint for Fraud

FINRA has filed a complaint against Richard Gomez of Jackson Heights, New York for allegedly defrauding investors of close to half a million dollars. Gomez, who was a registered representative with Legend Securities Inc. between June and December 2011, allegedly offered investors the opportunity to purchase membership interests in Praetorian Global Fund, Ltd. (Praetorian) and its affiliate companies. According to the U.S. Securities and Exchange Commission (SEC), Praetorian Global Fund was supposed to grant investors an opportunity to invest in a pre-initial public offering (IPO) with shares of Facebook, Groupon and Zynga. Gomez allegedly sold $394,000 worth of shares of the fraudulent company and made at least $22,000 in commissions. Gomez allegedly failed to conduct proper due diligence and missed multiple red flags regarding Praetorian. The “principal place of business” for Praetorian was a residential apartment in Boca Raton, Florida but the mailing address was that of “The UPS Store” in Boca Raton. In addition, Praetorian’s fund manager had a lengthy criminal record that included multiple convictions of grand theft, and other members affiliated with the company have been named defendants in multiple lawsuits alleging fraudulent business practices.

Jun 23, 2015

DeWaay Advisory Stockbroker Receives Complaint for Misrepresentation

FINRA has filed a complaint against Lawrence LaBine of Fountain Hills, Arizona for alleged misrepresentations and omissions of material fact. LaBine, who was a representative at DeWaay Advisory LLC between 2007 and 2010, allegedly sold senior debentures (Series D) issued by Domin-8 to over 100 clients guaranteeing them that they would preserve their initial principal. At the time (April-August 2009), LaBine was receiving updates on Domin-8’s poor financial condition. FINRA alleges that LaBine knew of and willfully failed to disclose Domin-8’s perilous financial condition to his clients in connection with those sales. In September 2009, Domin-8 filed for bankruptcy.

Jun 22, 2015

Meyers Associates L.P. Brokers Allegedly Manipulate Stock Market

The Financial Industry Regulatory Authority (FINRA) has filed a complaint against Meyers Associates L.P. which is based in New York and three of its registered members for allegedly violating a slew of conduct rules set by the U.S. Securities and Exchange Commission (SEC). The FINRA complaint alleges that George Johnson, Joseph Mahalick, and Christopher Wynne of Chicago, Illinois were all part of a market manipulation scheme that involved fraudulent omissions, falsification of records, unauthorized disclosure of information, and dissemination of various research and sales materials. FINRA alleges that Johnson willfully violated the Securities and Exchange Act by manipulating the market for the common stock IceWeb Inc. Johnson allegedly solicited certain customers to buy shares in IceWeb while simultaneously telling others to sell in an effort to artificially inflate prices. FINRA also alleges that Christopher Wynne, who was Johnson’s supervisor at Meyers Associates L.P., violated FINRA Rule 2010 by sending customers research materials that were “riddled with misleading, exaggerated and unsupported claims and failed to disclose material information.”