Stockbrokers In The News - Law Offices of Robert Wayne Pearce

Jun 18, 2015

Former Westpark Capital Broker Suspended for Misleading Personal Emails to Clients

Michael Bell, a former registered representative with the Boca Raton, Florida branch of Westpark Capital, Inc. submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he violated his member firm’s written supervisory procedures (WSPs) by sending misleading, promissory emails to clients from his personal email account. According to FINRA, Michael Bell used his personal email account to communicate with customers, both current and prospective, without the approval of Westpark Capital and in violation of the firm’s WSPs. Mr. Bell had been disciplined previously by Westpark Capital for alleged email related misconduct. Therefore, FINRA stated that Mr. Bell knew that using his personal email for customer correspondence was prohibited.

Jun 17, 2015

SEC Charges Defendant For Market Manipulation

The Securities and Exchange Commission (SEC) filed suit against Adam S. Gottbetter, a current Boca Raton, FL resident. The SEC alleged that Mr. Gottbetter used his New York office for the planning and implementing of a market manipulation scheme. Two Canadian stock promoters were also charged for assisting Mr. Gottbetter. The SEC alleged that this case involves three market manipulations schemes to increase the stock price of three different publicly traded securities. It further alleged that Mr. Gottbetter played the role of architect and facilitator, using his law office as headquarters to plan the schemes. The SEC alleged that Mr. Gottbetter and the Defendants planned to pump the company’s stock prices and then sell the shares they controlled, reaping huge profits.

Jun 15, 2015

Who Said Only The Good Stock Brokers Die Young?

At 99 years, Ms. Irene Bergman, a good stockbroker, shares some advice for those who would like to enjoy a long career on Wall Street. A direct quote from Ms. Bergman herself: “Don’t do anything stupid.” Ms. Bergman happens to be one of the oldest working professionals in an industry run by men half her age. Ms. Bergman offers a rare perspective of the changes in the securities industry. She recalls the small private firms founded by German Jews in the early twentieth century. Her father was a private banker in those days. In 1942, Ms. Bergman began working as a secretary at a bank, and then fifteen years later, Ms. Bergman joined Hallgarten and Co., a member of New York stock exchange.

Jun 14, 2015

SEC Announces Insider Trading Charges Against Ardea Executive and San Diego California Stockbrokers

The Securities and Exchange Commission (SEC) filed suit against Michael J. Fefferman, a Senior Director of Information Technology for Ardea Biosciences, Inc. (Ardea). The SEC alleged that Mr. Fefferman leaked non-public information regarding pharmaceutical trials to his brother-in-law, Chad Wiegand, who passed the inside tip to another stockbroker. Between April 2009 and April 2012, Mr. Fefferman allegedly tipped Mr. Wiegand about four separate announcements beforehand that were likely to have a positive impact on Ardea stock prices. The SEC alleged that the Defendants received $550,000 in illegal profits from this insider trading scheme. The first announcement concerned a global agreement with Bayer Healthcare, LLC related to the licensing of an Ardea developmental cancer treatment. The second announcement related to the initial testing of a promising drug for the treatment of gout. The third announcement provided positive news about the second phase of testing for the experimental gout treatment. Finally, the fourth announcement published news of the sale of Ardea to AstraZeneca. The price of Ardea stock increased with each announcement and the Defendants allegedly profited illegally from trading of Ardea stock with the non-public information.

Jun 13, 2015

Former Carlsbad California Broker Pleads Guilty To Fraud Charges

Former Merrill Lynch and Raymond James stock broker, Sunil Sharma, plead guilty to wire fraud charges in Federal court last week. According to the U.S. Attorney Office (“USAO”), Mr. Sharma admitted that he stole $6 million from investors by misrepresenting that he was making conservative investments when he actually was pursuing a risky day trading strategy. Apparently, Mr. Sharma was not a successful day trader and eventually his so called conservative investment venture turned into a massive Ponzi scheme. A “Ponzi scheme,” is an unsustainable fraud pyramid that inevitably ends in ruin. Schemers use money raised from latter investors to pay an earlier investor’s returns. Ponzi schemes invariably fall apart when markets deteriorate or when the schemer is unable to raise more cash.

Jun 6, 2015

SEC Obtains Two Final Judgments Against Massachusetts Investment Advisor

On May 29, 2015, the Securities and Exchange Commission (SEC) announced that Judge George A. O’ Toole Jr. of the United States District Court for the District of Massachusetts entered Final Judgments against the former registered investment adviser Sage Advisory Group, LLC (Sage) and its principal Benjamin Lee grant, both of Boston MA, in two fraud cases. In the first case, the Commission alleged that Benjamin Lee Grant (Lee Grant) fraudulently had his customers transfer their assets to Sage, his new advisory firm. According to the SEC, Mr. Grant made false and misleading statements to his previous member firm’s customers. He also allegedly misled customers by telling them that any changes in their accounts were being done at the suggestion of First Wilshire. The SEC alleged that in order to get his customers to sign up as advisory clients with Sage, Mr. Grant would falsely suggest that they might suffer disruption in First Wilshire’s management of their assets unless they signed and returned the new advisory and custodial account documents as soon as possible. In August 2014, a Federal District Court jury found Sage and Lee Grant liable for fraud under the Investment Advisers Act of 1940 along with other charges.

Jun 3, 2015

Brokerage Firm Chief Compliance Officer Charged With Fraud and Money Laundering

According to the Securities and Exchange Commission (SEC), William Quigley, a former chief compliance officer at New York-based Trident Partners Ltd., was charged with fraud and money laundering for diverting money from overseas investors to family members in the Philippines. William Michael Quigley, of Seaford New York, faces both criminal and civil charges. The SEC claims that Mr. Quigley convinced foreign investors to invest in well-known U.S companies and start-ups which were on the brink of going public. Instead of investing the customers’ funds, however, Mr. Quigley diverted the funds for his and his brother’s personal use. This scheme was allegedly perpetrated by sending investors fake account statements using a fictitious firm name for more than 10 years.

Jun 2, 2015

Country Capital Broker Barred For Converting Funds and Fabricating Account Statements

Daniel P. Glavin, a Country Capital Management Company (Country Capital) investor, from Orland Park Illinois, submitted an Acceptance Waiver and Consent (AWC), to settle, without admitting or denying the findings that he violated Financial Industry Regulatory Authority (FINRA) Rule 2010. In the AWC, FINRA found that Mr. Glavin converted customer funds and fabricated account statements. As a result, Mr. Glavin was permanently barred from any association with any FINRA member firm. According to FINRA, while Mr. Glavin was registered with Country Capital, one of his customers gave him approximately $45,000 to invest in certificates of deposit. FINRA further alleged that the purported certificates Mr. Glavin recommended his customer invest in did not actually exist. FINRA alleged that Mr. Glavin did not use his customer’s funds to purchase any certificates of deposit. Instead, FINRA claims Mr. Glavin converted the customer’s funds for his personal use and benefit. As part of his scheme, Mr. Glavin allegedly fabricated account statements to mislead the customer. According to FINRA, Mr. Glavin eventually returned the funds, but only after several demands made by the customer.

Jun 1, 2015

Merrill Lynch Broker Accused of Improper Use of Customer’s Funds

Tammy C. Petersen, a former Merrill Lynch, Pierce, Fenner and Smith Inc. (Merrill Lynch) representative, submitted an Acceptance Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) to settle the alleged Rule violations, without admitting or denying the allegations made against her for improper use of a customer’s funds. Pursuant to the settlement, Ms. Petersen was permanently banned from associating with any FINRA firm. In March 2000, Tammy C. Petersen first entered the securities industry with a National Association of Securities Dealers (NASD) member firm. In July 2000, Ms. Petersen became an investment company/ variable contracts products limited representative with American Funds Distributers until May 2003. Thereafter, she became registered with Wells Fargo Advisors. In October 2010, Ms. Petersen became registered with Merrill Lynch.

May 29, 2015

SunTrust Investment Services Broker Barred for Failure to Cooperate with FINRA’s Investigation

Kirsten Flynn Hawkins of Staunton, Virginia, submitted an Acceptance, Waiver and Consent (AWC) to, settle violations of Financial Industry Regulatory Authority (FINRA) Rule 8210 for failing to provide the documents and information requested in connection with a FINRA investigation. Ms. Hawkins voluntarily resigned from the securities industry with FINRA on November 13, 2014, and her registration with FINRA was terminated on December 10, 2014. As of now, Ms. Hawkins is not associated with a FINRA member firm, but still remains subject to FINRA’s jurisdiction pursuant.