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Apr 9, 2025

Walnut Street Securities Investor Alert – Watch Out For Churning and Unsuitable Investments!

Walnut Street Securities, Inc., a subsidiary of the MetLife Broker-Dealer Group, which is owned by the Metropolitan Insurance Company, is an independent broker-dealer headquartered in New York City and reportedly has over 600 registered representatives across the United States operating in one or two person offices. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors from churning and unsuitable investments and unsuitable investment strategies!

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Apr 9, 2025

Waddell Reed Investor Alert – Watch Out For Churning and Unsuitable Investments!

Waddell Reed, a subsidiary of Waddell & Reed Financial, Inc., is an independent broker-dealer headquartered in Overland, Kansas and reportedly has over 2000 registered representatives across the United States operating in one or two person offices. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors from churning and unsuitable investments and unsuitable investment strategies!

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Apr 9, 2025

United Planners Financial Services Investor Alert – Watch Out For Churning and Unsuitable Investments!

United Planners Financial Services is an independent broker-dealer headquartered in Scottsdale, Arizona and reportedly has over 300 registered representatives across the United States operating in one or two person offices. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors from churning and unsuitable investments and unsuitable investment strategies!

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Apr 9, 2025

Robert Ronald Liggero Fined and Suspended by FINRA for Signing Customers’ Names on IRA Documents

Robert Ronald Liggero, a former broker at Jacksonville, Florida based Bull and Bear Brokerage Services, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the described sanctions and to the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he signed customers’ names on documents related to the opening of IRA accounts without the customers’ knowledge or consent. Mr. Liggero, of Atlantic Beach, Florida, was fined $5,000 and suspended from association with any FINRA member in any capacity for 20 business days. The suspension is in effect from May 20, 2013 through June 17, 2013.

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Apr 9, 2025

Securities and Exchange Commission Freezes Onyx Pharmaceuticals Insider Traders’ Assets

The Securities and Exchange Commission (SEC) has obtained an emergency court order to freeze assets of traders using foreign accounts to realize approximately $4.6 million in potentially illegal profits by trading in advance of the June 30, 2013 announcement that Onyx Pharmaceuticals, Inc. had received but rejected an acquisition offer from Amgen, Inc. The SEC alleges that unknown traders took risky bets that Onyx’s stock price would increase by purchasing call options on June 26, 27 and 28 – the three trading days before the announcement. The emergency court order obtained on July 3, 2013 freezes the traders’ assets related to the Onyx call options transactions and prohibits the traders from destroying any evidence. The SEC is seeking a final judgment ordering the traders to disgorge their profits with interest, pay monetary penalties, and permanently bar them from future violations.

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Apr 9, 2025

SEC Sweeps the Market for Rule 105 Regulation M Violations

The Securities and Exchange Commission (SEC) has a task force that is sweeping the market for Rule 105 Regulation M (Rule 105) violations. Rule 105 makes it unlawful for a person to purchase equity securities from an underwriter, broker, or dealer participating in a public offering if that person sold short the security that is the subject of the offering during the restricted period defined in the rule, absent an exception. Rule 105 defines the restricted period as the shorter of the period: (1) beginning five business days prior to the pricing of the offered securities and ending with such pricing; or (2) beginning with the initial filing of such registration statement or notification on Form 1-A or Form 1-E and ending with the pricing. The SEC adopted Rule 105 to prevent potentially manipulative activity. Also, Rule 105 is a prophylactic. Therefore, its provisions apply regardless of the short seller’s intent.

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Apr 9, 2025

Jonathan Gordon Sorensen Permanently Barred by FINRA for Alleged Conversion and Misuse of Investor Funds

Jonathan Gordon Sorensen, a former broker at Jackson, Mississippi based Coker & Palmer, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the described sanction and to the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he failed to appear for a FINRA on-the-record interview and, subsequently through his attorney, informed FINRA that he would not appear for an on-the-record interview. The findings stated that Mr. Sorensen’s appearance was requested as part of an investigation into his management of a limited partnership investment fund while associated with his member firm and whether he had converted and/or misused investor funds and falsified documents in connection with his management of the fund. Mr. Sorensen, of Maitland, Florida, was barred from association with any FINRA member in any capacity.

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Apr 9, 2025

Woodbury Financial Services Investor Alert – Watch Out For Churning and Unsuitable Investments!

Woodbury Financial Services, a subsidiary of the AIG Insurance Company, is an independent broker-dealer headquartered in Oakdale, Minnesota and reportedly has over 2300 registered representatives across the United States operating in one or two person offices. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors from churning and unsuitable investments and unsuitable investment strategies!

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Apr 9, 2025

FINRA Suspends Michael Antonio Zurita for Six Months for Failure to Establish and Implement Supervisory System

Michael Antonio Zurita, a former broker at Orlando, Florida based Orion Trading, LLC, submitted a Letter of Acceptance, Waiver and Consent in which Mr. Zurita consented to the described sanction and to the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he failed to reasonably supervise the sale of unregistered shares of low-priced stock of issuers on behalf of customers. One of the firm’s registered representatives effected the sale of the unregistered stocks and failed to conduct a searching inquiry to ensure the sales did not violate Section 5 of the Securities Act of 1933. The representative completed deposited securities request (DSR) forms and submitted them to Mr. Zurita for review. Mr. Zurita’s review process primarily involved ensuring the forms had been completed in full, but he failed to ensure that the information was accurate, consistent and did not raise any red flags. Mr. Zurita relied on the representative to obtain all relevant information and documentation and determine on his own that the shares were registered or exempt from registration and, according to FINRA, he failed to ensure the representative complied with the requirements of Section 5 and failed to reasonably supervise the sale of unregistered securities.

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Apr 9, 2025

Williams Financial Group Investor Alert – Watch Out For Churning and Unsuitable Investments!

Williams Financial Group is an independent broker-dealer headquartered in Dallas, Texas and reportedly has over 260 registered representatives across the United States operating in one or two person offices. Its branch offices are largely comprised of small producers earning commissions at higher pay out rates than the major full-service brokerage firms, a recipe for disaster when it comes to protecting investors from churning and unsuitable investments and unsuitable investment strategies!

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