Library - Law Offices of Robert Wayne Pearce

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 22, 2020

Wells Fargo Advisors of St. Louis, Missouri Fined for Failing to Supervise

St. Louis, Missouri firm Wells Fargo Advisors, LLC issued a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority (FINRA) for allegedly failing to supervise one of their registered representatives. FINRA alleged that the former Wells Fargo Advisors representative “excessively traded equity positions” in the stocks of an elderly customer. FINRA found that this alleged broker misconduct continued until a firm program flagged the customer’s account. FINRA found that as a result of this misconduct the customer paid $300,000 in excess commissions and fees. The FINRA investigation concluded Wells Fargo Advisors violated NASD Rule 3010(a) and FINRA Rules 3110(a) and 2010 by failing to supervise a former registered representative who excessively traded equity positions in an account belonging to a senior customer. Without admitting or denying the FINRA findings, Wells Fargo Advisors consented to the FINRA findings and was censured and fined $175,000.

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.

Apr 8, 2020

Foresters Equity Services Stockbroker John Dale Ernst Suspended for Engaging in Private Transactions

John Dale Ernst of Milwaukee, Wisconsin submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in unapproved private transactions in violation of FINRA Rules 3280 and 2010. From January 4, 2011 through March 12, 2018, John Dale Ernst was registered with Foresters Equity Services as an Investment Company Products/Variable Contracts Representative. According to FINRA’s findings, John Dale Ernst engaged in unapproved private securities transactions totaling $509,000 in Woodbridge promissory notes to four investors, three of whom were customers of his firm. The findings stated that Ernst received $35,252 in commissions in connection with the transactions. In addition to those FINRA findings, Ernst allegedly stated on his annual compliance questionnaires for 2015, 2016, and 2017 that he had not sold promissory notes or participated in any private securities activities without approval from his firm.

Apr 6, 2020

Former Merrill Lynch Stockbroker Michael M. Tanha Suspended for Engaging in Outside Business Activities and Private Transactions

Michael Milad Tanha of Los Angeles, California submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in outside business activities and unapproved private transactions in violation of NASD Rule 3040 and FINRA Rules 3270, 3280 and 2010. From October 2014 to June 2017, Michael Milad Tanha was registered with Merrill Lynch as an Investment Company Products/Variable Contracts Representative and a General Securities Representative. According to the FINRA findings, Tanha engaged in five outside business activities and participated in private securities transactions totaling $500,000 without notice or approval from his firm. The FINRA findings stated that Tanha co-founded a corporation created to enable its clients to communicate with celebrities on social media for a fee and was responsible for marketing, capital raising, and working with lawyers and accountants to incorporate Entity A and pay its taxes. The findings stated that in connection to the transactions, Tanha received commissions, referral fees and introduction fees. In addition to those FINRA findings, Tanha allegedly falsely attested that he did not recommend or refer any sales, purchases, or private securities transactions on the compliance questionnaire submitted to Merrill Lynch without approval.

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