Broker Fraud

Shepherd Smith Edwards & Kantas Investigates Ex-Raymond James & Associates Advisor Stuart Nichols

Published on: October 31, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Ex-Raymond James Advisor, Stuart Nichols

Another former Raymond James advisor has gotten into trouble over fraud allegations. The Financial Industry Regulatory Authority (FINRA) recently barred Stuart Nichols, a former broker with the firm, after he failed to participate in the self-regulatory authority’s probe into churning allegations made against him.

Churning involves engaging in excessive trading in a brokerage account for the purposes of making commissions.

Ex-Texas Broker With Morgan Stanley and Ameriprise Fined Over Allegedly Unauthorized Trades

Published on: October 28, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Financial Industry Regulatory Authority (FINRA) has fined former Texas broker Steven Yellen $25K for allegedly making unauthorized trades while he was a registered representative for both Ameriprise (AMP) and Morgan Stanley (MS). The self-regulatory authority (SRO) notes at least 30 instances in which Yellen executed trades without customer authorization.

After more than 30 years in the industry, he is no longer affiliated with any broker-dealer after Ameriprise fired him last year. According to FINRA, from 3/2013 to 12/2015, Yellen made 14 unauthorized trades while he was a Morgan Stanley broker, exercising unauthorized discretion in a client’s account. Meantime, when filling out compliance questionnaires, he neglected to disclose these activities.

In 2016, after 32 years with Morgan Stanley, Steven Yellen became an Ameriprise broker. During this time, he allegedly made 16 unauthorized trades in 10 customer accounts. These trades went beyond these customers’ risk levels that they’d authorized.

Shepherd Smith Edwards and Kantas Investigates Daniel Gordon Maughan and Financial West Group

Published on: October 23, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking into allegations against Financial West Group and its broker Daniel Gordon Maughan.

It is alleged that Maughan excessively traded and churned a client’s Trust Account at his member firm. A arbitration complaint has already been filed! According to his brokercheck, Maughan has also been banned by The Financial Industry Regulatory Authority Inc. (FINRA).

The complaint alleges that by churning the customer’s trust account, Maughan willfully:

Shepherd Smith Edwards and Kantas Investigates Complaints Involving Ex-Raymond James Broker John Wyshak

Published on: October 22, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Former Raymond James (RJF) broker John Charles Wyshak is under scrutiny by our investor lawyers at SSEK Law Firm. If you are someone who previously worked with Wyshak as your financial representative while he was registered with Raymond James or any other broker-dealer, and you suffered substantial losses, your first consultation with us is a free, no obligation case assessment.

After over thirty years in the securities industry, Wyshak is no longer a registered broker or investment adviser. Recently, a Financial Industry Regulatory Authority (FINRA) arbitration panel ruled against Wyshak and in favor of Raymond James, ordering him to pay the firm nearly $1M for previous investor fraud claims involving his allegedly fraudulent actions and for breaching an agreement with the broker-dealer.

Wyshak left Raymond James last year. Now, the FINRA arbitrators want him to pay the firm more than $932K in compensatory damages, in addition to 10% interest and thousands of dollars in other fees.

Shepherd Smith Edwards and Kantas Investigates ex-Wells Fargo Advisor Stephen Klinger

Published on: October 18, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Stephen Klinger, ex-Wells Fargo Advisor

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking into allegations against ex-broker Stephen Klinger for trading options for a client in his own account.

He then proceeded to lose the client’s money. Klinger was fired earlier this year by Wells Fargo. The client then sued Klinger and Wells Fargo. According to the broker’s CRD, his official record, Klinger then settled the lawsuit without telling Wells Fargo.

Shepherd Smith Edwards and Kantas Investigates Claims Involving Fired UBS Broker David Fagenson

Published on: October 17, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating David Fagenson, A Former UBS Brokerage Investment Advisor

If you are an investor who worked with former UBS broker, David Fagenson, and suffered substantial losses or suspect you may have been charged excessive fees and commissions, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today.

David Fagenson was suspended by the Financial Industry Regulatory Authority (FINRA) last year after he allegedly engaged in unsuitable trading in the accounts of three senior investors ranging in age from their 70s to mid-90s. However, this is not the first fraud allegation in which Fagenson has been involved.

Shepherd Smith Edwards and Kantas Investigating Claims Involving Ex-Hilltop Securities Broker Richard Cagle

Published on: October 16, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigates Richard Cagle

If you are an investor who suffered losses while working with former Hilltop Securities Independent Network broker Richard Earl Cagle, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today. With 28 years in the industry, Cagle, who was a Texas broker, was barred by the Financial Industry Regulatory Authority (FINRA) a few months ago after he refused to appear and testify in the self-regulatory authority’s probe into allegations that he made unsuitable investment recommendations and mismarked customer order tickets.

It was just earlier this year that Hilltop Securities fired Cagle. His BrokerCheck record shows two settled customer disputes, both alleging unsuitable recommendations. One case was settled for $20K. The other broker fraud case was settled for $230K.

Shepherd Smith Edwards and Kantas Investigates Ex-Wells Fargo Broker Leonard Kinsman

Published on: October 15, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Our investor fraud lawyers at SSEK Law Firm are looking into claims involving former Wells Fargo (WFC) broker Leonard Kinsman (Kinsman). Kinsman currently still faces at least two customer complaints that were brought before the Financial Industry Regulatory Authority (FINRA), one claim involves a New Jersey widow and mother of three who is accusing him of defrauding her family of their life savings.

Until July 2019, Kinsman belonged to the Wells Fargo Financial Network of brokers that operate independently, even as they use the bank’s compliance software and investment systems. No details have been provided into how or why he is no longer affiliated with the firm’s broker network.

According to the New York Post, the widow began working with Kinsman in 2012 when he was still a Merrill Lynch broker and after her husband had passed away. She requested that Kinsman place her money, a $2.27M life insurance settlement, in conservative, diversified investments that promoted long-term growth so she could support her family off the interest.

Shepherd Smith Edwards & Kantas Investigates Jeffery Vasiloff, Former LPL Financial Advisor

Published on: October 9, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Cleveland, Ohio

Shepherd, Smith, Edwards & Kantas (“SSEK”), a law firm specializing in representing wronged investors, is looking at allegations by FINRA into former Linsco Private Ledger (LPL) financial advisor, Jeffery Vasiloff (“Vasiloff”). Vasiloff worked at LPL in 2018 and was not employed very long. Vasiloff was fired, according to FINRA, due to allegations of utilizing discretion without obtaining the proper written authority. As a result, he was also suspended from acting as a financial advisor by FINRA. He previously worked at Invest Financial Corporation and appears to be based out of Vermilion, Ohio. After serving his suspension, Vasiloff became employed by JW Cole Financial.

Vasiloff never admitted nor denied FINRA’s finding. However, he consented to the sanctions imposed and accepted the findings that he acted improperly by refusing to obtain prior consent, in writing, from the client before acting on that client’s behalf. LPL simply reported to FINRA that Vasiloff was discharged for “use of discretion without prior written authorization.”

JP Morgan Settles Broker Fraud Claim for $14M

Published on: September 20, 2019 | by Shepherd Smith Edwards & Kantas, LLP

JP Morgan Securities (JPM) agreed to pay $14M to a claimant who accused its former broker Antoine Souma of misconduct that allegedly led to $20M in net losses. According to Advisor Hub, Souma, who is based in Los Angeles, was named in Barron’s 2016 Top 100 Financial Adviser list. He is currently a Morgan Stanley (MS) broker. He “vehemently denies” the allegations made in this investor fraud claim.

The claimant, Ziad Gandour, is the founder of industrial construction management company TI Capital. He accused Souma of the following:

Fraud