Current Investigations

UBS To Pay $25M To Settle SEC Charges Involving Its Yield Enhancement Strategy

Published on: July 26, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Firm Accused of Inadequate Training And Poor Supervision of Brokers That Sold YES

UBS Financial Services has consented to pay about $25M to settle US Securities and Exchange Commission (SEC) charges related to the firm’s Yield Enhancement Strategy (YES). The regulator contends that the broker-dealer, which marketed and sold $2B of UBS YES to about 600 high-net-worth individual investors between February 2016 and February 2017, allegedly failed to adequately train its financial advisors in and supervise this complex iron condor strategy.

This purportedly included the firm knowing about— documenting—the “possibility of significant risk” but not notifying many of its brokers and clients about this.

SSEK Law Firm Investigates Investor Losses Involving JPMorgan Chase Auto Callable Contingent Interest Notes Linked To The S&P GSCI® Crude Oil Index Excess Return

Published on: July 22, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Structured Products Are Not Suitable for Most Retail Investors

Investment Lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are looking into claims of losses involving JPMorgan Chase Auto Callable Contingent Interest Notes. Which is connected to the S&P GSCI® Crude Oil Index Excess Return (SPGCCLP). This index tends to reflect the theoretical performance of a trader selling and buying crude oil futures.

What Is An Auto Callable Contingent Interest Note?

Former Customers of Newbridge Securities Broker Betsy Whipple Pursue 7-Figure GWG L Bond Claim.

Published on: July 20, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Hiko, Nevada Financial Advisor, BL Whipple Wealth Management, LLC

Three investors have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Newbridge Securities. The claimants seek up to $1M in damages over losses they sustained in GWG L Bonds.

These risky, illiquid junk bonds are from GWG Holdings, Inc., which filed for Chapter 11 bankruptcy protection in April 2022. Newbridge Securities is among the more than 140 regional brokerage firms that earned high commissions from selling L Bonds to customers.

SSEK Law Firm Investigates St. George’s Ltd. Losses For Investors

Published on: April 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Cetera and Other Broker-Dealers May Have Unsuitably Sold St. George’s Ltd Products to Customers

Our broker misconduct lawyers are looking into claims of losses by investors who were marketed and sold products from St. George’s, Ltd. The Bermuda-based life insurance company has been in liquidation proceedings since 2019. Its owner, Ramesh Dusoroth, is accused of defrauding investors of millions of dollars.

The joint provisional liquidators in this endeavor involving St. George’s Ltd. are John Johnston and Rachel Frisby of Deloitte, Ltd. Both of them are also involved in the liquidation proceedings of Northstar Financial Services (Bermuda), another offshore company that has been the cause of investment losses for many foreign nationals. Northstar (Bermuda) owner Greg Lindberg is now in prison, and he also likely misappropriated investors’ money.

Ocean Financial Services’ Recommendation of Northstar Financial Services (Bermuda) Leads to Six-Figure Loss for Houston Investor

Published on: April 4, 2022 | by Kirk G. Smith

Latin American Investor Pursuing Up to $500K in Northstar Financial Services (Bermuda) Damages

An older Latin American investor who was unsuitably recommended and sold a Northstar Financial Services (Bermuda) product is requesting up to $500K in damages from Ocean Financial Services. The claimant, who initially just had accounts at Ocean Bank, was advised to invest her money beyond checking and bank accounts.

This would result in Ocean Financial Services overconcentrating a huge chunk of assets belonging to her and her mother in Northstar Financial Services (Bermuda), which is now defunct. Not only that, but the firm should have never recommended these products to this investor after 2015, which is when she moved to the United States.

Arizona Retirees Win $2.6M FINRA Arbitration Award Against First Allied Securities

Published on: March 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Cetera Broker-Dealer Unsuitably Recommended Non-Traded REITs to Retired Couple

Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm at investorlawyers.com) and Menzer & Hill, PA, are pleased to announce that a Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded our clients a $2.6M award against First Allied Securities. This includes $1.1M in compensatory damages, $818K in market-adjusted damages, more than $660K in legal fees, and $40K in other expenses.

This was a unanimous decision by the three-person panel of arbitrators, which awarded the retired couple the total amount they requested. The arbitration panel was just as troubled as our knowledgeable broker misconduct attorneys were about the actions of First Allied Securities and its financial advisors. First Allied is a Cetera Financial Group broker-dealer.

Class Action Securities Lawsuit Filed Against GWG Holdings Over L Bond Losses

Published on: March 9, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based GWG Holdings and its Directors Are Defendants in Class-Action Lawsuit

Two investors seeking class-action status have filed a lawsuit against GWG Holdings, Inc. (NASDAQ: GWGH). They are accusing the Texas-based alternative asset manager and investor of life settlements, as well as its directors, of making misrepresentations and omissions in offering documents of its L Bonds.

GWGH sold more than $350M of these high-yield bonds between August 2020 and April 2021, when sales were discontinued due to liquidity problems. The company also failed to submit its 2020 yearly report in a timely manner. In February 2022, GWG Holdings defaulted on $3.25M of principal payments plus $10.35M of interest owed to L Bond investors.

Investor Files Claim Against FSC Securities Over FS Energy and Power Fund & Northstar Healthcare REIT Losses

Published on: March 2, 2022 | by Shepherd Smith Edwards & Kantas, LLP

California Retiree Was Unsuitably Recommended Illiquid, Risky Investments

An elderly Los Angeles investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against FSC Securities Corporation over investment losses suffered. He was unsuitably recommended certain high-risk investments, including Northstar Healthcare Income REIT (also known as Northstar Healthcare REIT) and FS Energy and Power Fund (FSEP). Now, this claimant is seeking up to six figures in damages.

Our REIT lawyers are representing this investor in his FINRA arbitration claim. If you suffered losses and suspect that your FSC Securities broker may have been negligent, please get in touch with SSEK Law Firm today. We can help you explore your legal options.

SSEK Law Firm Client of Fired J.P. Morgan Securities Broker Ed Turley Wins $4 Million FINRA Arbitration Award

Published on: December 13, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Law Firm Represented Client of Fired J.P. Morgan Securities Broker, Ed Turley, and Wins $4 Million FINRA Arbitration Award

A Financial Industry Regulatory Authority (FINRA) arbitration panel in Houston, Texas has awarded a client of Shepherd, Smith, Edwards & Kantas (SSEK Law Firm at investorlawyers.com) $4 million in compensatory damages over losses she sustained while working with ex-J.P. Morgan Securities stockbroker, Edward Turley.

Not only did this ex-San Francisco-based financial advisor unsuitably invest her in products that were too risky, but he and the firm also used a complex strategy that involved borrowing on margin without her knowledge. Tragically, the client lost millions of dollars while Ed Turley and J.P. Morgan profited significantly from her account.

FINRA Bars Ex-Wells Fargo Broker James Seijas Who Is Accused In More Than $33M Ponzi Scam

Published on: November 4, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Former New Jersey Financial Advisor Allegedly Targeted Florida Doctors

James Alan Seijas, an ex-Wells Fargo Clearing Services broker, was barred by the Financial Industry Regulatory Authority (FINRA) beginning November 2, 2021. The former New Jersey investment advisor did not provide information in the self-regulatory organization’s (SRO’s) investigation into his alleged involvement in an over $33M Ponzi scam.

Seijas, ex-UBS broker Michael Ackerman, and general surgeon Quan Tran are accused of running a cryptocurrency scam that targeted mostly Florida doctors through the entity Q3 Trading Club from 2017 to 2019. This would have been during Seijas’ time as a Wells Fargo registered representative.