Financial Firms

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.

Emerson Equity Broker Tony Barouti May Have Sold GWG L Bonds to Customers

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

Firm Owes Millions to Investors of GWG High-Yield L Bonds

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is looking into claims of losses by customers who purchased GWG L Bonds at the recommendation of Emerson Equity broker Tony Barouti.

Unfortunately, it appears that Barouti, who is based out of Los Angeles, may have unsuitably sold L Bonds to several investors, including retirees and older retail customers.

GWG Holdings Defaults On $13.6M Owed To L Bond Investors

Published on: February 17, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based Alternative Asset Firm Sends Letter About Failed Payments on Valentine’s Day

On February 14, 2022, GWG Holdings (GWGH) sent a letter to shareholders letting them know that it defaulted on the $3.25M in principal payments plus $10.35M in interest payments owed to L Bond investors.

The Texas-based alternative asset firm had a 30-day grace period to issue the payments beginning on January 15, 2022. GWG Holdings also stated that redemption requests would continue to be deferred. Now, L Bond investors are left with high-yield junk bonds that are not paying them the income promised. These are alternative investments that cannot be redeemed or sold.

Another Bankoh Broker Yoko Farias Customer Files Six-Figure Northstar Financial Services (Bermuda) Claim

Published on: February 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Japanese Investor is Requesting Up to $500K in Damages

Another investor in Japan has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Bankoh Investment Services over her Northstar Financial Services (Bermuda) losses.

This time, the claimant is a small business owner who lives in Tokyo but who had accounts in the U.S. with Bankoh and Bank of Hawaii. She is seeking up to $500K in damages. Her Bankoh broker Yoko Farias is also a respondent in the case.

Number of Customer Disputes Involving Ex-Ameriprise Broker James Dunn Skyrockets

Published on: February 14, 2022 | by Shepherd Smith Edwards & Kantas, LLP

16 FINRA Arbitration Claims Have Been Brought Against Broker James Dunn

In December 2021, Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) published a blog post announcing that we are investigating claims of investor losses involving ex-Ameriprise Financial Services broker James William Dunn.

At the time, according to Dunn’s BrokerCheck record, he had been named in a handful of customer disputes seeking to recover damages for losses. That number has more than tripled to 16 investor cases.

Ex-Morgan Stanley Broker Darryl Cohen, Accused of Defrauding Pro Athletes, To Be Barred by FINRA

Published on: February 10, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Fired California Financial Advisor Allegedly Bilked Pro Athletes of Millions

Darryl Matthew Cohen, a former top-producing Morgan Stanley Smith Barney registered representative of Southern California, faces a FINRA bar beginning February 16, 2022. This bar will come into effect unless he cooperates in the self-regulatory organization’s (SRO’s) probe into allegations that he improperly used customers’ money. A number of the clients who have stepped forward to complain are current and ex-professional athletes.

Morgan Stanley fired Darryl Cohen in March 2021 over allegedly engaging in undisclosed outside business activities and using an unapproved platform to communicate with clients inappropriately. He has nine customer disputes listed on BrokerCheck, with four of them still pending in which the damages sought total millions of dollars.

Ex-Landolt Securities Broker Anthony Cottone Allegedly Misappropriated $2.8M of Client Funds

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

Ex-Landolt Securities Broker Ran Now-Defunct Retirement Planning Institute

Anthony Matthew Cottone, an ex-Landolt Securities stockbroker, has been charged by the US Securities and Exchange Commission (SEC) with fraudulently running Secured Capital Strategies Fund. This is a private fund in which 11 investors were persuaded to invest about $2.8M. Cottone was permanently barred by the Financial Industry Regulatory Authority (FINRA) in 2018.

The owner and manager of the now-defunct Retirement Planning Institute LLC (RPI), Anthony Cottone, was a securities industry member for 13 years. His Broker Check record notes that he was a registered broker and investment adviser with several firms during this time. Most recently, he worked with Landolt Securities from 2016 to 2017.

SSEK Law Firm Investigates Investors’ Losses From GWG L Bonds Sold By Aegis Capital, Emerson Equity, and Many Others

Published on: February 8, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Deadline for GWG Holdings to Pay L Bond Investors $13.6M is Fast Approaching

Our investment fraud lawyers are speaking with investors who suffered losses in GWG L Bonds. These private placement, high-yield junk bonds were issued by GWG Holdings, Inc. (GWGH) and may have been marketed and sold by many broker-dealers, including Aegis Capital, Emerson Equity, and others.

GWG L Bonds have been available since 2012. However, their sales have been put on “pause” after being reinstated in December 2021 after a suspension of several months. Formerly called Renewable Secured Debentures, it was renamed L Bonds in 2015. GWG Holdings launched a new offering made up of its secured debt known as the Liquidity Bond 2020.

Fidelity Accused of “Lackadaisical” Vetting of Investors Wanting To Trade in Complex, Risky Investments

Published on: February 1, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Massachusetts’ Securities Regulator Says Fidelity Brokerage Services “Rubber Stamped” Options Trading Applications

William Galvin, head of the Massachusetts Securities Division, has filed an administrative complaint against Fidelity Brokerage Services. The firm has been accused of not making a good enough attempt to vet investors’ applications before allowing them to engage in options and margin trading. This led to financial losses for investors.

The state regulator accused the broker-dealer of having a “halfhearted and lackadaisical attitude” when it came to protecting retail investors. Fidelity Brokerage Services failed to reasonably perform due diligence related to approving customers’ accounts—a violation of Massachusetts securities laws. Fidelity Brokerage Services is a subsidiary of Boston-based Fidelity Investments.

Former UBS Broker German Nino Allegedly Stole $5.8M From Client

Published on: January 31, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Ex-UBS Financial Services Advisor Faces SEC and Criminal Charges

German Nino, a former UBS Financial Services (UBS) broker and investment advisor, is accused of stealing $5.8M from a customer. Nino, who left the broker-dealer in 2020, is now facing related civil charges brought by the US Securities and Exchange Commission (SEC), and parallel criminal charges.

Our Florida broker misconduct lawyers are looking into claims of significant investment losses by other ex-customers of the financial advisor, German Nino. Contact us at Shepherd Smith Edwards and Kantas today so that we can help you determine whether you have grounds for a FINRA arbitration claim to file for damages.