Financial Firms

Barred Wells Fargo Broker Scott Reed Accused of Selling Investments Without Firm’s Permission

Published on: January 25, 2022 | by Shepherd Smith Edwards & Kantas, LLP

A former customer of Scott Reed, an ex-Wells Fargo Clearing Services broker, has filed a FINRA arbitration claim. The investor claims Reed made them invest more than $2M in unapproved investments. This resulted in the broker making hundreds of thousands of dollars in undisclosed commissions.

FINRA barred Scott Reed in February 2021 for allegedly taking part in $3.5M of private securities transactions. These transactions were made without notifying or getting the approval of his member firm first. This practice is known as selling away.

The self-regulatory organization (SRO) said that Reed solicited individuals to invest in securities from a software and development company. Not only did he facilitate these sales, but he also personally invested $200K in the company.

Suspended Delta Securities Broker Sean Casterline Allegedly Sold Away to Customers

Published on: January 24, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Florida Financial Advisor Sold Tuscan Gardens Growth and Income Fund Securities

Did you lose money while working with Delta Securities Company registered representative, Sean Donovan Casterline? If so, you may have grounds for pursuing damages. The longtime Florida financial advisor was suspended by FINRA in December 2021.

In FINRA’s action, the self-regulatory organization (SRO) accused Casterline of taking part in unauthorized private securities transactions through his alleged soliciting of about $1.5M in securities to 20 investors.

UBS YES Clients of Broker William Cerf Want $16.5M in Damages

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

UBS Financial Services is Also a Defendant in New Class Action Lawsuit

If you are a UBS Financial Services customer who invested in the firm’s Yield Enhancement Strategy (UBS YES) at the recommendation of New York financial advisor, William Montgomery Cerf, you are not alone.

According to BrokerCheck, William Cerf is named in six pending customer disputes. The claimants are collectively requesting $16.5M in damages. He is also one among many UBS brokers who marketed and sold UBS YES as a low-risk way to generate modest income. This options overlay strategy has ended up costing wealthy investors millions of dollars.

Customers of Morgan Stanley Broker Michael Wagner Seek Over $20M in Damages

Published on: January 13, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Atlanta Financial Advisor Accused of Using an Unsuitable Options Investment Strategy

Michael John Wagner, a longtime Morgan Stanley broker, is currently under scrutiny in the wake of recent customer disputes in which the claimants are requesting over $20M in damages.

Based out of Atlanta, Georgia, Wagner has worked in the industry for 20 years. He has been a Morgan Stanley broker since 2012. Before that, he was a Merrill Lynch stockbroker and investment advisor.

Triad Advisors To Pay $195K Fine and More Than $510K in Restitution For LJM Fund Sales

Published on: January 12, 2022 | by Shepherd Smith Edwards & Kantas, LLP

FINRA Said Triad Brokers Unsuitably Recommended LJM Preservation and Growth Fund

In December 2021, the Financial Industry Regulatory Authority (FINRA) censured and fined Triad Advisors $195K for allegedly failing to supervise its registered representatives that unsuitably recommended the LJM Preservation and Growth Fund (LJM) to customers.

The self-regulatory organization (SRO) contends that the broker-dealer allowed the sales to go through without first conducting the proper due diligence into the LJM Fund – especially while not having enough understanding about the Fund’s features and the risks involved.

Customers of UBS Broker Roderick Von Lipsey Report UBS YES Losses

Published on: January 7, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Claimants Are Seeking Over $4M in Damages Over UBS YES Strategy

If you suffered investment losses while working with UBS Financial Services broker and investment advisor Roderick K. Von Lipsey, you may have grounds for filing a FINRA arbitration claim to recover damages.

In the last 2.5 years, between September 2019 and January 2022, the Washington DC financial advisor has been named in four pending customer disputes over alleged losses sustained in the UBS Yield Enhancement Strategy (UBS YES).

Ex-Worden Capital Markets Broker Mark Kolta Has Been Named in 26 Customer Disputes

Published on: January 3, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Investors Are Seeking Six- to Seven-Figures in Damages

If you suffered investment losses while working with former Worden Capital Markets broker Mark Sam Kolta, you may want to explore your legal options with a seasoned securities law firm.

Kolta, who worked for 13 years in the industry, has 27 disclosures in his BrokerCheck record, 26 of which are customer disputes. A number of these are still pending, with some claimants requesting damages in the six and seven figures.

RBC Capital Markets to Pay $1M Over Unsuitable High-Yield Bond Concentration in Customer Accounts

Published on: December 27, 2021 | by Shepherd Smith Edwards & Kantas, LLP

RBC Capital Markets Settlement With FINRA Includes a Fine and Restitution

RBC Capital Markets has reached an agreement with FINRA in which the broker-dealer will pay $1M to resolve allegations of overconcentration in customers’ accounts involving high-yield bonds. Without denying or admitting to the self-regulatory organization’s (SRO’s) findings, RBC consented to a censure, a $550K fine, and more than $456K in restitution.

According to FINRA, the brokerage firm did not identify over 100 client accounts with conservative profiles that should have been reviewed for a possible unsuitable concentration of high-yield bonds.

J.P. Morgan Fined $200M by SEC & CFTC Over Messaging and Communications Violations

Published on: December 22, 2021 | by Shepherd Smith Edwards & Kantas, LLP

J.P. Morgan Securities Will Pay $125M to the Commission

J.P. Morgan has arrived at two settlements over recordkeeping and communication violations. These violations included using unapproved channels, such as WhatsApp and personal texts messages. One settlement is with the US Securities and Exchange Commission (SEC) and the other with the Commodity Futures Trading Commission (CFTC). The firm has admitted to the violations.

The settlement with the SEC is with J.P. Morgan brokerage firm subsidiary, J.P. Morgan Securities, LLC for failures by the company and its employees to maintain and preserve written communications. In addition, the broker-dealer will pay a $125M penalty and enhance its compliance policies and procedures to resolve the issue.

Two Wells Fargo Broker-Dealers to Pay $3.1M in FINRA’s UIT Investigation

Published on: December 20, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Supervisory Failures Allegedly Resulted in Unsuitable Trades and Rollovers

Wells Fargo Clearing Services and Wells Fargo Advisors have arrived at a settlement with the Financial Industry Regulatory Authority (FINRA).

The two broker-dealers will pay $3.1M for purportedly not setting up and maintaining a supervisory system that complied with the self-regulatory organization’s (SRO’s) rules involving early unit investment trust (UIT) rollover trading. FINRA’s action is its final one in its targeted probe into the sale of UITs.