Financial Firms

Another Ex-Worden Capital Management Broker, Joseph Todaro, is Accused of Excessive Trading

Published on: August 2, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Worden Capital Management Broker’s Customer is Seeking Over $200K in Damages

Joseph Paul Todaro, currently an SW Financial registered representative, is named in a customer dispute in which the claimant is reporting investment losses from excessive trading, failure to follow instructions, and poor services. The investor is seeking over $200K.

This is not the first customer of the Melville, New York-based broker to accuse Todaro of excessive trading. As a matter of fact, three other claims brought by his customers make similar allegations. Also, from 2018 to 2020, Todaro was a registered representative with Worden Capital Management, which last year was subject of a Financial Industry Regulatory Authority (FINRA) action related to the churning activities of its brokers.

Florida Retiree Files $500K REIT Arbitration Case Against Securities America

Published on: July 28, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Broker Alan Douglass Unsuitably Overconcentrated Investor’s Funds in Non-Publicly Traded Products

An investor based in Lutz, Florida has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Securities America. This investor suffered losses in real estate investment trusts (REITs) and other non-publicly traded investments. The claimant, who is a retiree, suffered up to $500K in investment losses, which he is seeking in damages.

Securities America broker, Alan Duane Douglass, was this claimant’s financial advisor. He not only unsuitably recommended private placements and real estate investment trusts (REITs) to this customer but also, overconcentrated the customer’s portfolio with these risky investments.

South American Retirees File $5M Northstar Financial Services (Bermuda) Investor Claim Against Raymond James & Associates

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

Older Couple’s Broker Overconcentrated More Than $2.2M of Their Funds in Now Defunct Investment

An older retired couple from South America is pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim against Raymond James & Associates, Inc. after they suffered a seven-figure loss in Northstar Financial Services (Bermuda). Now, the senior investors are seeking up to $5M in damages, along with interest and costs.

Our Northstar (Bermuda) arbitration attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing these South American nationals in their FINRA arbitration claim that they filed against this US-based broker-dealer. A panel of arbitrators will hear this investor case in Boca Raton, Florida.

UBS Financial Services Settles SEC Charges Over Exchange-Traded Products Compliance Lapses for $8M

Published on: July 26, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Customers Were Allegedly Unsuitably Sold Complex Exchange-Traded Products

UBS Financial Services (UBS) has agreed to a censure and will pay an $8M fine in the Securities and Exchange Commission’s (SEC) civil case accusing the brokerage firm of failing to properly supervise its brokers.

UBS financial advisors sold complex exchange-traded products (ETPs) without fully comprehending all of the risks involved. The SEC has also ordered the firm to pay disgorgement plus interest of almost $113K.

NEXT Financial Group Reaches $750K Settlement Over Allegedly Unsuitable Short-Term Trading of Puerto Rico Bonds and Class A Mutual Funds

Published on: July 23, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based Brokerage Firm Accused of Overconcentration & Supervisory Failures

NEXT Financial Group has arrived at a $750K settlement with the Financial Industry Regulatory Authority (FINRA) to resolve claims that the Texas-based broker-dealer overconcentrated customer accounts in Puerto Rico municipal bonds and did not have the kind of supervisory system that could have identified unsuitable trades.

The self-regulatory organization (SRO) also contends that from January 2012 to February 2019 NEXT Financial Group did not set up, maintain, or enforce supervisory systems and written procedures that could have identified and stopped the short-term trading of Puerto Rico bonds and mutual funds when they were unsuitable for customers.

Former LPL Broker Paul McGonigle is Accused of Defrauding Investors

Published on: July 21, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Middleboro, Massachusetts LPL Financial Advisor Could Be Sentenced to 20 Years in Prison

Paul Richard McGonigle, a former LPL Financial broker, has been arrested for allegedly stealing clients’ retirement assets, including older investors. He is charged with aggravated identity theft, mail fraud, and multiple counts of wire fraud. McGonigle could spend 20 years behind bars if convicted.

According to prosecutors, starting in July 2018, McGonigle caused unauthorized withdrawals from clients’ annuities and persuaded some of them to allow him to invest their funds. Instead, the broker allegedly used their money to pay for his expenses. He is accused of posing as his victims during calls with annuity companies and signing as them on forms asking for the annuity withdrawals.

As July 26th Hearing Date Approaches, SSEK Law Firm Continues To Investigate Northstar Financial Services (Bermuda)

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

Investors’ Best Recourse For Financial Recovery is to Work With Experienced FINRA Attorneys

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) continues to zealously go after the brokerage firms whose registered representatives unsuitably recommended and sold Northstar Financial Services (Bermuda) products to their customers.

Already, we’ve filed several Financial Industry Regulatory Authority (FINRA) arbitration claims against broker-dealers on behalf of investors.

SSEK Investigates Claims That Charles Schwab Recommended Advisory Firms Market Vida Longevity Fund To Customers

Published on: July 19, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Charles Schwab Should Have Known RIAs Were Promoting the Fund

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is looking into losses suffered by Vida Longevity Fund, LP investors. Many investors were recommended this open-ended hedge fund by Creative Planning, Pin Oak Investment Advisors, or other registered investment advisors (RIAs) that Charles Schwab Corporation referred them to.

While it is not uncommon for Schwab to recommend RIAs to clients, the broker-dealer either knew or should have known that these firms were marketing the Fund to customers.

Securities America Advisors Fined $1.75M For Allegedly Failing to Protect Customers From Ex-Broker Hector May Who Stole $8M

Published on: July 15, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SEC Said Firm Didn’t Implement Proper Safeguards To Prevent Misappropriation

The Securities and Exchange Commission (SEC) has fined Securities America Advisors $1.75M for allegedly not doing enough to protect customers from having their money stolen by a former registered representative who misappropriated $8M from at least 15 client accounts. Hector May has pleaded guilty to investment advisor fraud.

Securities America Advisors is the RIA arm of Securities America, Inc., which is owned by Advisor Group Holdings Inc.’s Securities America Financial Corporation. Securities America has been the introducing broker for Securities America Advisors customers.

J.P. Morgan Securities’ Recommendation of Old Mutual Bermuda Causes Mexican Investor To Suffer Six-Figure Loss

Published on: July 14, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Old Mutual Investor Seeks Up To $500K in Damages

An investor from Mexico has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against J.P. Morgan Securities over the losses she suffered in Old Mutual (Bermuda). The off-shore entity is owned by Greg Lindberg’s Global Bankers, which also owns Northstar Financial Services (Bermuda).

The latter is already the subject of many FINRA arbitration claims against the broker-dealers and their registered representatives that unsuitably recommended products from that off-shore entity to its customers.