Financial Firms

Shepherd Smith Edwards and Kantas Investigates Claims Involving Lincoln Investment Planning Broker Lester Burroughs

Published on: December 10, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigate Lincoln Investment Planning Broker, Lester Burroughs

If Lincoln Investment Planning investment advisor and broker, Lester Burroughs, worked with you as an investor and you suffered financial losses that you suspect may be due to fraud or negligence, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today.

Burroughs, who pleaded guilty to wire fraud in the criminal case against him, is currently at the center of a parallel US Securities and Exchange Commission (SEC) complaint accusing him of defrauding retail investors. Now, the regulator is seeking a jury trial in its civil lawsuit against the Lincoln Investment Planning broker, who had been based out of Connecticut.

Shepherd Smith Edwards and Kantas Investigates Claims Involving Ex-Securities America Broker Ronald Roach

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

Ex-Securities America Broker Investigated For Ponzi Scam Involvement

The US Securities and Exchange Commission (SEC) announced that it has permanently barred ex-Securities America broker, Ronald Roach, in the wake of his involvement in a $909M Ponzi fraud.

Ronald Roach pleaded guilty last month to criminal fraud charges and is facing up to 10 years behind bars. According to InvestmentNews, Securities America fired him the day after he entered his plea. The SEC contends that Roach and Joseph Bayliss, a general building and electrical contractor, operated an alternative energy tax credit Ponzi scam associated with the company DC Solar.

National Financial Services Gives GPB Investors Deadline to Move Investments To Another Platform

Published on: November 26, 2019 | by Shepherd Smith Edwards & Kantas, LLP

National Financial Services Customers Have 60 Days To Transfer GPB Investments

Five months after announcing that investors of GPB Capital Holdings private placements would no longer be carrying these alternative investments (AI) on its platform, National Financial Services (NFS) is sending letters to customers notifying them that they have 60 days after January 14, 2020, to transfer their GPB Holdings II securities.

The GPB Holdings II securities must be transferred to another custodian broker or their alternative investment (AI) positions will be registered directly in their name. This is one of the larger GPB private placement funds that, as of June, had reported a 25.4% drop in value. National Financial Services (NFS) is a Fidelity Investments clearing and custody unit.

Shepherd Smith Edwards and Kantas Investigates Ex-Sigma Financial Broker Frederick Randhahn For Selling $625K of Woodbridge Promissory Notes

Published on: November 21, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Frederick Randhahn, a former Sigma Financial Corporation broker, is suspended by the Financial Industry Regulation Authority (FINRA) for nine months after he allegedly sold $625K of Woodbridge promissory notes to investors without the brokerage firm’s permission and approval to sell these products.

In a letter of acceptance, waiver and consent, Randhahn agreed to pay a $5K fine and disgorge the almost $32K in commissions plus interest that he made from the sales. However, he did not admit to or deny the self-regulatory authority’s (SRO) findings.

Randhahn Fired For Selling Unapproved Investments

Morgan Stanley Pays $182K to Clients of Ex-Broker Justin Amaral

Published on: November 5, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Morgan Stanley Ordered To Pay Over $300K In Fines And Restitution

Secretary of the Commonwealth of Massachusetts, William Galvin, is ordering Morgan Stanley (MS) to pay a $200K fine, as well as $182K in restitution to four customers who suffered losses while working with former broker Justin E. Amaral.

The ex-Morgan Stanley financial advisor was barred by the Financial Industry Regulatory Authority (FINRA) in 2015.

SEC’s Broker-Dealer Fraud Case Against Cetera Advisors Reaches $21M

Published on: November 4, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Cetera Advisors Fraud Case Rises To $21M

Two months after suing Cetera Advisors for more than $10M for allegedly defrauding retail clients, the US Securities and Exchange Commission (SEC) has amended its complaint, adding another Cetera Financial Group firm as a defendant. The regulator is now seeking $21M.

According to the amended complaint, Cetera Advisors Network, also a registered broker-dealer and investment advisor, made over $10M in undisclosed compensation that retail advisory clients paid for in fees, mark-ups, administrative fees, and revenue sharing.

Shepherd Smith Edwards and Kantas Investigates Centaurus Financial Brokers Ricky Mantei and Cindy Chiellini

Published on: November 1, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating Centaurus Financial Brokers

Our brokerage firm misconduct lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) are representing investors who were sold structured certificates of deposits (CDs) by Centaurus Financial brokers Cindy Chiellini and Ricky Mantei.

Both work out of Lexington, South Carolina and are the subject of numerous complaints by customers, many of whom are based in Colorado and were sold these CDs. Now, the Colorado Division of Securities is considering pulling Centaurus’s license in that state over its alleged failure to properly supervise Mantei and Chiellini.

Shepherd Smith Edwards and Kantas Investigates Investor Claims Involving ex-Morgan Stanley Brokers Ami Forte and Charles Lawrence

Published on: October 24, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating The Ex-Morgan Stanley Broker, Ami Forte

Earlier this year, our investor lawyers reported that the Financial Industry Regulatory Authority (FINRA) had filed a lawsuit against former Morgan Stanley broker, Ami Forte. She allegedly made unauthorized trades in the now-deceased Home Shopping Network co-founder, Roy Speer’s, account while he was afflicted with dementia.

The self-regulatory authority has now announced that it is barring Forte. Shepherd Smith Edwards and Kantas (SSEK Law Firm) are currently investigating complaints and concerns by former customers of Ami Forte who are suspecting that their losses may be due to fraud.

Stifel Nicolaus to Pay $1.5M For Failure to Supervise Broker Kenneth Blumberg

Published on: October 11, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Four Stifel, Nicolaus & Co. (SF) clients were awarded $1.5M in compensatory damages in their Financial Industry Regulatory Authority (FINRA) arbitration case against the brokerage firm. According to AdvisorHub, the claimants are accusing the broker-dealer of not properly supervising Stifel Nicolaus broker Kenneth D. Blumberg, who they contend invested up to 80% of their portfolio in biotech stocks.

The claimants also said that Blumberg mismarked trades and encouraged them to add more positions even as they were losing money. They are alleging the following:

Breach of fiduciary duty

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.”