Investor Lawyers Blog

Shepherd Smith Edwards and Kantas Investigates Claims Involving Fired UBS Broker David Fagenson

Published on: October 17, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigating David Fagenson, A Former UBS Brokerage Investment Advisor

If you are an investor who worked with former UBS broker, David Fagenson, and suffered substantial losses or suspect you may have been charged excessive fees and commissions, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today.

David Fagenson was suspended by the Financial Industry Regulatory Authority (FINRA) last year after he allegedly engaged in unsuitable trading in the accounts of three senior investors ranging in age from their 70s to mid-90s. However, this is not the first fraud allegation in which Fagenson has been involved.

Shepherd Smith Edwards and Kantas Investigating Claims Involving Ex-Hilltop Securities Broker Richard Cagle

Published on: October 16, 2019 | by Shepherd Smith Edwards & Kantas, LLP

SSEK Investigates Richard Cagle

If you are an investor who suffered losses while working with former Hilltop Securities Independent Network broker Richard Earl Cagle, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today. With 28 years in the industry, Cagle, who was a Texas broker, was barred by the Financial Industry Regulatory Authority (FINRA) a few months ago after he refused to appear and testify in the self-regulatory authority’s probe into allegations that he made unsuitable investment recommendations and mismarked customer order tickets.

It was just earlier this year that Hilltop Securities fired Cagle. His BrokerCheck record shows two settled customer disputes, both alleging unsuitable recommendations. One case was settled for $20K. The other broker fraud case was settled for $230K.

Shepherd Smith Edwards and Kantas Investigates Ex-Wells Fargo Broker Leonard Kinsman

Published on: October 15, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Our investor fraud lawyers at SSEK Law Firm are looking into claims involving former Wells Fargo (WFC) broker Leonard Kinsman (Kinsman). Kinsman currently still faces at least two customer complaints that were brought before the Financial Industry Regulatory Authority (FINRA), one claim involves a New Jersey widow and mother of three who is accusing him of defrauding her family of their life savings.

Until July 2019, Kinsman belonged to the Wells Fargo Financial Network of brokers that operate independently, even as they use the bank’s compliance software and investment systems. No details have been provided into how or why he is no longer affiliated with the firm’s broker network.

According to the New York Post, the widow began working with Kinsman in 2012 when he was still a Merrill Lynch broker and after her husband had passed away. She requested that Kinsman place her money, a $2.27M life insurance settlement, in conservative, diversified investments that promoted long-term growth so she could support her family off the interest.

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

What’s The Connection Between Kalos Capital And GPB Capital?

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

Kalos Capital And GPB Capital: What Is Their Connection?

Shepherd Smith Edwards and Kantas (SSEK Law Firm) is continuing to investigate and file cases against Kalos Capital and its financial advisors in relation to GPB Capital investments. Kalos Capital is a FINRA licensed broker-dealer which is a subsidiary of Kalos Financial. Both are based our of the same address in Alpharetta, Georgia.

According to Kalos’s BrokerCheck Report (FINRA’s official record of firms and brokers), Kalos Financial owns 75% or more of Kalos Capital. According to its website, Kalos Financial was founded by David and Carol Wildermuth in 2004.

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.”

Shepherd Smith Edwards and Kantas Files Investor Fraud Lawsuit Against Money Concepts Capital for GPB Capital Sales

Published on: October 8, 2019 | by Shepherd Smith Edwards & Kantas, LLP

GPB Capital Sales: SSEK Files Investor Fraud Lawsuit Against Money Concepts Capital

Two investors in Alabama are pursuing a Financial Industry Regulatory Authority (FINRA) claim against Money Concepts Capital Corp. These investors sustained losses after one of the independent brokerage firm’s longtime registered representatives recommended that they purchase GPB Capital private placements.

Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) is representing both claimants in their investor fraud claim.

Three Ex-Morgan Stanley Brokers Accused of Broker Misconduct

Published on: October 7, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Misconduct Accusations Against Ex-Morgan Stanley Brokers

Broker Misconduct Case #1: John Tillotson

The Financial Industry Regulatory Authority (FINRA) has suspended ex-Morgan Stanley broker, John Tillotson, for 15 days and ordered him to pay a $5K fine after finding that he impersonated five clients during phone calls to a mutual fund company. This was so he could move their retirement money to the firm.

Raymond James To Pay $15M for Improper Advisory Fees and Commission Charges

Published on: October 3, 2019 | by Shepherd Smith Edwards & Kantas, LLP

Three Raymond James entities — Raymond James & Associates, Inc., Raymond James Financial Services Advisors, Inc., and Raymond James Financial Services, Inc. (RJF) — have agreed to pay $15M to settle US Securities and Exchange Commission (SEC) charges accusing the brokerage firm of charging excess commissions to customers that invested in certain united investment trusts (UITs) and, also, of improperly charging advisory fees to retail client accounts that were no longer active. As part of the settlement, the Raymond James entities will issue distributions to investors who were affected.

According to the SEC’s cease-and-desist order, from at least 1/2013 through 5/2018, Raymond James & Associates and Raymond James Financial Services Advisors:

Didn’t not perform suitability reviews as promised.

SSEK Law Firm Investigates Ex-Broker James T. Flynn and Voya Financial Advisors

Published on: October 3, 2019 | by Shepherd Smith Edwards & Kantas, LLP

If you are an investor who suffered financial losses while working with former Voya Financial Advisors (VOYA) broker James T. Flynn, please contact Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today.

Our broker fraud lawyers are investigating claims brought by the former clients of Mr. Flynn while he was a registered broker with Voya Financial from 2013 to 2017 and previous to that while he worked with other financial firms. Voya fired him in 2017.

With 18 years of experience in the industry, Flynn, who was barred by the Financial Industry Regulatory Authority (FINRA) in 2018 after he failed to respond to the self-regulatory organization (SRO)’s request for more information in a probe involving him, has forty disclosures on his BrokerCheck record.