Investor Lawyers Blog

SEC Accuses Western International Securities & Five Brokers Of Reg BI Violations Involving $13.3M in L Bond Sales

Published on: July 2, 2022 | by Shepherd Smith Edwards & Kantas, LLP

SEC Alleges Western International Securities and Its California Financial Advisors Committed Due Diligence Failures

The US Securities and Exchange Commission (SEC) has filed civil charges against Western International Securities and several of its registered representatives. The firm and its advisors allegedly violated Regulation Best Interest standards when they sold about $13.3M of GWG L Bonds to investors between July 2020 and April 2021.

The regulator contends that the broker-dealer neglected to conduct adequate due diligence when recommending and selling these unrated and speculative junk bonds. In February 2022, GWG Holdings, Inc. defaulted on $13.6M of payments and interest it owes L Bond investors. The Dallas-based alternative asset firm filed for bankruptcy protection in April 2022.

Goldman Sachs Under Investigation by SEC Over ESG Funds

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

Did The Firm Misrepresent Environmental, Social, and Governance Qualifications in Marketing Materials?

According to The Wall Street Journal, sources say that The US Securities and Exchange Commission (SEC) is investigating Goldman Sachs Group Inc. The investigation includes certain funds that utilize environmental, social, and governance (ESG) criteria. ESG investing considers these three factors when assessing an investment’s overall impact and financial returns.

Goldman Sachs’s mutual fund business oversees at least four funds with ESG or clean energy in their names. The SEC is reportedly examining these investments in terms of their environmental, social, and governance criteria and metrics that marketing materials tout them to have.

Mexican Investors Allege That Infinex Investments Overconcentrated Their Assets In Northstar Financial Services (Bermuda)

Published on: June 30, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Infinex Broker Roberto Leslie Accused of Unsuitably Recommending Offshore Entity

Two investors from Mexico City who worked with Infinex financial advisor Roberto Francisco Leslie have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Infinex Investments. Related to their investment losses in Northstar Financial Services (Bermuda). Alleging unsuitability, concentration, and other broker misconduct, they seek up to $500K for their losses.

Our Northstar Financial Services (Bermuda) investment attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent these claimants in FINRA arbitration against Infinex. The hearing will take place in Houston, Texas.

Centaurus Financial Broker Bill Burks Named in Several Customer Disputes

Published on: June 28, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Investors’ Allegations Against Centaurus Financial Broker Include Unsuitability, Misrepresentations, and Concentration

Our experienced Texas broker misconduct attorneys are looking into claims of losses involving current and former customers of William Charles Burks, also known as Bill Burks II, in Flower Mound. Bill Burks is a Centaurus Financial broker who has been named in several customer disputes, most of which are settled or still pending.

Customer Disputes Involving Centaurus Financial Broker Bill Burks II

SEC Recommends Receivership For GPB Capital Holdings

Published on: June 27, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Regulator Seeks To Protect Nearly $1B of Investor Assets From Founder Accused of Over $1.8B Ponzi Scam.

The US Securities and Exchange Commission (SEC) and court-appointed monitor Joseph Gardemal recommend the appointment of receivership to protect almost $1B of investors’ assets from GPB Capital Holdings owner and founder David Gentile.

Other executives and founders of the alternative asset firm are accused of operating a more than $1.7B Ponzi scam. That defrauded over 17,000 investors, including many retail investors and retirees.

Japanese Customers Of Bankoh Investment Services File 7-Figure Claim Over Northstar Financial Services (Bermuda) Losses

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

More Claimants Accuse Broker Yoko Farias of Overconcentration In Obscure, Offshore Investment

An older couple from Japan has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim requesting between $500K and $1M in financial recovery over losses sustained in Northstar Financial Services (Bermuda). The respondents are Bankoh Investment Services and its registered representative Yoko K. Farias in Hawaii.

The investors contend that Bankoh and Farias allegedly abused their trust by overconcentrating a considerable amount of their assets in Northstar (Bermuda), which is now defunct and in liquidation proceedings. Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent these claimants in FINRA arbitration in the United States.

Fired Berthel Fisher Broker Steve Cummings’ Customers Report Investment Losses

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

Ex-Alabama Financial Advisor Has Been Accused of Misrepresentations and Unsuitability

Our knowledgeable broker misconduct attorneys are investigating claims of losses by customers of ex-Berthel Fisher & Co. registered representative Steve Jeffrey Cummings. In July 2021, claimants filed a Financial Industry Regulatory Authority (FINRA) arbitration claim for $250K in damages.

The customers contend that they were sold unsuitable investments between 2010 and 2015 and that Cummings allegedly made misrepresentations to them. They believe brokerage firm Berthel Fisher failed to supervise its Alabama broker and did not conduct proper due diligence. In 2017, Berthel Fisher fired Cummings over allegations that he did not disclose tax liens in a timely fashion.

Arizona Investor Alleges That Modern Wealth Management in Tucson Unsuitably Recommended GWG L Bonds

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

Centaurus Financial is Respondent in Six-Figure FINRA Arbitration Claim

A Salt Lakes, Arizona investor, has filed a FINRA arbitration claim against Centaurus Financial over losses he sustained in GWG L Bonds. Offering documents for the investment named ex-Centaurus broker Otto Ramon Bohon. Recently, Bohon has locally been affiliated with Modern Wealth Management (formerly Catalina Investments) as a registered representative.

The claimant is seeking to recover up to $500K in damages. Our GWG L Bond lawyers are representing him in FINRA arbitration.

Ameriprise Subsidiary RiverSource Fined $5M For Allegedly Improperly Switching Customers’ Variable Exchanges To Earn Commissions

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

RiverSource Distributors Accused of Targeting Retail Ameriprise Financial Customers With VA Sales

The US Securities and Exchange Commission (SEC) is ordering Ameriprise’s subsidiary brokerage firm, RiverSource Distributors, to pay a $5M fine for alleged violations involving variable annuities (VAs). The regulator contends that several RiverSource employees came up with a sales strategy that caused holders of these products to switch annuities. This purportedly resulted in enhanced sales commissions and boosted VA sales revenues for the firm.

The SEC said that RiverSource Distributors sold the VA exchanges to retail customers through Ameriprise Financial Services. It charged RiverSource with “improper switching or replacing variable annuities.” The case is the SEC’s first-ever enforcement proceeding under the Investment Company Act of 1940’s Section 11.

Cetera Investment Services Named in Chinese Couple’s 7-Figure Beechwood Bermuda Claim

Published on: June 2, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Cetera Investment Services Broker Xinxin Lu May Have Overconcentrated Couple’s Account in Obscure, Offshore Investment

Our seasoned securities lawyers have filed a Financial Industry Regulatory Authority (FINRA) arbitration case against Cetera Investment Services on behalf of two Chinese investors. These investors seek up to $5M in damages for losses they sustained in Beechwood Bermuda. The claimants, an older couple who have health issues, worked with former Cetera broker Xinxin Lu (also known as Stella Lu).

Beechwood Bermuda (formerly known as PB Life) is a division of Northstar Financial Services (Bermuda). Both are offshore entities that are now defunct and were owned by billionaire Greg Lindberg. He is now in prison for bribery and wire fraud.