FINRA

What Can Investors Expect During the FINRA Arbitration Process

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

The FINRA Arbitration Process

You’ve spoken with an experienced FINRA arbitration law firm that has determined your investor losses are due in part because of broker misconduct or negligence. You’ve decided to retain the services of skilled securities arbitration lawyers to help you sue your broker-dealer and maybe even their financial advisor for damages.

Like many investors, you may not be familiar with the FINRA arbitration process and want to know more about it and what to expect.

Massachusetts Fines MML Investors Services $250K For Failing to Supervise Ex-Broker Charles Evan

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

State Securities Regulator Seeks to Ban Former Capital Planning Group Investment Adviser

Massachusetts securities regulator William Galvin has fined MassMutual broker-dealer subsidiary MML Investors Services $250K for its alleged failure to supervise its former registered representative Charles Jonathan Evan. The ex-Wellesley, MA broker is also a former registered investment adviser who most recently was with Capital Planning Group of Massachusetts, Inc. Both Evan and Capital Planning are respondents in a separate but related civil complaint brought by the state.

According to Galvin’s office, Evan allegedly pressured investors to buy high-commission insurance products that were unsuitable for them. The state securities regulator is seeking to permanently bar him from operating as a financial advisor in Massachusetts.

Customers of Ex-First Allied Securities Broker Chad Barancyk Are Requesting More Than $2.1M in Damages

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

FINRA suspends former Florida Financial Advisor

The Financial Industry Regulatory Authority (FINRA) has indefinitely suspended ex-broker Chad Ryan Barancyk after he failed to respond to the self-regulatory organization’s probe. FINRA attorneys requested more information on the arbitration award/settlement agreement, which the former broker allegedly didn’t address.

Barancyk was fired by Great Point Capital, Chicago, where he worked as a registered representative for less than a year between 2021 to 2022.

Ex-Joseph Stone Capital Broker Joseph Ambrosole Faces Excessive and Unsuitable Trading Allegations

Published on: August 17, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Customer of Former New York Financial Advisor Is Requesting Over $850K in Damages

In July 2022, the Financial Industry Regulatory Authority (FINRA) permanently barred Joseph Albert Ambrosole after he refused to testify in the self-regulatory organization’s (SRO) probe. FINRA led this investigation concerning an amended Uniform Termination Notice by Joseph Stone Capital, one of the broker-dealers where he used to be registered. According to that member firm, Ambrosole, who resigned, was the subject of a customer complaint accusing him of allegedly engaging in unsuitable trading.

The ex-New York broker, who worked in the industry for eight years, was most recently a Joseph Stone Capital financial advisor between 2017 to 2021. Other firms where Ambrosole used to be a registered representative include Alexander Capital, Meyers Associates, Global Arena Capital, Laidlaw & Co., and Obsidian Financial Group.

Spartan Capital Securities Broker James Pecoraro Suspended Following Excessive Trading Allegations

Published on: August 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

New York Broker Allegedly Cost Customers Six-Figure Losses, Trading Costs, and Commissions

The Financial Industry Regulatory Authority (FINRA) has suspended Spartan Capital Securities financial advisor James Robert Pecoraro for nine months. FINRA ordered him to pay a $10K penalty and nearly $69K restitution for allegedly excessively unauthorized trading in customers’ accounts. The New York broker consented to the sanctions without denying or admitting to the findings.

According to the self-regulatory organization (SRO), Pecoraro recommended to certain clients a pattern of very costly, high-velocity trading that involved him making frequent stop loss orders, resulting in the liquidation of securities positions. At this point, he would allegedly recommend new purchases to the investors. FINRA said these trades were excessive and unsuitable for the investors, given their investing profiles. The trades cost them investment losses of over $166K and total trading costs of more than $184K, including over $165K in commissions.

Shomir Mukherjee, Western International Securities Broker in Los Angeles Allegedly Concentrated GWG L Bonds & Non-Traded REITs

Published on: July 6, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Texas Retiree Files Six-Figure FINRA Arbitration Claim Over Her Investment Losses

An Austin, TX investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Western International Securities, Inc. The investor sustained losses in GWG Holdings L Bonds and the following non-traded real estate investment trusts (non-traded REITs):

Griffin Realty Trust Class E

FINRA Fines Merrill Lynch $1.2M and $950K

Published on: January 11, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Two Merrill Lynch Brokers Stole More Than $6M from 13 Clients

In December 2021, the Financial Industry Regulatory Authority (FINRA) fined Merrill Lynch in two separate matters.

One fine, of $950K, is because the firm allegedly failed to detect that two of its financial advisors had stolen more than $6M from 13 customers in schemes that occurred over several years. This purportedly involved the transmission of funds through automated clearing house (ACH) transfers that were “externally initiated.”

Former Morgan Stanley Broker Jesus Rodriguez Is Barred by FINRA

Published on: December 7, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Ex-El Paso Financial Advisor Allegedly Took Over $61K From Client Credit Line

On November 29, 2021, the Financial Industry Regulatory Authority (FINRA) barred Jesus Rodriguez. The former Texas broker was accused of taking over $61K from a client credit line for his own use. The sanction came after he refused to cooperate in the self-regulatory organization’s (SRO’s) investigation. Rodriguez is also named in several customer disputes.

Our broker misconduct attorneys are speaking with former customers of ex-Morgan Stanley financial advisor Jesus Rodriguez that have suffered investment losses. We can help you determine whether you have grounds for a FINRA arbitration claim.

Coastal Equities To Pay $280K To Elderly and Retiree Clients Over Allegedly Unsuitable Trades

Published on: December 7, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Coastal Equities Has Been The Subject of $3M in Investor Arbitration Claims

Coastal Equities, a mid-sized broker-dealer, recently arrived at a settlement with the Financial Industry Regulatory Authority (FINRA) in which it agreed to give $280K in restitution to several customers. The firm is accused of failing to reasonably supervise one of its registered representatives, who recommended trades that were allegedly excessive and unsuitable. Those who were harmed were retirees and senior investors.

It was just last year that Coastal Equities said in its filing with the US Securities and Exchange Commission (SEC) that investors had submitted $3M in arbitration claims against the firm.

FINRA Suspends Fired First Southern Securities Broker Jaime Sanchez Rivera

Published on: September 30, 2020 | by Shepherd Smith Edwards & Kantas, LLP

New Customer Dispute Seeks $250K in Damages

Ex-Puerto Rico stockbroker, Jaime Isaac Sanchez Rivera, was recently fired by First Southern Securities. The termination came in the wake of allegations that he didn’t notify the broker-dealer about a customer complaint right away, as well as accusations of copying and modifying documents without permission. Sanchez Rivera also was recently named in a $250K customer complaint.

In June, the Financial Industry Regulatory Authority’s (FINRA) indefinite suspension of Sanchez Rivera went into effect. The suspended stockbroker also is a former registered investment advisor, most recently with SB Advisory and FSAM, LLC.