Articles Tagged with Anthony Diaz

AdobeStock_78306447-1-300x199Stoltmann Law Offices continues to investigate Anthony Diaz, a broker with IBN Financial Services in Pennsylvania. Diaz allegedly began over-concentrating a client’s irreplaceable retirement assets into high-risk, commission-laden private placements, real estate investment trusts (REITs), and other illiquid, alternative investments. The customer was looking to generate income, while protecting his principal. He agreed to move his assets to IBN with the understanding that he was looking for stable investments. REITs, private placements and other alternative investments that Diaz recommended and sold to him, did not align with the customer’s wishes, and Diaz, as his financial advisor, had a duty to only recommend and sell to him those investments that were suitable for him, based on his age, net worth, investment objectives and investment sophistication and risk tolerance levels.
In November 2012, Diaz solicited the customer to purchase $350,000 worth of Bakken Drilling Fund III, which is now defunct. It is an oil, gas and energy stock, and these tend to be highly risky and illiquid investments. The fund filed for bankruptcy in October 2016, after raising over $20 million from 309 investors. This is according to a filing with the Securities and Exchange Commission (SEC). He also put him into Ameritech College Holdings for $95,000, ARC NY REIT, and ICAP Pacific Northwest Opportunity Fund.
According to publicly available records with FINRA online, Anthony Diaz has been permanently barred from the securities industry, and has 56 disclosures on his CRD report. 44 of these are customer complaints against him. He was registered with IBN Financial Services in Scotrun, Pennsylvania from September 2012 until April 2015. IBN can be liable for losses if you lost money because of Anthony Diaz.

AdobeStock_82110313-1-300x125Recently, the Financial Industry Regulatory Authority (FINRA) barred former financial advisor, Anthony Diaz from the industry. FINRA alleged that Mr. Diaz induced approximately eighty customers to enter into variable annuity exchanges, often subject to significant surrender charges, without a reasonable basis for recommending those exchanges. Diaz allegedly engaged in misconduct in connection with the sale of direct participation partnerships and real estate investment trusts (REITs), during February 2007 until February 2010. Allegedly, Diaz told seven customers that the investments were either guaranteed or guaranteed to pay certain amounts of interest. He also allegedly falsified or caused the falsification of the liquid net worth, and/or income information for at least nine customers to make it appear that they were eligible to invest in the products described in the preceding paragraph when they, in fact, were not. Diaz also allegedly altered or caused the alteration of the dates that appeared next to the signatures of customers on authorizations to transfer accounts on at least two occasions. Unauthorized trades were allegedy made in the accounts of at least seven customers of Diaz. These are all against securities laws. His former firm, IBN Financial Services, may be liable for investment losses suffered with Anthony Diaz, because the firm had a reasonable duty to properly supervise him.
Diaz was registered with Horwitz & Associates, Edward Jones, Raymond James, Round Hill Securities, First Allied Securities, SII Investments, Matrix Capital Group, Kovack Securities, International Financial Solutions, Sandlapper Securities, and IBN Financial Services in Scrotrun, Pennsylvania from September 2012 until April 2015. He has 41 customer disputes against him, two of which are currently pending. He has been permanently barred from the industry. We are Chicago-based securities attorneys who help investors recover their losses in the FINRA arbitration forum on a contingency fee basis. Please call us today to find out how. The call is free with no obligation.

According to a recent InvestmentNews article, Anthony Diaz, a Pennsylvania broker, is under federal indictment for fraudulent sales of illiquid alternative investments. The U.S. Attorney for the Middle District of Pennsylvania filed criminal charges against him for allegedly lying about the suitability of alternative investments to his clients. These unsuitable investments included nontraded real estate investment trusts (REITs). Diaz was barred from the industry last year by the Financial Industry Regulatory Authority (FINRA) and is currently facing six federal charges of wire fraud. During his career, Mr. Diaz was terminated, or permitted to resign from six of the 11 financial investment firms at which he worked over 15 years. According to the article, FINRA claimed Diaz “induced approximately 80 customers to enter into variable annuity exchanges, often subject to significant surrender charges, without a reasonable basis for recommending those exchanges.” He also “falsely told” seven clients that investments in REITs were “guaranteed or guaranteed to pay certain amounts of interest.” In reality, REITs are highly unsuitable and illiquid investments that are not suitable for most clients, and only garner large commissions for the brokers who sell them.

Mr. Diaz went on to provide false information on the REIT documents concerning his clients’ net worth, income, risk tolerance and/or investment experience in order to make it appear that these clients met the net worth and/or income requirements to invest in these products. He subsequently signed disclosure forms for them. This will lead to the government trying to prove that he had a deliberate intent to defraud. He will be on trial in federal court next month.

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