Articles Tagged with AWC

Chicago-based Stoltmann Law Offices, P.C., has represented hundreds of investors over the years in both arbitration and litigation against LPL Financial. Many of these claims involved situations where the financial adviser sold the investor an investment that ended up being a Ponzi-like scheme. Rhett Bedwell, it would seem, falls into that category of former LPL brokers who sold clients fraudulent investments.

According to published reports, Rhett Bedwell, of Rogers, Arizona, while a registered broker with LPL Financial allegedly transferred a client’s IRA to an IRA custodian, using forged documents, and invested the client’s IRA in a Ponzi scheme. According to regulatory documents filed by LPL Financial, Bedwell was under an internal investigation at the firm at the time he was “permitted to resign” and was also subject to customer complaints, event though there is only one customer complaint disclosed on his FINRA BrokerCheck Report.   On February 10, 2021, Bedwell signed a FINRA Acceptance, Waiver, and Consent (AWC) which barred him for life from the securities industry. By failing to respond to FINRA’s request for information in connection with a regulatory investigation, Bedwell sealed his professional fate.

In circumstances like this, investors need to realize the brokerage firm with whom the broker was registered, in this instance, LPL Financial, is legally responsible for his misconduct under two independent legal theories. First, as a licensed, registered financial adviser, anything Bedwell did as a financial adviser, is part of the scope and course of his agency with LPL Financial. Investors don’t sue the brokerage firm when brokers cause property damage, for example, because LPL is not responsible for what the firm’s brokers do outside of providing financial and investment advice. But in this circumstance, surely from the investor’s perspective, Bedwell was providing financial and investment advice at all times.  The second road that should be taken is a direct claim against LPL for negligent supervision.  The securities rules are clear and the obligations are rock solid that LPL must maintain adequate supervision and compliance over its brokers in order to prevent and to deter violations of state and federal securities laws. Either way, LPL can be liable for the misconduct of its brokers.

AdobeStock_194438920-300x200According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Westport Capital Markets broker Emil Skyba violated securities laws. Skyba was barred from the industry because he failed to respond to an investigation against him. This results in an automatic bar. According to his online, FINRA BrokerCheck report, Emil Skyba was previously registered with Paine, Webber, Jackson & Curtis, Hornblower & Weeks, Shearson Hayden Stone, Lehman Brothers, UBS, and Westport Capital Markets in Westport, Connecticut from February 2015 until September 2017. He has four customer disputes against him and one regulatory matter. They allege unsuitable investments, unsuitable trading, excessive margin trading, misrepresentation, and other things. He is not currently registered as a broker. Please call our Chicago-based securities law firm today to find out how you may be able to sue Westport Capital Markets on a contingency fee basis for Emil Skyba losses.

AdobeStock_17723177-1-300x175According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Pavel Shklyar was accused of violating industry rules and regulations. FINRA was investigating Shklyar for his participation in potential private securities transactions, and he did not provide requested documents to FINRA. This resulted in an automatic bar from the industry. Previously, Pavel Shklyar was registered with Josephthal & Co., Bernard L. Madoff, Credit Suisse, Salomon Smith Barney, ICAP/Investment Services and Trading, RBC Professional Trader Group, Merrill Lynch and J.P. Morgan in Norwood, New Jersey from January 2015 until February 2018. He is not currently registered as a broker and was barred from the industry, according to his online, public records with FINRA. If you or someone you know lost money with Mr. Shklyar and would like to bring a claim against J.P. Morgan for your losses, please call us today to find out how to do so on a contingency fee basis in the FINRA arbitration forum.

AdobeStock_90383187-1-300x194According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Norris Roberts Jr. was barred from the industry for failing to show up at a hearing against him. He was being investigated for suspicious activity that led federal agents to uncover an illegal gambling operation in Arkansas. It was alleged that he was involved in an illegal gambling business in his home town in Arkansas, according to ArkansasBusiness.com. FINRA’s AWC claimed that Mr. Roberts was structuring withdrawals from his personal bank account in order to avoid his bank having to file currency transaction reports. Mr. Roberts was terminated by his former employer, Stephens Inc. following its review of a published report and supporting materials containing allegations that he had engaged in illegal activities. This was according to a recent InvestmentNews article.
According to Roberts’ online, public BrokerCheck report with FINRA, he was previously registered with Morgan Stanley in Purchase, New York from May 2001 until January 2004, Merrill Lynch in Rogers, Arkansas from December 2003 until September 2014, and Stephens in Rogers from September 2014 until August 2017. He has one customer dispute against him, alleging failure to reallocate a portfolio as requested, making investment recommendations that were not suitable with the customer’s investment objectives, and misrepresenting and omitting material facts regarding an investment from December 2010 until December 2013. He has one regulatory matter against him. He has been permanently barred from the industry. We may be able to help you recover your investment losses on a contingency fee basis in the FINRA arbitration forum.

According to his recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Todd Kimm, a former broker with Merrill Lynch, allegedly engaged in unsuitable short-term trading in a customer’s account with respect to closed-end funds and mutual funds. He also allegedly recommended over 100 unsuitable short-term trades of long-term investment products and eight unsuitable mutual fund switches in the same customer account. During the time period of July 2010 through July 2013, Kimm allegedly exercised discretion without written authorization in the same customer account. These are all against securities laws. For this misconduct, FINRA fined him $5,000 and suspended him from the industry for six months.

According to his online, FINRA BrokerCheck report, Mr. Kimm was previously registered with Merrill Lynch in Syracuse, New York from November 1996 until September 2014 and Commonwealth Financial Network in Syracuse from September 2014 until December 2017. He has two customer disputes against him that allege unsuitable investment recommendations, unauthorized trading, unsuitable variable annuity recommendations and sales and excessive trading. He is not currently registered as a broker. Excessive trading is also referred to as “churning,” and is when a broker trades in and out of securities daily, sometimes the same security. It is a particularly egregious misconduct because it typically results in large commissions for the broker, but unnecessary fees for the client. Merrill Lynch can be held liable in the FINRA arbitration forum on a contingency fee basis if it does not reasonably supervise its brokers like Todd Kimm.

AdobeStock_35532974-1-300x200According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Jermaine Joseph violated securities laws and PFS Investments firm policies. Allegedly, from June 2015 until March 2016, Mr. Joseph comingled more than $30,000 worth of customer funds with his own funds by depositing a check from the customer into an account he controlled. In April 2016, he also allegedly made false statements to PFS in connection with the firm’s investigation into him. In January 2014, he submitted a false compliance attestation to PFS in which he attested that he had no outside securities accounts. For this, he was barred from the industry. According to his FINRA BrokerCheck report, Mr. Joseph was registered with PFS Investments in Hialeah Gardens, Florida from April 2013 until February 2015, and PFS Investments in Hialeah Gardens from June 2015 until May 2016, and is not currently registered as a broker.

AdobeStock_112181284-1-300x200According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Gabriel Hynes allegedly purchased securities in four different companies through private offerings conducted outside the scope of his employment with NYLife. He also failed to give NYLife notice of these transactions. This occurred from 2008 through May 2014. In January 2014, Hynes opened an account at another member firm and maintained the account through his association with NYLife. This is a violation of securities laws and firm rules. For this, he was fined $10,000 and suspended from the industry for three months. Hynes was previously registered with A.G. Edwards & Sons in St. Louis, Missouri from January 1999 until December 2000 and NYLife Securities in St. Augustine, Florida from January 2001 until June 2017. He has one customer dispute settled against him, and is currently not registered within the industry. If you would like to sue NYLife for Hynes losses, you may be able to in the FINRA arbitration forum. NYLife may be liable for losses sustained because it failed to reasonably supervise the Mr. Hynes while he was registered there. Please call today, as there is a statute of limitations on most cases. The call is free with no obligation. Attorneys are standing by.

AdobeStock_112465076-1-300x164According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Larry Wolfe was accused of exercising discretion in the accounts of 39 customers without obtaining prior written authorization from the customers or written approval of the accounts as discretionary from his member firm, HJS. This is against securities rules and occurred from November 10, 2015 until November 16, 2015. For this misconduct, he was fined $5,000 and suspended from the industry for 15 business days. According to his online FINRA BrokerCheck report, Wolfe was registered with Swanton Securities, Hanauer, Stern & Co., Bevill, Bresler & Schulman Inc., Drexel Burnham Lambert, EF Hutton, Shearson Lehman Hutton, Raymond James, The GMS Group, Herbert J. Sims & Co. in Boca Raton, Florida from March 2000 until January 2016 and Aegis Capital. He has 12 customer disputes against him, five of which are currently pending. He is currently registered with Stoever, Glass & Co. in Boca Raton and has been since May 2016. Please call our securities law offices today to find out how you may be able to sue your brokerage firm on a contingency fee basis if you have investment losses.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Tyson Palyka, a former registered representative with JJB Hilliard, was accused of engaging in discretionary trading when he effected securities transactions in the account of three customers. Allegedly, Mr. Palyka used discretion on an undetermined number of occasions to effect transactions in the two accounts of a customer between March 2013 and September 2015. Between May 2015 and September 2015, he also allegedly used discretion on an undetermined number of occasions to effect transactions in the five accounts held by husband and wife customers. And finally, allegedly, between August 2013 and September 2015, Palyka used discretion on an undetermined number of occasions to effect transactions in the account of a separate customer. These are all against securities rules and regulations. For these, he was suspended for 20 business days and fined $5,000.

Mr. Palyka was registered with Hantz Financial Services in Ann Arbor, Michigan from October 2005 until January 2013 and JJB Hilliard, WL Lyons in Trenton, Michigan from December 2012 until October 2015. He has one customer dispute against him and one criminal disposition. He is not licensed within the industry. Please call us today at 312-332-4200 to speak to one of our attorneys about bringing a claim against JJB Hilliard in order to recover your financial losses with Tyson Palyka on a contingency fee basis. The call is free with no obligation, so please call today.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Russell Sadler was fined $25,000 and suspended from the industry for 12 months. According to his AWC, Sadler, while registered with LPL, purchased securities issued by a company that proposed to build a movie studio in Plymouth, Massachusetts. Several of his customers also purchased the securities. Sadler did not provide LPL with written notice about these private securities transactions, and he did not receive approval from the firm. This is against securities rules and regulations. If you lost money through an investment with Russell Sadler, you may be able to sue LPL Financial in the FINRA arbitration forum to recover those losses on a contingency fee basis. The call to our securities law firm in Chicago, Illinois is free and there is no obligation.

Sadler was registered with HD Vest Investment Services in Irving, Texas from May 1995 until October 1999, First Dunbar Securities Corp in East Berlin, Connecticut from October 1999 until July 2001, LPL Financial in Plymouth, Massachusetts from July 2001 until February 2013 and Cambridge Investment Research in Plymouth from February 2013 until September 2014. He is currently registered with Independent Financial Group in Plymouth and has been since August 2014. In September 2015, there was an investigation against him.

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