Articles Tagged with Capital Investment Group

AdobeStock_112465076-1-300x164James Flynn, a former registered broker with Voya Financial Advisors, has at least 10 customer complaints against him. Many of these concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs). These types of investments tend to be highly illiquid and risky ones that are not suitable for all investors. A broker such as Mr. Flynn must take into account factors such as a client’s age, net worth, investment risk tolerance, and investment sophistication before recommending or selling investments. If he does not, his brokerage firm may be liable for losses on a contingency fee basis. REITs and other alternative investments like oil, energy and gas offerings, and DPPs, typically underperform other investments, and are recommended by brokers because of the high commissions they offer. Voya may be held liable for alternative investment losses in the Financial Industry Regulatory Authority (FINRA) arbitration forum.
Mr. Flynn was discharged from Voya in February 2017 after the firm accused him of providing misleading information to the firm during a complaint investigation. He was then hired by IFS, but discharged a year later after he allegedly executed unauthorized trades. James Flynn was also subject to a tax lien totaling hundreds of thousands of dollars. In April 2005, Flynn disclosed a tax lien of over $256,000. He then declared bankruptcy in April 2013.
According to his online, FINRA BrokerCheck report, James Travis Flynn was previously registered with Capital Investment Group in Greer, South Carolina from July 2011 until June 2013, Voya Financial Advisors in Greenville, South Carolina from May 2013 until February 2017, and IFS Securities in Greenville from February 2017 until February 2018. He has 11 customer complaints against him, one of which is currently pending, one financial and regulatory matter and three judgments/liens. He has been suspended from the securities industry and is not currently registered as a broker.

Stoltmann Law Offices is investigating Dennis Hayes, a broker with Newbridge Securities Corporation. Hayes allegedly recommended unsuitable transactions. The claimant alleged approximately $750,000 in damages. According to her statement of claim, the client divorced her husband in 2012, after which she had $1,500,000 in assets of which $500,000 was non-qualified money and about $1 million was qualified IRA funds. The client explained to Hayes that she wanted to protect her assets while having returns to meet her immediate income needs. After transferring her funds, Hayes solicited her to invest in a gold fund called USA Gold. Hayes recommended $300,000 in USA Gold through a self-directed IRA account. USA Gold appears to be an unregistered securities offering and most likely an investment scam. Newbridge Securities failed to properly investigate Hayes for his involvement in the unregistered offering. Hayes continues to work at Newbridge, therefore, putting other clients at risk. The claimant also allegedly complained to Gene Robert Abrams, Newbridge’s General Counsel and Co-Chief Compliance Officer, that Hayes was involved in private securities transactions. This is despite multiple sources claiming and proving that Hayes was, and most likely continues to be, involved in fraudulent private securities transactions.

Other risky assets the claimant was invested in included, non-traded real estate investment trusts (REITs) such as American Realty Capital Hospitality REIT, Carter Validus Mission Critical REIT, Griffen Capital Essential Asset REIT, and Business Development Corporation of America, as well as Shopoff Land Fund IV and RCS Capital Corporation (RCAP). All of these securities and REITs are risky, unsuitable investments, that were not along the lines of the claimant’s wishes and investment objectives. A broker must take into account his client’s age, net worth, risk objectives, investment savvy and portfolio before recommending an investment, and, if he does not, his firm can be liable for investment losses by being sued in the FINRA arbitration forum on a contingency fee basis.

According to his BrokerCheck report, Hayes was registered with AAL Capital Management Corp, Veravest Investments, Equity Services, MML Investors Services, Capital Investment Group, NFP Securities and is still registered with Newbridge in Boca Raton, Florida and has been since February 2010. He has two customer disputes against him, one of which is currently pending. Please call us today if you have investments with Dennis Hayes. We may be able to help you recover your investment losses. The call is free with no obligation.

Stoltmann Law Offices is investigating Randy Burke, who was recently barred from the industry by the Financial Industry Regulatory Authority (FINRA). Sale is accused of participating in private securities transactions without providing written notice to his member firm, Calton & Associates. He also allegedly made misrepresentations in his sales to an elderly customer by telling her she would be entitled to a share of the profits in the future sale of a lodge property in Alaska. Mr. Burke also allegedly deposited $38,000 of the customer’s money into a joint business checking account he shared with his wife and used the money for personal gain. He also allegedly used another customer’s money for personal gain in the sale of false investments in an entity called “Lodge Alaska, LLC”.

Engaging in private securities transactions is also referred to as “selling away,” and is when a broker solicits securities that are not held or offered by his member firm. This is against securities rules and regulations and is a tactic used by a broker to make large commissions for himself. Burke was registered with Pruco Securities in Newark, New Jersey from February 1996 until October 2001, Synergy Investment Group in Ferguson, North Carolina from February 2002 until April 2011, Capital Investment Group in Hickory, North Carolina from April 2011 until September 2013 and Calton & Associates in Hickory from September 2013 until October 2015. He has two customer disputes against him, one of which is currently pending. He is not registered with any FINRA firm, not licensed within the industry and FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

If you or someone you know invested money with Randy Burke, we may be able to help you bring a claim against his former firm, Calton & Associates. They may be held liable for investment losses because they had a duty to reasonably supervise Burke while he was employed with them. The call is free with no obligation and we sue firms such as Calton & Associates in the FINRA arbitration forum to recover money for investors. We take cases on a contingency fee basis only so we do not make money unless you recover. 312-332-4200.

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