Articles Tagged with Center Street Securities

Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses from alternative investments. Some brokers like to pitch investors on the idea of making a lot of money by investing in alternative investments, mostly because brokers get paid handsome commissions for selling them.  GPB Capital and more recently, GWG Holdings are examples of alternative investments that were pushed hard by brokerage firms, with terrible results. There is a sub-category of these investments called “liquid alternative”, which are complex and costly for clients.

FINRA, the U.S. securities industry regulator, recently issued a warning about liquid “alts,” which invest in assets “other than stocks and bonds — such as real estate, commodities and derivatives — to give retail investors exposure to alternative investments in a vehicle that can be traded daily. They are touted as a way to beat market returns but also can be risky and expensive.”

“While these funds may be appropriate for some investors,” the regulator’s warning stated, “FINRA has consistently emphasized the importance of member firms’ sales practice obligations for these and other products, especially when such products may carry additional risks for customers.” These products are inappropriate for investors unless their objective is speculation – plain and simple.

AdobeStock_77502568-1-300x199According to a Decision by the Financial Industry Regulatory Authority (FINRA), David Escarcega willfully made materially false and misleading statements in connection with seven customers’ purchases of debentures totaling $516,825. Furthermore, Escarcega allegedly made unsuitable recommendations in connection with 12 customers’ purchases of the same debentures totaling approximately $1.5 million. Allegedly, his debt product that he recommended came with a “high degree of risk,” and Escarcega allegedly did not do his due diligence to find out if the product would be suitable for his clients. A broker has a duty to do so, and, if he does not, his brokerage firm can be held liable for losses on a contingency fee basis. Many of Escarcega’s clients were elderly and retired and could not afford the high risk and illiquidity with which these products came. FINRA subsequently barred him from the industry for this misconduct.
Previously, Mr. Escarcega was registered with MML Investors, Pruco Securities, Mony Securities, Lincoln Financial Securities, Chase Investment Services and Center Street Securities in Phoenix, Arizona from March 2010 until April 2016. He has two customer disputes against him and he is currently not registered within the industry. Please call our securities law firm today located in Chicago, Illinois if you have suffered losses with Escarcega. We may be able to help you bring a claim against his former firm in the arbitration forum on a contingency fee basis. The call is free with no obligation.

AdobeStock_1800313-1-300x204Did you lose money with John Oldham, formerly registered with NPB Financial Group? If so, the attorneys at Stoltmann Law Offices may be able to help you recover those losses. Oldham allegedly entered into an arrangement with an investment advisor (IA) to sell to invest in alternative investments such as non-traded real estate investment trusts (REITs) and business development companies (BDCs). Allegedly, between 2014 and 2015, Olham facilitated the sales of 99 alternative investments to 50 customers referred to him by the IA. He then shared commissions with the IA, who was not registered as a broker-dealer. This is against securities laws. Oldham was suspended for three months and fined $5,000. Oldham was a registered representative and financial advisor of NPB Financial Group from May 2014 until September 2015. He was also affiliated with Center Street Securities from September 2015 until October 2016. He worked in Wautoma, Wisconsin. Please call our Chicago and Barrington, Illinois-based securities law firm today at 312-332-4200 to speak to an attorney about how you may be able to bring legal recourse against NPB for losses with John Oldham on a contingency fee basis. The call is free with no obligation.

According to recent allegations made by the Financial Industry Regulatory Authority (FINRA), David Escarcega was barred from the industry after making false and misleading statements in connection with the sale of GWG Renewable Debentures. Escarcega allegedly told his clients that the debentures were guaranteed or safe, when they were not. In reality, they were illiquid investments not suitable for many investors. FINRA barred him from the industry and fined him $52,270. In March 2016, the Securities Division of the Arizona Corporation Commission brought a complaint against him which alleged that he sold more than $4 million worth of GWG Debentures and that those were speculative and illiquid. The state of Arizona barred him from the securities industry and fined him $10,000 in November 2016.

Escarcega was registered with MML Investors Services, Pruco Securities Corp, Mony Securities Corp, Lincoln Financial, Chase Investment Services and Center Street Securities in Phoenix, Arizona from March 2010 until April 2016. He has two customer disputes against him and has been permanently barred from the industry. Please call our law firm today if you suffered losses with David Escarcega. We may be able to help you recover them on a contingency fee basis by bringing a claim against Center Street Securities in the FINRA arbitration process. The call to us is free with no obligation.

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