According to Financial Industry Regulatory Authority (FINRA) public records, Edward Murphy, a broker with David A. Noyes & Company in Chicago, Illinois, allegedly violated securities laws. He allegedly made unsuitable unit investment trusts (UIT) trades, recommended unsuitable investments, and misrepresented material facts related to an investment. These are all against securities laws. According to BrokerCheck online, Murphy was previously registered with The Milwaukee Company from November 1985 until October 1988, Dain Bosworth Inc. from October 1988 until April 1990 and Hamilton Investments from March 1990 until September 1994. He is currently registered with David A. Noyes in Chicago, Illinois, and has been since September 1994. He has four customer disputes against him, one of which is currently pending.
The answer is usually no. Borrowing money from clients is usually considered a violation of the securities industry rules and regulations. Despite the seriousness of this rule, brokers regularly borrow funds from clients. In some instances, when brokers get caught borrowing funds, they get terminated from their firm or even kicked out of the securities industry.
Consider the case of Patrick Joseph Friel. The former Saxon Securities and TFS Securities broker recently consented to FINRA sanctions and to the entry of findings that he improperly borrowed money from a customer at his member firm. The loan was interest free and did not have any terms of repayment. The findings stated that the firm’s procedures generally prohibited borrowing money from a customer, except in limited circumstances. He was then suspended from the securities industry for 30 days. In some instances, “borrowed” funds by a financial advisor can be recovered against the brokerage firm. To learn how, please call our law firm in Chicago, Illinois.
According to a recent Financial Industry Regulatory Authority (FINRA) Disciplinary Proceeding, Further Lane Securities allegedly charged excessive markups on 55 corporate bond transactions with customers, in violation of securities rules. The firm also allegedly failed to adequately supervise the markup activities of its registered representatives in violation of those rules. According to the Proceeding, a registered investment advisor placed limit orders with one of the traders to build the portfolio of an individual customer. The rep sold the bonds to the firm’s retail customers with an additional markup and caused the firm to mark up twice each security that the firm sold to a customer. Excessive markups were charged in 53 of the transactions with the firm’s individual customers. This is against securities laws. Please call our securities law firm in Chicago, Illinois to speak to an attorney about your options of bringing a claim in the FINRA arbitration forum against Further Lane Securities in order to recover your investment losses. We take cases on a contingency fee basis. The call is free with no obligation.
Calumet Specialty Products Partners, L.P. is an independent producer of high-quality, specialty hydrocarbon products based in Indianapolis, Indiana. The collapse of the share price has exposed fraudulent sales practices used by brokers across many brokerage firms to jam clients into grossly unsuitable concentrations. Calumet was not the conservative income investment clients were represented. In fact, it was a high risk, speculative oil and gas play. For burned clients, the FINRA arbitration claims process can be used to potentially recoup these losses. To learn how, please contact our securities law firm in Chicago at 312.332.4200
Seadrill Partners LLC is a limited liability company formed by Seadrill Limited (NYSE: SDRL) to own, operate and acquire offshore drilling rigs and operates as an offshore drilling contractor. The investment currently trades on the NYSE for less than $5 a share. Brokers at Morgan Stanley, Wells Fargo and UBS sold this investment to retail investors. If the firm didn’t disclose the full risks or failed to make a suitable, appropriate investment the losses can be recovered through the FIRNA arbitration process or class action lawsuits. Please call our legal team in Chicago to hear about all legal options or visit www.InvestmentfraudTimes.com
The Financial Industry Regulatory Authority (FINRA) recently fined Ameriprise Financial Services Inc. $850,000 for failing to detect the conversion of more than $370,000 from five customer brokerage accounts by one of its registered representatives. Ameriprise was accused of failing to adequately investigate red flags associated with nine third-party wire requests, including that the funds were being transmitted to a business bank account associated with one of Ameriprise’s representatives. This went on for two years before the misconduct was discovered. Ameriprise then paid restitution, plus interest and related fees and the representative in question was barred in June 2014.
FINRA found that from October 2011 until September 2013, a registered representative of the firm took more than $370,000 from five Ameriprise customers. The representative then submitted request forms to transfer funds from the customers’ brokerage accounts into the business bank account of the office in which he worked, allegedly for the intended purpose of making investments. He then took funds from that account in order to pay himself additional salary and commissions. This against securities rules and regulation, and, because Ameriprise allowed the transgressions to take place, the firm may be responsible for losses. If you experienced investment losses with Ameriprise Financial, please call our law firm in Chicago at 312-332-4200 today to speak with an attorney about your options. The call is free with no obligation. We sue firms such as Ameriprise in the FINRA arbitration process on a contingency fee basis, which means we don’t make money unless you recover yours.
There have been numerous Financial Industry Regulatory Authority (FINRA) complaints against John Tinnelly, a broker with Woodstock Financial in Hawthorne, New York. These include alleged securities law violations such as unsuitable investments, unauthorized trading and churning, or excessive trading. He also was accused of breach of contract which is against securities laws. Churning is typically engaged in only to profit the broker through the generation of commissions created by the trades. It can also generate large fees for the client. If you suffered financial losses at the hands of John Tinnelly, please call our securities law firm in Chicago, Illinois for a free consultation with an attorney. There is no obligation. We help investors recover their losses by suing the brokers’ firm, in this case, Woodstock Financial in the FINRA arbitration forum on a contingency fee basis. Please call today. 312-332-4200.
According to his BrokerCheck report, Tinnelly was registered with Biltmore Securities in Ft. Lauderdale, Florida from May 1993 until August 1994, Monroe Parker Securities in Purchase, New York from August 1994 until December 1997, Fin-Atlantic Securities in Jupiter, Florida from April 1998 until October 1998, Emerson Bennett & Associates in Ft. Lauderdale from June 2000 until March 2001 and Woodstock Financial Group in Garden City, New York from September 2008 until May 2013. He is currently registered with Woodstock Financial in Hawthorne, New York and has been since May 2015. He has 10 customer disputes against him, two of which are currently pending.
Stoltmann Law Offices is investigating Steven Schmulewitz, who was accused of violating securities laws including making unsuitable investment recommendations, unauthorized trading and churning accounts. Churning is a particularly egregious violation because it is excessive trading in a customer account, which can generate high fees for the client and large commissions for the broker. When a broker engages in churning, he will typically trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely turnover every month with different securities. Shmulewitz was also accused of trading a customer’s account on margin without authorization from the client.
Steven Shmulewitz was registered with Biltmore Securities in Ft. Lauderdale, Florida from January 1994 until August 1994, Monroe Parker Securities in Purchase, New York from August 1994 until December 1997, VTR Capital in New York, New York from January 1998 until February 1998, Fin-Atlantic Securities in Jupiter, Florida from March 1998 until January 1999, and Woodstock Financial Group in Garden City, New York from February 1999 until December 2014. He is currently registered with Craft Capital Management in Garden City and has been since May 2015. He has nine customer disputes against him. Please call our securities law offices in Chicago to speak to an attorney about your options of suing Craft Capital Management in the arbitration forum on a contingency fee basis. We sue firms such as Craft Capital Management in order to recover losses for investors.
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.
According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), SG Americas Securities was censured and fined $20,000 for violations of equity trade reporting. FINRA alleged that between May 1, 2014 through August 31, 2014, the firm failed to submit 1,862 last sales reports of transactions in designated securities. This is against securities rules and regulations. If you invested money with SG Americas Securities, please call our securities law offices in Chicago to speak to an attorney about your options of suing the firm in the FINRA arbitration forum on a contingency fee basis. The call is free with no obligation.