Articles Tagged with JP MORGAN

Chicago-based Stoltmann Law Offices represents investors who’ve suffered losses from dealing with broker-advisors who’ve placed clients in unsuitable investments.

FINRA, the federal securities regulator, has ordered JP Morgan to pay an investor $4 million for “unsuitable securities — including high-risk equities and junk bonds –without authorization,” according to The JPM client also alleged a JP Morgan broker had “used leverage to increase the bets in her portfolio, including high-risk foreign currency positions.”

The broker on the accounts appears to be Edward L. Turley, Advisorhub reported. Morgan fired Turley, a “star” broker who reportedly generated as much as $30 million in revenue on $1.6 billion in assets, in August. He has $57 million in pending damage claims from four customer complaints on his record tied to losses sustained in last year’s pandemic-triggered market crash, excluding the award in the most recent case.

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered investment losses at the hands of financial and investment advisers who churned and burned their accounts. One of the most prevalent abuses in the securities industry is excessive trading, or “churning” client accounts. This practice, which is forbidden by industry regulators like FINRA and the SEC, is done to generate commissions, almost always at the expense of the client. As the stock market swings wildly during the Covid-19 pandemic, brokers take advantage by trading their clients’ accounts to generate commissions.

Brokers can open the door to churning by asking customers if they want an “active” trading strategy, which gives brokers discretionary ability to trade at will. Unless clients give specific directions on how and when to trade, brokers may take the opportunity to trade excessively and charge needlessly high commissions.

Churning has been the subject of numerous regulatory actions over several decades. Broker Frank Venturelli, a representative for First Standard in Red Bank, New Jersey, was cited by FINRA for excessive trading between 2016 and 2018. According to FINRA settlement, clients lost more than $373,000 during that period. Venturelli was suspended from the industry for 11 months and ordered to pay partial restitution of $30,000 to his clients.

AdobeStock_78306447-1-300x199Ameriprise can be held liable for investment losses with former broker Nicholas Hoetmer in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis. Nicholas Hoetmer was previously registered with JP Morgan in Indianapolis, Indiana from 2012 until 2016, Chase Investment Services in Indianapolis from 2005 until 2012 and Banc One Securities Corp in Chicago, Illinois from 1999 until 2005. In May 2018, FINRA sanctioned Hoetmer following allegations that he failed to amend his Form U4. He was terminated from JP Morgan following allegations he failed to disclose a reportable event on his Form U4, and, while registered with Chase Investment Services Corp, recommended an unsuitable investment and misrepresented material facts related to an investment in auction rate securities. These are all against securities laws and internal firm rules. Nicholas Hoetmer, according to online records, has two customer disputes against him, one regulatory matter, one financial and two criminal dispositions. He is not currently registered as a broker and has been suspended from the industry.

AdobeStock_123495998-1-300x197Please call our law firm today for a no-cost review if you wish to file a whistleblower claim against JP Morgan, and were a former or are a current employee of the firm. The type of activity the SEC is most interested in, includes brokers who materially mislead investors so that they make buying and selling decisions concerning stocks that they might not have made, had they been fully and accurately informed. It also includes specific sales abuses engaged in by JP Morgan or brokers with the firm. If a JP Morgan employee submits a tip to the SEC that is original, voluntary, and results in sanctions worth more than $1,000,000, the whistleblower could be rewarded between 10 and 30 percent of the fines collected. In some cases, whistleblowers have been awarded millions of dollars for their contribution to the SEC investigation.
In February of this year, a former JP Morgan paid $30 million to a whistleblower who asked to not be identified. The award was the Commodity Futures Trading Commission’s (CFTC) fifth highest whistleblower award, since eclipsing a $10 million one in 2016. It is the CFTC’s second in excess of $1 million. The case alleged that JP Morgan did not properly disclose that it was steering asset-management customers into investments that would be profitable for the bank.
We have sued JP Morgan multiple times in FINRA arbitration claims. If you wish to report unethical conduct at JP Morgan and seek to make a whistleblower claim, please call our law firm today.

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_82110313-1-300x125According to Compliance Week, the Financial Industry Regulatory Authority (FINRA) fined J.P. Morgan Securities $1.25 million for failing to conduct timely or adequate background checks on 8,600 of its non-registered employees. This was 95% of its non-registered employees. According to federal securities laws, broker-dealers must fingerprint employees “working in a non-registered capacity who may present a risk to customers based on their positions. Fingerprinting helps firms identify if a person has been convicted of crimes that would disqualify them from being associated with a firm, absent explicit regulatory approval. Federal banking laws require banks to conduct similar checks on banking employees using a more limited list of disqualifying events.” Allegedly, from January 2009 until May 2017, J.P. Morgan did not fingerprint approximately 2,000 of its non-registered employees in a timely manner. This is against securities laws and internal firm rules.

AdobeStock_123495998-1-300x197According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Todd Jones, a former broker with J.P. Morgan was accused of exercising discretion without written authority in the accounts of 12 firm customers and mismarked most of the trades as unsolicited. This is against securities laws and firm rules. Mr. Jones was fined $15,000 and suspended from the industry for four months. According to FINRA, Jones was previously registered with Sanford C. Bernstein & Co. in Seattle, Washington from June 2011 until December 2014, Merrill Lynch in Seattle from December 2013 until November 2014 and J.P. Morgan Securities in Seattle from December 2014 until October 2015. He has been suspended and is not currently registered within the industry.

AdobeStock_1800313-1-300x204Stoltmann Law Offices continues to investigate Paul Stanley, who was terminated from JP Morgan in their Edmond, Oklahoma branch. He allegedly aided in unlicensed securities activity and the sale of unapproved products. The recommending of outside products constitutes impermissible private securities transactions, a practice known as “selling away.” This is when brokers sell promissory notes and other investments that are not held or offered by their member firm. It is against securities laws. Clients are able to sue firms like JP Morgan on a contingency fee basis in the FINRA arbitration forum for losses sustained. Please call us today at 312-332-4200 to find out how. We are based in Chicago, Illinois and the call to us is free.
Paul Stanley was registered with Dean Witter Reynolds, Raymond James, Vision Investment Services, UVest Financial Services, UBS, Lincoln Financial Advisors, Chase Investment Services, JP Morgan in Oklahoma City, Oklahoma from October 2012 until October 2013 and Waddell & Reed in Edmond, Oklahoma from October 2013 until January 2016. Stanley has been permanently barred from the industry.

AdobeStock_762441-1-300x225Did you invest with former JP Morgan financial advisor Rick Konecny? We are currently representing multiple victims of his. He recommended investments like:

Sandridge Energy Inc. (SD)

Yamana Gold Inc. (AUY)

AdobeStock_35532974-1-300x200Stoltmann Law Offices is investigating Jonathan Lo, a former broker with NYLife Securities, who was recently barred from the industry by the Financial Industry Regulatory Authority (FINRA). Lo was accused of engaging in mutual fund switching. Mutual fund switching is the process of transferring an investment from one fund to another, or the process of liquidating a position in exchange for other securities with better prospects for growth, yield or capital gains. This can result in unnecessary fees for the customer, and is against securities rules and regulations. Mr. Lo was permitted to resign from NYLife Securities because of these transgressions. Brokerage firms like NYLife have a responsibility to adequately supervise all representatives who are registered through the firm. They also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as firm policies. If they do not, they may be liable for investment losses customers may suffer.
According to his online FINRA BrokerCheck public record, Mr. Lo was previously registered with Pruco Securities, Morgan Stanley, Merrill Lynch, Chase Investment Services, JP Morgan and NYLife Securities in New York, New York from November 2013 until August 2015. He has five customer disputes against him and has been permanently barred from the industry. Please call our Chicago-based law offices today at 312-332-4200 if you suffered losses with Mr. Lo. We are securities attorneys who may be able to help you recover your losses in the FINRA arbitration forum. The call is free with no obligation.

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