Articles Tagged with JP MORGAN

AdobeStock_91053286-1-300x194Stoltmann Law Offices is investigating Angelina Todurge, a former Florida-based JP Morgan broker. She was recently barred from acting as a broker by the Financial Industry Regulatory Authority (FINRA). Allegedly, Ms. Todurge converted $13,000 for her personal use, and failed to report the receipt of funds from a third-party bank which were errantly wired to her bank account and then used for personal use. These are both against securities laws and Ms. Todurge was barred from the industry. A broker may not use money for personal use or convert funds. If she does, her brokerage firm may be liable for investment losses on a contingency fee basis. If you lost money with Angelina Todurge, please contact our securities law firm today at 312-332-4200 in order to speak to an attorney about your losses. We sue firms like JP Morgan in the FINRA arbitration process on a contingency fee basis. Please call today as there is no obligation and there is a statute of limitations on most cases. The call is free.

AdobeStock_82110313-1-300x125Stoltmann Law Offices is interested in speaking to those clients who may have lost money with JP Morgan. Recently, JP Morgan was accused of charging excessive and/or improperly disclosed fees in proprietary investments and managed accounts. For those customers of JP Morgan who maintained accounts between 2008 and 2014, you may have been charged excessive fees by JP Morgan during that time period. We are securities attorneys based in Chicago, Illinois who sue firms like JP Morgan in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis, so we don’t get paid unless you recover money. JP Morgan may be liable for investment losses because charging excessive fees and markups is against securities rules and regulations. Please call 312-332-4200 to find out how we may be able to bring a claim against the firm. There is a statute of limitations on most cases.

Investors should be aware of Exchange-Traded Notes (ETNs), which comprise about one third of the U.S. market. Many of these ETNs have been delisted from stock exchanges, and trade only in other markets where there is little transparency. Investors may be overpaying for these ETNs, which is oftentimes not the real value price. An ETN is a type of unsecured, unsubordinated debt security that is based on the performance of a market index. Its value may be affected by the credit rating of the issuer, and may drop due to a downgrade in the issuer’s credit rating, even if there is no change in the underlying index. It is in this way that they can be risky and illiquid investments. When the ETN matures, the financial institution takes out fees and only then does the investor receive cash based on the performance of the index. Many of these investments are labeled as “broken investments,” and investors may not know about their risk. Some ETNs may stay in the market for years, because banks cant force investors to liquidate and some cannot be closed by the bank until they mature, sometimes 20 to 30 years after issue.

The most recent ETN to face scrutiny is JP Morgan’s Alerian MLP Index ETN, a $3.7 billion security, launched in 2009, as a successor created by Bear Stearns less than a year before the firm’s collapse. Because of the popularity of this ETN, JP Morgan suspended new note creation in 2012. This security was an oil and gas asset and was at a substantial premium over the value of its underlying oil and gas assets. The premium then collapsed. If you suffered losses with JP Morgan’s Alerian MLP Index ETN, you may be able to recover those losses in the Financial Industry Regulatory Authority arbitration forum by bringing a claim against the bank. Many oil and gas investments are not suitable for all investors and JP Morgan brokers must take this into account when recommending or selling a security. If you were sold an oil and gas ETN by a JP Morgan broker, please contact one of our attorneys today.

Johnny Burris, a former investment advisor at JP Morgan, lost his job after complaining that the firm pressured him to sell high-priced company products to mostly elderly clients. The firm admitted wrongdoing for engaging in similar practices that caused “significant harm” to clients, three years later. Mr. Burris accused the bank of pressuring him to put elderly clients’ retirement savings into high-commission bank products that were inappropriate for them. Subsequently, he complained that he was being pushed to breach fiduciary duty for those clients, and the bank fired him in November 2012. According to whistleblower laws, JP Morgan could be forced to give him back pay, and possibly other compensatory damages. Before the case was settled, however, a string of attorneys and investigators were fired from the Department of Labor’s Occupational Safety and Health Administration (OSHA), making it difficult for the whistleblower program to be considered effective. The handling of the Burris complaint is the most recent example of a problem within OSHA and its failure to protect whistleblowers. Another recent complaint within OSHA is the fact that Wells Fargo opened more than two million accounts for clients who had not authorized them. Because of this, the Department of Labor stated it would investigate its whistleblower program nationwide.

According to a recent FinancialPlanning article, Andrew Held, a former CFP at Morgan Stanley, allegedly pressured an adviser, Johnny Burris, to sell high-priced, proprietary JP Morgan investments to elderly clients in retirement communities near Sun City West, Arizona. Burris, who recorded the call, expressed concern about what could happen if he didn’t sell the employer’s products through his position at Chase Private Client, or CPC. He is quoted as saying, “What am I going to do if I don’t sell JPM if it’s not right?” Held responds with “I’m a CFP and it’s the way I’ve always run my practice and at the end of the day, obviously, we always do what’s most appropriate for the client. Now, with that being said, it does look a bit odd if after 60 or 9- days and you’ve presented to, you know, let’s say, 30 CPC prospects-high-net-worth prospects-and you haven’t done any JP Morgan business. Can you understand how that would look odd as a private-client adviser?” Four months later, JP Morgan fired Burris for not succumbing to this pressure, according to him, despite his being a top producer. At the time, Held was not only his supervisor, but also his compliance manager.

Regulators fined JP Morgan $307 million in December for widespread sales practices. The bank was fined this amount because of cases brought against it by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission. The bank admitted it “breached fiduciary duty” by not disclosing to its clients its preference for its own products between 2008 and 2013, according to the SEC. The SEC case claimed that the breaches were widespread in two divisions at JP Morgan: its investment advisory business JP Morgan Securities and its bank JP Morgan Chase Bank-where many advisers hold CPF certifications. However, it does not state that advisers may not always act as fiduciaries when they are recommending commission-based investment products. Clients may not be aware of the difference. Because many CFPs can face pressure to sell commission products that benefit the bank, fraud is rampant, and sometimes clients are not sold investments that are suitable for them. A bank must counsel its advisors and oversee them to only sell products that are suitable for its clients. If it does not, it can be held liable for money losses. Please call our securities law firm today if you lost money with JP Morgan. We may be able to help you bring a claim against the firm for investment losses on a contingency fee basis.

Joseph Bess has been sanctioned by the Financial Industry Regulatory Authority (FINRA), following allegations he marked order tickets for the purchase of exchange-traded funds (ETFs) in customer accounts as “unsolicited,” when, in fact, he had solicited each order. He also allegedly solicited unsuitable annuity products and solicited closed-end funds that were not on the firm’s approved solicitation list. ETFs tend to be very risky and illiquid securities that are not suitable for all investors. A broker must take into account a client’s age, net worth, investment sophistication and investment savvy before recommending a security. If he does not, his investment firm can be held responsible for losses. Please call our securities law offices in Chicago to speak to an attorney about how you may be able to bring a case against Waddell & Reed for losses. The call is free with no obligation. 312-332-4200.

Bess was registered with A.G. Edwards & Sons in St. Louis, Missouri from November 2001 until May 2002, UBS Financial Services in Edmond, Oklahoma from November 2005 until May 2007, Wachovia Securities in Edmond from April 2007 until April 2009, Chase Investment Services in Oklahoma City, Oklahoma from April 2009 until October 2012, J.P. Morgan Securities in Oklahoma City from October 2012 until April 2014 and Waddell & Reed in Edmond from April 2014 until July 2016. He has one customer dispute against him. He is not licensed within the industry.

According to a recent Disciplinary Proceeding with the Financial Industry Regulatory Authority (FINRA), John Bocchino and Rafael Jacinto were accused of engaging in a scheme to circumvent Morgan Stanley’s policies restricting trade in Venezuelan bonds. To do so, the men used fictitious nominee accounts that appropriated trades in the accounts and falsified firm documents. As a result of this, both men were able to trade approximately $190 million in Venezuelan bonds. Both men were registered representatives of Morgan Stanley in the New York City office. Both men were terminated from the firm as this was against securities rules and regulations.

John Bocchino was registered with JP Morgan Securities in New York from July 1998 until October 2000, Citigroup Global Markets in New York from February 2001 until June 2009 and Morgan Stanley in New York from June 2009 until March 2012. He is currently registered with UBS in New York and has been since April 2012. He has one customer dispute against him. Jacinto was registered with The Golden, Lender Financial Group in New York from April 1999 until July 1999, TD Waterhouse Investor Services in Omaha, Nebraska from July 1999 until November 2002, Citigroup Global Markets in New York from February 2004 until June 2009 and Morgan Stanley in New York from June 2009 until March 2012. He is currently registered with UBS in New York and has been since April 2012.

If you lost money with John Bocchino or Rafael Jacinto, please call our law offices in Chicago, Illinois today to speak to an attorney for free. We may be able to help you bring a case against Morgan Stanley in the FINRA arbitration forum to recover your investment losses. Morgan Stanley may be responsible for losses on a contingency fee basis. Call today. The call is free with no obligation.

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