Articles Tagged with Minnesota

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Jack Alan Quick was accused of issuing a check to settle the complaint of two firm customers without sufficient funds to cover the check. Allegedly, in June 2012, Quick recommended that his long-time customers, a married couple, each purchased a RiverSource Indexed Universal Life Insurance Policy (IUL). The surrender period for both of them was 10 years. In July 2013, the customers told Quick that they were displeased with the IUL and ask that he surrender it. Quick then told them about the surrender charge. Quick offered to reimburse them for the surrender charge. The cost was $5,448.00. The clients accepted a check from Quick, who did not notify his member firm, Ameriprise, of his actions. This is against securities rules and regulations. He was fined $5,000 and suspended for ten business days.

According to Quick’s FINRA BrokerCheck report, he was registered with IDS Life Insurance Company in Minneapolis, Minnesota from May 1993 until July 2006 and Ameriprise Financial Services in New Hope, Minnesota from May 1993 until July 2015. He has three customer disputes against him and is not licensed within the industry. Call us today for a free consultation with one of our attorneys. 312-332-4200.

According to an article in yesterday’s InvestmentNews, the Financial Industry Regulatory Authority (FINRA) fined an Ameriprise representative $50,000 and suspended him from the industry for one year. The broker, David B. Tysk, was accused of altering software notes to document his recommendations for a 78-year-old client, to invest $2 million in Ameriprise variable annuities. Tysk allegedly backdated 54 new entries and changed 13 previous entries in his client-relationship management system, to support recommendations that were claimed to be unfit for his client.

Mr. Tysk was said to have made the $2 million recommendations in December 2006. The client invested $1 million and purchased another $1 million seven months later. Months later, the client raised suitability concerns, adding he did not need to insure any assets to his heirs. It was detected that Mr. Tysk went back to change the history to correct a failing on his behalf.

According to his online FINRA BrokerCheck report, Tysk was registered with IDS Life Insurance Company in Minneapolis, Minnesota from August 1999 until July 2006 and Ameriprise Financial Services in Eden Prairie, Minnesota since December 1987. He has four customer disputes against him. Please call us today if you would like to bring a claim against his firm, Ameriprise. We are securities attorneys who represent investors in the FINRA arbitration forum in order to help them recover their investment losses.

Recently, Gerard A. Fagnant, a former registered representative with LPL Financial, entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). The AWC claimed that Fagnant improperly sold promissory notes to two customers of the firm for a total amount of $325,000. He was also accused of providing false information in response to LPL compliance questions. The AWC also stated that Fagnant orchestrated the liquidation of $281,203 of securities in the customers’ accounts. The customers also allegedly loaned Fagnant $325,000 in exchange for a promissory note providing a return of three percent per month for 24 months. These are against securities rules and regulations. For this, FINRA barred him from the industry permanently.

Fagnant was registered with IDS Life Insurance Company in Minneapolis, Minnesota from October 1988 until July 2006, Ameriprise Financial in Leominster, Massachusetts from October 1988 until November 2011 and LPL Financial in Leominster from November 2011 until April 2015. He has two customer disputes against him, one of which is currently pending. He is not licensed within the industry and he has been permanently barred. Please call us today if you would like to speak to an attorney about your options of suing LPL in the FINRA arbitration process. We take cases on a contingency fee basis only. The call is free and there is no obligation. Time is of the essence with these cases so please call today. 312-332-4200.

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Recently, Feltl & Company, based in Minneapolis, Minnesota, was censured and fined $225,000 and made to make restitution to customers in the amount of approximately $13,000. According to Feltl & Company’s Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Feltl failed to establish and maintain a supervisory system reasonably designed to ensure that its sales of leveraged and inverse exchange-traded funds complied with applicable securities laws and FINRA rules. FINRA also alleged that it made unsuitable recommendations of those products to customers. In September 2014, Feltl and FINRA entered into a separate AWC that imposed a censure and fine of $1 million on the firm. FINRA found multiple failures by Feltl between 2008 and 2012 concerning supervision of transactions in penny-stock securities and annual testing and verification of supervisory procedures. This had to do with the sale of unit investment trusts (UITs).

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Stoltmann Law Offices is investigating Jonathan Freeland, a financial advisor in Minneapolis, Minnesota. The Financial Industry Regulatory Authority (FINRA) recently barred Freeland from the industry. He was being investigated for allegations that he stole or misappropriated funds from an investment advisory firm. Freeland was a registered representative with The M&A Group from November 2011 until June 2015. Brokerage firms such as The M&A Group have a responsibility to adequately supervise all representatives who are registered through their firm. The firm must also take steps to ensure that their financial advisors follow all securities rules and regulations and internal firm policies. When they fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by investors.

Freeland was registered with The M&A Group in Minneapolis, Minnesota from November 2011 until June 2015. He is not licensed within the industry and has been permanently barred from the industry.

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Did you suffer investment losses with Gerard A. Fagnant, formerly with LPL Financial? If so, our securities attorneys may be able to help you recover your investment losses in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis. Please call our Chicago-based firm today at 312-332-4200 to speak to one of our attorneys about your options. We sue firms such as LPL for not properly supervising their brokers. According to his Letter of Acceptance, Waiver and Consent (AWC) with FINRA, Gerard improperly accepted five loans totaling $325,000 from two firm customers when he was registered with LPL Financial from June 2013 until September 2014. His customers liquidated approximately $281,203 worth of securities on three occasions in June 2013, May 2014 and August 2014, which resulted in the near depletion of the customers’ brokerage account. For this, he was barred from the securities industry by FINRA.

Fagnant was registered with IDS Life Insurance Company in Minneapolis, Minnesota from October 1988 until July 2006, Ameriprise Financial Services in Leominster, Massachusetts from October 1988 until November 2011 and LPL In Leominster from November 2011 until April 2015. He has two customer disputes against him, one of which is currently pending. He is not licensed within the industry and has been permanently barred, according to his online FINRA BrokerCheck report.

According to a cnbc.com report on Tuesday, the Financial Industry Regulatory Authority (FINRA) has been cracking down on firms related to their sales of unit investment trusts (UITs). UIT Sales What This Means For Investors  UITs are investments in a fixed portfolio of income-producing securities that have a defined maturity date, designed to provide capital appreciation and/or dividend income. FINRA found that Woodbury Financial Services, a brokerage firm in Oakdale, Minnesota, failed to identify and apply sales charge discounts to certain customers’ eligible purchases of UITs. The result was customers paying excess sales charges of $98,937. Woodbury is part of AIG Advisor Group, which is currently being sold by American International Group to Lightyear Capital and PSP Investments as of last month.

Another firm, ProEquities, a brokerage firm in Birmingham, Alabama, owned by Protective Life, was disciplined for similar UIT violations. FINRA claimed that ProEquities “lacked written supervisory procedures to identify UIT transactions eligible for sales charge discounts and lacked a process to assure that such discounts were properly applied. This resulted in excess charges to clients of $109,709. For this, the company was censured and fined $165,000 and ordered to pay $109,709 in restitution to its customers.

Stoltmann Law Offices is investigating Scott Valente, a former Albany, New York stockbroker. Valente admitted to taking $2 million in fees from clients by falsifying fake investment returns and operating without a license. He was sentenced to 20 years in prison on Friday and ordered to pay $8.2 million in restitution to more than 100 victims. Many of his victims were elderly. Valente was a former broker at Purshe Kaplan Sterling in Albany and was banned from the securities industry in 2009 for improper trades after creating his own investment firm called Eliv Group. He allegedly told his clients that they would see returns of between 30 and 40 percent, but these were false promises. Between 2010 and 2014, Valente actually used $2.2 million in client fees to go toward purchasing second homes, home renovations and other personal purchases. Many of his investments he sold to clients were in pre-IPO shares of Twitter and Square, two companies that recently went public.

Scott Valente was registered with Dime Securities of NY in Brooklyn, New York from October 1992 until November 1992, IDS Life Insurance Company in Minneapolis, Minnesota from November 1988 until July 1993, American Express Financial Services in Minneapolis from November 1988 until July 1993, Cigna Financial Advisors in Radnor, Pennsylvania from June 1993 until April 1994, Dean Witter Reynolds in Purchase, New York from April 1994 until July 1996, and Purshe Kaplan Sterling Investments in Albany, New York from August 1996 until February 2009. He has 17 customer disputes against him, one of which is currently pending, according to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report.

If you lost money with Scott Valente, you may be able to recover those investment losses by calling us at our securities law firm in Chicago and speaking to an attorney for free. We sue firms such as Purshe Kaplan in the FINRA arbitration forum to recover money for investors. Please call soon as time is of the essence with these cases.

Stoltmann Law Offices continues to investigate former Ameriprise advisor Susan Walker, who was sentenced to 88 months in prison after stealing more than $1 million from 24 retirement accounts of her clients. Walker pled guilty and was convicted of one count each of mail fraud and tax evasion in October of 2014. During the period between October 2008 and March 2013, Walker allegedly opened investment brokerage accounts in her name and several of her client’s names without their knowledge. She then withdrew money from the retirement accounts of at least 24 of her clients and hid the money she stole in accounts that were under her name. She then allegedly used the money to buy cruises, vacation packages, monthly rent and a new car. On top of her 88 month prison sentence, she also will receive three years supervised release and was forced to pay $978,950 in restitution.

Susan Walker was registered with IDS Life Insurance Company in Minneapolis, Minnesota from May 1998 until January 1991, American Express Financial Advisors in Minneapolis from May 1998 until January 1991, Invest Financial Corp in Tampa, Florida from May 1991 until November 1992, IDS Life Insurance Company in Minneapolis from May 1994 until November 1996, Titan/Value Equities Group in Irvine, California from June 1998 until March 1999, Mutual Service Corp in Plymouth, Minnesota from March 1999 until October 2008 and Ameriprise in Wayzata, Minnesota from December 2008 until April 2013. She has one customer dispute against her. She is not licensed and the Financial Industry Regulatory Authority (FINRA) permanently barred her from the industry.

Stoltmann Law Offices is investigating Eric Wegner, a broker with Cambridge Investment Research. He is accused of making unsuitable investments, misrepresentation, breaching fiduciary duty, and making false statements, many in connection with the sale of private placements like TIC interests. He also allegedly made unsuitable recommendations over the sale of variable annuities. Tenant-in-common (TIC)s are when investors have an undivided interest in real property. Each tenant owns a separate and undivided interest in the same real property and has an equal right to the possession and use of it. TICs can be very risky investments and are not suitable for every investor. A broker must take into account an investor’s net worth, age, investment sophistication and portfolio objective before recommending securities, and, if he does not, and investment losses occur, can be held liable for those losses. In many cases, his current or former brokerage firm can be used in the Financial Industry Regulatory Authority (FINRA) arbitration process because they had a responsibility to regulate and supervise the broker while he was employed there.

Eric Wegner was registered with Allstate Financial Services in Lincoln, Nebraska from January 2000 until October 2000, FFP Securities in Chesterfield, Missouri from October 2000 until December 2002, Sammons Securities Company in Burnsville, Minnesota from December 2002 until December 2008, QA3 Financial Corp in Burnsville from January 2009 until February 2011 and Sigma Financial Corp in Minneapolis, Minnesota from February 2011 until July 2013. He is currently registered with Cambridge Investment Research in Delafield, Wisconsin and has been since July 2013. He has five customer disputes against him, one of which is currently pending.

If you or someone you know invested and lost money in TIC investments or any other investments with Eric Wegner and Cambridge Investment Research, please call our securities law firm in Chicago to speak with an attorney about your options of bringing a claim against the firm. The call is free with no obligation. We take cases on a contingency fee basis only so we only make money when you recover your losses. Please call as soon as possible as time is of the essence with these types of cases. There are statutes of limitations. 312-332-4200.

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