Articles Tagged with network 1 financial securities

Stoltmann Law Offices is representing investors in arbitration claims where brokers have violated the “Best Interest” rule of the Securities and Exchange Commission (SEC), known as Regulation BI.

In its first enforcement action relating to Regulation BI, FINRA, the U.S. securities industry regulator, fined a former broker, Charles V. Malico, $5,000 for violating Reg BI “by recommending a series of transactions in the account of one retail customer that was excessive in light of the customer’s investment profile and therefore was not in that customer’s best interest,” according to Investment News.

FINRA alleged “Malico’s conduct occurred from July 2020 through November 2021, when he worked for Network 1 Financial Services Inc. He recommended to a customer, a 63-year-old tax preparer who was not identified, that he make more than 350 trades in his account, which generated $54,000 in commissions and other trading costs,” Investment News reported. The customer, who earned $100,000 annually and had a liquid net worth of approximately $50,000, had an account balance of about $30,000.

According to a recent Decision by the Financial Industry Regulatory Authority (FINRA), Jaoshiang Luo was barred from the industry for making material misrepresentations and omissions in connection with the sale of promissory notes issued by his former member firm, Westrock Advisors, Inc. During the relevant time period, 2007 until 2009, Luo allegedly sold four private placement offerings offerings issued by his firm, some of them issued without any disclosure documents. Westrock also did not provide financial statements to customers or brokers selling the 2009 Notes that were in the form of private placement memorandum. Luo also acknowledged that he had doubts about the 2009 Notes during his testimony, and that they were “too good to be true,” but he still told clients that they were a “good investment.” These transgressions are all against securities rules and regulations and Luo’s former firm, Westrock Advisors, can be held liable for losses in the FINRA arbitration forum. Please call our law firm today at 312-332-4200 to speak to an attorney about how you may be able to recover your losses. The call is free with no obligation.

According to his online, FINRA BrokerCheck report, Luo was registered with Network 1 Financial Securities, The Stamford Company, Josephthal Lyon & Ross Inc., Stuart, Coleman & Co., Investec Ernst & Company, Sandgrain Securities, Westrock Advisors in New York, New York from April 2002 until October 2012 (the company was expelled by FINRA is 2011), Buckman, Buckman & Reid, Andrew Garrett Inc., Clark Dodge & Co., and Columbus Advisory Group. He is no longer registered with any firm and has been permanently barred from the industry.

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