According to a recent InvestmentNews article, the Financial Industry Regulatory Authority (FINRA) has barred former Investors Capital broker, Matthew Peregoy, from the industry. Peregoy allegedly failed to attend a hearing that was looking into allegations of possible misuse of client funds. Mr. Peregoy was terminated from Investors Capital in July 2016, after he failed to disclose a civil judgment against him and for possible misuse of customer funds. These are against securities laws and internal firm rules. According to FINRA records, Mr. Peregoy was previously registered with Capital Analysts Inc. in Cinncinnati, Ohio from December 1993 until April 1996, Royal Alliance Associates in Jersey City, New Jersey from May 1996 until April 1998, The Investment Center in Brick, New Jersey from May 1998 until December 2005 and Investors Capital Corp in Brick from January 2006 until July 2016. He has one customer dispute against him and has been permanently barred from the industry.
Recently, the Financial Industry Regulatory Authority (FINRA) fined Wells Fargo broker Scott Wallach $5,000 and suspended him for one month. It also ordered him to pay $873.50, plus interest, in disgorgement of commissions received for allegedly effecting five unauthorized trades in a client account while the client was on vacation. He allegedly sold shares of two securities the client owned and used the proceeds from those sales to purchase a preferred bond in the client’s account. Wallach allegedly sold shares in one security the client owned and used the proceeds to purchase shares in another security. He earned $873.59 in commissions for the five trades. He was also accused of “conducting excessive trading” in an account, unauthorized trading, misrepresentation of commissions, unsuitable investments, and lost opportunity. All of these are against securities laws. Excessive trading, also known as churning, is a particularly egregious violation of securities laws, and is when a broker trades in and out of securities, many times in the same day and of the same security. This can lead to large commissions for the broker, but unnecessary fees for the client.
According to public records with FINRA, Scott Jason Wallach was previously registered with Continental Broker-Dealer Corp in Carle Place, New York from August 1998 until December 1998, Painewebber Inc. in Weehawken, New Jersey from January 1999 until December 1999, Prudential Securities Inc. in New York, New York from December 1999 until July 2003, and Wells Fargo Clearing Services in Paramus, New Jersey from July 2003 until October 2017. He is currently registered with Comprehensive Asset Management and Servicing in Parsippany, New Jersey, and has been since November 2017. He has two customer disputes against him.
Douglas E. Keller, a former registered broker with AXA Advisors, allegedly “engaged in a prohibited and unapproved OBA by selling indexed universal life insurance away from the firm after certifying to the contrary.” For this he was terminated from the firm. Allegedly, between January 2016 and April 2017, Keller sold 14 life insurance policies through an entity unaffiliated with AXA without properly disclosing the sales to the firm. This is against internal firm policies and securities laws. For this, Keller was fined $5,000 and suspended from associating in any and all capacities with any FINRA member firm for a period of three months.
According to his online, public BrokerCheck report with the Financial Industry Regulatory Authority (FINRA), Mr. Keller was previously registered with AXA Advisors in Woodbridge, New Jersey from December 2008 until May 2017 and is currently registered with Chelsea Financial Services in Red Bank, New Jersey, and has been since June 2017. He has three customer disputes against him, alleging unsuitable purchase of a variable annuity, and that the client did not know there were surrender charges associated with it, unsuitable recommendations of a variable life insurance policy, and misrepresentation in connection with the 2016 replacement of his whole life policy with a variable life policy.
Stoltmann Law Offices is investigating Barry Connell, a former Morgan Stanley investment advisor who was arrested on January 3rd, 2017 for stealing $5 million in client money. Connell was charged with wire fraud and aggravated identity theft for allegedly defrauding multiple clients out of at least $5 million over five years. Connell allegedly effected numerous unauthorized transactions from five account belonging to one family who were clients of Morgan Stanley. Mr. Connell submitted forms falsely stating that he had received client instructions authorizing wire transfers to third parties for the client’s benefits, when in fact, he had not received authorization. Mr. Connell used the checks to pay for his own expenses, including rent for a house in Nevada, country club memberships and for a private jet. He also paid credit card bills for his spouse, made payments to automobile dealerships, an entertainment company and a yacht company. Mr. Connell was registered with Morgan Stanley in Ridgewood, New Jersey at the time of his alleged theft.
According to his online BrokerCheck report with the Financial Industry Regulatory Authority (FINRA), Barry Connell was registered with UBS Financial Services in Pearl River, New York from October 1998 until June 2008, Morgan Stanley in Pearl River from May 2008 until June 2009 and Morgan Stanley in Ridgewood, New Jersey from June 2009 until December 2016. He has three customer disputes against him, one of which is currently pending. He is currently not registered with any FINRA member firm.
Please call our Chicago and Barrington, Illinois based securities law firm at 312-332-4200 today for a free consultation with one of our attorneys as to whether you may be able to sue Morgan Stanley in the FINRA arbitration forum if you suffered losses with Barry Connell. Morgan Stanley had an ironclad obligation to reasonably supervise the broker and, because it did not, can be held liable for your investment losses. There is no obligation. We take cases on a contingency fee basis only, so we only make money if you recover yours.
Stifel Nicolaus & Co. has settled with the state Bureau of Securities of New jersey that requires Stifel to repurchase $5.4 million in auction-rate securities (ARS) from New Jersey clients to settle allegations that its securities dealers sold the securities without disclosing known risks of the ARS market.
Brokerage firms faced a slew of FINRA arbitration claims and class action lawsuits related to sales practices of auction rate securities. Most of the firms have already settled with injured investors. Stifel is the latest to belly up to the bar and settle, at least with New Jersey clients.
Under the terms of the settlement, Stifel Nicolaus will repurchase the securities sold to retail investors in New Jersey. Although marketed and sold to investors as safe, liquid, and cash-like investments, the ARS were actually long-term investments subject to a complex auction process that failed in early 2008. The investments were subject to much greater illiquidity and lower interest rates than investors were promised.
Stoltmann Law Offices is investigating Todd Ryman, a registered broker at Deutsche Bank. Mr. Ryman was accused of making unsuitable investment recommendations, executing unauthorized trades and misrepresenting and omitting material facts. These are all against securities rules and regulations. Mr. Ryman was registered with Bear, Stearns & Co. in New York, New York from August 1995 until February 1996, Josephthal & Co. in New York from February 1996 until July 1998, UBS Painewebber in Weehawken, New Jersey from July 1998 until October 2002, Banc of America Investment Services in Atlanta, Georgia from October 2002 until October 2009, Merrill Lynch in Atlanta from October 2009 until May 2011 and Deutsche Bank in Atlanta from May 2011 until September 2016. He is currently registered with Raymond James in Atlanta and has been since September 2016. He has four customer disputes against him and one criminal disposition.
William Wells, who pleaded guilty on securities wire fraud charges earlier this year, was sentenced Tuesday in Manhattan federal court to 46 months in prison. Wells, formerly of Manhattan and New Jersey, was ordered to pay restitution as well, in a yet-to-be-determined amount, forfeit the proceeds of his scheme and undergo three years of supervised release, according to a press release issued by the US Attorney for the Southern District of New York. Wells used his company, investment firm Promitor Capital LLC, to defraud more than 30 investors out of $1.5 million. The investors included his family, friends and colleagues. He convinced them to invest with him by telling them he had consistently achieved positive returns in the stock market. He then used their money to pay for credit card bills, car payments and private school tuition. Wells was charged after an investigation led by the office’s Securities and Commodities Fraud Task Force, with assistance from the Federal Bureau of Investigation and the US Securities and Exchange Commission.
Stoltmann Law Offices is investigating Anthony Mastroianni, Jr., a former registered broker with Meyers & Associates and J.P. Turner & Company. Clients have alleged that Mr. Mastroianni Jr. churned accounts, mishandled accounts, made unsuitable investment recommendations, breached fiduciary duty and contract, and failed to pay outstanding loans from customers. All of these are against securities rules and regulations. Mastroianni was registered with Joseph Stevens in Old Bridge, New Jersey from February 2004 until May 2008, National Securities Corp in Staten Island, New York from May 2008 until May 2009, JP Turner & Co. in Red Bank, New Jersey form April 2004 until May 2012, Alexander Capital in New York, New York from May 2012 until November 2013 and Meyers Associates in New York from November 2013 until June 2016. He has six customer disputes against him, two of which are currently pending.
Did you lose money with Joshua Mosshart, a former registered representative with LPL Financial in Westlake Village, California? If so, please call our securities law firm in Chicago to speak to an attorney for free about your options of suing LPL Financial for not properly supervising Mosshart and allowing him to violate securities laws. We sue firms such as LPL Financial in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis to recover money for investors. The call to us is free so please call today.
Mosshart was involved in selling investment offerings of Enviro Board, which was purported to be a company that made environmentally friendly building materials. Enviro Board was never profitable, and Mosshart was alleged to have made misrepresentations regarding the profitability and viability of the company. Investments in Enviro Board were not properly registered.
Mosshart was registered with Financial West Group in Westlake Village, California from May 1999 until June 1999, Schoff & Baxter in Burlington, Iowa from July 1999 until December 1999, Fasco International in Walnut, California from January 2000 until August 2001, Chicago Investment Group in Chicago, Illinois from August 2001 until November 2001, UBS in Weehawken, New Jersey from February 2003 until July 2004 and LPL Financial in Westlake Village from July 2004 until December 2012. He is not currently registered with any firm and has three customer disputes against him.
Did you lose money with Thomas Schober, formerly a registered broker with SII Investments Inc.? Stoltmann Law Offices is investigating Schober for allegedly recommending unsuitable variable annuity exchanges in the accounts of two senior customers, aged 84 and 83. One of the customers suffered from dementia and both had limited financial means. The Financial Industry Regulatory Authority (FINRA) found that Schober effected annuity exchanges to benefit himself and receive commissions. The exchanges he made caused the customers to pay surrender charges of $154,642 to sell their annuities and then to pay sales charges of $69,000 of which Schober received the full amount in commissions, and incurred new surrender periods. FINRA alleged that Schober did not disclose the amount of the surrender charges they would incur to sell their annuities and didn’t explain the sales charges associated with the purchase of new annuities. These are against securities rules and regulations.
Schober was registered with Marketing One Securities in Portland, Oregon from September 1994 until July 1998, Legacy Financial Services from July 1998 until August 1998, Legacy Financial Services in Freehold, New Jersey from August 1998 until June 2007 and SII Investments in Westborough, Massachusetts from June 2007 until January 2015. He has one customer dispute against him. He is not licensed within the industry and FINRA permanently barred him.