Articles Tagged with Newbridge Securities Corp

The securities fraud attorneys at Stoltmann Law Offices, P.C. continue to investigate investor claims against brokerage firms that sold their clients investments in various GPB Capital Holdings offerings.  On March 22, 2019, attorney Joe Wojciechowski announced the filing of a Statement of Claim with FINRA Dispute Resolution for an investor who was sold units in GPB Automotive Fund, L.P. The claim was filed against NewBridge Securities and also includes allegations in connection with various non-traded REITs issued by American Realty Capital (ARC). The claim is for a retail investor whose financial advisor recommended she invest nearly 100% of her accounts in alternative investments offered by GPB Capital and ARC.  The claim alleges misrepresentations and omissions of material facts in violation of the Securities Act of Washington, consumer fraud in violation of the Washington Consumer Protection Act, negligence for violating numerous regulatory rules including FINRA Rules 2111 (suitability) and 3110  (supervision), and breach of fiduciary duty. Our client seeks rescission of her GPB Automotive Fund investment and compensatory damages for her realized losses in the ARC REITs, plus attorneys fees, costs, interest, and punitive damages.

Investors who were solicited by financial advisors and brokers to invest in GPB Capital funds should consider their legal options to seek rescission of those investments.  Under the state securities laws (frequently referred to as the Blue Sky Laws), the primary remedy for investors is called rescission, which means the investor sues to force the brokerage firm to buy the investment back.  The rescission remedy seeks to put the investor back in the same place she was prior to purchasing the investment. This is important for investors who own alternative investments like GPB Capital Funds.  These are not liquid or tradable investments, meaning an investor cannot call their advisor and sell it and realize a gain or a loss. Essentially, the investor is stuck. Given the troubling news about GPB Capital over the last several months, something Stoltmann Law Offices has written about extensively, investors are correct to be wary and should consider an exit strategy. Unfortunately, because there is no way out of the GPB Funds, the only option for investors may be to pursue arbitration claims against the brokerage firm responsible for soliciting the investments in the first place.

In the last several years, as interest rates remained very low, it has been difficult for investors to find fixed income investments, like corporate and municipal bonds, that offered higher yields without exposing them to speculative risk. Likewise, due to the long term low interest rate environment, the principal value of the bonds begin to drop as interests rates have risen. The solution to these problems for brokerage firms has been to sell “alternative investments” that offer relatively high yields, but because they are non-traded and do not report any real market value, they have the appearance of a stable value for investors. The bonus for brokerage firms is that these alternative investments offer the advisors commissions they could never achieve by selling standard fixed income securities like corporate bonds or municipal bonds. Advisors sell the sizzle of a high yield and fixed prices and either gloss over or completely misrepresent the speculative risk being taken by investors who entrust their money to private entities like GPB Capital.

AdobeStock_200379710-300x200Stoltmann Law Offices is investigating Kovack Securities. A customer claimed that Kovack allegedly broke securities laws by failing to perform necessary due diligence on these investments:

Marathon Patent Group Inc.

TrovaGene, Inc.

AdobeStock_198259345-300x200Stoltmann Law Offices is interested in hearing from those individuals who may have lost money with Xavier Patino, a former registered broker with J.P. Morgan Securities. According to Patino’s Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), in 2014 and 2016, Patino made material misstatements to a customer and guaranteed the customer against loss in connection with a variable annuity purchase. On two separate occasions, Patino signed documents that purported to recite various guarantees regarding the customer’s variable annuity. This is against securities laws and internal firm rules. For this misconduct, Xavier Patino was suspended for six months and fined $10,000.
According to his online, FINRA BrokerCheck report, Xavier Patino was previously registered with Chase Investment Services Corp in North Riverside, Illinois from May 2008 until October 2012, and J.P. Morgan Securities in Elmhurst, Illinois from October 2012 until May 2017. He is currently registered with Newbridge Securities Corp in Oakbrook Terrace, Illinois, and has been since June 2017. He has two customer disputes against him, alleging misrepresentation regarding a variable annuity investment and poor recommendations and advice regarding mutual fund investments. He has one employment separation after allegations.

The Financial Industry Regulatory Authority (FINRA) recently charged two Boca Raton, Florida firms, Newbridge Securities and Shearson Financial Services, for securities violations that resulted in customers losing money. Newbridge Securities Corp allegedly failed to apply discounts to certain purchases. These discounts were supposed to be applied to sales charges, and as a result, clients paid more than $172,000 in excess charges. This misconduct occurred with unit investment trust (UIT) purchases from May 2009 until April 2014. Newbridge was fined $115,000 and agreed to pay clients back more than $188,000.

Shearson Financial was fined $100,000 by FINRA for allegedly inaccurately marking orders as unsolicited, even when they were solicited. The firm was warned in 2012, that 47 order tickets had been inaccurately marked. FINRA also stated that Shearson maintained inaccurate books and records of 1,873 transactions from June 2013 until October 2015. Please call us today for a free consultation with an attorney if you invested money with Newbridge Securities or Shearson Financial. We may be able to help you bring a claim against the firm for investment losses. We take cases on a contingency fee basis only.

Stoltmann Law Offices is investigating Craig Scott Capital (CSC) and two of its owners Craig Scott Taddonio and Brent Morgan Porges. The firm and the two men recently had a Financial Industry Regulatory Authority (FINRA) Disciplinary Proceeding against them. According to the proceeding, CSC, Taddonio and Porges “fostered a culture of aggressive, excessive trading of customer accounts by encouraging the firm’s registered representatives to use upcoming earnings announcements as a catalyst for recommending hundreds, and in some cases, thousands, of short term trades in customer accounts.” CSC and its owners and brokers earned more than $5 million in commissions while customers suffered more than $9 million in losses in accounts where the annualized turnover rates were has high as over 200 and the annualized cost-to-equity ratios were has high as over 800%. Both men and brokers actively traded customer accounts so aggressively, that it resulted in fraudulent churning and quantitatively unsuitable trading. They also failed to establish a reasonable supervisory system, including a written supervisory system wherein they failed to detect the fraudulent churning activities. These are against securities rules and regulations.

Craig Scott Taddonio was registered with Gunnallen Financial in New York, New York from March 2004 until December 2005, JHS Capital Advisors in Bethpage, New York from December 2005 until May 2010 and Brookstone Securities in Uniondale, New York from May 2010 until February 2012. He is currently registered with Craig Scott Capital in Uniondale, New York and has been since February 2012. He has three customer disputes against him, one of which is currently pending.

Porges was registered with On-Site Trading, Andover Brokerage, First Montauk Securities, Gunnallen Financial, Benson York Group, Great Eastern Securities, Joseph Gunnar & Co., Pointe Capital Inc., New Castle Financial Services, Brookstone Securities, Prestige Financial Center, Rockwell Global Capital, Craig Scott Capital and Newbridge Securities Corp. He is currently registered with Newbridge Securities Corp in New York, New York and has been since November 2015. He has four customer disputes against him, one of which is currently pending.

FOX Business
The Wall Street Journal
FOX News Channel
USA Today
abc NEWS
Contact Information