Articles Tagged with Nicolaus & Co

The Financial Industry Regulatory Authority (FINRA) fined Stifel, Nicolaus & Co., a St. Louis, Missouri based broker-dealer $750,000 for not properly accounting for customer assets in a reserve fund as well as assets held in a proprietary trading account. The firm allegedly used customer assets as collateral for bank loans it procured over 1999 until 2012, but it did not appropriately account for such use of customer assets in a reserve fund meant to back up this collateral, according by a FINRA document signed on April 8th by FINRA’s Department of Enforcement. Stifel also made mistakes in calculating how much money it needed on hand for its Proprietary Accounts of Introducing Brokers and Dealers (PAIB), a reserve account for broker-dealer assets. Currently, there is a securities law that states that broker-dealers using customer money as collateral for a loan must maintain a customer reserve account, which helps ensure funds are available to pay investors in the event of a firm’s liquidation. Brokerages must compute the amount to go into the account on the last business day of the week and month. This practice potentially reduces the amount Stifel would need to keep in reserves to cover customer collateral.

In one instance over a five week period in 2012, FINRA found that Stifel’s activity in this regard had the substitution of customer securities not occurred, an additional deposit of approximately $36 million would have been required to fund the customer reserve account. In another instance from March 2013 to November 2013, Stifel incorrectly calculated requirements for its PAIB, which led to eight “hindsight deficiencies,” meaning the firm did not have enough money in its reserve deposit account, a violation of securities law.

According to a Financial Industry Regulatory Authority (FINRA) Order Accepting Offer of Settlement on Thursday, George Johnson submitted the Offer. Allegedly, while registered with Meyers Associates as a representative, Johnson engaged in market manipulation, dissemination of spurious “research” and sales materials, fraudulent omission of material conflicts of interest in connection with the purchase and sale of a security, unauthorized disclosure of confidential, non-public material information concerning a securities offering and falsification of firm records. Between May 15, 2012 and May 24, 2012, he is accused of manipulating the market for the common stock of IceWEB Inc., by soliciting customers to buy and sell stock at increasingly higher and artificially inflated prices. He also allegedly sent materials concerning IceWEB stock that were misleading, exaggerated and unsupported claims. He also failed to disclose material information. He also allegedly intentionally misidentified the broker of record on five account applications and over 100 order memoranda submitted to Meyers in an attempt to cover up his violations of state registration requirements. All of these are against securities rules and regulations.

Johnson was registered with HJ Meyers & Co., American Fronteer Financial Corporation, Auerbach, Pollack & Richardson Inc., Stifel, Nicolaus & Co., Garden State Securities, Jesup & Lamont Securities Corp, Anderson & Strudwick and Meyers Associates in Chicago, Illinois from November 2011 until May 2013. He is currently registered with Newport Coast Securities in Chicago and has been since April 2013. He has seven customer disputes against him, one of which is currently pending. Please call our Chicago-based securities law firm to speak to an attorney for free if you are interested in bringing a claim against his former firm, Meyers Associates. They may be responsible for investment losses, as the firm had a duty to supervise him while he was registered there. We take cases on a contingency fee basis only, which means we only make money if you recover. Please call today.

Stifel, Nicolaus & Co. recently entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). According to the AWC, Stifel was censured and fined $25,000 for its transgressions. Allegedly, the firm effected 22 customer transactions in a municipal security in an amount lower than the minimum denomination of the issue which were not subject to an exception under the rule. This is against securities rules and regulations. We sue firms such as Stifel, Nicolaus in the FINRA arbitration forum to recover money for investors.

According to a Financial Industry Regulatory Authority (FINRA) Order Accepting Offer of Settlement on Thursday, George Johnson submitted the Offer. Allegedly, while registered with Meyers Associates as a representative, Johnson engaged in market manipulation, dissemination of spurious “research” and sales materials, fraudulent omission of material conflicts of interest in connection with the purchase and sale of a security, unauthorized disclosure of confidential, non-public material information concerning a securities offering and falsification of firm records. Between May 15, 2012 and May 24, 2012, he is accused of manipulating the market for the common stock of IceWEB Inc., by soliciting customers to buy and sell stock at increasingly higher and artificially inflated prices. He also allegedly sent materials concerning IceWEB stock that were misleading, exaggerated and unsupported claims. He also failed to disclose material information. He also allegedly intentionally misidentified the broker of record on five account applications and over 100 order memoranda submitted to Meyers in an attempt to cover up his violations of state registration requirements. All of these are against securities rules and regulations.

Johnson was registered with HJ Meyers & Co., American Fronteer Financial Corporation, Auerbach, Pollack & Richardson Inc., Stifel, Nicolaus & Co., Garden State Securities, Jesup & Lamont Securities Corp, Anderson & Strudwick and Meyers Associates in Chicago, Illinois from November 2011 until May 2013. He is currently registered with Newport Coast Securities in Chicago and has been since April 2013. He has seven customer disputes against him, one of which is currently pending. Please call our Chicago-based securities law firm to speak to an attorney for free if you are interested in bringing a claim against his former firm, Meyers Associates. They may be responsible for investment losses, as the firm had a duty to supervise him while he was registered there. We take cases on a contingency fee basis only, which means we only make money if you recover. Please call today.

Stoltmann Law Offices is investigating Tyler Boone Powell, a broker with Stifel, Nicolaus & Co. He recently entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) in which he was fined $5,000 and suspended from the industry for 15 business days. Powell allegedly exercised discretion in a customer’s account without obtaining the customer’s prior written authorization and without the authorization of his firm, Wells Fargo. This is against securities rules and regulations. Powell was registered with A.G. Edwards & Sons in Santa Barbara, California from October 2007 until January 2008 and Wells Fargo in Montecito, California from January 2008 until August 2014. He is currently registered with Stifel, Nicolaus & Co. in Santa Barbara and has been since August 2014. He has one customer dispute against him. If you invested and lost money with Tyler Boone Powell, his former firm, Wells Fargo, may be responsible for your investment losses. Please call our Chicago-based securities law firm at 312-332-4200 for a free consultation with an attorney. There is no obligation and we sue firms such as Wells Fargo in the FINRA arbitration process in order to recover money for investors who have suffered losses. We take cases on a contingency fee basis only, so we make money only if you recover. Please call soon.

Stoltmann Law Offices is investigating Duane Ariel Smith, a broker with Stifel, Nicolaus & Co. He has two customer complaints against him, according to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report. One complaint alleged that Smith made unsuitable investment recommendations to a customer, and engaged in fraudulent and deceitful conduct. The other complaint alleged Smith breached his fiduciary duty to a customer and mishandled their accounts from 2008 until 2014. Duane Ariel Smith was registered with Merrill Lynch in Englewood, Colorado from June 1995 until September 2008 and Stifel, Nicolaus & Co. in Greenwood Village, Colorado from August 2008 until March 2014. He is currently registered with Neideger, Tucker, Bruner Inc. in Englewood, and has been since March 2014.

CNBC
FOX Business
The Wall Street Journal
Bloomberg
CBS
FOX News Channel
USA Today
abc NEWS
DATELINE
npr
Contact Information