According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), former UBS broker James Carlson allegedly violated securities laws. Between October 2014 and June 2015, Carlson allegedly executed 39 discretionary transactions in the accounts of 13 customers. He had not obtained prior written authorization from the customers to exercise discretion in their accounts, and UBS had not accepted the customer accounts as discretionary accounts. UBS prohibits discretionary trading in non-discretionary accounts. For this, Carlson was suspended from the industry for 15 days and fined $5,000. James Carlson was previously registered with Morgan Stanley in Greensboro, North Carolina from October 2000 until April 2007, Morgan Stanley in Greensboro from April 2007 until June 2009 and Morgan Stanley in Greensboro from June 2009 until February 2011. He is currently registered with UBS in Greensboro, and has been since February 2011.
The Stoltmann Law Offices Commercial Litigation Group filed a Class Action Complaint in the Northern District of Indiana Federal Court seeking in excess of $5,000,000 in damages against First Baptist Church of Hammond who allegedly assisted in a Ponzi Scheme called Sure Line Investments operated by a Church Deacon Thomas Kimmel who was retained by the church to teach financial responsibility and provide secret kickbacks to Pastor Jack Schaap totally 1% of the stolen funds.
Kimmel, was sentenced in 2014 to 22 years in prison and ordered to pay more than $16.5 million in restitution after being convicted in federal court in Raleigh, North Carolina of defrauding hundreds of investors. Schapp is now serving a 12-year sentence for having sex with child who was also a church member.
The federal indictment against Kimmel characterized Sure Line Investments as a Ponzi scheme where investors were paid their interest from new investor money.
Stoltmann Law Offices is investigating brokerage firm Southeast Investments N.C. Inc., headquartered in Charlotte, North Carolina, alleging that the firm disregarded a retired client’s stated objective of income with moderate risk, recommending instead Cornerstone Total Return Fund (CRF). This was an aggressive total return fund, focused on capital appreciation concentrated in equities. The fund’s high distribution rate was not tied to the fund’s investment income, or capital gains, and did not represent yield or investment return. Southeast Investments omitted material facts regarding the fund, and did not understand, or worse, acted with intent to defraud by putting client’s investments into it. Please call our securities law firm based in Chicago to speak to an attorney for free about your options of suing Southeast Investments in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis to recover your losses. 312-332-4200.
According to a recent OnWallStreet article, Angela Ostendarp, a Wells Fargo certified planner invested hundreds of thousands of dollars of a client’s money in mutual funds. The client needed the money to pay for his children’s education, buy a small farm and cover his living expenses. Ostendarp invested his money in a margin account and had a margin balance of more than $100,000. Ostendarp then had to sell off securities to pay off the heavily margined account. Ostendarp also told the client that his account was doing well, when it was not. The client suffered massive losses because of Ostendarp’s transgressions.
Angela Ostendarp was registered with Wachovia Brokerage Service, Wachovia Securities, Robert W Baird, and Northwestern Mutual Investment Services. She is currently registered with Wells Fargo Advisors in Charlotte, North Carolina and has been since June 2002. She has two customer disputes against her, one of which is currently pending.
The U.S. Securities and Exchange Commission (SEC) on Thursday charged Richard W. Davis Jr., a Charlotte, North Carolina investment advisor with defrauding investors. Davis was accused of secretly moving portions of real estate investments into transactions with companies he owned and operated. This is a breach of fiduciary duty and it is against securities rules and regulations to fail to disclose self-dealing. He also made false or misleading statements to investors, failed to disclose their losses and improperly received at least $1.5 million from bank accounts that contained investor funds when he was owed less than $150,000 in management fees. The U.S. Secret Service had been investigating Davis for possible investment fraud in August. Davis then told investors that their money was growing while his companies were not even repaying the loans. He was barred from any further sale of securities in a pooled investment vehicle as well as from future violations of securities laws. According to the SEC, from January 2008 until February 2015, Davis raised at least $11.5 million from about 85 investors through the unregistered sale of securities in two funds: DCG Real Assets and DCG Commercial Fund I. Davis then transferred $7.7 million $9.8 million he raised from his own entities.
Charles Caleb Fackrell, a former investment adviser, allegedly misled 20 individuals to invest $1.4 million in various phony investments that he was selling. Fackrell instead used most of the money on himself. The Financial Industry Regulatory Authority (FINRA) barred him from the industry after he entered into a Letter of Acceptance, Waiver and Consent (AWC) with them. Fackrell was associated with Morgan Stanley in Winston-Salem, North Carolina from August 2007 until February 2008, SunTrust Investment Services in Yadkinville, North Carolina from July 2008 until December 2009, Wells Fargo in High Point, North Carolina from December 2009 until June 2010 and LPL Financial in Yadkinville from June 2010 until December 2014. He has seven customer disputes against him, six of which are currently pending. Please call us for more information regarding your options regarding Charles Caleb Fackrell and ponzi scheme losses.
Stoltmann Law Offices continues to investigate Morgan Stanley and its sales of Cushing MLP High Income Exchange Traded Notes. A claim was recently filed with the Financial Industry Regulatory Authority (FINRA) on behalf of two North Carolina investors who alleged claims for violation of common law fraud, breach of fiduciary duty, negligence and negligent supervision. Morgan Stanley allegedly recommended its proprietary Cushing MLP High Income exchange-traded notes (ETNs) to its clients and failed to adequately disclose the risks of the those investments to the clients. ETNs are typically risky and illiquid investments that are not suitable for every client. A broker must take into account a client’s net worth, age and investment objectives among other factors, or the investment firm can be held liable for investment losses incurred. The Cushing MLP ETN declined more than 65% in value as recently as October 2014.
Stoltmann Law Offices is investigating Brian Lewis Pittman, who recently entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). Pittman was accused of participating in private securities transactions, which were not approved by his then FINRA member firm. This is commonly referred to as “selling away” and is when a broker recommends or sells a security that is not held or offered by his member firm. It is used as a tactic to generate large commissions for the broker. It is against securities rules and regulations. Allegedly, on June 1, 2013, Pittman participated in a private securities transaction by referring a customer of an affiliated firm, to invest $100,000 in a promissory note by a petroleum company. He received compensation from the company of approximately $4,000. For this, he was fined $10,000 and suspended for six months from the industry.
According to his online BrokerCheck report, Pittman was registered with Robert W. Baird in Milwaukee, Wisconsin from December 1997 until November 2001, Citigroup Global Markets in New York, New York from November 2003 until February 2006, Suntrust Investment Services in Sarasota, Florida from March 2006 until July 2007, Pinnacle Brokerage Service in Charlotte, North Carolina from July 2007 until August 2007, JVB Financial Group in Boca Raton, Florida from August 2007 until October 2007, Bonds.Com in Naples, Florida from October 2007 until February 2010, Westport Resources Investment Services in Naples from February 2010 until October 2012 and Sabadell Securities in Miami, Florida from October 2012 until February 2014. He is not licensed within the industry and has one customer dispute against him.
Stoltmann Law Offices is investigating Zakhour “Zak” Chivi who has complaints against him. He is accused of misjudging markets and subjecting clients to unnecessary risks, executing unauthorized transactions and misrepresenting material facts. According to his online BrokerCheck report, Chivi was registered with Merill Lynch in New York, New York from October 1989 until July 1995, Prudential Securities Inc. in New York from June 1995 until December 1998 and First Union Capital Markets in Charlotte, North Carolina from January 1999 until October 1999. He is currently registered with Wells Fargo Advisors in Red Bank, New Jersey and has been since October 1999. He has six customer disputes against him. If you or someone you know is interested in suing his firm, Wells Fargo, in the arbitration forum, please call our securities law firm in Chicago to speak to an attorney. The call is free.
Stoltmann Law Offices is investigating Randy Burke, who was recently barred from the industry by the Financial Industry Regulatory Authority (FINRA). Sale is accused of participating in private securities transactions without providing written notice to his member firm, Calton & Associates. He also allegedly made misrepresentations in his sales to an elderly customer by telling her she would be entitled to a share of the profits in the future sale of a lodge property in Alaska. Mr. Burke also allegedly deposited $38,000 of the customer’s money into a joint business checking account he shared with his wife and used the money for personal gain. He also allegedly used another customer’s money for personal gain in the sale of false investments in an entity called “Lodge Alaska, LLC”.
Engaging in private securities transactions is also referred to as “selling away,” and is when a broker solicits securities that are not held or offered by his member firm. This is against securities rules and regulations and is a tactic used by a broker to make large commissions for himself. Burke was registered with Pruco Securities in Newark, New Jersey from February 1996 until October 2001, Synergy Investment Group in Ferguson, North Carolina from February 2002 until April 2011, Capital Investment Group in Hickory, North Carolina from April 2011 until September 2013 and Calton & Associates in Hickory from September 2013 until October 2015. He has two customer disputes against him, one of which is currently pending. He is not registered with any FINRA firm, not licensed within the industry and FINRA permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.
If you or someone you know invested money with Randy Burke, we may be able to help you bring a claim against his former firm, Calton & Associates. They may be held liable for investment losses because they had a duty to reasonably supervise Burke while he was employed with them. The call is free with no obligation and we sue firms such as Calton & Associates in the FINRA arbitration forum to recover money for investors. We take cases on a contingency fee basis only so we do not make money unless you recover. 312-332-4200.