Articles Tagged with Pennsylvania

According to a complaint filed in the U.S. District Court in Philadelphia, Pennsylvania, between 2001 and 2016, Paul W. Smith raised $2.35 million from 30 investors by telling them he would invest their money in publicly traded securities through The Haverford Group. This was an outside partnership that Smith formed and did not disclose to his broker-dealer employers. Many of his victims were retired and/or elderly. The Securities and Exchange Commission (SEC) alleged that Smith made very few securities investments and instead largely used the money to repay other investors and for his own personal use. He allegedly fabricated phony account statements that reflected fictitious balances and gains and used money from investors to repay others to avoid suspicion. Smith was misappropriating investors’ money and lying about it. The Financial Industry Regulatory Authority (FINRA) permanently barred him from industry last June for failing to provide requested documents.

According to his online, FINRA BrokerCheck report, Paul W. Smith was previously registered with Prudential-Bache Securities from December 1982 until February 1987, E.F. Hutton from January 1987 until April 1988, Shearson Lehman Hutton in New York, New York from April 1988 until January 1990, Janney Montgomery Scott in Philadelphia, Pennsylvania from January 1990 until July 2000, Tucker Anthony Inc. in Boston, Massachusetts from June 2000 until February 2002, Philadelphia Brokerage Corp in Wayne, Pennsylvania from January 2002 until May 2007 and Bolton Global Capital in Wayne from May 2007 until February 2017. He has 11 customer disputes against him, eight of which are currently pending. He has been permanently barred from the industry.

Stoltmann Law Offices is investigating Bernard M. Parker, a former registered representative with Edward Jones. Parker was the founder, principal and sole employee of Parker Financial in Indiana, Pennsylvania, a company claiming to invest in tax liens, primarily in those offered by municipalities in Florida, Arizona and Colorado. Parker was indicted by a federal Grand Jury and is alleged by the US Attorney to have orchestrated a criminal ponzi scheme in the fraudulent offering of securities. According to the indictment filed in the Western District of Pennsylvania, Parker was accused of knowingly and willfully using manipulative and deceptive devices in connection with the purchase and sale of securities, employing a device to defraud, making untrue statements of material facts and omitting to state material facts necessary, and engaging in acts, practices and courses of business which operated as fraud and deceit upon others. In addition to the indictment, Parker had a Civil Action brought against him by the Securities and Exchange Commission (SEC) in the District Court for the Western District of Pennsylvania, for allegedly telling his investors that their investments were to be used to purchase tax liens placed by the municipalities in Florida, Arizona, Colorado and elsewhere, beginning in 2008 and ending in 2014. These are against securities rules and regulations.

Parker was accused of falsely stating to at least one investor that he had taken a class in tax lien certificate investments, that Parker Financial had hired a portfolio manager to oversee the investments and falsely stated to many investors that their investments were tax-free. These were all false statements. Parker subsequently withdrew over $650,000 in investor funds to use for personal checks, online bill payments, family health expenses, renovations on his house, insurance payments and car payments for himself, among other things. He then used a remaining amount of investor money to pay out interest payments to those clients who did not “roll over” their interest into new investments, creating a classic ponzi scheme. These transgressions occurred from February 2008 until November 2014. In all, Parker obtained Investor Contracts from over 22 clients for a total of more than $1.2 million in investment money.

Bernard M. Parker was registered with First American National Securities Inc. in Duluth, Georgia from November 1989 until August 1990, North American Management Inc. in Sioux Falls, South Dakota from July 1991 until March 1993, Beaconsfield Financial Services Inc. in Indiana, Pennsylvania from March 1993 until June 2006 and Edward Jones in Indiana, Pennsylvania from June 2006 until December 2014. He has two customer disputes against him and six judgments/liens, according to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report. He is not currently licensed within the industry.

Recently, Amr Aboulmagd, a former broker, was permanently barred from the industry, according to his Financial Industry Regulatory Authority (FINRA) Letter of Acceptance, Waiver and Consent (AWC). FINRA accused Aboulmagd of making unsuitable recommendations and misrepresentations to customers regarding switches from fixed annuities to variable annuities. He also allegedly failed to appear for his on-the-record FINRA testimony related to allegations regarding the unsuitable recommendations and misrepresentations. Mr. Aboulmagd’s former firm, NYLife Securities in Horsham, Pennsylvania, may be liable for any investment losses you may have suffered because of him. Please call our securities law firm today to speak to an attorney about your options of bringing legal recourse against NYLife Securities in the FINRA arbitration forum. We take cases on a contingency fee basis only, so we only make money if you recover yours. The call is free with no obligation.

Amr Aboulmagd was registered with GSG Securities in Boca Raton, Florida from August 1999 until September 1999, IDS Life Insurance Company in Minneapolis, Minnesota from November 1999 until May 2000, American Express Financial Advisors in Minneapolis from November 1999 until May 2000 and NYLife Securities in Horsham, Pennsylvania from April 2009 until May 2015. He has four customer disputes against him, one of which is currently pending. He has been permanently barred from the industry.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Paul George Liebezeit, a former registered representative with LPL Financial, was accused of participating in a private securities transaction. Allegedly, he recommended to a married couple, an investment in a fund of hedge funds away from his member firm. In December 2013, Liebezeit’s RIA customers, the married couple, consulted with him about certain investment opportunities recommended to them by others. Lievezeit then recommended that the investors invest in a similar security, a fund of hedge funds, away from the firm. This investment was not approved for sale through LPL. The investors invested $1,000,000. This is commonly referred to as “selling away,” and is when a broker recommends a security that is not offered or sold through his member firm, and is a tactic used by brokers to generate large commissions for themselves, which they do not have to share with their firms. It is against securities rules and regulations.

We sue firms such as LPL in the FINRA arbitration forum to recover money for investors who have lost funds because of brokers like Paul George Liebezeit. LPL had a duty to reasonably supervise Liebezeit, and, because the firm did not, may be liable for investment losses. We take cases on a contingency fee basis, so we do not make money unless you recover yours. Call our Chicago-based law offices today at 312-332-4200 to speak to an attorney about your options.

Paul George Liebezeit was registered with First Investors Corp, Morgan Stanley, NRP Financial and LPL Financial in Plymouth Meeting, Pennsylvania from December 2010 until October 2014. He is currently registered with Purshe Kaplan Sterling Investments in Plymouth Meeting and has been since November 2014.

Did you lose money with David Ross, formerly of Woodbury Financial Services? If so, the attorneys of Stoltmann Law Offices may be able to help you recover your financial losses in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis. We help clients sue firms such as Woodbury because the firm allows misconduct of their brokers. Please call 312-332-4200 today. The call is free with no obligation. Attorneys are standing by to take your call.

David Ross was discharged from Woodbury Financial in April 2016 after allegations that he failed to disclose an outside business activity to his firm. This is against securities rules and regulations. He was also accused of executing unauthorized trades while employed at Signator Investors. He has multiple tax liens against him and one customer dispute. He was registered with Pruco Securities in Newark, New Jersey from March 1998 until June 1999, Hornor, Townsend & Kent in Horsham, Pennsylvania from June 1999 until December 2000, Signator Investors in Murfreesboro, Tennessee from December 2000 until May 2010 and Woodbury Financial Services in Murfreesboro from May 2010 until April 2016. He is not licensed within the industry.

Stoltmann Law Offices is still interested in speaking to those investors who may have invested money with Malcolm Segal, a former branch manager of Aegis Capital Corp in Langhorn, Pennsylvania. Last week, Segal was sentenced to ten and a half years in prison by the Securities and Exchange Commission (SEC) for fraudulently selling certificates of deposit. He pled guilty to wire fraud and mail fraud in February and was sentenced Thursday in U.S. District Court in Philadelphia and ordered to pay his victims $3 million in restitution. The SEC also had filed a civil complaint for fraud against him and barred him from the financial industry. His scheme ended in 2014. Segal falsely claimed that his certificates of deposit could provide higher interest rates on FDIC-insured CDs than otherwise available to the general public. In some instances, Segal purchased those CDs on behalf of investors, but took the money for himself. He then told the customers he had purchased the CDs for them and misappropriated their money. Eventually, Segal also stole directly from customer brokerage accounts in an effort to keep funding the ponzi payments and to keep his scheme from being detected.

Former Pennsylvania-based First Allied Securities broker Theodore Rothman has been permanently barred from “engaging in certain activities.” He allegedly failed to disclose an outside business activity, which is against securities rules and regulations. In 2014, the Securities and Exchange Commission (SEC) sanctioned Rothman following allegations he failed to supervise a registered representative at his firm, who was also his son, inflated account statement to several investors and misappropriated funds from elderly and unsophisticated investors. He was barred from acting in a supervisory capacity and issued a fine of $40,000. He was also accused of recommending unsuitable mutual fund investments, and failing to supervise the handling of a portfolio, among other transgressions.

Rothman was registered with American Diversified Investors, Zenith American Securities Corp, Rothman Securities, and First Allied Securities in Southampton, Pennsylvania from January 2015 until June 2016. He has five customer disputes against him, one of which is currently pending. He is not licensed within the industry and the SEC has permanently barred him from engaging in certain activities.

According to a recent InvestmentNews article, Anthony Diaz, a Pennsylvania broker, is under federal indictment for fraudulent sales of illiquid alternative investments. The U.S. Attorney for the Middle District of Pennsylvania filed criminal charges against him for allegedly lying about the suitability of alternative investments to his clients. These unsuitable investments included nontraded real estate investment trusts (REITs). Diaz was barred from the industry last year by the Financial Industry Regulatory Authority (FINRA) and is currently facing six federal charges of wire fraud. During his career, Mr. Diaz was terminated, or permitted to resign from six of the 11 financial investment firms at which he worked over 15 years. According to the article, FINRA claimed Diaz “induced approximately 80 customers to enter into variable annuity exchanges, often subject to significant surrender charges, without a reasonable basis for recommending those exchanges.” He also “falsely told” seven clients that investments in REITs were “guaranteed or guaranteed to pay certain amounts of interest.” In reality, REITs are highly unsuitable and illiquid investments that are not suitable for most clients, and only garner large commissions for the brokers who sell them.

Mr. Diaz went on to provide false information on the REIT documents concerning his clients’ net worth, income, risk tolerance and/or investment experience in order to make it appear that these clients met the net worth and/or income requirements to invest in these products. He subsequently signed disclosure forms for them. This will lead to the government trying to prove that he had a deliberate intent to defraud. He will be on trial in federal court next month.

Stoltmann Law Offices is investigating James Noto, a registered representative with Summit Brokerage Services. Noto was the subject of a regulatory event and seven customer disputes. He was fined by Florida’s Department of Financial Services in 2013 after allegedly engaging in the insurance business without proper licensing. If you have lost money with Noto, please call our offices in Chicago at 312-332-4200 to speak to an attorney. The call is free with no obligation.

Noto was registered with Cigna Securities in Radnor, Pennsylvania from September 1982 until April 1993, Merrill Lynch in New York, New York from March 1993 until January 1998, Vanguard Capital in Del Mar, California from January 1998 until September 1998 and Raymond James in St. Petersburg, Florida from October 1998 until February 2005. He is currently registered with Summit Brokerage Services in Trinity, Florida and has been since March 2005. He has seven customer disputes against him, one of which is currently pending.

Stoltmann Law Offices is investigating Christopher P. Jordan, and his financial firm, National Planning Corporation (NPC) for allegedly selling at least one elderly client unsuitable investments. Allegedly, Jordan sold an 88-year old client an Allianz variable annuity, and FS Investments private placement, and a KBS non-traded REIT. These securities tend to be risky and illiquid and complex investments, and are sold to investors by their brokers so the broker can generate large commissions. A broker is required to conduct due diligence to understand the features of any product he sells, perform a reasonable analysis and provide disclosure about the risks and rewards associated with the particular product. If he does not, his brokerage firm can be liable for investment losses.

Jordan was registered with Cigna Securities in Radnor, Pennsylvania from May 1991 until April 1992, Nathan & Lewis Securities in New York, New York from April 1992 until November 1995 and Royal Alliance Associates in New York from November 1995 until February 2000. He is currently registered with NPC in Tarrytown, New York and has been since February 2000.

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