Articles Tagged with Purshe Kaplan Sterling

Chicago-based Stoltmann Law Offices is representing investors who’ve suffered as a result of financial advisors recommending high risk leveraged exchange-traded funds (ETFs).  Broker-dealer Purshe Kaplan Sterling Investments was charged by the Massachusetts Securities Division with selling “unsuitable investments to investors while operating as independent investment advisers of Harvest Group Wealth Management,” according to thediwire.com.  “Despite warnings from FINRA that leveraged exchange-traded funds are typically unsuitable for average investors who plan to hold them for more than a day, the Harvest Group invested more than 340 client accounts in leveraged exchange-traded funds for days, weeks, months, and even a year,” the state regulator stated. FINRA is the federal regulator of the U.S. securities industry.

According to the Massachusetts complaint, “more than $2.3 million in losses were incurred as a result of unsuitable investments in leveraged ETFs. Purshe Kaplan had a duty to review the transactions as part of their supervisory responsibilities, even though they were conducted outside of the firm.”

Investments like ETFs can be highly leveraged, which means they carry high downside risk and can easily lose money under certain market conditions. Brokers are under a legal obligation to carefully vet all trades and investments with you to ensure that the investments they are selling meet your financial goals and risk tolerance. Leveraged ETFs specifically, are designed to be trading vehicles, not held long-term, because they will not achieve their stated objectives long-term. They are designed to achieve their objectives daily, and are totally unsuitable for buy-and-hold investors. Unfortunately, many financial advisors do not understand this.

AdobeStock_82110313-1-300x125Stoltmann Law Offices is continuing to investigate Purshe Kaplan Sterling broker Gopi Krishna Vungarala regarding alleged excessive sales charges on the purchase of non-traded real estate investment trusts (REITs) and business development companies (BDCs). Vungarala was terminated from Purshe Kaplan in Midland, Michigan in 2017 after he was investigated by the Financial Industry Regulatory Authority (FINRA). In February of this year, FINRA ordered Purshe Kaplan to pay $3.4 million in restitution to a Native American tribe regarding excessive sales charges on the purchase of REITs and BDCs. The firm was also fined $750,000 for failure to supervise the sales of Vungarala, who was the tribe’s Treasury Investment Manager responsible for the tribe’s portfolio. During the course of the investigation, according to FINRA, Vungarala regularly lied to the tribe regarding his investment recommendations, and the firm did not review the risks associated with the relationship between Vungarala’s role as manager of the portfolio and acting as a registered broker with Purshe Kaplan.
Vungarala recommended the tribe invest more than $190 million in non-traded REITs and BDCs, while misrepresenting to the tribe that neither himself nor the firm would receive commissions from those purchases. In reality, $11.4 million in commissions was generated for Purshe Kaplan, and more than $9 million in personal commissions from those investments went to Vungarala himself. In addition, FINRA found that the firm failed to identify more than 200 purchases eligible for discounts based on volume of purchases, which would have provided more than $3.3 million in volume discounts for the tribe. FINRA rules state that member firms like Purshe Kaplan are responsible for supervising a broker’s activities during the time he is registered with the firm. If the firm does not, it can be liable for investment or other losses suffered by the customer. Please call our securities law firm today at 312-332-4200 to find out how you may be able to recover your losses with Purshe Kaplan on a contingency fee basis. Attorneys are standing by to take your call. It is free with no obligation.

AdobeStock_33766885-1-300x200Publicly available records by the Financial Industry Regulatory Authority (FINRA) indicate that Donald Goerner, a Purshe Kaplan Sterling broker in Addison, Texas provided incomplete tax advice in connection to the sale of ZSPH purchased away from his firm. This resulted in a tax liability of $80,000 and loss of potential gains if the position was held longer. This customer complaint is currently pending. ZSPH was an unregistered security allegedly purchased by the client in a private security transaction without the recommendation or due diligence of Mr. Goerner. A broker such as Mr. Goerner must do his due diligence on a security, in order to only recommend and sell suitable investments to his clients. If he does not, his brokerage firm, in this case, Purshe Kaplan, can be held liable for losses. We are securities attorneys who may be able to help you recover those losses on a contingency fee basis. The call to us is free with no obligation so please call today. We are based in Chicago, Illinois. According to his online FINRA public report, Mr. Goerner was registered with MML Investors Services in Addison, Texas from April 2003 until April 2008 and currently with Purshe Kaplan Sterling Investments in Addison, Texas since April 2008. He has one customer dispute pending against him.

Have you been a victim of Gopi Vungarala or his firm, Purshe Kaplan Sterling, or know someone who has? Stoltmann Law Offices is interested in speaking to those investors who may have invested money with Gopi Vungarala and Purshe Kaplan. A recent Financial Industry Regulatory Authority (FINRA) complaint alleges that, from 2011 to 2015, Vungarala lied to his Native American tribe customer about the commissions that would be paid to himself and the firm in the sale of non-traded real estate investment trusts (REITs) and business development companies (BDCs). Vungarala served as the tribe’s financial advisor and its Treasury Investment Mangaer, giving access to the tribe’s decisions regarding investments. The complaint alleges that Vungarala ignored the conflict of interest, misled and lied to the tribe, urging them to invest $190 million in risky and illiquid REITs and BDCs, leading to $11.4 million in commissions to the firm of which $9.6 million was paid to Vungarala himself. He also allegedly let the tribe pay full commission when it did not have to.

The Financial Industry Regulatory Authority (FINRA) charged Gopi Vungarala with lying to members of a Native American tribe about commissions he received related to more than $190 million in nontraded real estate investment trusts and business development companies that the tribe invested in over three years. Vungarala generated more than $11 million in commissions for his firm. From 2011 until January 2015, he regularly lied to his customer, ST, a Native American tribe, regarding investments he recommended. Vungarala was serving as a registered representative with Purshe Kaplan Sterling at the time. He was also employed by the tribe as its treasury investment manager and participated in decisions regarding the tribe’s investments. He then recommended the tribe invest more than $190 million in nontraded real estate investment trusts (REITs), even though it was a conflict of interest for him to do so. He told the tribe he would not receive any commissions for the trades, which was also untrue. As a result of his transgressions, the tribe failed to receive more than $3.3 million in volume discounts to which it was eligible. His firm, Purshe Kaplan, also failed to reasonably supervise him during this time.

According to his online Financial Industry Regulatory Authority (FINRA) BrokerCheck report, Vungarala was registered with American General Securities Inc. in Midland, Michigan from October 2004 to December 2007. He is currently registered with Purshe Kaplan in Midland and has been since December 2007. Please call our securities law firm in Chicago if you would like to speak to an attorney about your options of suing his firm, Purshe Kaplan, in the FINRA arbitration forum.

The Financial Industry Regulatory Authority (FINRA) charged Gopi Vungarala with lying to members of a Native American tribe about commissions he received related to more than $190 million in nontraded real estate investment trusts and business development companies that the tribe invested in over three years. Vungarala generated more than $11 million in commissions for his firm. From 2011 until January 2015, he regularly lied to his customer, ST, a Native American tribe, regarding investments he recommended. Vungarala was serving as a registered representative with Purshe Kaplan Sterling at the time. He was also employed by the tribe as its treasury investment manager and participated in decisions regarding the tribe’s investments. He then recommended the tribe invest more than $190 million in nontraded real estate investment trusts (REITs), even though it was a conflict of interest for him to do so. He told the tribe he would not receive any commissions for the trades, which was also untrue. As a result of his transgressions, the tribe failed to receive more than $3.3 million in volume discounts to which it was eligible. His firm, Purshe Kaplan, also failed to reasonably supervise him during this time.

According to his online Financial Industry Regulatory Authority (FINRA) BrokerCheck report, Vungarala was registered with American General Securities Inc. in Midland, Michigan from October 2004 to December 2007. He is currently registered with Purshe Kaplan in Midland and has been since December 2007. Please call our securities law firm in Chicago if you would like to speak to an attorney about your options of suing his firm, Purshe Kaplan, in the FINRA arbitration forum.

Stoltmann Law Offices is investigating Scott Valente, a former Albany, New York stockbroker. Valente admitted to taking $2 million in fees from clients by falsifying fake investment returns and operating without a license. He was sentenced to 20 years in prison on Friday and ordered to pay $8.2 million in restitution to more than 100 victims. Many of his victims were elderly. Valente was a former broker at Purshe Kaplan Sterling in Albany and was banned from the securities industry in 2009 for improper trades after creating his own investment firm called Eliv Group. He allegedly told his clients that they would see returns of between 30 and 40 percent, but these were false promises. Between 2010 and 2014, Valente actually used $2.2 million in client fees to go toward purchasing second homes, home renovations and other personal purchases. Many of his investments he sold to clients were in pre-IPO shares of Twitter and Square, two companies that recently went public.

Scott Valente was registered with Dime Securities of NY in Brooklyn, New York from October 1992 until November 1992, IDS Life Insurance Company in Minneapolis, Minnesota from November 1988 until July 1993, American Express Financial Services in Minneapolis from November 1988 until July 1993, Cigna Financial Advisors in Radnor, Pennsylvania from June 1993 until April 1994, Dean Witter Reynolds in Purchase, New York from April 1994 until July 1996, and Purshe Kaplan Sterling Investments in Albany, New York from August 1996 until February 2009. He has 17 customer disputes against him, one of which is currently pending, according to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report.

If you lost money with Scott Valente, you may be able to recover those investment losses by calling us at our securities law firm in Chicago and speaking to an attorney for free. We sue firms such as Purshe Kaplan in the FINRA arbitration forum to recover money for investors. Please call soon as time is of the essence with these cases.

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