Articles Tagged with RBC

Stoltmann Law Offices, P.C. is a Chicago-based securities and consumer protection law firm offering nationwide representation to investors and victims of fraud nationwide on a contingency fee basis.  Recently, we were contacted by an investor/client who was sold a basket of structured notes offered by RBC Capital. He’s a retired investor and believed what he was sold was suitable, offered a stable and fairly high interest rate, which was important because he is on a fixed income, and that the note had down-side protection.  He was made to believe these important facts because his trusted financial advisor pitched these products to him this way. In reality, the structured notes he was sold were speculative, extremely complicated, conflicted proprietary products.

The investment at issue is called the:

Auto-Callable Contingent Coupon Barrier Notes Linked to the Common Stock of Teladoc Health, Inc., Due July 3, 2024

AdobeStock_49363801-1-300x200Joseph Murphy, a registered broker at B.C. Ziegler in Middleton, Wisconsin, was recently fined $5,000 and suspended from the industry for 10 business days by the Financial Industry Regulatory Authority (FINRA) for allegedly exercising discretion in client accounts that were unrelated, non-discretionary accounts. Mr. Murphy did not obtain written authorization from the clients to exercise discretion in transactions in their accounts, and his firm did not approve these accounts for discretionary trading. He allegedly executed them by verbal authority from the clients, but the transactions did not occur on the same days that the clients authorized the transactions. These are against FINRA rules and firm policies.

Mr. Murphy was previously registered with RBC Capital Markets in Madison, Wisconsin and is currently registered with B.C. Ziegler and Company in Middleton, Wisconsin and has been since February 2016. If you suffered losses because of Mr. Murphy and would like to have a free consultation with one of our attorneys, please call 312-332-4200 today. We are securities attorneys based in Chicago and Barrington, Illinois. We help investors who have lost money recover their losses on a contingency fee basis in the FINRA arbitration forum. You only pay us if you receive money.

The Financial Industry Regulatory Authority’s (FINRA) Department of Enforcement recently investigated Donald Toomer, a former registered broker who was indicted for allegedly participating in a fraudulent scheme to manipulate the stocks of three low-priced, speculative securities. Toomer allegedly participated in the manipulation of the securities of NXT Nutritionals Holdings, Inc. (NXTH), Clear-Lite Holdings, Inc. (CLRH), and Mesa Energy Holdings, Inc. (MSEH). His conspiracy generated over $30 million in illicit trading profits. Mr. Toomer and three others allegedly increased the price of the three companies’ stock by engaging in coordinated trading that coincided with the dissemination of promotional materials touting the stocks, thereby encouraging investors to buy the securities. After causing the stock to go up, the men then dumped large volumes of the shares they owned or controlled. For doing this, his co-conspirators allegedly paid him hundreds of thousands of dollars in cash kickbacks and other compensation. The civil action against him was brought by the Securities and Exchange Commission (SEC). Wells Fargo, his former firm, terminated him two days after his indictment.

Toomer was registered with Painewebber Inc. in Weehawken, New Jersey from February 1997 until March 1999, Sutro & Co. in San Francisco, California from February 1999 until November 1999, Prudential Securities Inc. in New York, New York from October 1999 until June 2001, RBC Dain Rauscher in New York from June 2001 until September 2005 and Wells Fargo Advisors in Las Vegas, Nevada from September 2005 until December 2015. He has one civil pending charge against him and one criminal pending charge. His former firm, Wells Fargo, may be held responsible in the FINRA arbitration forum for losses suffered because of Mr. Toomer on a contingency fee basis. Please call today.

Stoltmann Law Offices is investigating Paul Blum, a former registered broker with RBC in West Palm Beach, Florida. Blum was accused of selling junk bonds which were unsuitable for clients. Many of the bonds were related to the oil and gas and energy sector and the investments he recommended lost clients hundreds of thousands of dollars. It is against securities rules and regulations for a broker to recommend investments that are unsuitable for clients. He or she must take into account the client’s net worth, age, investment objectives and investment sophistication before recommending securities. Securities in the energy and oil and gas sector tend to be especially risky securities, and illiquid. If a broker recommends a security that is not suitable for a client and the client loses money, the broker’s investment firm or former investment firm, can be sued for those losses.

According to Blum’s online Financial Industry Regulatory Authority (FINRA) BrokerCheck report, he was registered with JB Hanauer & Co. in Parsippany, New Jersey from July 1981 until September 1990, Prudential-Bache Securities in New York, New York from September 1990 until February 1991, JB Hanauer in West Palm Beach, Florida from February 1991 until October 2009 and RBC Capital Markets in West Palm Beach from October 2009 until November 2015. He has 22 customer disputes against him, 12 of which are currently pending. This amount of customer disputes is a high number for a registered broker. He is not licensed within the industry. Please call our law firm today if you invested and lost money with Paul V. Blum. We may be able to help you recover your financial losses on a contingency fee basis.

Stoltmann Law Offices is investigating Mark Heiden, a Wedbush Securities broker. Heiden is accused of using sales practices that were related to the overconcentration of energy related stocks investments in customer accounts. These investments included

Energy XXI Bermuda Ltd.(EXXI):

Energy XXI was an independent oil and natural gas development and production company whose growth strategy emphasized acquisitions and organic drilling programs. The company’s properties are located in the U.S. Gulf of Mexico waters and the Gulf Coast onshore.  Unfortunately, the security lost over 95% of its value in an approximate six month period and is now valued at less than 10 cents a share.

Last week, RBC Capital Markets wealth management division settled with the Financial Industry Regulatory Authority (FINRA) over an investigation the agency said revealed dozens of instances where the investment bank failed to update forms that disclose whether representatives have outstanding tax liens and civil judgments. Allegedly, the firm failed to update its reps Forms U4 in 41 instances over a two and a half year period beginning January 1, 2013. For this, RBC was censured and fined $300,000. Also, during the relevant period, RBC failed to establish and maintain a supervisory system and written supervisory procedures reasonably designed to ensure that it disclosed reportable unsatisfied judgments and liens, according to FINRA. The firm failed to consistently conduct a sufficient inquiry to determine if the underlying events should have been reported. RBC must certify its compliance procedures within 30 days to FINRA. Last year, the firm agreed to pay $1.4 million over supervisory failures in the sale of complex structured securities products that resulted in $1.1 million worth of investor losses spread across 218 customer accounts. It also settled with FINRA over allegations it failed to accurately report billions of order events last year.

Stoltmann Law Offices is investigating Robert O’Keef, a former registered representative with RBC Capital Markets. He entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) and was accused of exercising discretion in four customer accounts, without obtaining prior written authorization from the customers. This is against securities rules and regulations. He was accused of exercising discretion while effecting approximately 654 transactions in the securities accounts of four RBC customers. For this he was fined $5,000 and suspended for 15 business days from the industry. If you invested money with Robert O’Keef, please call us today to discuss your options of suing his former firm, RBC Capital Markets, for investment losses.

According to the Financial Industry Regulatory Authority’s BrokerCheck report on Jeffrey Fladell, he has been the subject of six customer complaints, a regulatory action and a criminal matter. He is accused of violating securities laws such as churning and excessive trading, making unsuitable investment recommendations, negligence and overconcentrating positions, among other claims. In many of the claims, the customer alleged that he was concentrated in municipal bonds or other debt obligations and suffered losses. One investor alleged damages of $1 million as a result of concentration in municipal bonds that were inconsistent with the client’s objective of principal protection. Brokers such as Fladell have a responsibility to make investment recommendations to clients by taking into account their net worth, investment objectives, age and investment sophistication. If they do not, their firms can be held liable for investment losses.

Fladell was registered with Bernard Schnitzer from October 1970 until March 1974, Hermes Securities from July 1971 until July 1975, Swanton Securities from January 1976 until April 1979, Travelers Equities Sales from October 1972 until October 1984, Halpert and Company from April 1979 until November 1988, and J.B. Hanauer & Co. in Parisippany, New Jersey from November 1988 until October 2009. He is currently registered with RBC Capital Markets in Parsippany and has been since October 2009. He has seven customer disputes against him, two of which are pending and one criminal dispute against him.

If you invested and lost money with Jeffrey Fladell, please call us at 312-332-4200 to speak to an attorney. We sue firms such as RBC in the FINRA arbitration forum to recover investment losses for investors. The call is free with no obligation. We take cases on a contingency fee basis only.

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