Articles Tagged with Wedbush Securities

Stoltmann Law Offices continues to investigate William Heiden, a Wedbush Securities registered broker, who has been subject to nine customer complaints. Allegedly, Mr. Heiden, according to a claim filed in June 2017, breached his fiduciary duty, committed violation of industry rules, and financial elder abuse causing $855,299 in losses. The claim is currently pending. He was also previously accused of making unsuitable investments in a client’s account causing $950,718 in losses. Some of the recommendations were in oil and gas investments. Before a broker can recommend or sell a security such as this, he must do his due diligence on the security in order to determine that it is suitable and appropriate for the client, by taking into account his age, net worth, investment sophistication and investment risk tolerance, among other factors. If he does not, his brokerage firm may be liable for losses on a contingency fee basis. The brokerage firm has a duty to reasonably supervise its employees.

Oil and gas and energy investments can be highly illiquid and risky investments, because of the drop in the price of oil since last year. Many investors have lost money because of unsuitable placements by their brokers in these investments. William Mark Heiden was previously registered with Crowell, Weedon & Co. in Los Angeles, California from June 1997 until September 2000, Sutro & Co. in San Francisco, California from September 2000 until March 2002, RBC Dain Rauscher in Newport Beach, California from March 2002 until April 2007, Morgan Stanley in Newport Beach from April 2007 until June 2009 and Morgan Stanley in Newport Beach from June 2009 until August 2013. He is currently registered with Wedbush Securities in Newport Beach and has been since August 2013. He has nine customer disputes against him, two of which are currently pending. This is according to his online, BrokerCheck report with FINRA. It is public record.

AdobeStock_35532974-1-300x200Stoltmann Law Offices is investigating Arthur Hoffman, who is the subject of a pending customer dispute. Hoffman was accused of committing securities fraud, misrepresenting material facts, breaching fiduciary duty, concealing funds and acting negligently in connection to investments in leveraged exchange-traded funds (ETFs). These are all against securities rules and regulations. ETFs can be high-risk, illiquid investments not suitable for many investors. A broker must take into account a customer’s age, net worth, investment objectives and investment sophistication. If he does not, his brokerage firm can be held liable for investment losses. We are Chicago-based securities attorneys who may be able to help you bring a claim against Ameriprise Financial in the Financial Industry Regulatory Authority (FINRA) arbitration forum if you suffered losses with Arthur Hoffman. We take cases on a contingency fee basis so we only get paid if you recover money.

According to his online, FINRA BrokerCheck report, Hoffman was registered with Morgan Stanley in Purchase, New York from April 1999 until January 2003, Merrill Lynch in Sun City, Arizona from January 2003 until May 2009 and Wedbush Securities in Glendale, Arizona from May 2009 until November 2016. He is currently registered with Ameriprise Financial Services in Glendale and has been since November 2016. He has one customer dispute against him, which is pending.

AdobeStock_33766885-1-300x200Stoltmann Law Offices has learned that Bambi Holzer, a former representative with Newport Coast Securities has been permanently barred from the industry. Allegedly, Ms. Holzer made unsuitable recommendations, misrepresented material facts, breached fiduciary duty, made unsuitable transactions and made unsuitable recommendations involving private placement securities, among other transgressions. She was registered with Wedbush Securities at the time of the allegations. She has been permanently barred from the industry.

According to her online Financial Industry Regulatory Authority (FINRA) BrokerCheck report, Ms. Holzer has 74 disclosures against her, with two customer disputes currently pending. She was registered with E.F. Hutton & Co., Shearson Lehman Hutton, Oppenheimer & Co., Bear, Stearns & Co., UBS Painewebber, A.G. Edwards & Sons, Brookstreet Securities Corp, Sequoia Equities Securities Corp, Wedbush Securities in Beverly Hills, California from June 2007 until April 2011 and Newport Coast Securities in Beverly Hills from March 2011 until August 2013. She is no longer registered within the industry and has been permanently barred.

Please call our securities law firm in Chicago if you suffered losses with Ms. Holzer. We may be able to help you recover your investment losses by suing her former firm, Wedbush Securities, on a contingency fee basis in the FINRA arbitration forum. Please call today as the call is free with no obligation. 312-332-4200.

Stoltmann Law Offices continues to investigate William Mark Heiden, a registered broker with Wedbush Securities in Los Angeles, California. Mr. Heiden has six customer disputes against him, three of which are currently pending and three of which are resolved. In October of 2015, Heiden was accused of wrongful, intentional, fraudulent and deceptive activities including unsuitable and unauthorized trading, falsifying documents, misrepresentation and omission of material facts. The alleged damages were $1,500,000. In the second of three resolved claims in October 2015, Heiden was accused of not executing a limit sell order and his customer allegedly asserted that he did not understand the implication of a limit sell order. The monetary compensation amount in the case was $549,920 and the individual contribution amount was $275,000. The alleged damages were $14,000 and the settlement amount was $9,000. The third resolved action was in February of 2016 and the allegations state that the conservative investors were shocked to discover non-investment grade status of bonds in their accounts; questioned whether it was prudent to concentrate investments in the energy sector, noted the severe decline in the value of energy sector securities and requested an investment plan and guidelines, which was not fulfilled. No action was taken and the case was closed, as his firm, Wedbush Securities, denied the claim.

The first of the three pending claims against him alleged, from July 2013 until the present, Heiden engaged in wrongful, intentional, fraudulent and deceptive activities in client accounts including unsuitable and unauthorized trading. The complaint against him includes claims for breach of fiduciary duty, constructive fraud and violation of California code. The alleged damages were of an unspecified amount causing losses over $700,000. This claim was filed in September of this year. The second claim, also filed in September of this year, stated wrongful conduct, breach of fiduciary duty, constructive fraud, fraud by misrepresentation and omission, breach of written contract, failure to supervise and control and violation of state and federal securities laws. Alleged damages were over $1 million. The third pending customer dispute against Heiden was received in August of this year and alleged that he engaged in unauthorized trading and accrued a significant amount of margin debt for the client, when the client did not intend to use margin for trading purposes. Alleged damages are $200,000.

Mr. Heiden recommended Energy XXI Ltd Bermuda (symbol EXXI) to some of his clients. 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.

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.

The Securities and Exchange Commission (SEC) upheld a decision by the Financial Industry Regulatory Authority (FINRA) to fine Edward Wedbush, the founder and president of Wedbush Securities, Inc., $50,000 and to suspend him from acting in any principal capacities for 31 days. Wedbush was accused of allegedly failing to supervise certain mandated regulatory filings. In most cases, these supervisors are obligated to take a special examination as part of their qualification if they are involved in the day-to-day management or operation of a firm. According to the SEC, from January 2005 until July 2010, Wedbush Securities filed 158 required reports with FINRA related to judgments and settlements, arbitrations, civil litigations or regulatory actions, employee terminations and statistical information on customer complaints late, with inaccurate information, or not at all, while Wedbush was acting as president. This is against securities rules and regulations. The company was put on notice that they were failing to effectively modify its procedures and that it needed to address it numerous regulatory reporting deficiencies. The company did not rectify these transgressions, even after being told of them.

The Financial Industry Regulatory Authority (FINRA) brought charges against Wedbush Securities for its alleged failure to comply with requirements related to the protection of customer assets. FINRA alleged that Wedbush Securities failed on multiple occasions from June 2009 through June 2012 to comply with requirements under applicable law and SEC rule to promptly obtain and maintain physical possession or control of fully-paid-for securities and excess margin securities carried for its customers. It also allegedly failed to set aside on at least a weekly basis in a special account (the “reserve account”) any amounts it owes customers in excess of amounts its customers owe it. FINRA claimed that Wedbush created and/or increased deficits in its segregation requirement by improperly delivering stock shares or returning stock shares borrowed for transactions, when it did not have sufficient excess shares above the firm’s segregation requirement. FINRA alleged that Wedbush failed to protect customer assets from as early as 2004, despite being put on notice beforehand. Webush also received a Letter of Caution from FINRA on the subject in 2008.

Stoltmann Law Offices is investigating Gary Allen Graham, who recently entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). Mr. Graham was accused of borrowing $15,00 from a firm customer when he was registered with Wedbush Securities, and this is against securities rules and regulations. For this he was suspended from the industry for 45 calendar days and fined $5,000. According to his FINRA online BrokerCheck report, Graham was registered with First Investors Corp, Waddell & Reed, Dean Witter Reynolds, Merrill Lynch, A.G. Edwards & Sons, Prudential Securities Inc., Wachovia Securities, Crowell, Weedon & Co. and Wedbush Securities in Ontario, California from August 2011 until May 2015. He is currently registered with Calton & Associates in Huntington Beach, California and has been since July 2015. He has one customer dispute against him. You may be able to sue his former firm, Wedbush Securities, in the FINRA arbitration claims process on a contingency fee basis if you call our Chicago-based securities law firm today to speak to an attorney for free.

Stoltmann Law Offices is investigating Kevin Scarpelli, an investment advisor with Wedbush Securities in San Francisco, California. If you invested and lost money with Scarpelli, Wedbush may be liable for those financial losses because the firm has a duty to reasonably supervise him. Wedbush can be sued in the Financial Industry Regulatory Authority (FINRA) arbitration forum to recover money losses. We sue firms such as Wedbush for investors on a contingency fee basis. According to Kevin Scarpelli’s FINRA BrokerCheck report, a customer alleged that he made unsuitable recommendations, abused margin, breached fiduciary duty, committed fraud, acted negligently, and failed to supervise his representatives, among other complaints. These are all against securities rules and regulations and brokers such as Scarpelli have a duty to abide by suitability laws, and to recommend investments to individuals based on their net worth, age, investment objectives, portfolios and investment sophistication.

Kevin T. Scarpelli was registered with Dupont Walston Inc. from May 1966 until January 1974, Birr, Wilson & Co. from December 1973 until January 1981 and Wedbush, Noble Cooke Inc. from December 1980 until January 1981. He has worked for Wedbush Securities in San Francisco, California since March 1982. He has three customer disputes against him, two of which are currently pending.

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