broker

BROKER REPORT: Former UBS Broker Jeffrey Howell Barred by FINRA

October 14, 2016 | Malecki Law Team

The investment and securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints regarding former UBS financial adviser Jeffrey Howell.

Per reports, Mr. Howell has been barred by the Financial Industry Regulatory Authority (“FINRA”)for providing a customer with false weekly account statements for over six years. According to a settlement notice in connection with an investigation by FINRA , Mr. Howell sent these weekly statements with inflated values, at times overvaluing the account by close to $3 million.

Mr. Howell also allegedly used his own personal email account to distribute these reports, which compromised the accuracy of the firm’s books and records. Per BrokerCheck, Mr. Howell has not been licensed in the securities industry since 2014.

Morgan Stanley Charged for Unethical High-Pressure Sales Contests

October 4, 2016 | Malecki Law Team

First Wells Fargo, now Morgan Stanley.

On the heels of Wells Fargo’s cross-selling scandal, the broker-dealer Morgan Stanley has been accused of inappropriately promoting “securities based loans” to customers, according to an article published in the Wall Street Journal on October 3, 2016. The complaint, filed by Massachusetts securities regulators, alleges that Morgan Stanley’s lax compliance and supervisory oversight led the broker-dealer to breach their own fiduciary duties owed to their wealth management customers by pushing the loans and minimizing the risks associated with the accounts.

If the allegations turn out to be true, the Massachusetts allegations would further exemplify the conflict of interest between broker-dealers pushing risky products on their clients without providing the balanced view of the products that industry rules require, which could be breaches of duties to certain of their customers. At the very least, FINRA Rule 2111 requires that broker-dealers ensure that recommendations of products are suitable for each customer, which requires a careful assessment of each customer’s respective investment objectives, risk tolerance, age, tax bracket, other investments, liquidity needs, as well as other factors.

BROKER REPORT: Financial Advisor Megan Resch

September 6, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Megan Resch. Ms. Resch is currently registered to sell securities with LPL Financial LLC in the broker-dealer’s Morristown, New Jersey office, according to her publicly available BrokerCheck records maintained by the Financial Industry Regulatory Authority (FINRA). Ms. Resch has been registered with LPL Financial since November 2010, and before then was registered to sell securities with Multi-Financial Securities Corporation in Martinsville, New Jersey from January 2006 to November 2010, according to her BrokerCheck records.

Ms. Resch’s BrokerCheck records indicate that two customers have raised disputes regarding her recommendations, including 2014 allegations of an unsuitable limited partnership investment that causes losses, which was settled for $78,400. Additionally, a customer alleged in 2011 that there were misrepresentation and suitability issues on investments from April 2007 to December 2010, which dispute was settled for $105,000, according to the BrokerCheck records.

Generally speaking, FINRA Rules require that recommendations made by the broker to the customer be suitable. This means that the broker must consider the investor’s age, investment experience, tax status, other investments, as well as other factors when making a recommendation to buy or sell securities.

BROKER REPORT: Financial Advisor Robert Austin McAllister

September 1, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Robert A. McAllister. Mr. McAllister was formerly registered to sell securities from December 2011 to February 2016 with Edward Jones a broker-dealer in Ocean City, New Jersey, according to his publicly available BrokerCheck records maintained by the Financial Industry Regulatory Authority (FINRA).

In 2016, Mr. McAllister was fined and suspended from association with any FINRA member broker-dealer for two months by FINRA, after submitting a Letter of Acceptance, Waiver and Consent No. 2016048831201 (AWC). According to the AWC, Mr. McAllister violated FINRA Rule 3240 (Borrowing from or Lending to Customers) and 2010 (Standards of Commercial Honor and Principles of Trade) because in May 2015, he borrowed $8,500 from a family friend and customer of Edward Jones. According to the AWC, Mr. McAllister did not provide written notice to his registering firm of the loan with the customer, and did not receive approval to participate in the transaction.

According to Mr. McAllister’s publicly available BrokerCheck records, he was discharged from his employment with Edward Jones on January 12, 2016 amid allegations that his “employment was terminated for violating Firm policy by soliciting and accepting a loan from a client without approval from the Firm.”

FINRA Files Complaint Against Broker Craig Dima for Unauthorized Trades in a Senior Citizen’s Securities Account

August 22, 2016 | Malecki Law Team

It was reported by Reuters on August 20, 2016 that the Financial Industry Regulatory Authority (FINRA) filed a complaint against a broker alleging that they broker engaged in unauthorized trading in the account of a senior aged investor.

According to the Reuters Article, the investor was a 72 years old retiree, and the broker, Craig Dima allegedly charged $376,000 in fees and commissions after making repeated unauthorized trades of the investor’s blue-chip Colgate-Palmolive Co. stock. The Reuters article further detailed that the inappropriate trading costed the client a further $127,000 in lost dividend payments, as well as a further $72,000 in losses when the broker sold the stock and then purchased it back later at a higher price. According to the Reuter’s article, the trading in the client’s account made up about 80% of Mr. Dima’s annual commissions.

Mr. Dima is currently employed and registered with the brokerage firm K.C. Ward Financial, out of Ronkonkoma, New York, and has been registered there since September 2009, according to his publicly available BrokerCheck report. Prior to working at K.C. Ward Financial, he was registered with American Capital Partners, LLC from November 2008 to December 2009, Andrew Garrett, Inc. from November 2004 to November 2008 and L.H. Ross & Company, Inc. from May 2003 to December 2004, according to Mr. Dima’s BrokerCheck records.

BROKER REPORT: Financial Advisor Steven M. Wisniewski

August 5, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Steven M. Wisniewski. Mr. Wisniewski is currently employed and registered with Newbridge Securities Corporation and works at the broker-dealer’s Boca Raton, Florida office, according to his publicly available BrokerCheck records maintained by the Financial Industry Regulatory Authority (FINRA).

Per his BrokerCheck report, Mr. Wisniewski was previously employed and registered by Cambridge Investment Research, Inc. from November 2012 to May 2015, Ridgeway & Conger, Inc. from September 2011 to November 2012, and J.P. Turner & Company, LLC from July 2003 to September 2011.

According to his BrokerCheck report, Mr. Wisniewski was the subject of a recent customer complaint received in or around April 2015 alleging churning, unauthorized trading, misrepresentation, negligence, forgery and fraud. The case is currently pending, with alleged damages of $200,000, according to BrokerCheck records.

BROKER REPORT: Financial Advisor Michael A. Margiotta

August 3, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Michael Margiotta. Mr. Margiotta has been employed and registered since June 2015 with Merrill Lynch, Pierce, Fenner & Smith, Inc., a broker-dealer, according to his publicly available BrokerCheck, as maintained by the Financial Industry Regulatory Authority (FINRA).

Per his BrokerCheck report, prior to his employment Merrill Lynch, Mr. Margiotta was employed by UBS Financial Services Inc. from October 2008 to June 2015, and with Citigroup Global Markets Inc. from December 2003 to November 2008, as well as other prior firms.

Mr. Margiotta’s BrokerCheck report indicates that he has received two customer complaints. The first complaint received by Mr. Margiotta involved allegations that he purchased securities that were unsuitable for the investor and sought damages of $1 million, according to the BrokerCheck report. That complaint resulted in a settlement to the investor of $355,000 to the investor the BrokerCheck report details. The second complaint received by Mr. Margiotta alleged unsuitability and that the broker informed the client “oil had bottomed out for sure prompting [the investor] to purchase securities which plummeted,” according to BrokerCheck records.

FINRA Announces Complaint Filed Against Hank Mark Werner Alleging Churning of Elderly and Blind Client’s Account

August 1, 2016 | Malecki Law Team

The Financial Industry Regulatory Authority (FINRA) announced today a complaint filed against Hank Marker Werner for allegations including securities fraud for churning the account of a senior-aged blind widow customer and for making excessive and unsuitable trading recommendations in a News Release.

According to his publicly available BrokerCheck report records maintained by FINRA, Mr. Werner was employed and licensed by Legend Securities, Inc. from December 2012 to March 2016. Prior to working at Legend Securities, Inc., he was employed by Liberty Partners Financial Services, LLC from July to December 2012, Brookstone Securities, Inc. from March 2011 to June 2012, and Alexander Capital, LP from November 2009 to March 2011, per Mr. Werner’s BrokerCheck report.

FINRA’s News Release detailed that Mr. Werner allegedly engaged in a deceptive and fraudulent scheme by churning the elderly client’s over the course of three years “to maximize his compensation by charging more than $243,000 in commissions, while causing the customer approximately $184,000 in net losses.” The News Release also stated:

BROKER REPORT: Financial Advisor Alexander P. Brown III

July 28, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Alexander P. Brown III. Mr. Brown is currently employed and registered with Capital Portfolio Management, Inc. and works at the broker-dealer’s Timonium, Maryland office, according to his publicly available BrokerCheck records maintained by the Financial Industry Regulatory Authority (FINRA).

Per his BrokerCheck report, Mr. Brown was previously employed and registered by Chapin, Davis from April 2008 to November 2015, a Baltimore, Maryland firm, and was discharged from that firm for “failure to follow written supervisory procedures for marking an account as deceased.” Prior to working at Chapin, Davis, Mr. Brown was employed and registered by Ferris, Baker Watts Incorporated from 2003 to 2008, also out of Baltimore, Maryland, according to his BrokerCheck report.

According to his BrokerCheck report, Mr. Brown was sanctioned in 2016 by the Maryland Securities Division and could not maintain discretionary accounts or serve in a supervisory capacity because he “continued to trade in discretionary account after client deceased while awaiting paperwork to retitle account.”

BROKER REPORT: Aegis’ Robert Guidicipietro

July 27, 2016 | Malecki Law Team

The investment and securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints regarding Aegis Capital Corp. financial advisor Robert Guidicipietro.

According to his BrokerCheck report maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Guidicipietro was most recently with JP Turner and Obsidian Financial prior to moving to Aegis Capital in 2012. According to industry records, Obsidian was expelled by FINRA in 2013, not long after Mr. Guidicipietro left the firm.

Mr. Guidicipietro has at least nine reportable disclosures on his FINRA record, including a civil judgment/lien, multiple customer disputes, multiple regulatory events and an “employment separation after allegations.”