BrokerCheck

BROKER REPORT: Merrill Lynch’s Paul F. Kane

June 29, 2016 | Malecki Law Team

Malecki Law’s team of investment attorneys are interested in hearing from investors who have complaints regarding long-time Merrill Lynch Financial Advisor Paul F. Kane.

According to his BrokerCheck report maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Kane is currently the subject of a pending customer dispute. The allegations include unsuitable investment recommendations, excessive trading and misrepresentation and omission of material facts, per FINRA. According to the disclosures on Mr. Kane’s BrokerCheck, the customer is requesting $1.1 million in damages.

Excessive trading, also known as churning in the industry, can be disastrous for a portfolio. When a broker trades an account excessively, large amounts of commissions and fees may be generated, if the account is commission based (as opposed to fee based). Churning is a classic example of a broker putting his or her own monetary gain above the best interests of his or her customer.

Morgan Stanley Broker Armando Fernandez Suspended by FINRA

June 28, 2016 | Malecki Law Team

Morgan Stanley broker Armando Fernandez has been suspended by the Financial Industry Regulatory Authority (FINRA) for 20 business days, according to publicly available FINRA records. Per a Letter of Acceptance, Waiver and Consent filed with FINRA, Mr. Fernandez was accused of exercising discretion in a customer account without prior written acceptance of the account as discretionary from his member firm. FINRA records indicate that Mr. Fernandez was also fined $7,500.

Generally, brokers are prohibited from placing trades in a customer account without speaking to the customer first, unless an account is a discretionary account. When discretion is given by the customer to the broker, it is typically documented in a signed agreement. When there is not such a signed agreement, and a broker executes transactions on a discretionary basis anyway, violations of FINRA Rules likely have taken place.

Customers who have been the victim of brokers improperly exercising discretion in their accounts (or violating other FINRA Rules) may be entitled to recover their losses in an action against the firm and/or broker responsible.

Risky Investments Begin to Show Losses in Wake of Brexit

June 27, 2016 | Malecki Law Team

The Bexit vote in Britain appears to be exposing fault lines across various investments. The Wall Street Journal reported today that emerging market currencies are taking on steep losses a day after Britain voted to leave the European Union, termed Brexit. According to the article, this comes as the British Pound dropped to a thirty year low and Standard & Poor’s downgraded the U.K. down from Triple-A status.

Other investments are also showing strain, including oil, and foreign companies, including European banks. These investments are often packaged into products such as exchange traded funds or limited partnerships, which are generally considered risky and not suitable for certain investors.

For instance, we have commented in recent blog posts that oil and gas limited partnerships are not appropriate for investors that cannot afford to have a significant portion of their portfolio locked up in such an illiquid investment that generally pays high commissions to the brokers who recommend them.

BROKER REPORT: Former Legend Securities Financial Advisor Walter Marino

May 26, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Walter Marino. Mr. Marino is currently employed and registered with Lincoln Investment, a broker-dealer, working out of the Dix Hills, New York office, according to his publicly available BrokerCheck, as maintained by the Financial Industry Regulatory Authority (FINRA).

Per his BrokerCheck report, Mr. Marino was previously employed by Legend Securities from 2002 to August 2015, when he was discharged after the “Firm discovered what [Mr. Marino] represented as a non-replacement [variable annuity] sale was in fact a replacement.” Prior to his employment and subsequent termination from Legend Securities, Mr. Marino left Brill Securities in 2001 by “voluntary resignation” amid allegations of unauthorized trading activity and disregarding a customer’s investments, according to BrokerCheck.

Currently, according to BrokerCheck records, it appears Mr. Marino is a registered broker in Connecticut, New Jersey, New York and South Carolina.

Customer Complaints Against Broker John T. Keyser

February 26, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law would like to hear from investors who have complaints against John T. Keyser of Dawson James Securities in Florida. In the past, Keyser has been the subject of a FINRA suspension and customer dispute, as well as an outstanding tax lien. Since 1986 he has been at 16 brokerage firms, including 3 that were expelled from the industry. His current firm has 7 regulatory and 1 arbitration disclosure. Two other firms he has worked with had a combined 30 regulatory & 9 arbitration disclosures on BrokerCheck.

According to FINRA’s BrokerCheck, there were customer dispute cases against him in 2010, 2006, and 2002. Further, as per FINRA’s BrokerCheck, in 2010 there were allegations made against him for churning, intentional and negligent misrepresentation, unsuitability, breach of fiduciary duty, and unauthorized trading, seeking damages for $650,000. As per BrokerCheck, the firm and Keyser denied the wrongdoings and refuted the allegations. FINRA’s BrokerCheck shows that in 2006 there was another customer dispute against him, alleging that a stop loss order had not been executed timely to cover his client’s position. The same FINRA site reveals that in 2002, there was an unauthorized trading complaint made against him, demanding damages of 80,000.

There are other disclosure events, regulatory investment and judgement liens, against his records on BrokerCheck, one of which resulted in NASD suspending his license for failure to pay an arbitration award, which was resolved upon award payment. It is noteworthy that on BrokerCheck several Florida firms Mr. Keyser has worked for in the past have been expelled by FINRA including Sterling Financial Investment Group and Barron Chase Securities.

BROKER REPORT: M&T Securities Financial Advisor Christopher T. Fenton

January 26, 2016 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Christopher T. Fenton. Mr. Fenton is currently employed and registered with M&T Securities, Inc., a broker-dealer, working out of the Buffalo, New York office, according to his publicly available BrokerCheck, as maintained by the Financial Industry Regulatory Authority. He was also previously registered with Pruco Securities Corporation.

According to his BrokerCheck report, Mr. Fenton has been the subject of three customer complaints while employed by M&T Securities, Inc. The latest customer complaint led to a FINRA arbitration proceeding, according to BrokerCheck records. The BrokerCheck records reveal that the customer alleged that misrepresentations, breach of fiduciary duty and recommendation of unsuitable investments were made. The dispute resulted in an award to the customer, according to the BrokerCheck report.

A review of the award, publicly available from FINRA’s website, discloses that the claimant also alleged that the causes of action related to an M&T Portfolio Architect Account and Rochester Fund Municipals. The award also disclosed that Mr. Fenton and his firm were found to be jointly and severally liable to the claimant for the award, as well as a portion of fees the claimant incurred in bringing the claim.

BROKER REPORT: John Keyser of Dawson James Customer Complaints

January 20, 2016 | Malecki Law Team

The securities and investment fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against Florida stockbroker John T. Keyser. Mr. Keyser is reportedly registered with Dawson James Securities, Inc. in Boca Raton, Florida. Industry records indicate that Mr. Keyser has also recently been registered with Viewtrade Financial and SAL Financial Services.

According to BrokerCheck, as maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Keyser has been the subject of three customer complaints and a suspension of his license.

In 1998, Mr. Keyser reportedly had his FINRA (then NASD) license to sell securities suspended for failing to pay an arbitration award against him.

BROKER REPORT: Scott Teich of Raymond James in Florida

January 15, 2016 | Malecki Law Team

The securities and investment fraud attorneys are interested in hearing from investors with complaints involving Scott Teich of Raymond James. Per his BrokerCheck Report, maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Teich is a registered stock broker with Raymond James, based out of Florida.

Mr. Teich’s BrokerCheck Report indicates that he has been the subject of at least six customer complaints. He has also reportedly been the subject of an “employment separation after allegations.”

In addition to Raymond James, Mr. Teich has also been registered with Gruntal & Co., First Colonial Securities, Paragon Capital Corp (which FINRA reports was “expelled” from FINRA in 2004).

Broker Report: David H. Bindelglass of Morgan Stanley

December 12, 2015 | Malecki Law Team

The investment fraud attorneys at Malecki Law are investigating potential claims by investors against Morgan Stanley stockbroker David H. Bindelglass. According to his BrokerCheck report maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Bindelglass, who works out of Morgan Stanley’s Paramus, New Jersey branch, has been the subject of at least three customer complaints.

Mr. Bindelglass is believed to have regularly recommended investments in Puerto Rican bonds to his clients. It is believed that Mr. Bindelglass may have recommended such investments in high concentrations. In high concentrations, even investments believed to be “safe” can be unsuitable and result in significant losses. If a financial advisor recommends investments in a concentration that is unsuitable, the investor may be entitled to recover some or all of their losses.

According to FINRA records, since 2006, Mr. Bindelglass has been accused by at least three different customers of recommending unsuitable investments. In each case, FINRA records indicate that those investors were able to recover for their losses.

BROKER REPORT: Timothy L. Pilkington Is Barred from the Securities Industry

October 9, 2015 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Timothy L. Pilkington. Mr. Pilkington was employed and registered with Stephens, a broker-dealer with an office in Memphis Tennessee from January 2012 through March 2015, according to his publicly available BrokerCheck, as maintained by the Financial Industry Regulatory Authority (FINRA). He was also previously registered with Morgan Stanley Smith Barney, according to industry records.

According to his BrokerCheck, Mr. Pilkington was the subject of one customer complaint in 2009. More recently, a Letter of Acceptance, Waiver and Consent (AWC) was accepted by FINRA stating that Mr. Pilkington was barred from associating with any broker-dealer for failing to respond to the FINRA 8210 request for information. 8210 Requests require that people registered to recommend and sell securities must provide documents, testimony and information regarding matters under investigation. According to the AWC, Mr. Pilkington failed to disclose two FDIC orders to FINRA. One of those orders disclosed that Mr. Pilkington agreed to pay $2,500, where “the FDIC considered the matter and determined it had reason to believe that the [he] has engaged or participated in violations of law, unsafe or unsound banking practices and/or breaches of fiduciary duty.” In another FDIC order, Mr. Pilkington was “prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without the prior written approval of the FDIC.”

If you or a family member lost money that was invested with Mr. Pilkington, you are encouraged to contact the securities fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.