Retired Morgan Stanley Rep Fined for Unsuitable Advice

Retired Morgan Stanley Rep Fined for Unsuitable Advice

The Financial Industry Regulatory Authority (FINRA) has fined former Morgan Stanley rep Timothy Thomas Gibbons $20,000 and suspended him for 18 months from the industry for unsuitable recommendations to elderly clients. The now-retired rep is also required to pay $717,000 in restitution to five of those clients.

Gibbons Unsuitable Advice Recommended High-Risk Stocks

FINRA alleges that Gibbons made unsuitable recommendations to five customers between 72 and 90 years of age, recommending that they invest 65% to 79% of their account values in a single high-risk energy stock. Based on their age, risk tolerance, investment objectives and financial circumstances, FINRA states that some of Gibbons’ recommendations were unsuitable for each customer. The five Morgan Stanley customers at issue suffered total realized and unrealized losses of more than $960,000.  Gibbons has neither admitted nor denied FINRA’s claims, but did accept the findings and agree to financial penalties.

Did You Lose Money as a Result of Unsuitable Broker Recommendations?

If Timothy Gibbons was your Morgan Stanley broker and you lost money or if you believe you have lost money as a result of stockbroker misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an stockbroker misconduct attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

California Couple Charged With Identity & EB-5 Fraud

California Couple Charged With Identity & EB-5 Fraud

The U.S. Department of Justice has announced that a California couple has been indicted on visa fraud and identity theft charges. The couple, Jennifer Yang and Daniel Wu, allegedly swindled the federal government by faking investment forms and creating employees to create the illusion that their companies were viable entities under the EB-5 program.

Couple Commits EB-5 Fraud

From 2009 to 2016, Jennifer Yang and Daniel Wu allegedly defrauded the government through the EB-5 visa program by creating supposedly legitimate companies that were classified as new commercial enterprises. They also received at least $4 million from seven foreign investors.

Yang allegedly founded Capital Law Group LLP as a means to represent people seeking to become residents under the EB-5 program and received nearly $150,000 in fees. While representing these investors, she directed their investments to four companies owned by herself and Wu, 1-855-Lawyers Inc., 81 Law Inc., 81 Doc Inc. and Searchcaser Inc.

Yang and Wu Also Committed Identity Fraud

According to the indictment, Yang and Wu allegedly submitted false I-526 and I-829 petitions by mail using the personal identifying information of third-party individuals without their knowledge or consent. The petitions were submitted to give the impression that the foreign investments had created new employment opportunities, which is the main purpose of the EB-5 program.

The EB-5 program is a federal program that allows foreign investors and immediate family members to receive a pathway to citizenship by investing $1 million in a commercial enterprise or $500,000 in certain regions with low employment rates.

The falsified documents are investor documents provided to the government to provide background information on the investor and to apply for legal permanent residency in the U.S.

Have You Lost Money in an Investment Scheme?

If you believe you have been the victim of an investment scheme, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

SEC Seeks $17M Disgorgement Against Team Resources

SEC Seeks $17M Disgorgement Against Team Resources

The U.S. Securities and Exchange Commission has asked a Texas federal court to order two California companies, their owner, and two of his sales associates to pay close to $17 million for running an oil and gas scheme. The scheme duped roughly 475 investors into buying oil and gas limited partnerships interests for a total of more than $33 million dollars of investor money.

SEC Bids for Final Judgements in Oil and Gas Scheme

The request is part of the SEC’s bid for final judgements against Team Resources Inc., Fossil Energy Corp., their owner Kevin A. Boyles and his alleged sales associates John Olivia and Michael Eppy. In addition to disgorgement of $15.5 million for Boyles and his companies, and more than $700,000 each for Olivia and Eppy, the SEC requested the court to order them to pay interest plus hefty civil monetary penalties.

An alleged third sales associate, Philip A. Dressner, is also expected to settle. The fourth, Andrew Stitt, was given a default judgment of close to $500,000 in 2016 after he failed to appear in the case.

SEC Says Oil and Gas Scheme Misled Investors

According to the SEC’s complaint, the scheme involved the California-based Team Resources Inc., and, later, Fossil Energy Corp. and its owner Kevin A. Boyles. They acquired leases on oil and gas fields in Kansas and then put them into limited partnerships.

According to the SEC, Boyles then used sales associates in California and Florida to cold-call investors and sell offerings in the partnerships, touting fantastic production projections. Once the oil and gas wells were drilled, the the oil and gas produced was far below projections.

Instead of disclosing this fact, Boyles and the companies misled investors with false positive updates rather than report the failure to meet production projections. Boyles also failed to tell investors that sales associates received sizeable commissions ranging from 25 to 35 percent.

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If you believe you have been the victim of an investment scheme, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today/strong>

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

SEC Accuses Snack Company of $2M Investor Fraud

SEC Accuses Snack Company of $2M Investor Fraud

The U.S. Securities and Exchange Commission (SEC) and federal prosecutors have filed fraud charges against a trio of business associates accused of raising approximately $2 million for a caffeinated chocolate snack company under false pretenses.

According to the U.S. Attorney’s Office for the Southern District of New York, Lisa Bershan, 60, her husband Barry Schwartz, 71, and their business partner Joel Margulies, 72, are facing securities fraud, wire fraud and conspiracy charges. The charges are in connection with an alleged scheme to defraud investors in a company alternatively named The Awake Co. and Starship Snacks.

Business Associates Engaged in Investor Fraud

According to prosecutors, from August 2015 to August 2017, the trio made false statements to numerous investors, claiming that their snack company had a deal with Monster Energy Corp., and later was in talks to be acquired by The Coca-Cola Co. According to prosecutors, who worked with the FBI on the investigation, neither deal was under negotiation. In addition, court documents show that investors were told that their investments would be personally guaranteed by Bershan with a 5 percent interest payment.

The SEC’s complaint says that those guarantees were never made. Instead of using money to develop the business or invest in product development, investors’ money was used to fund the trio’s lavish lifestyle. Bershan and Schwartz allegedly spent more than $39,000 on plastic surgery; more than $209,000 on retail purchases, including jewelry and clothes; more than $11,900 at a Mercedes dealership; and hundreds of thousands of dollars on luxury housing.

Court documents state that investor updates included false assurances by the trio that the investments were secure, offered an excuse for the delay, and/or claimed that a Monster or Coke deal was imminent, misleading investors.

SEC Files Civil Suit for Violations of Anti-Fraud Provisions

The SEC also has filed a separate civil suit against the three defendants, accusing them of violating anti-fraud provisions of federal securities laws and a related SEC anti-fraud rule. It seeks disgorgement plus interest and civil penalties.

Bershan and Schwartz were presented in federal court in Atlanta, and Margulies was presented in federal court in Tennessee. They have not yet been indicted.

Have You Lost Money in an Investment Scheme?

If you believe you have been the victim of an investment scheme, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and option

Broker Thomas J. Buck Pleads Guilty to Securities Fraud

Broker Thomas J. Buck Pleads Guilty to Securities Fraud

Thomas J. Buck, a former high-producing Merrill Lynch broker, has pleaded guilty to securities fraud and reached a settlement deal with the SEC for more than $5 million. The ex-Merrill broker, who was fired and then kicked out of the securities industry, was accused of collecting $2.5 million in excessive commissions and fees from at least 50 clients.

Buck Overcharged Clients Excessive Fees

The SEC complaint filed against Buck alleges that from 2012 through March 2015 Buck received more than $2.5 million in excessive commissions and fees from at least 50 clients. At the time, Buck’s Indiana-based practice was known as the “Buck Team” and had more than 3,000 accounts and $1.3 billion in assets under management.

Merrill Lynch told its registered representatives and advisers to compare annual commissions to annual fees and to place their clients in the less-costly accounts. Buck put clients into commission-based accounts rather than the less expensive fee-based alternatives.

He failed to tell clients when doing so, and failed to tell them that his commissions exceeded promised limits while he simultaneously executed unauthorized trades with their accounts.

During the time, most Indiana-based Merrill brokers received 70% of their revenue from clients in fee-based accounts. In contrast, 80% of Buck’s clients had commission-based accounts.

Broker Thomas J. Buck Will Pay SEC $5M

Buck has agreed to pay $2.6 million in disgorgement, a $2.2 million penalty and interest of $297,000. He was fired by Merrill Lynch in March 2015 and later that year barred from the brokerage industry by the Financial Industry Regulatory Authority Inc. (FINRA).

Buck was also the subject of an FBI probe, which resulted in one count of securities fraud. He pleaded guilty and faces up to 25 years in prison.

Have You Lost Money with Thomas J. Buck?

If you believe you have been the victim of stockbroker misconduct or other investment scheme, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or free consultation to review your rights and options.

SEC Investigates Woodbridge Group for Potential Fraud

SEC Investigates Woodbridge Group for Potential Fraud

The U.S. Securities and Exchange Commission (SEC) has been investigating Woodbridge Group of Companies, a real estate and investment company based in Sherman Oaks, California, that has raised over $1 billion from investors, under allegations of operating as a fraud.

California Firm is Suspected of $1 billion Scheme

According to court documents, in August the SEC sent subpoenas to 235 LLCs, which the Commission believes are owned and/or controlled by Woodbridge president Robert Shapiro. The inquiry is part of an ongoing year-long investigation into Woodbridge regarding the possible improper sale of securities.

The Commission states that it did not receive a sufficient response from the entities. As of recent court filings, the SEC received a response from only one LLC entity that said it was not affiliated with Woodbridge or Woodbridge president Robert Shapiro.

The subpoenas were sent to gather information and documents about payments the LLCs made to Woodbridge, the names of the LLC’s managers or members, as well as information regarding financial institutions of the LLCs.

According to the filing, the SEC alleges that the LLCs failed to produce any documents. The SEC’s latest application seeks an order from the federal district court compelling respondents to comply with the SEC’s subpoenas.

“As the investigation has unfolded, it has come to the attention of the Commission’s investigative team that there are numerous LLCs that are interwoven into the structure of products Woodbridge offers for investment,” states SEC documents. “Specifically, the Commission is investigating the offer and sale of unregistered securities, the sale of securities by unregistered brokers and the commission of fraud in connection with the offer, purchase and sale of securities.”

Woodbridge claimed that it has and will continue to cooperate with all SEC requests. The company further stated that its wealth management group, Woodbridge Wealth, sells three types of investments: first position commercial mortgages with an annual yield of 5%, secondary-market annuities with “above-average risk -adjusted yields,” and a commercial bridge loan fund that potentially returns 6%.

According to BrokerCheck, there is no broker-dealer named Woodbridge Wealth registered with FINRA.

Have You Invested Money with Woodbridge Group?

If you believe you have been the victim securities fraud or other investment scheme, you may have certain legal rights that require your immediate attention.

Call a Securities Fraud Attorney Today

If you are looking for an securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Former First Allied Broker Barred by FINRA

Former First Allied Broker Barred by FINRA

The Financial Industry Regulatory Authority (FINRA) has barred Masood Husain Azad, a former First Allied broker for failing to provide information requested by FINRA.

Masood Husain Azad Failed to Provide Information About Misconduct

In August 2017, FINRA’s enforcement unit began investigating the former First Allied Securities broker for allegations of stockbroker misconduct. The allegations included soliciting investment in and/or directly investing in an unapproved private securities transaction.

FINRA’s enforcement unit also was investigating Azad’s outside business activities, as a result of allegations that Azad engaged in outside business activities without obtaining authorization from First Allied.

According to FINRA, First Allied terminated Azad in May 2017. He joined First Allied in January 2015 and started his career in 2004 at Voya Financial Services.

Did You Lose Money as a Result of Stockbroker Misconduct?

If you believe you have lost money to stockbroker misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an stockbroker misconduct attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Kurr Foundation President Committed $9M Securities Fraud

Kurr Foundation President Committed $9M Securities Fraud

The U.S. Securities and Exchange Commission has sued the financial adviser to the Kurr Foundation, alleging he stole $9 million from the charity and committed securities fraud.

The SEC accuses adviser John H. Rogicki of using his role to steal money from the foundation to fund his extravagant lifestyle, cover personal expenses, and purchase real estate for his children. The complaint states that at the time of the thefts, Rogicki was trustee of the foundation, executor of the estate, and managing director at Train, Babcock Advisors LLC, an SEC-registered investment adviser firm based in New York.

Rogicki Uses Position To Steal

Established to support various education services, health organizations, and children and youth services, The Kurr Foundation is funded by the estate of Sara Zock. Rogicki became the president of the foundation after Ms. Zock’s passing.

Using his role as investment adviser, Rogicki liquidated securities in the foundation’s account, stealing the proceeds by wiring the money to his personal accounts via the account of the deceased founder, which he also controlled in his capacity as executor.

According to court documents, Rogicki made more than 200 unauthorized wire transfers from the foundation account, totaling more than $9 million, over the course of 12 years.

SEC Seeking Permanent Injunction

The SEC is seeking a permanent injunction, disgorgement and penalties and charges Rogicki with violating the Investment Advisers Act and the Securities Exchange Act.

Adviser Faces Criminal Charges

In a parallel action, the Manhattan district attorney has brought criminal charges against Rogicki. He pled guilty to charges of grand larceny and money laundering. In exchange for his plea, he was promised a sentence of up to 7.5 years in state prison.

According to the DA’s office, he would also be required to pay restitution of $2.5 million and make a confession of judgment for approximately $6.7 million. His sentencing will take place in December 2017.

Have You Lost Money to Broker Misconduct?

If you believe you have been the victim of stockbroker misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact a securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

NYC Financial Adviser Pleads to $1.6M Trust Theft

NYC Financial Adviser Pleads to $1.6M Trust Theft

The Manhattan district attorney announced recently that a former New York-based financial adviser will spend more than two years in prison after admitting that he committed trust theft.  The adviser, Brian Keenan, formerly of Train, Babcock Advisors LLC, took $1.6 million out of three trusts that he oversaw.

From 2007 and 2012, Keenan used a checking account set up in his own name and the name of one of the trust beneficiaries to withdraw funds from the trusts for personal use. The beneficiary had not been given access to the account.

Civil Suits Filed in California

Keenan’s client Delia Foster had set up trusts for her nephew and his two children, relying on Keenan and his firm to manage the assets. According to civil suits filed in California state court, Keenan had been managing Foster’s assets since the 1990s.

In 2013, when Foster discovered the assets had been removed from the trust accounts, she sued both Keenan and Train, Babcock Advisors.

Adviser Pleads Guilty

Keenan, 60, pled guilty in New York Supreme Court to one count of grand larceny for diverting the funds from trusts set up by of one of his clients. Keenan will receive a sentence of two years and four months to seven years in exchange for his plea.

Sentencing for the former adviser is scheduled for December 2017.

Have You Lost Money to Stockbroker Misconduct?

If you believe you have been the victim of stockbroker misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an securities fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

 

$3.5M Fine for UBS Overcharge Claims

$3.5M Fine for UBS Overcharge Claims

The U.S. Securities and Exchange Commission has fined UBS Financial Services Inc. $3.5 million, settling UBS overcharge claims. The case against UBS claims the bank overcharged retirees and charities for mutual funds. According to filings, the 15,250 customers collectively paid $18.5 million in excessive costs.

UBS Misleads Customers

From January 2010 through June 2015, the SEC claims that UBS misled customers, not disclosing information that could have effected customers’ investment decisions.

According to the SEC, UBS did not tell customers that they were eligible for less expensive mutual funds shares or that UBS would make more money off of the more expensive fund shares. UBS also allegedly did not disclose that customers’ purchases of the more expensive share classes would negatively impact the overall return on their investments, especially when related to the different fee structures for less expensive fund share classes.

UBS Takes Settlement Action

Under the settlement agreement, UBS issued payments with interest to affected customers and converted eligible customers to the mutual fund share class with the lowest expenses for which they are eligible. This was done at no cost to customers.

As of publishing, 970 customers had not cashed or deposited their payments, or changed their addresses. The SEC said that UBS will continue attempts to find these customers.

UBS Repeat Regulatory Offender

In the past three years, UBS has paid several SEC fines for violation of securities laws. In January 2015, the firm settled a $14.4 million sanction from the SEC for operating dark pools and providing an unfair advantage to high-frequency traders.

In October of that same year, UBS agreed to pay $20 million to settle SEC claims regarding misleading statements when offering structured notes to retail investors. And most recently, the SEC announced a $15 million settlement with UBS AG over allegations that the bank failed to properly train staff regarding complex financial products sold to retail investors. Moreover, within the last several years, the SEC, FINRA, and Puerto Rico securities regulators collectively have levied approximately $40 million in penalties and fines on UBS relating to UBS’s

recommendations and sales of over-concentrated positions in Puerto Rico bond funds, improperly recommending loans that were collateralized by the risky Puerto Rico funds, and improper supervision over Puerto Rico brokers who sold the risky Puerto Rico bond funds.

Have You Lost Money Investing with UBS?

If you believe you have lost money investing with UBS or have been the victim of stockbroker misconduct, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an securities fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.