Author: dkradmin

Former Wells Fargo Reps Barred for Unsuitable Energy Securities

Former Wells Fargo Reps Barred for Unsuitable Energy Securities

dkradmin

Two former Wells Fargo brokers from California have been barred by the Financial Industry Regulatory Authority (FINRA) for allegedly exposing clients to undue risks. The regulator barred California brokers Charles Frieda and Charles Lynch for recommending that clients over-concentrate their investments in energy-sector securities that resulted in significant losses.

According to FINRA, the two brokers recommended an investment strategy involving four speculative energy stocks to a majority of their customers. Between November 2012 and October 2015, the brokers recommended these investments to more than 50 customers, exposing the customers to significant losses.

In addition to the speculative nature of the securities, the volatility of the energy market, and the high level of concentration, the broker also failed to properly consider the customers’ investment profiles. In the complaint filed by FINRA, the agency says that Frieda and Lynch did not properly consider the suitability of their recommendations.

Brokers Terminated for Unsuitable Energy Securities

Charles Frieda and Charles Lynch worked together in Irvine, California. Wells Fargo terminated Lynch in April of this year, followed by Frieda this past August.

Charles Frieda began his securities career at Citigroup in 2008, leaving for Morgan Stanley after one year. He joined Wells Fargo in 2012. Charles Lynch began his securities career in 1999 at Morgan Stanley, followed by a four-year stint at Citigroup, after which he rejoined Morgan Stanley. Lynch also joined Wells Fargo in 2012.

Are You a Victim of Stockbroker Misconduct?

If you lost money as a result of investing with Charles Frieda or Charles Lynch or are a victim of stockbroker misconduct, contact an experienced securities fraud attorney today.

Call an Investment Fraud Attorney Today

If you are looking for an 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 Angeles, New York, West Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and can 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.

UBS Rep Kenneth Tyrrell Banned for Securities Transactions

UBS Rep Kenneth Tyrrell Banned for Securities Transactions

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The Financial Industry Regulatory Authority (FINRA) has barred former UBS broker Kenneth S. Tyrrell for participating in 11 undisclosed private securities transactions and engaging in five undisclosed outside business activities.

The regulator alleges that Kenneth Tyrrell engaged in undisclosed trades worth around $13 million. According to FINRA’s letter of acceptance, waiver and consent, Tyrrell did not give prior notice to UBS about the trades.

Kenneth Tyrrell Terminated from UBS

Tyrrell started his career in the securities industry in 1994 and worked at several firms before joining UBS Financial Services in 2008. In August 2016, Tyrrell was terminated from UBS. He then when to work for Cary Street Partners, where was terminated earlier this year.

Are You a Victim of Stockbroker Misconduct?

If you lost money as a result of stockbroker misconduct, contact a qualified securities fraud attorney today.

Call a Securities Fraud Attorney Today

If you are looking for an 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 Angeles, New York, West Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and can 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.

SEC Seeks $10.3M from Silverleaf Financial LLC

SEC Seeks $10.3M from Silverleaf Financial LLC

dkradmin

The U.S. Securities and Exchange Commission (SEC) is seeking $10.3 million from defunct Silverleaf Financial LLC. The founder, Dwight Shane Baldwin, is accused of bilking investors out of money raised to purchase defaulted property loans in Florida and Colorado.

SEC Seeking Permanent Injunction & Disgorgement

The SEC is seeking $8 million in disgorgement from Silverleaf and $2.3 million in interest. Baldwin is culpable for the same $8 million in disgorgement but only liable for $1.1 million in interest, which stopped accruing on Oct. 12, 2017. He was ordered to pay $1.1 million as part of a consent agreement with the SEC in which he neither admitted nor denied the allegations.

According to the filings, the SEC requested a permanent injunction prohibiting the company from committing future securities law violations and asked that it be ordered to pay unspecified civil penalties.

Silverleaf Raised Money Under False Pretense

In 2015, the SEC named Baldwin and Silverleaf as co-defendants in a case alleging a fraudulent offering scheme. The agency says the scheme ran from at least June 2010 through late 2011.

According to the complaint, Baldwin raised roughly $8 million for Silverleaf from at least three investors meant to buy discounted, defaulted commercial real estate loans—one collateralized by property in Oviedo, Florida, and the other collateralized by a resort in Steamboat Springs, Colorado.

The SEC says Baldwin told prospective investors that there was little to no risk, and claimed they would get returns of as much as 10 percent within 30 days. Instead of paying returns to investors, Baldwin used investors’ money to repay debts and deposited the rest into various Silverleaf bank accounts.

The SEC said Baldwin lied to investors, telling them he needed $2 million to purchase the loan for the property in Oviedo, even though he already sold a Florida loan connected with that property. In the case of the Colorado loan, Baldwin raised $6 million from investors, telling them he had a buyer for the loan when none existed.

According to the SEC, none of the investors have received returns on their investments.

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 more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los Angeles, New York, West 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.

 

Barry Kornfeld Sold Millions Worth of Woodbridge Loans

Barry Kornfeld Sold Millions Worth of Woodbridge Loans

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Florida broker Barry Kornfeld, who was barred from the securities industry, sold millions of dollars of defunct Woodbridge loans to clients through his company First Financial Tax Group.

The company, which claimed to specialize in real estate loans, advertised that investments in First Position Commercial Mortgages yielded 5%. Kornfeld sold the Woodbridge loans as guaranteed promissory loans, promising that if Woodbridge defaulted, the investors would be paid first because of their position as a note holder.

Since Woodbridge filed Chapter 11 bankruptcy, the company has stopped paying investor distributions and First Financial Tax Group has announced it will be closing. According to the SEC’s filing, some of Kornfeld’s clients had invested close to $1 million in Woodbridge loans.

Kornfeld Previously Banned from Securities Industry

Kornfeld was barred from the securities industry in 2010 by the U.S. Securities and Exchange Commission (SEC) for selling unsuitable collateralized mortgage obligations (CMOs) to clients while working at Brookstreet Securities Corp.

Before the credit crisis, Kornfeld sold high-risk CMOs. According to the SEC, Kornfeld falsely told clients that the CMOs were safe, secure investments that were suitable for low-risk investment profiles. When in fact, the investments were only appropriate for investors with high-risk investment profiles.

In June 2007 Brookstreet failed to meet margin calls for the CMOs and then failed to meet net-capital requirements, essentially deeming the CMOs worthless.

Woodbridge Files for Chapter 11 Bankruptcy

The Woodbridge Group of Companies recently filed for Chapter 11 bankruptcy and has stopped paying investor distributions. The company blames increasing costs, including litigation and compliance expenses, as a reason for its bankruptcy.

Based in Sherman Oaks, California, the company raised more than $1 billion from investors and is currently under SEC investigation. In October, the regulator said it was investigating the company to determine whether it was operating as a fraud.

According to a statement made by the company in the wake of filing for bankruptcy, Woodbridge has a $100 million dollar commitment from investor Hankey Capital and intends to recapitalize $750 million in debt.

The company so far has declined to comment about working with Barry Kornfeld or acknowledge if it was aware that Kornfeld had been previously barred from the securities industry.

Are You a Victim of Stockbroker Misconduct?

If you lost money as a result of investments made with Barry Kornfeld or are a victim of stockbroker misconduct, contact a qualified securities fraud attorney today.

Call a Securities Fraud Attorney Today

If you are looking for an 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 Angeles, New York, West Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and can 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.

David Aubel Pleas Guilty in Green Energy Case

David Aubel Pleas Guilty in Green Energy Case

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David Aubel has pled guilty in Massachusetts federal court to arranging a 2012 pump-and-dump scheme to manipulate the stock price of a waste and recycling company.

David Aubel, 59, admitted to securities fraud, wire fraud, and conspiring to commit those crimes with a New Hampshire-based partner to exploit the penny stock of Green Energy Renewable Solutions Inc. His partner, Robert J. Raffa, pled guilty in September.

Green Energy Pump-and-Dump Scheme

Aubel and Raffa allegedly bought millions of Green Energy shares and used four foreign entities to hide their controlling interest from the U.S. Securities and Exchange Commission. Prosecutors claim that the pair drove up the price of the shares by hiring a stock promoter to advertise the business in two rounds of email blasts and by making end-of-day share purchases.

When the price spiked during these promotional campaigns, Aubel and Raffa sold their shares. The pair had planned to sell substantially more through someone they believed to be a corrupt stockbroker, who actually was undercover FBI agent Christopher J. Burke.

According to a 2016 indictment and an affidavit from Burke, he caught the pair attempting to give brokers kickbacks for selling Green Energy shares.

Sentencing Scheduled for 2018 for David Aubel

The judge has scheduled sentencing for David Aubel for March 2018. Under the plea deal, Robert J. Raffa agreed with prosecutors’ assessment that he and his business partner stole more than $1.6 million. Under the deal, the government agreed not to appeal a prison sentence of 51 months or more and Aubel agreed not to appeal a sentence of 63 months or less.

Aubel’s partner Raffa has jointly agreed with prosecutors to spend one to three years behind bars, according to his plea agreement.

Investors Who Lost Money Coming Forward

Prosecutors have worked to contact potential victims of the Green Energy pump-and-dump scheme. To date, the government has contacted about 500 people who lost $500 or more. At least 55 sizable investors from across the U.S. have responded so far, claiming they were swindled out of a total of $238,000. Many other investors who lost smaller amounts also have come forward.

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 more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los Angeles, New York, West 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.

Neurendo Pharma CEO Charged with Stealing $1.5M

Neurendo Pharma CEO Charged with Stealing $1.5M

dkradmin

The CEO of Wisconsin pharmaceutical company Neurendo Pharma LLC has been arrested and arraigned in Illinois federal court on one count of wire fraud. Neurendo Pharma CEO, Robert Tomlinson, allegedly stole at least $1.5 million dollars of investor money to pay personal bills and support his family’s lavish lifestyle.

 Neurendo Pharma CEO Stole Investor Money Under False Pretense

The complaint alleges that between March 2016 and November 2017, Tomlinson scammed money from investors through false representations about an experimental Type 2 diabetes medication known as GNTI, produced by his company Neurendo Pharma.

The complaint alleges that Tomlinson lied to investors, telling them their money would be used for Neurendo’s operational expenses, as well as marketing costs for the experimental drug. He told investors they’d see a profit only upon purchase of the company’s drug rights.

Instead of using the money for Neurendo, Tomlinson allegedly transferred investor funds to obscure bank accounts from which he would write his wife checks to personal bills. It’s alleged that Tomlinson strategically withdrew money from Neurendo accounts in increments that fell just under federal reporting requirements. Nearly all the money was used for personal purposes, including a $20,000 in annual golf and yacht club membership and mortgage payments on his Michigan lake house.

Tomlinson allegedly claimed that he was not paid a salary, blaming Neurendo’s high operating costs. He requested an additional $300,000 investment from an unnamed investor to cover additional expenses. That money also was used for personal expenses.

Tomlinson to Surrender Passport

Tomlinson surrendered his passport as part of his pretrial bond-release conditions, which also require him to appear in court when necessary, to remain within the federal court district, and to avoid contact with his Neurendo Pharma LLC investors.

If convicted, Tomlinson faces a maximum 20-year prison sentence, three years of supervised release, and a $250,000 statutory fine or twice the gross gain or loss that resulted from his alleged scheme—whichever is greater.

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 more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los Angeles, New York, West 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

Ponzi Suspect Mark Feathers to Change Plea After Threat

Ponzi Suspect Mark Feathers to Change Plea After Threat

dkradmin

The federal government has told a California federal judge that it reached an initial plea deal with investment manager Mark Feathers, who is charged with securities fraud for running a $42 million Ponzi scheme. The plea deal comes eight months after Feathers threatened those involved with the case and saw his bail revoked.

According to a federal grand jury indictment, Mark Feathers, the founder and CEO of Small Business Capital Corp. (“SBCC”), raised more than $50 million from more than 250 investors by promising profits from membership interests in mortgage loan investment funds. Feathers paid some returns to investors by using money that came from new investors—the hallmark of a Ponzi scheme.

Mark Feathers Faces Multiple Counts of Securities Fraud

Feathers faces 17 counts of securities fraud and 12 counts of mail fraud for the investment scheme. After his arrest, he pled not guilty in November 2014 and was released on $250,000 bond. The bond was revoked in March after Feathers sent an email to eight people involved with the case—including U.S. Securities and Exchange Commission attorneys, a court-appointed receiver and his former counsel—threatening violence to anyone who uses words at trial that suggest he was a thief. This past summer he unsuccessfully bid to be released from custody.

The indictment alleges that from 2009 to 2012, Feathers improperly transferred more than $6 million of investment funds to SBCC to pay its operating expenses. Additionally, he allegedly transferred eight mortgage loans from one fund to another, sold at an inflated price, and then took some of that money to pay approximately $570,000 in management fees to SBCC. Feathers used about $2 million dollars of investors’ money for his personal benefit.

Did You Lose Money Investing with Mark Feathers?

If you believe you have lost money investing with Mark Feathers or in any 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 more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los Angeles, New York, West 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 Says Adviser Jay Kelter Conned $1.4M from Retiree

SEC Says Adviser Jay Kelter Conned $1.4M from Retiree

dkradmin

The U.S. Securities and Exchange Commission (SEC) and federal prosecutors allege that former investment adviser Jay Costa Kelter defrauded a retiree out of about $1.4 million. The complaint says he used the money to pay off other clients and family and to buy a Bentley.

Kelter Indicted and Sued by SEC

In November 2017, former financial adviser Jay Costa Kelter was indicted and subsequently sued by the SEC in Tennessee federal court for allegedly lying about working at brokerage firm TD Ameritrade. It was there that Kelter purportedly convinced 75-year-old widowed retiree to open accounts, which he then took advantage of. According to prosecutors, Kelter allegedly went on to make unauthorized transactions, transferred client funds to himself and his former firm, BEK Consulting Partners LLC, and paid off other clients, including his stepmother. Kelter was indicted by federal prosecutors on 22 counts of wire fraud, mail fraud and securities fraud. For each count he faces up to 20 years in prison and up to a $5 million fine if convicted.

According to the SEC complaint, Kelter began providing financial advice to the client in 2011. He convinced the client to invest “a substantial portion” of her life savings—more than $3.1 million—with him, despite the client’s dependence on investments for income. From 2013 to 2016, Kelter then allegedly stole more than $1.4 million from her. After the client became aware of the misappropriated funds, Kelter signed an agreement promising to return the $1.4 million in September 2015. Almost a year later, in November 2016, the client sued Kelter in Tennessee federal court over the investments he made on her behalf.

The client’s lawsuit was stayed after Kelter filed for Chapter 7 bankruptcy in February.

Kelter Also Allegedly Defrauded Other Retiree Clients

The SEC also alleged in a separate civil complaint that Kelter violated federal securities law. The complaint states that Kelter defrauded several other retirement-age clients out of thousands of dollars. That money was spent on a family vacation, rent, and day-to-day living expenses.

Have You Lost Money with Jay Costa Kelter?

If you believe you have been the victim of Jay Costa Kelter or 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 Angeles, New York, West 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.

Chicago Adviser Daniel Glick Defrauded Clients Out of $5M

Chicago Adviser Daniel Glick Defrauded Clients Out of $5M

dkradmin

The U.S. Department of Justice has charged a Chicago investment adviser with stealing more than $5 million from clients and family members in a Ponzi-style scheme. The adviser, Daniel Glick, used the money to purchase a luxury car, repay business loans, and pay his mortgage.

According to U.S. Attorney Joel Levin, 64-year-old Glick allegedly stole $5.2 million from clients of his three accounting and financial services firms in Orland Park, a suburb of Chicago. Glick was charged with one count of wire fraud and could face up to 20 years in prison if convicted.

Glick Operated Ponzi-like Scheme

Glick is alleged to have stolen the money through his three businesses and spent it on himself and business associates. To cover up the fraud, he used a Ponzi-like scheme, comingling funds and routinely paying clients with other clients’ money.

The indictment stated that in order to conceal the scheme, Glick continued to pay bills and expenses for certain clients, even though their funds were depleted or in some cases gone. In one instance, Glick used another client’s funds to pay nursing home expenses for an elderly client, whose funds Glick already had used up.

Glick also fraudulently obtained hundreds of thousands of dollars from his elderly in-laws by using fake signatures to fool Citizens Banks and U.S. Bank into transferring their money to his accounts.

In addition to outright stealing, Glick’s businesses—Financial Management Strategies Inc., Glick Accounting Services Inc., and Glick & Associates Ltd.—also received large benefit fees. According to the indictment, Glick convinced one family to pay him $700,000 in fees, even though he had already misappropriated hundreds of thousands of dollars of their money.

SEC Files Civil Suit Against Daniel Glick

In March the U.S. Securities and Exchange Commission (SEC) sued Glick and two of his business associates for similar actions. The SEC also claims that two of Glick’s business associates, Edward Forte and David Slagter, received close to $1 million from Glick’s scheme.

Have You Lost Money with Daniel Glick?

If you believe you have been the victim of an investment scheme or have lost money investing with Daniel Glick, 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 Angeles, New York, West 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

FINRA Bars Ex-Woodbury Rep For Failure to Comply

FINRA Bars Ex-Woodbury Rep For Failure to Comply

dkradmin

The Financial Industry Regulatory Authority Inc. (FINRA) has barred a former broker with Woodbury Financial Services for failing to take part in an investigation into his investment recommendations. The broker, Robert H. Hoffmann, was barred for failure to provide testimony in connection with a FINRA investigation.

FINRA Investigating Hoffmann’s Trading Recommendations

In October of this year, FINRA staff sent a request to Hoffmann for on-the-record testimony in connection with its investigation into a customer’s allegations that Hoffman had engaged in wrongdoing. The complaint stated that while at Woodbury Financial Services, Hoffman made unsuitable investment recommendations, unauthorized transactions, private securities transactions, and excessive trades. Hoffmann did not respond to the request.

Prior to FINRA’s action, Hoffmann consented to a FINRA letter of acceptance, waiver, and consent containing findings that he failed to amend his Form U4 to report an IRS tax lien between January 2015 and September 2015. In September, the consent resulted in a $5,000 fine and he received a three-month suspension.

Have You Invested Money with Woodbury Financial Services or Robert H. Hoffmann?

If you believe you lost money as a result of Robert H. Hoffmann’s investment recommendations, 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 Angeles, New York, West 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.