Category: Stockbroker Misconduct

Prima Ventures Founder Facing Charges for Social Media Fraud Scheme

Prima Ventures Founder Facing Charges for Social Media Fraud Scheme

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Efstratios “Elias” Argyropoulos of Montecito, California, has been arrested and faces a federal grand jury indictment for running two fraudulent investment schemes. Argyropoulos operated two Santa Barbara investment services firms – Prima Capital and Prima Ventures – and allegedly engaged in a social media fraud scheme that solicited investments in companies such as Facebook and Twitter.

Social Media Fraud Scheme Promised False Securities

According to the indictment, from October 2010 through October 2015, Argyropoulos solicited nearly $5 million from investors to purchase securities in social media companies, including pre-IPO shares of Facebook and Twitter. Instead of purchasing the stocks, Argyropoulos allegedly diverted investors’ funds for personal use, including day-trading in stocks unrelated to the promised investments and personal expenses, including his mortgage, car payments, and casino debts.

Argyropoulos faces six fraud charges for the social media fraud scheme.

Investment Fraud Scheme Extends to Real Estate

Argyropoulos also faces seven fraud charges for allegedly marketing investments in a fake estate settlement called the “Laurence Miles Trust.”

Argyropoulos marketed shares to investors in an investment known as the “Laurence Miles Giant Estate Settlement,” a trust that he told investors was worth up to $1 billion.

According to the indictment, Argyropoulos told investors that Trust’s beneficiary was an ill woman who was the heir to a large estate that was tied up in probate proceedings and money was needed to cover the heir’s medical expenses. Argyropoulos told investors that once the probate proceedings were finished the assets would become available for transfer and investors would receive a large return.

In fact, there was no such estate and no heir with large medical bills. Argyropoulos’ investors lost more than $760,000 in the scam, according to the indictment.

Argyropoulos Violates Prior Court Order

The indictment also includes eight counts of criminal contempt for violating a court order prohibiting Argyropoulos from selling securities.

The counts allege that the solicitation of investments in the Laurence Miles Trust violated the terms of an SEC injunction that prohibited Argyropoulos from acting as an unlicensed broker and selling fraudulent investments. He consented to that injunction in a suit brought by the SEC that was based on the social media investment fraud scheme.

Argyropoulos Facing 20 Years in Prison

If Argyropoulos is convicted of the 13 fraud charges in the indictment, he faces a statutory maximum sentence of 20 years in federal prison for each count. The eight contempt charges do not have a statutory maximum sentence.

Are You a Victim of Investment Fraud?

If you believe you are a victim of investment fraud, contact a qualified investment fraud attorney today.

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, Miami, and Detroit, our investment fraud attorneys represent clients nationwide and can help you recover your investment  losses.

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

FINRA Bars J.P. Morgan Rep Ricardo Rodriguez-Stern

FINRA Bars J.P. Morgan Rep Ricardo Rodriguez-Stern

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The Financial Industry Regulatory Authority Inc. (FINRA) has barred former J.P. Morgan rep and securities broker Ricardo Rodriguez-Stern from the securities industry. The regulator was investigating customer complaints against Rodriguez-Stern, who failed to appear at a hearing.

Ricardo Rodriguez-Stern Investigated by FINRA

J.P. Morgan terminated Rodriguez-Stern in January 2016 for improper account access. According to a report filed by FINRA, Rodriguez-Stern accessed a client’s account to contact them for personal reasons.

After the termination, FINRA opened an investigation into Rodriguez-Stern’s activities. The broker allegedly failed to disclose 10 unsatisfied tax liens and several civil judgments filed between 2006 and 2013. FINRA’s enforcement department also planned to investigate the circumstances surrounding 12 customer complaints against the broker.

Rodriguez-Stern joined Chase Investment Services in 2010, which changed its named to J.P. Morgan Securities in 2012. Prior to J.P. Morgan he held positions at American Capital Partners, Merrill Lynch, Gunn Allen and AXA Advisors.

Are You a Victim of Stockbroker Misconduct?

If you lost money as a result of former J.P. Morgan broker Ricardo Rodriguez-Stern or have been a victim of stockbroker misconduct, contact a qualified investment fraud attorney today.

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, Miami, and Detroit, our investment fraud attorneys represent clients nationwide and can 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 Bars Hyaline Capital Management Advisor

SEC Bars Hyaline Capital Management Advisor

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The U.S. Securities and Exchange Commission (SEC) has barred New York-based Hyaline Capital Management advisor Justin D. Meadlin from the securities industry. The SEC alleges that Meadlin used false and misleading information to solicit investments for Hyaline Capital Management.

Advisor Uses False Information to Solicit Investors

According to the SEC, Meadlin claimed that Hyaline had $25 million under management and consistently touted positive performance to prospective investors and clients. The claims, delivered in emails and in subscription hedge fund databases, materially inflated the fund’s assets under management and cited favorable returns dating back to 2009 generated by a “proprietary” algorithm.

In a complaint filed in April, the SEC says that none of Meadlin’s statements were true and those who invested with the advisor did so based on fraudulent misrepresentations and omissions. There was no Hyaline fund and Meadlin had not acquired or created a “proprietary” algorithm.

Meadlin Ordered to Pay Penalty

The U.S. District Court for the Southern District of New York has ordered Meadlin to pay a civil penalty of $150,000 and disgorge $150,645.66 plus interest, totaling just over $300,000.

Are You a Victim of Securities Fraud?

If you lost money as a result of stockbroker misconduct or securities fraud, 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.

Former Wells Fargo Reps Barred for Unsuitable Energy Securities

Former Wells Fargo Reps Barred for Unsuitable Energy Securities

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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.

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.

Neurendo Pharma CEO Charged with Stealing $1.5M

Neurendo Pharma CEO Charged with Stealing $1.5M

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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

Chicago Adviser Daniel Glick Defrauded Clients Out of $5M

Chicago Adviser Daniel Glick Defrauded Clients Out of $5M

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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

Retired Morgan Stanley Rep Fined for Unsuitable Advice

Retired Morgan Stanley Rep Fined for Unsuitable Advice

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

Broker Thomas J. Buck Pleads Guilty to Securities Fraud

Broker Thomas J. Buck Pleads Guilty to Securities Fraud

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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 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.