Broker Misconduct

Joseph Stone Capital L.L.C. Broker Suspended by FINRA

Published on: June 30, 2021 | by Iorio Altamirano

On June 29, 2021, the Financial Industry Regulatory Authority (“FINRA”) and a Joseph Stone Capital L.L.C. stockbroker entered into a Letter of Acceptance, Waiver, and Consent No. 2020066888001 whereby the broker consented to a three-month suspension, $5,000 fine, and to pay $7,653.21 in restitution to a customer. The broker consented to the sanctions after FINRA alleged that between May 2018 and March 2019, the broker excessively and unsuitably traded a customer’s account in violation of FINRA Rules 2111 and 2010.

FINRA previously suspended the broker in 2019 after FINRA alleged that he exercised discretion in customers’ accounts without prior authorization from the customers and without seeking or obtaining approval from his firm.

If you have suffered financial losses investing with Joseph Stone Capital L.L.C., or suspect that Joseph Stone Capital L.L.C. did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your legal rights.

Broker Cesar Gabriel Hernandez, Formerly with Gentem Capital, BARRED by FINRA – Miami, FL

Published on: June 29, 2021 | by Iorio Altamirano

FINRA has barred former Gentem Capital broker Cesar Gabriel Hernandez from the securities industry. Mr. Hernandez was expelled from the brokerage industry for refusing FINRA’s request to appear for on-the-record testimony pursuant to FINRA Rule 8210.

Previously, on October 19, 2010, FINRA had accepted AWC No. 2009016158801, in which Mr. Hernandez consented to a three-month principal capacity suspension and a $25,000 fine for violations of NASD Rules 3011(a) and (b) and 2110 and FINRA Rule 2010.

Without admitting or denying the findings, Mr. Hernandez agreed to the entry of findings that he failed to adequately implement the firm’s Anti-Money Laundering (AML) compliance program and also failed to establish and implement an adequate customer identification program.

Broker Nathan Gersteen Katz, Formerly with Triad Advisors LLC, BARRED by FINRA – Largo, FL

Published on: June 29, 2021 | by Iorio Altamirano

FINRA has barred former Triad Advisors LLC broker Nathan Gersteen Katz from the securities industry. Mr. Katz was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation into Mr. Katz’s alleged recommendations of short-term switching of mutual funds, forgery of customer signatures on switch letters, use of discretion without authorization, and failure to timely disclose certain judgments and liens.

If you have lost money with Nathan Gersteen Katz, or Triad Advisors LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

FINRA Letter of Acceptance, Waiver, and Consent (“AWC”)

Columbia, Missouri Broker, Alex Perry, Formerly of Stifel, Nicolaus & Company, Barred by FINRA

Published on: June 28, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Matthew Alexander Perry (“Alex Perry”) from the securities industry. Mr. Perry was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation after Mr. Perry received a customer complaint alleging he failed to follow a customer’s stated goals and failed to disclose risks associated with options trading. Mr. Perry was associated with Stifel, Nicolaus & Company, Incorporated in Columbia, Missouri, from June 2016 until May 2019.

If you have suffered financial losses investing with Alex Perry or Stifel, Nicolaus & Company, Incorporated, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Stifel, Nicolaus & Company, Incorporated.

Investor Alert: Iorio Altamirano LLP Investigates Merrill Lynch Over Unit Investment Trust (UIT) Early Rollover Practices

Published on: June 28, 2021 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) customers who invested in Unit Investment Trusts (UITs). If you have lost money with Merrill Lynch, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential review of your legal rights.

On June 25, 2021, Merrill Lynch and the Financial Industry Regulatory Authority (“FINRA”) entered into a Letter of Acceptance, Waiver, and Consent No. 2017053437701 (“AWC”) over allegations that between January 2011 and December 2015, Merrill Lynch violated NASD and FINRA rules for failing to maintain an adequate supervisory system and written procedures to monitor Unit Investment Trusts transactions.

As part of the AWC, Merrill Lynch was censured and agreed to a fine of $3.75 million. Merrill Lynch also agreed to pay over $8.43 million in restitution to customers.

Broker Eric Burton, Formerly with LPL Financial LLC, Suspended by FINRA – Orland Park, IL

Published on: June 24, 2021 | by Iorio Altamirano

FINRA has suspended former LPL Financial LLC broker Eric Burton from the securities industry for 3 months for allegedly falsifying documents that he submitted to LPL in connection with twenty two variable annuity (“VA”) exchanges.

Burton was also fined $5,000.

If you have lost money with Eric Burton, or LPL Financial LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Alabama Financial Advisor, Kevin McCallum, Formerly of LPL Financial, Suspended for One Year for Making Unsuitable Investment Recommendations

Published on: June 22, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Kevin McCallum from the securities industry for one year. Mr. McCallum consented to the suspension after FINRA alleged that from May 2017 through June 2019, while associated with LPL Financial LLC in Birmingham, Alabama, he made unsuitable recommendations to 12 customers, resulting in their overconcentration in a high-risk, publicly-traded business development company (BDC), believed to be Medley Capital Corporation.

Additionally, FINRA alleged that during the same period, Mr. McCallum sent emails to customers about the BDC that contained unwarranted and exaggerated claims, opinions, and forecasts, did not provide fair and balanced treatment of the risks and benefits of the investment, and contained promissory statements in violation of FINRA rules.

In addition to the suspension, Mr. McCallum was ordered to pay a $25,000 fine, disgorge $14,231 of commissions, and pay over $1.2 million in restitution to customers. However, it is unclear whether he will be able to satisfy the restation order and repay customers.

Broker John Braddock, Formerly with Lakeridge Capital Inc., Suspended by FINRA – Salida, CO

Published on: June 19, 2021 | by Iorio Altamirano

FINRA has suspended former Lakeridge Capital Inc. broker John Braddock from the securities industry for 5 months for preparing and distributing a private placement memorandum that negligently misrepresented and omitted facts relevant to an investment in a private placement. The alleged misconduct is said to have taken place between September 2018 and April 2021.

If you have lost money with John Braddock, or Lakeridge Capital Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Lakeridge Capital Inc.

Popular Securities, LLC Broker Dennis Cummings Suspended by FINRA – Mayaguez, PR

Published on: June 19, 2021 | by Iorio Altamirano

FINRA has suspended Popular Securities, LLC broker Dennis Cummings from the securities industry for 45 business days for instructing his sales assistant to use pre-signed Letters of Authorization (LOA) to effect transfers between customers’ accounts. Cummings’ suspension is scheduled to start on July 19, 2021, and end on September 20, 2021. He was also fined $5,000.

If you have lost money with Dennis Cummings, or Popular Securities, LLC, contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Popular Securities, LLC.

FINRA Files Enforcement Action Against Financial Broker Michael Giovannelli, Formerly of Spartan Capital Securities, for Unauthorized Trades in an Elderly Customer’s Account

Published on: June 18, 2021 | by Iorio Altamirano

**Update: April 30, 2022** On November 19, 2021, the FINRA Office of Hearing Officers entered a default decision barring Mr. Giovannelli from associating with any FINRA member firm in any capacity for providing falsified documents and false testimony to FINRA staff and engaging in unauthorized trading in a customer account. For the unauthorized trading, Mr. Giovannelli was also ordered to pay $1,494 in restitution, plus interest, to the customer. In light of the bars, the hearing officers did not impose any additional sanctions for Mr. Giovannelli’s discretionary trading without written authorization in four additional customer accounts.

Original Post:

FINRA Files Enforcement Action Against Financial Broker Michael Giovannelli, Formerly of Spartan Capital Securities, for Unauthorized Trades in an Elderly Customer’s Account