The Financial Industry Regulatory Authority (“FINRA”) has sanctioned Dawson James Securities, Inc. (“Dawson James”) for charging customers excessive commissions. On April 6, 2021, FINRA and Dawson James entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby Dawson James accepted the following sanctions:
**Update: August 11, 2021** On August 9, 2011, FINRA’s Office of Hearing Offices entered an order barring Frank Sapareto from associating with any FINRA member firm in any capacity for providing false or misleading testimony and written information during a FINRA investigation and for engaging in an undisclosed outside business activity.
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Broker Frank Sapareto, Formerly of Advisory Group Equity Services, Investigated by FINRA
FINRA has suspended former Cambridge Investment Research, Inc. broker Keith Holcomb from the securities industry for 6 months for borrowing money from a customer without notifying or receiving approval from his firm. Holcomb was also fined $7,500.
The conduct is alleged to have taken place while Holcomb was registered with MML Investors Services, LLC in Warwick, Rhode Island.
If you have lost money with Keith Holcomb, MML Investors Services, LLC or Cambridge Investment Research, Inc., contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA has suspended former Insigneo broker Ignacio Erhart Del Campo from the securities industry for 2 months for exercising discretion in a customer’s account without proper authorization and engaging in unauthorized trading. Erhart Del Campo was also fined $7,500 and ordered to pay restitution of $19,189 plus interest.
If you have lost money with Ignacio Erhart Del Campo, or Insigneo, 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”)
The Financial Industry Regulatory Authority (“FINRA”) has barred broker Gregory Mancuso from the securities industry for providing false testimony during an on-the-record interview connected with an investigation into Mr. Mancuso’s handling of the brokerage accounts of two senior sisters with disabilities. The alleged conduct occurred while Mr. Mancuso was registered with BMA Securities, LLC, from August 2, 2016, to November 13, 2017.
On December 21, 2020, FINRA’s Department of Enforcement filed a complaint against Mr. Mancuso, alleging that Mr. Mancuso had his two elderly customers transfer a large part of their life savings to a company with which he was affiliated. One of the sisters was 73 years old and had dementia. The other sister was 68 years old and had multiple sclerosis. The complaint alleges that in 2017, Mancuso recommended that the elder sister use funds from her 401(k) account to purchase a variable annuity offered by a purported Swiss asset management firm, which Mr. Mancuso was affiliated. The complaint also alleges that Mr. Mancuso testified falsely during an on-the-record interview to conceal both his involvement in the transfer and actions he took to potentially change one of the sister’s power of attorney.
Mr. Mancuso failed to respond to the FINRA complaint. FINRA’s Department of Enforcement then requested a default decision, which the hearing officer granted.
**Update: July 29, 2021** On July 28, 2021, Iorio Altamirano LLP announced that it is investigating potential claims involving investments in L Bonds offered by GWG Holdings (GWGH). Customers of Candice Montie can contact Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights. To read more about Iorio Altamirano LLP’s investigation into GWG “L Bonds,” click on the following link: Iorio Altamirano LLP Investigates L Bonds offered by GWG Holdings (GWGH)
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Moloney Securities Broker Candice Montie Suspended by FINRA – Fenton, MI
On March 31, 2021, a FINRA Dispute Resolution Services arbitration panel in Columbus, Ohio, ordered UBS Financial Services, Inc. (“UBS”) to pay customers over $372,000 in compensatory damages and fees. The claimants, Matthew and Lisa Fisher alleged that UBS and brokers Ortal Shachar and Richard Mark Held presented the Yield Enhancement Strategy (“YES”), an options strategy, as low risk. In actuality, the complexity and nature of YES exposed the Claimants to a significant risk of loss.
This order is the second arbitration award against UBS in March 2021 concerning YES and the third since December 2020. On March 5, 2021, another FINRA arbitration panel in Denver, Colorado, ordered UBS to pay customers over $1 million in compensatory damages. In December 2020, a FINRA arbitration panel in Boca Raton, Florida, awarded a customer nearly $90,000.
UBS has faced numerous lawsuits from customers in the form of FINRA securities arbitrations related to YES, a complex managed options strategy that UBS marketed as safe and market-neutral. The customers have claimed that the strategy was not suitable for them and that UBS materially misrepresented and omitted the risks of the strategy.
The Financial Industry Regulatory Authority (“FINRA”) has sanctioned Securities America, Inc. (“Securities America”) for failing to reasonably supervise brokers’ recommendations of the LJM Preservation & Growth Fund. On March 29, 2021, FINRA and Securities America entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby Securities America accepted the following sanctions:
The Financial Industry Regulatory Authority (“FINRA”) has sanctioned J.W. Cole Financial, Inc. (“J.W. Cole”) for failing to reasonably supervise brokers’ recommendations of the LJM Preservation & Growth Fund. On March 18, 2021, FINRA and J.W. Cole entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby J.W. Cole accepted the following sanctions:
The Financial Industry Regulatory Authority (“FINRA”) has sanctioned Cambridge Investment Research, Inc. (“Cambridge”) for failing to reasonably supervise brokers’ recommendations of the LJM Preservation & Growth Fund. On March 29, 2021, FINRA and Cambridge entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby Cambridge accepted the following sanctions:
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