Articles Posted in Broker Misconduct

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FINRA has suspended Buckman, Buckman and Reid broker Allan Katz from associating with any FINRA member for 20 business days for reusing an elderly customer’s signature pages on account transfer forms. The alleged conduct took place while Katz was associated with another FINRA member, Royal Alliance. In addition to his suspension, Katz was fined $5,000.

If you have lost money with Allan Katz, or Buckman, Buckman and Reid, 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”)

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FINRA has suspended financial advisor Trevor B. Rahn from the securities industry for 18 months and fined him $10,000.

FINRA alleged that Mr. Rahn engaged in a pattern of breaking up customer orders for execution in violation of FINRA Rules.  Specifically, from January 2014 to September 2018, Mr. Rahn recommended an “average pricing” investment strategy to his customers in which he executed orders by breaking them into multiple small trades, each generating a separate commission.  Mr. Rahn lacked a reasonable basis to believe this strategy was suitable for his customers.   Connected with this strategy, Mr. Rahn exercised time and price discretion on over 7,500 trades without the required authorization.

FINRA also alleged that Mr. Rhan executed 577 unauthorized trades in a customer’s account and that he mismarked 4,714 solicited trades in three customer accounts as “unsolicited” in violation of FINRA Rules.

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FINRA has suspended FMN Capital broker Jeffrey Stanga from the securities industry for 12 months for failing to fully disclose the nature of his outside business activities and for participating in private securities transactions without providing the required written notice to or receiving written approval from his firm.

Stanga was also fined $10,000 and consented to disgorgement of $28,359, plus interest, which Stanga received in referral fees in connection with these private securities transactions.

If you have lost money with Jeffrey Stanga, or FMN Capital, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

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FINRA has suspended former Purshe Kaplan Sterling broker Tonya Nicole Smoake from the securities industry for 12 months for participating in private securities transactions without her firm’s knowledge or approval.

Smoake was also fined $5,000. She is no longer associated with a FINRA member but remains subject to FINRA’s jurisdiction.

If you have lost money with Tonya Nicole Smoake, or Purshe Kaplan Sterling, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

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**Update: November 11, 2021** On November 8, 2021, Aegis  Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018.   Click on the following link to read more:  Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading

Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm.  If you or a loved one were a customer of Aegis Capital, contact  New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

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**Update: November 11, 2021** On November 8, 2021, Aegis  Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018.   Click on the following link to read more:  Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading

Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm.  If you or a loved one were a customer of Aegis Capital, contact  New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

**Update:  July 9, 2021** Update: Former Aegis Capital Corp Broker, Kishan (Sean) Parikh, SUSPENDED by FINRA for Excessive Trading and Unauthorized Trading

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On March 5, 2021, a FINRA Dispute Resolution Services arbitration panel in Denver, Colorado, ordered UBS Financial Services, Inc. (“UBS”) to pay customers over $1 million in compensatory damages.  The claims, which include breach of duty, violations of the Nebraska Securities Act, and professional negligence arising out of broker Jason Dworak’s recommendations concerning the UBS Yield Enhancement Strategy (“YES”).   The arbitration panel also awarded prejudgment interest to the customers.

The $1 million judgment is the second arbitration award against UBS within a matter of months.  In December 2020, a FINRA arbitration panel in Boca Raton, Florida, awarded a customer nearly $90,000.  The Florida arbitration panel concluded that the UBS YES was not suitable for the investor, Gerald S. Backman, a retired partner at corporate law firm Weil Gotshal & Manges.

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.

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This post is part of a series of investigative blog posts that spotlight modern-day boiler rooms that operate under the guise of a reputable brokerage firm.  Many of the broker-dealers featured in this series still use boiler room tactics such as cold-calling customers and high-pressure or aggressive sales tactics.  Other brokerage firms have a propensity for broker misconduct, such as excessive trading, churning, unauthorized trades, and misrepresentation.  Iorio Altamirano LLP is a securities arbitration law firm based in New York City. We represent investors nationwide who have suffered investment losses due to wrongful conduct by financial advisors and brokerage firms.  We are investor advocates.

Other Investigative Blog Posts:

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**Update: 3/29/2021** On March 29, 2021, FINRA and Cambridge Investment Research, Inc. entered into a Letter of Acceptance, Waiver, and Consent (AWC) whereby Cambridge accepted sanctions including a censure, $400,000 fine, and over $3.1 million in restitution.   FINRA alleged that Cambridge failed to reasonably supervise representatives’ recommendations of the LJM Preservation & Growth Fund. Cambridge representatives sold more than $18 million in LJM to customers. LJM’s value dropped 80% during an extreme volatility event in February 2018 and the fund ultimately liquidated and closed, resulting in millions of dollars in losses for Cambridge’s customers.  To read more, click on the following link: FINRA Sanctions Cambridge Investment Research, Inc. For Failing to Supervise the Sale of the LJM Preservation and Growth Fund

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**Update: September 2, 2021**  On August 27, 2021, FINRA accepted Mr. Jensen’s offer to settle disciplinary proceeding No. 2018059733101.  As a result, Mr. Jensen has been suspended from associating with any brokerage firm in any capacity for six months and fined $10,000.

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Former Ameriprise Financial Services Broker, Clyde Jensen, Facing Disciplinary Charges by FINRA

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