Broker Misconduct

Former Broker James Alan Schumaker Suspended by FINRA Over Dealings with Barred Registered Representative – Lafayette, IN

Published on: February 24, 2021 | by Iorio Altamirano

FINRA has suspended James Alan Schumaker from the securities industry for nine months for allowing a former registered representative, who had been barred from the securities industry in 2014, to conduct a securities business. The barred registered representative was identified as Mr. Schumaker’s father. In addition to his suspension, Mr. Schumaker was also fined $5,000.

If you have lost money with James Alan Schumaker, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Key Points

Former Broker Stewart Schram Suspended by FINRA Over Outside Business Activities and Private Securities Transactions – Northbrook, IL

Published on: February 24, 2021 | by Iorio Altamirano

FINRA has suspended Stewart Schram from the securities industry for four-months for engaging in outside business activity and private securities transactions without firm approval. In addition to his suspension, Mr. Schram was also fined $7,500.

FINRA began its investigation after receiving a regulatory tip. Mr. Schram is no longer associated with any FINRA member but remains subject to FINRA’s jurisdiction.

If you have lost money with Stewart Schram, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP Files Securities Arbitration Claim Against David Lerner Associates, Inc. Related to Unsuitable Recommendations Made by President and CEO Martin Walcoe

Published on: February 24, 2021 | by Iorio Altamirano

On behalf of a client, securities arbitration law firm Iorio Altamirano LLP has filed an arbitration claim through FINRA Dispute Resolution Services against David Lerner Associates Inc. (“David Lerner”). The claim alleges that President and CEO Martin Walcoe and David Lerner unsuitably recommended that the customer purchase and hold Puerto Rico municipal bonds and misrepresented and omitted material facts concerning the risk and safety of the bonds. The recommendations and misrepresentations occurred at a time when credit rating agencies were downgrading Puerto Rico municipal bonds and indicated that further credit downgrades were imminent. At the time of the recommendations, Mr. Walcoe was an investment counselor and branch manager.

The claim also alleged that David Lerner also failed to suitably and properly allocate the customer’s brokerage account. Instead, David Lerner concentrated the customer’s account in risky, speculative, and uninsured Puerto Rico municipal bonds.

David Lerner’s recommendations to purchase and hold speculative Puerto Rico municipal bonds and its repeated recommendations to concentrate the customer’s investment accounts into speculative junk bonds were unsuitable and not in the customer’s best interest in light of the customer’s investment objectives and “middle ground” risk tolerance.

Investor Alert: Iorio Altamirano LLP Investigates The GMS Group LLC Over Fair Pricing and Supervisory Violations

Published on: February 23, 2021 | by Iorio Altamirano

Iorio Altamirano LLP is investigating The GMS Group LLC (“GMS”) after the firm was censured and fined $90,000 for charging unfair and unreasonable prices to customers in 49 transactions involving below investment grade municipal bonds. As part of the AWC, GMS was also ordered to pay approximately $42,446 plus interest in restitution to customers.

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

GMS and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on February 5, 2021, over the following findings:

Former Wells Fargo Broker in Scottsdale, Arizona, Scott Reed, Barred by FINRA

Published on: February 19, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred broker Scott Wayne Reed from the securities industry over allegations that Mr. Reed, while associated with Wells Fargo, participated in private securities transactions totaling at least $3.5 million without providing prior written notice to his firm.

Mr. Reed was a financial advisor with Wells Fargo Clearing Services (“Wells Fargo”) in Scottsdale, Arizona, from April 2016 until April 2020. Mr. Reed was permitted to resign after a customer alleged that Mr. Reed recommended and facilitated investment opportunities in investments sold away from and not offered by Wells Fargo.

Wells Fargo appears to have denied any compensation to the complaining customer.

Network 1 Financial Securities Inc. Fined $25,000 by FINRA Over Best Execution Rule Violations – Red Bank, New Jersey

Published on: February 18, 2021 | by Iorio Altamirano

FINRA has fined Network 1 Financial Securities Inc. (“Network 1”) $25,000 over best execution rule violations. The firm was also censured and consented to revise its written supervisory procedures to comply with best execution rules.

Network 1 is headquartered in Red Bank, New Jersey, and has been a FINRA member since August 1983. Network 1 is a full-service broker-dealer firm. Its clients include institutional investors, managed pension funds, high net worth individuals, and hedge funds. The firm has 104 registered individuals and 21 branch offices.

In 2017, Network 1 was included in a Reuters study that analyzed FINRA data and identified 48 firms whose brokers have been flagged for serious incidents. The Reuters’ analysis showed that Network 1 had 44.6% of its brokers with at least one of the most serious red flags on their public disclosure. You can read more about the Reuters analysis and our firm’s work to update the analysis here.

Charleston, SC Financial Advisor Paul Halvorson, Formerly of Morgan Stanley, BARRED by FINRA

Published on: February 17, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Paul John Halvorson from the securities industry. FINRA expelled Mr. Halvorson from the brokerage industry because he refused to provide information and documents connected with FINRA’s investigation into the circumstances given rise to his termination from Morgan Stanley in November 2020.

Mr. Halvorson was a financial advisor at Morgan Stanley in Charleston, South Carolina, from June 2009 until his employment was terminated in November 2020. In connection with the discharge, Morgan Stanley alleged that Mr. Halvorson submitted transactions under production numbers that were inconsistent with an agreement that he had with another broker, resulting in a shortfall of revenue credited to the other broker.

If you have suffered financial losses investing with Paul Halvorson or suspect that Mr. Halvorson did not have your best interest in mind when recommending investments or account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

Former Transamerica Financial Advisors Wenru Liang and Jenny Xinfang Feng Suspended by FINRA – Columbia, MD

Published on: February 16, 2021 | by Iorio Altamirano

FINRA has suspended financial advisors Wenru Liang (“Liang”) and Jenny Xinfang Feng (“Feng”) from the securities industry for a six-month period. Neither is currently associated with any FINRA member.

FINRA found that Liang and Feng engaged in unethical conduct between April 2017 and August 2020 by designating themselves as beneficiaries on an elderly customer’s variable annuity policy. The customer was not related to Liang or Feng. FINRA also found that they had misrepresented their relationship with the customer to the annuity company and attempted to conceal their conduct from their firm, Transamerica Financial Advisors, Inc. (“Transamerica”).

In addition to their six-month suspension, Liang and Feng were also fined $7,500 each.

Broker Spotlight: Michael Hernandez of Arive Capital Markets – Brooklyn, New York

Published on: February 15, 2021 | by Iorio Altamirano

Michael Joseph Hernandez is a stockbroker with Arive Capital Markets LLC (“Arive Capital Markets”) in Brooklyn, New York. Mr. Hernandez has a history of associations with disreputable broker-dealers and at least one customer complaint, employment termination, and regulatory sanction.

If you have lost money with broker Michael Hernandez or Arive Capital Markets, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Arive Capital Markets

Arive Capital Markets Broker, Mirsad Muharemovic, Accused of Churning, Excessive Trading, and High-Pressure Sales Tactics

Published on: February 15, 2021 | by Iorio Altamirano

Mirsad Muharemovic is a stockbroker with Arive Capital Markets LLC (“Arive Capital Markets”) in Brooklyn, NY, with a history of customer complaints and associations with disreputable broker-dealers.

Mr. Muharemovic has 22 years of experience in the securities industry. He has been associated with nine different broker-dealers, including a past association with a firm expelled by FINRA.

Mr. Muharemovic has been the subject of three customer complaints, including one dispute that is still pending and another one resulting in an arbitration award for the complaining customer.