Broker Misconduct

Investor Alert: Iorio Altamirano LLP Investigates B. Riley Wealth Management Inc. Over 529 Savings Plans

Published on: January 8, 2021 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of B. Riley Wealth Management Inc. (“BRWM”) customers after the firm was ordered to pay more than $250,000 in restitution to clients by the Financial Industry Regulatory Authority (“FINRA”) for supervisory failures related to its 529 plan share-class recommendations. If you have lost money with BRWM or were advised to purchase particular share classes of 529 savings plans, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

B. Riley Wealth Management Inc. and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 30, 2020, following findings that between January 1, 2013, and June 30, 2018, the firm lacked a system reasonably designed to supervise representatives’ recommendations to customers to purchase certain share classes of 529 savings plans, in violation of MSRB Rule G-27. The AWC pointed out that BRWM:

Failed to provide adequate guidance to its registered representatives about the importance of considering share-class differences when recommending 529 plans.

Springfield, IL Financial Advisor Dustin P. Shafer BARRED by FINRA After Allegedly Borrowing Money from an Elderly Customer

Published on: January 8, 2021 | by Iorio Altamirano

**Update 4/14/2021** Iorio Altamirano LLP is currently investigating Newbridge Securities Corporation, Money Concepts Capital Corp, and Dustin Shafer for recommending that clients invest in private placement securities issued by GPB Capital. The GPB funds, which are private securities offerings exempt from registration with the Securities and Exchange Commission (SEC), are inherently risky investments. These investments are suitable only for highly sophisticated investors who understand the risks and can afford a significant monetary loss. Unfortunately, many brokerage firms and brokers sold the GPB Capital securities to retirees and unsophisticated investors because they paid a high up-front commission.

If you have suffered financial losses as a result of any of the following GPB private placement offerings, contact Iorio Altamirano LLP for a free and confidential review of your legal rights:

GPB Automotive Portfolio, LP

Former Ameriprise Broker Angel Bardeche Suspended by FINRA – Cincinnati, Ohio

Published on: January 8, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Angel Wynette Bardeche (CRD# 4698117) from the securities industry for nine months and fined her $10,000. Ms. Bardeche was also ordered to return $5,000 worth of commissions to customers. Angel Bardeche was registered with Ameriprise Financial Services, LLC in Cincinnati, Ohio, from August 2012 until May 2019. At that time, Ameriprise terminated her employment.

Ms. Bardeche has also received at least three customer complaints alleging that she did not disclose the surrender charges or annual fees associated with variable annuities purchases between 2013 and 2015.

If you have suffered financial losses investing with Angel Bardeche or suspect that Ms. Bardeche did not have your best interest in mind when recommending investments, mutual funds, mutual fund switches, annuities, or annuity switches, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

$3.9 Million Customer Claim Involving Former LPL Financial and Ameriprise Financial Broker Filed with FINRA – Boca Raton, FL

Published on: January 7, 2021 | by Iorio Altamirano

A recently filed FINRA customer complaint alleges that a former LPL Financial and Ameriprise Financial Services broker recommended unsuitable investments in a number of business development companies (BDCs) and real estate investment trusts (REITs), as well as other high-commission illiquid investment recommendations. The allegations focus on the broker’s time with LPL Financial from 2006 to 2015 and with Ameriprise Financial Services from 2015 to 2016. Claimants’ statement of claim, which was filed on or around September 9, 2020, seeks damages of $3.9 million.

Iorio Altamirano LLP is interested in speaking with any customers who may have suffered losses in their business development companies (BDCs) and real estate investment trusts (REITs) investments. If you have lost money with LPL Financial or Ameriprise Financial Services, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Business Development Companies (BDCs)

Antonio Almeida, with Worden Capital Management LLC, Suspended by FINRA

Published on: January 7, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended Antonio Almeida from associating with any FINRA member in any capacity for three months. Mr. Almeida has been registered with Worden Capital Management LLC (“Worden Capital Management”) in Garden City, New York, since January 2020. Previously, from March 2014 through December 2017, he was registered with Aegis Capital Corp. in Melville, New York.

Separately, Iorio Altamirano LLP is currently investigating claims on behalf of Worden Capital Management customers after the firm was sanctioned more than $1.5 million by FINRA, including restitution, for making unsuitable recommendations and excessively trading customers’ accounts. A FINRA restitution order does not preclude investors from pursuing their own claims to seek restitution or other available remedies. Investors harmed by Worden Capital Management’s supervisory failures may have a claim against the firm. You can read more about it here.

If you have lost money with Worden Capital Management or Antonio Almeida, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential review of your account.

Jason Collichio, with Worden Capital Management LLC, Suspended by FINRA Over Supervisory Failures

Published on: January 4, 2021 | by Iorio Altamirano

FINRA has suspended Jason Collichio from associating with any FINRA member in any principal capacity for three months. Mr. Collichio has been registered with Worden Capital Management LLC (“WCM”) in Garden City, New York, since 2009. He has been registered as a principal with the firm since 2012. Mr. Collichio initially registered with FINRA in 2003.

Iorio Altamirano LLP is currently investigating claims on behalf of WCM customers after the firm was sanctioned more than $1.5 million by FINRA, including restitution, for making unsuitable recommendations and excessively trading customers’ accounts. A FINRA restitution order does not preclude investors from pursuing their own claims to seek restitution or other available remedies. Investors harmed by WCM’s supervisory failures may have a claim against the firm. You can read more about it here.

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

Investor Alert: Iorio Altamirano LLP Investigates Worden Capital Management LLC Over Excessive Trading

Published on: December 31, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of Worden Capital Management LLC (“WCM”) customers after the firm was sanctioned more than $1.5 million by FINRA for making unsuitable recommendations and excessively trading customers’ accounts. If you have lost money with WCM, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

WCM and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) over allegations that between January 2015 and October 2019, WCM and its owner and CEO, Jaime Worden, violated FINRA rules. Specifically, that WCM and Mr. Worden:

Failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to excessive trading.

Former J.P. Morgan Securities and Edward Jones Broker, Paul Zakhary, Suspended for Unsuitable Annuity Switch Recommendations – Florida

Published on: December 28, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Paul Zakhary (CRD No. 6399894) from the securities industry for three months and fined him $5,000.

FINRA alleged that between January and August 2018, while employed by J.P. Morgan Securities LLC in The Villages, Florida, Mr. Zakhary made unsuitable recommendations to three customers to sell variable annuities and replace them with fixed annuities, in violation of FINRA Rules 2111 and 2010.

Paul Zakhary was a financial advisor at J.P. Morgan Securities LLC from October 2017 until August 2019., working out of the firm’s branch office in Ocala, Florida. J.P. Morgan Securities LLC terminated Mr. Zakhary’s employment for violating the firm’s annuity switch policy related to annuity surrenders and managed brokerage transactions.

Jaime I. Sanchez Rivera, former First Southern, LLC Financial Advisor in Puerto Rico, Suspended by FINRA – Guaynabo, Puerto Rico

Published on: December 28, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Jamie I. Sanchez Rivera (CRD #6013022) from the securities industry for five months and fined him $10,000. Jamie I. Sanchez Rivera was a stockbroker at First Southern, LLC in Guaynabo, Puerto Rico, from April 2017 until May 2020.

First Southern, LLC fired Mr. Sanchez Rivera in May 2020, alleging the following:

Sanchez Rivera failed to immediately advise the firm of a customer’s complaint regarding an investment recommendation that he made, in violation of firm policy.

Top 15 Types of Securities Leading to Customer Disputes in 2020

Published on: December 27, 2020 | by Iorio Altamirano

When an investor suffers harm, including investment losses, due to misconduct by a financial advisor or broker-dealer, the investor can file a securities arbitration claim against their financial advisor and/or broker-dealer in an effort to be compensated. The case will be presented and defended in an arbitration proceeding to a panel of arbitrators instead of a court of law in front of a judge and jury.

Arbitration is the primary forum for resolving disputes between investors and brokerage firms or financial advisors because the parties have contractually agreed to use arbitration as an alternative dispute resolution process. When an investor opens an account with a broker-dealer, the investor is required to sign an array of account opening documents. These account opening documents regularly include an arbitration clause, which requires that arbitration be used as an alternative to litigation. This requirement is often a contractually binding obligation for both parties. As a result, disputes between investors and financial advisors or brokerage firms are resolved in arbitration as an alternative to court.

The Financial Industry Regulatory Authority (FINRA) is authorized by Congress to regulate the financial services industry and operates the largest arbitration forum for securities disputes. Most securities arbitrations take place using FINRA’s Dispute Resolution Services’ arbitration forum because, as FINRA members, financial advisors and brokerage firms are required to arbitrate customer complaints upon the filing of a claim through FINRA.