Broker Misconduct

UBS Ordered to Pay $90,000 to Yield Enhancement Strategy Customer

Published on: December 23, 2020 | by Iorio Altamirano

On December 22, 2020, a FINRA Dispute Resolution Services arbitration panel in Boca Raton, Florida, ordered UBS Financial Services, Inc. to pay a customer $89,675 in compensatory damages. After considering the pleadings, the testimony and evidence presented at the hearing, the arbitration panel concluded that the UBS Yield Enhancement Strategy (“YES”) was not suitable for the investor, Gerald S. Backman, a retired partner at corporate law firm Weil Gotshal & Manges.

Many UBS customers, including wealthy and sophisticated investors, who invested in UBS’s Yield Enhancement Strategy have filed lawsuits against UBS in the form of FINRA arbitrations to recover financial losses. The customers have claimed that the strategy was not suitable for them and that UBS materially misrepresented and omitted the product’s risks.

Investors who have suffered investment losses due to UBS’s Yield Enhancement Strategy should contact experienced securities arbitration attorneys at Iorio Altamirano LLP for a free and confidential case evaluation. Partner August Iorio, who has been investigating YES for nearly two years, can be reached at august@ia-law.com or toll-free at (855) 430-4010.

Former Merrill Lynch Financial Advisor, Rawad Roy Alame, Suspended by FINRA for Selling Away

Published on: December 22, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Rawad Roy Alame (CRD #5376696) from the securities industry for six months, fined $5,000, and ordered him to pay $2,700 to a former client. Rawad Alame was a stockbroker at Merrill Lynch, Pierce, Fenner & Smith Incorporated, working out of branch offices in Raleigh, North Carolina, and Provo, Utah, from January 2016 until June 2019. Mr. Alame’s employment was terminated by Merrill Lynch, which alleged that he completed an account-related document, signed by clients, to service a client’s account that was not held at Merrill Lynch and failed to be forthcoming with Merrill Lynch’s review of the matter.

Since leaving Merrill Lynch, Mr. Alame has been affiliated with Insight Advisors, LLC in Newtown, Pennsylvania, and Gate Key Financial, L.L.C., in Raleigh, North Carolina.

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

Hortensia Llavat, formerly with Santander Securities, facing twenty-three pending customer disputes over unsuitable Puerto Rico investments

Published on: December 22, 2020 | by Iorio Altamirano

Former Santander Securities broker Hortensia Llavat has twenty-three pending customer complaints on her CRD, including three customer complaints filed in 2020 claiming over $250,000 in losses.

The claims allege that recommendations to invest in Puerto Rico municipal bonds and closed-end funds were unsuitable and led to overconcentration of the accounts in these securities. Further, the claims allege that Ms. Llavat and Santander misrepresented the safety of the investments.

Ms. Llavat (CRD#: 1010318) has been in the securities industry for 39 years. She was registered with Santander Securities between 2000 and 2018. She has been registered with Stonecrest Capital Markets, Inc. since March 2018.

Hector Gonzalez, with Merrill Lynch, facing six pending customer disputes over unsuitable investment recommendations – Guaynabo, Puerto Rico

Published on: December 22, 2020 | by Iorio Altamirano

Merrill Lynch broker Hector J. Gonzalez has six pending customer complaints on his CRD, including one customer complaint filed in 2020 claiming $3 million in losses. The claims allege unsuitable investment recommendations and misrepresentations.

Mr. Gonzalez (CRD#: 5330726) has been in the securities industry for 13 years. He has been registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated since 2010. He was previously registered with UBS Financial Services Incorporated of Puerto Rico in San Juan, Puerto Rico between September 2007 and June 2010.

Mr. Gonzalez has been the subject of eight customer complaints, most of which allege the same types of violations outlined in the pending cases.

Transamerica Financial Advisors, Inc. Sanctioned by FINRA and Ordered to Pay $8.8 Million for Supervisory Violations Related to Variable Annuities, Mutual Funds, and 529 Plans

Published on: December 21, 2020 | by Iorio Altamirano

FINRA has sanctioned Transamerica Financial Advisors, Inc. (“Transamerica Financial”) for its failure to reasonably supervise its financial advisors’ recommendations of three different products – variable annuities, mutual funds, and 529 plans. These recommendations resulted in significant customer harm and financial loss. Transamerica Financial was ordered to pay $4.4 million in restitution to approximately 2,400 affected customers and also fined an additional $4.4 million.

Investors who have received partial restitution from Transamerica Financial through FINRA’s order may still be entitled to additional recovery. A FINRA partial restitution order does not preclude investors from pursuing their own claims to seek restitution or other available remedies.

If you have lost money with Transamerica Financial Advisors, Inc., contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. Iorio Altamirano LLP represents investors with disputes with their financial advisors or brokerage firms, such as Transamerica Financial Advisors, Inc.

Former LPL Financial LLC Financial Advisor, Michael Anthony Tavel, Suspended by FINRA for Selling Away, Making an Unsuitable Recommendation, and Misrepresentation – Indianapolis, IN

Published on: December 18, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Michael Anthony Tavel (CRD #4862463) from the securities industry for 18 months and fined him $20,000. Michael Tavel was a stockbroker at LPL Financial LLC, in Indianapolis, Indiana, from September 2004 until April 2019. He has also been affiliated with Charter Advisory Corporation and Tavel Insurance & Financial Services, LLC.

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

Michael Tavel and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 17, 2020, over allegations related to Mr. Tavel recommending private securities transactions to three investors. One of the transactions involved a senior customer. Mr. Tavel did not have a reasonable basis to believe that the recommendation that the senior invest in the private security was suitable. Mr. Tavel also provided misleading materials to the customers and, after the customer orally complained, improperly attempted to settle the complaint away from the firm.

Investor Alert: Iorio Altamirano LLP Investigates SunTrust Investment Services, Inc. Over Non-Traditional ETF Supervisory Practices

Published on: December 17, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of SunTrust customers who invested in non-traditional exchange traded funds (ETFs). If you have lost money with SunTrust, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

SunTrust and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on May 18, 2020, over allegations that between January 2015 and January 2018, SunTrust violated FINRA rules. Specifically, that it:

Failed to establish, maintain and enforce a supervisory system, including written supervisory procedures (“WSPs”) that were reasonably designed to ensure compliance with FINRA Rule 2111 related to solicited sales of non-traditional ETFs by the firm’s registered representatives.

Investor Alert: Iorio Altamirano LLP Investigates Former Oppenheimer Broker Frederick Levine and Oppenheimer Over Unit Investment Trust (UIT) Early Rollover Practices

Published on: December 16, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of Oppenheimer customers who invested in Unit Investment Trusts (UITs) at the firm through former Oppenheimer broker Frederick Levine and other financial advisors. If you have lost money with Oppenheimer or former Oppenheimer broker Frederick Levine contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Financial Advisor Frederick Levine (CRD#: 1765119)

FINRA has suspended financial advisor Frederick Levine from the securities industry for the 3-month period ending on December 20, 2020. He was also fined $5,000.

Investor Alert: Iorio Altamirano LLP Investigates Stifel, Nicolaus & Company Over Unit Investment Trust (UIT) Early Rollover Practices

Published on: December 16, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of Stifel, Nicolaus & Company customers who invested in Unit Investment Trusts (UITs). If you have lost money with Stifel, Nicolaus & Company, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Stifel and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on May 27, 2020, over allegations that between January 2012 and December 2016, Stifel violated FINRA rules. Specifically, that it:

Failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (“WSPs”) that were reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to early rollovers of UITs.

Investor Alert: Iorio Altamirano LLP Investigates SagePoint Financial, Inc. Over Unit Investment Trust (UIT) Early Rollover Practices

Published on: December 16, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of SagePoint Financial customers who invested in Unit Investment Trusts (UITs). If you have lost money with SagePoint, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

SagePoint and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on June 10, 2020, over allegations that between January 2013 and December 2017, SagePoint violated FINRA rules. Specifically, that it:

Failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (WSPs) that were reasonably designed to supervise the suitability of representatives’ recommendations to customers for early rollovers of Unit Investment Trusts (UITs).