Broker Misconduct

GPB Automotive Portfolio, LP Files 10-Q with SEC; Future Remains Uncertain for GPB Automotive Investors

Published on: November 15, 2021 | by Iorio Altamirano

Between July 2013 and June 2018, limited partners invested $675 million into GPB Automotive Portfolio, LP, which was sold as a private placement offering by broker-dealers and registered investment advisory firms across the country. Financial advisors, who received large commissions for selling limited partnership units of GPB Automotive, lured investors into this high-risk and illiquid security by emphasizing a high rate of return and monthly distributions. Unfortunately for investors, distributions have not been paid since December 2018.

With the recent announcement that GPB Automotive Portfolio, LP agreed to sell Prime Automotive for $880 million, limited partners have been wondering what that means for them.

Below, we delve into GPB Automotive LP’s latest quarterly filing with the SEC to look for answers.

Iorio Altamirano LLP Files GPB Automotive Claim Against Aegis Capital Corp

Published on: November 11, 2021 | by Iorio Altamirano

Iorio Altamirano LLP, a leading securities arbitration law firm, has filed a case through the Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services’ arbitration forum against Aegis Capital Corp.

The claim, which Iorio Altamirano LLP filed on behalf of an investor in the GPB Automotive Portfolio, LP fund, seeks to recover investment losses as a result of the investment advisor’s recommendation to invest in GPB Capital.

GPB Capital sold unregistered and high commission limited partnership interests in a total of eight alternative-asset investment funds. The GPB Funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB Funds to their retail investors. There are serious concerns that broker-dealers may have failed to conduct reasonable due diligence about the GPB Funds and GPB Capital.

Broker Leonard Marzocco, Formerly of Woodstock Financial Group, Inc. and First Standard Financial LLC, Suspended by FINRA

Published on: November 9, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended stockbroker Leonard Marzocco from the securities industry. Mr. Marzocco consented to the suspension after FINRA alleged that between June 2019 and December 2019, while associated with Woodstock Financial Group, Inc. (“Woodstock Financial Group”), Mr. Marzocco excessively and unsuitable traded a customer’s account, in violation of FINRA Rules 2111 and 2010. As part of the agreement, Mr. Marzocco also agreed to pay $27,078 in restitution and a fine of $5,000.

Mr. Marzocco was registered as a broker with Woodstock Financial Group, Inc. in Nesconset, New York, from June 2019 to December 2019. Prior to joining Woodstock Financial Group, Mr. Marzocco was a registered stockbroker with First Standard Financial Company LLC in Miller Place, New York, from June 2017 to June 2019.

This is the second time Mr. Marzocco has been suspended for excessive trading. In July 2020, Mr. Marzocco contended to an 11-month suspension after FINRA alleged that he engaged in quantitatively unsuitable trading in a customer’s account. The findings stated that Marzocco’s trading of the accounts resulted in high turnover rates and cost-to-equity ratios, as well as significant losses. The customers suffered collective losses of $196,331 and paid $81,523 in commissions and fees. Marzocco also recommended a significant number of trades using margin in the customer accounts. In particular, Marzocco recommended using margin to a customer, even though he was aware that the customer’s financial circumstances made it unsuitable for him.

Former Cambridge Investment Research, Inc. and SagePoint Financial, Inc. Broker BARRED by FINRA – Moorestown, New Jersey

Published on: November 9, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred a former Cambridge Investment Research, Inc. stockbroker from the securities industry for refusing to cooperate with a FINRA investigation into whether he, among other things, exercised discretion without written authorization in a customer’s account. The investigation was launched after Cambridge Investment Research, Inc. terminated the broker in January 2020, alleging that he placed discretionary trades without authority.

The broker was associated with Cambridge Investment Research, Inc. in Moorestown, New Jersey, from September 2019 to February 2020. He was previously registered with SagePoint Financial, Inc. in Moorestown, NJ, from January 2010 until August 2019.

Customers of Cambridge Investment Research, Inc., or SagePoint Financial, Inc. who have suffered financial losses, or suspect that the firms did not have their best interest in mind when recommending investments or making account transactions, can contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights.

Former Joseph Stone Capital L.L.C. Broker, Michael May, Suspended for Excessive and Unsuitable Trading

Published on: November 8, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended stockbroker Michael May from the securities industry. Mr. May consented to the suspension after FINRA alleged that between June 2017 and May 2018, while associated with Joseph Stone Capital L.L.C. (“Joseph Stone Capital”), Mr. May excessively and unsuitable traded a customer’s account, in violation of FINRA Rules 2111 and 2010. As part of the agreement, Mr. May also agreed to pay $10,349 in restitution and a fine of $5,000.

Mr. May was registered as a broker with Joseph Stone Capital L.L.C. from July 2015 to June 2020 and again from March 2021 to October 2021. He is currently registered with VCS Venture Securities in New York, NY.

Iorio Altamirano LLP is investigating potential legal claims on behalf of customers of Michael May and Joseph Stone Capital related to investment recommendations and account activity made by Mr. May.

Michael Miles Hartlett, Formerly with LPL Financial LLC, Suspended by FINRA – East Petersburg, PA

Published on: November 5, 2021 | by Iorio Altamirano

FINRA has suspended former LPL Financial LLC broker Michael Miles Hartlett from the securities industry for ten business days. Hartlett consented to the sanctions and to the entry of findings that he exercised discretionary trading authority in a customer’s accounts without having obtained prior written authorization of the customer.

Hartlett’s suspension is scheduled to begin on November 15, 2021, and end on November 29, 2021. He was also fined $5,000.

If you have lost money with Michael Miles Hartlett, or LPL Financial LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Glenn Brandon, Jr., Formerly with BB&T Securities, LLC, BARRED by FINRA – Birmingham, AL

Published on: November 5, 2021 | by Iorio Altamirano

FINRA has barred former BB&T Securities, LLC broker Glenn Brandon, Jr. from the securities industry. Brandon consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with its investigation into whether he engaged in outside business activities (OBAs) that were not disclosed to or approved by his firm.

If you have lost money with Glenn Brandon, Jr., or BB&T Securities, LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.

Edgar Kleydman, Formerly with AXA Advisors, LLC, BARRED by FINRA – Brooklyn, NY

Published on: November 5, 2021 | by Iorio Altamirano

FINRA has barred former AXA Advisors, LLC broker Edgar Kleydman from the securities industry. Kleydman consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA during its investigation into whether he engaged in private securities transactions without providing written notice to his member firm.

If you have lost money with Edgar Kleydman, or AXA Advisors, LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.

Eric Shea Hollifield, Formerly with LPL Financial LLC, BARRED by FINRA – Dacula, GA

Published on: November 2, 2021 | by Iorio Altamirano

FINRA has barred former LPL Financial LLC broker Eric Shea Hollifield from the securities industry. Hollifield consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony or to produce the documents and information requested by FINRA in connection with its investigation into Hollifield’s potential conversion of funds from an elderly customer.

If you have lost money with Eric Shea Hollifield, or LPL Financial LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.

SEC Accuses Former Wells Fargo Broker Kenneth A. Welsh of Stealing Investor Funds

Published on: October 29, 2021 | by Iorio Altamirano

On October 28, 2021, the United States Securities and Exchange Commission (“SEC”) charged former Wells Fargo broker and investment advisor representative Kenneth Welsh with stealing nearly $3 million from his advisory clients and brokerage customers from January 2016 through January 2021. The SEC has accused Mr. Welsh of transferring funds that belonged to his clients and customers to himself and his family to purchase gold coins and other precious metals, buy luxury goods, and pay off personal credit cards.

Mr. Welsh was registered with Wells Fargo Clearing Services, LLC in Fairfield, NJ. Wells Fargo terminated Mr. Welsh’s employment in June 2021 after the allegations arose that Mr. Welsh misappropriated funds from Wells Fargo’s customers, including senior citizens.

Iorio Altamirano LLP is investigating potential legal claims on behalf of customers of Kenneth Welsh and Wells Fargo related to potential misconduct by Mr. Welsh.