Firm Investigations

David Van Geffen, Formerly with Raymond James, Suspended by FINRA – Lafayette, LA

Published on: September 4, 2021 | by Iorio Altamirano

FINRA has suspended and fined former Raymond James Financial Services, Inc. broker David Van Geffen from the securities industry for 15 business days. Mr. Van Geffen consented to the sanctions and to the entry of findings that he impersonated a customer on telephone calls to an annuity company. His suspension is scheduled to begin on September 20, 2021, and end on October 8, 2021. Mr. Van Geffen was fined $5,000.

If you have suffered investment losses with David Van Geffen, or Raymond James, 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.

Primary Capital, LLC Fined $50,000 by FINRA Over EB-5 Business – Miami, FL

Published on: September 4, 2021 | by Iorio Altamirano

FINRA has censured and fined Miami-based brokerage Primary Capital, LLC (“Primary”) over supervisory failures and advertising violations related to its EB-5 business. The EB-5 Immigrant Investor Program is overseen by the United States Citizenship and Immigration Services (USCIS) and was created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors.

According to FINRA, Primary acted as finder or placement agent for at least 70 EB-5 offerings during the period of December 2013 through February 2019.

If you have suffered investment losses with Primary Capital, LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

SW Financial Broker, Joseph Lianzo, Suspended by FINRA for Excessively Trading Customers’ Accounts and Placing Unauthorized Trades

Published on: September 3, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended stockbroker Joseph Lianzo from the securities industry for eight months. Mr. Lianzo consented to the suspension after FINRA alleged that from March 2016 through November 2019, while associated with Laidlaw & Company (UK) LTD. and SW Financial, Mr. Lianzo excessively traded four customers’ accounts and placed 13 unauthorized transactions in violation of FINRA Rules 2111 and 2010. As a result of churning and excessive trading, the customers incurred high commissions and fees, and significant realized investment losses.

Customers of Mr. Lianzo, Laidlaw & Company (UK) LTD, or SW Financial should consult with a securities arbitration law firm. If you or a loved one were a customer of Joseph Lianzo, Laidlaw & Company (UK) LTD, or SW Financial LLC, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Laidlaw & Company (UK) Ltd or SW Financial.

Did Robinhood Employees Trade GameStop and AMC Before Robinhood’s Public Announcement to Restrict Trading on January 28, 2021?

Published on: September 1, 2021 | by Iorio Altamirano

On September 1, 2021, Robinhood ($Hood) filed its first amendment to its Form S-1 Registration Statement with the U.S. Securities and Exchange Commission (“SEC”).

The public filing, which amends the registration statement that Robinhood filed in connection with its July 2021 initial public offering (IPO), discloses that the SEC’s Division of Examinations and the Financial Industry Regulatory Authority (“FINRA”) have submitted inquires to Robinhood related to whether any employee executed trades in certain securities, including GameStop Corp. and AMC Entertainment Holdings, Inc., before the public announcement that Robinhood would restrict trading in those securities on January 28, 2021.

On Thursday, January 28, 2021, Robinhood designated specific stocks “position closing only,” restricting its customers from purchasing additional shares in those stocks. The targeted stocks included GameStop (NYSE: GME), AMC (NYSE: AMC), Blackberry (NYSE: BB), Nokia (NYSE: NOK), Koss Corporation (NYSE: KOSS), and Express, Inc. (NYSE: EXPR).

Robinhood’s Amended Registration Statement Discloses That Robinhood Is Facing Numerous Lawsuits, Customer Arbitrations, and Regulatory Investigations

Published on: September 1, 2021 | by Iorio Altamirano

On September 1, 2021, Robinhood ($Hood) filed Amendment No 1 to its Form S-1 Registration Statement with the U.S. Securities and Exchange Commission (“SEC”). Form S-1 is the registration statement that Robinhood filed in connection with its July 2021 initial public offering (IPO).

Robinhood’s latest public filing discloses that Robinhood continues to face regulatory, legal, and reputational backlash for its past business practices.

The filing also discloses that the SEC and Financial Industry Regulatory Authority (“FINRA”) are investigating whether any Robinhood employees traded “meme stocks,” including GameStop Corp. and AMC Entertainment Holdings, Inc., before the public announcement that Robinhood would impose trading restrictions on those securities on January 28, 2021.

Former Worden Capital Management LLC Broker, Donald Fowler, BARRED by FINRA for Churning and Excessively Trading Four Customers’ Accounts

Published on: August 26, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Donald Fowler from the securities industry. Mr. Fowler consented to the suspension after FINRA alleged that from December 2014 through December 2018, while associated with Worden Capital Management LLC, Mr. Fowler churned and excessively traded four customers’ accounts in violation of FINRA Rules 2111 and 2010. As a result of churning and excessive trading, the customers incurred high commissions and fees, and significant realized investment losses.

Customers of Mr. Fowler or Worden Capital Management LLC should consult with a securities arbitration law firm. If you or a loved one were a customer of Donald Fowler or Worden Capital Management LLC, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Worden Capital Management LLC.

SEC Charges John Woods of Southport Capital With Operating $110 Million Ponzi Scheme By Selling Units of Horizon Private Equity, III, LLC

Published on: August 25, 2021 | by Iorio Altamirano

**Update: September 9, 2022** On September 6, 2022, a group of Oppenheimer customers were awarded over $36 million by a FINRA arbitration panel as compensation for their investment losses in Horizon Private Equity, III, LLC. (“Horizon”). Horizon is an alleged Ponzi scheme operated by John Woods, a broker who was registered with Oppenheimer & Co. Inc. Iorio Altamirano LLP encourages all retail investors to contact our law firm for a free and confidential consultation and to review their legal rights.

Original Post:

SEC Charges John Woods of Southport Capital With Operating $110 Million Ponzi Scheme By Selling Units of Horizon Private Equity, III, LLC

Another Win for UBS Yield Enhancement Strategy (YES) Customers, Third Award in 2021

Published on: August 24, 2021 | by Iorio Altamirano

On August 23, 2021, a FINRA Dispute Resolution Services arbitration panel in Baltimore, Maryland, ordered UBS Financial Services, Inc. (“UBS”) to pay $405,000 to customers who invested in UBS’s Yield Enhancement Strategy (“YES”). The award included $300,000 in compensatory damages, $30,000 in costs, and $75,000 in attorneys’ fees. The customers alleged that UBS and broker Adam Rogers misrepresented UBS’s Yield Enhancement Strategy, a complex and highly risky options strategy, as a way to obtain marginally higher yield on a portfolio while taking limited risks. In actuality, the complexity and nature of YES exposed the Claimants to a significant risk of loss. The Claimants also alleged that UBS and its team of options traders conducted the YES program with virtually no supervision or compliance oversight and with inadequate risk controls.

This order is the third arbitration award against UBS in 2021 concerning YES and the fourth since December 2020. On March 31, 2021, a FINRA arbitration panel in Columbus, Ohio, ordered UBS to pay customers over $372,000 in compensatory damages and fees. Earlier in the month, on March 5, 2021, another FINRA arbitration panel in Denver, Colorado, ordered UBS to pay customers over $1 million in compensatory damages. In December 2020, a FINRA arbitration panel in Boca Raton, Florida, awarded a customer nearly $90,000.

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.

GPB Automotive Portfolio, LP to Sell Prime Automotive as Its Future Remains Uncertain; Investors Encouraged to Act Now

Published on: August 24, 2021 | by Iorio Altamirano

August 24, 2021 – This morning, investors of GPB Automotive Portfolio LP woke up to more worrisome news, as the Wall Street Journal reported that the GPB Capital Holdings LLC, is looking to sell its largest dealership group, Prime Automotive, raising speculation that the GPB Automotive is running out of cash.

The latest news follows GPB Automotive’s regulatory filings in May 2021 that disclosed that there was substantial doubt that the business would survive, and July 2021 that disclosed that the Partnership was able to obtain a financing agreement with M&T Bank, but that the Partnership only had sufficient liquidity to meet its financial obligations through July 21, 2022.

In its latest regulatory filing, on August 16, 2021, GPB Automotive disclosed that it might sell dealerships to provide operational liquidity. According to the Wall Street Journal, such sales may be priced below fair value and go on the book as losses.

Former National Securities Corporation Broker, William Wright, Barred by FINRA – New York, NY

Published on: August 20, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker William Wright from the securities industry. Mr. Wright consented to the bar after FINRA alleged that he failed to cooperate with a FINRA investigation into whether Mr. Wright inappropriately borrowed money from a customer. Mr. Wright was associated with National Securities Corporation in New York, NY, from February 2015 until he was discharged in November 2020 for allegedly borrowing money from a customer of the firm.

Customers of Mr. William Wright or National Securities Corporation can contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as National Securities Corporation.