Securities Arbitration Lawyer Blog

Former JP Morgan Broker Avi Schottenstein Accused of Abuse of Fiduciary Duty and Misrepresentations – FINRA

Published on: March 10, 2021 | by Iorio Altamirano

A FINRA arbitration panel issued a $19 million award for an elderly customer, Beverley B. Schottenstein, of Bal Harbour, FL, for illegal trading in her accounts by J.P. Morgan Securities and two of her grandsons. The compensation is to be paid by J.P. Morgan Securities and her grandsons, Avi Schottenstein and Evan Schottenstein, who are brothers and were acting as her brokers.

According to the FINRA award dated February 4., the Claimants asserted the following causes of action: constructive fraud/abuse of fiduciary duty; fraudulent misrepresentations and omissions; and violation of Chapter 415, Fla. Statutes. The causes of action related to the allegedly unauthorized purchase and/or sale of various securities in Claimants’ account included multiple auto-callable structured notes and various other securities for which J.P. Morgan was a market maker, including Apple stock, as well as initial public offerings (IPOs) and follow-on offerings (FPOs).

Iorio Altamirano LLP is investigating the allegations surrounding Avi Schottenstein. If you have lost money with Avi Schottenstein or J.P. Morgan, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Former JP Morgan Broker Evan Schottenstein Accused of Abuse of Fiduciary Duty and Misrepresentations – FINRA

Published on: March 10, 2021 | by Iorio Altamirano

**Update 4/13/2021** The Financial Industry Regulatory Authority (“FINRA”) has barred broker Evan Schottenstein from the securities industry for refusing to cooperate with a FINRA investigation into issues related to his discharge from J.P. Morgan Securities, including illegal trading activity in his Grandmother’s account.

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Former JP Morgan Broker Evan Schottenstein Accused of Abuse of Fiduciary Duty and Misrepresentations – FINRA

The SEC Has Awarded Approximately $1.5 Million to Whistleblower, Bringing the Whistleblower Program’s Total to Over $759 Million

Published on: March 9, 2021 | by Iorio Altamirano

The Securities and Exchange Commission (“SEC”) announced an award of approximately $1.5 million to a whistleblower whose information and assistance led to a successful SEC enforcement action.

In connection with the announcement, Jane Norberg, Chief of the SEC’s Office of Whistleblower, said that the “whistleblower alerted the SEC to previously unknown conduct and thereafter provided multiple submissions, identified potential witnesses, and met with staff on several occasions.”

Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities laws violations to report to the SEC. A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information that leads to a successful enforcement action. The award can range from 10 percent to 30 percent of the money collected as a result of the enforcement action.

Former Broker Ryan Tarjanyi Barred by FINRA – Kettering, OH

Published on: March 7, 2021 | by Iorio Altamirano

FINRA has barred former Bankers Life Securities broker Ryan Tarjanyi from the securities industry for providing inaccurate information during on-the-record testimony regarding a customer’s execution of an annuity partial withdrawal form, in violation of FINRA Rules 8210 and 2010.

FINRA initially opened an examination of Tarjanyi’s sales practices in 2019. At that time, Bankers Life Securities reported that customers complained about Tarjanyi, alleging forgery and falsification of information on an insurance application and annuity withdrawal forms.

On September 24, 2020, FINRA made a preliminary determination to recommend that disciplinary action be brought against Tarjanyi, alleging that Tarjanyi falsified documents, forged customer signatures, and misrepresented the terms of an insurance policy (the forgeries facilitated unauthorized withdrawals from customer funds), in violation of FINRA Rules.

Former Broker Lang Phu Nguyen Suspended by FINRA for Exercising Discretion in Customer Accounts without Prior Written Authorization – Campton Hills, IL

Published on: March 7, 2021 | by Iorio Altamirano

FINRA has suspended former Edward Jones broker Lang Phu Nguyen from associating with any FINRA member for 45 days for exercising discretion in customer accounts without prior written authorization and violating firm policies prohibiting the use of personal email for business purposes.

Nguyen was also fined $5,000. He is no longer associated with a FINRA member but remains subject to FINRA’s jurisdiction.

If you have lost money with Lang Phu Nguyen, or Edward Jones, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Update: Broker Scott Reed, Formerly of Wells Fargo in Scottsdale, Arizona, Appears to Have a History of Recommending High Risk and High Commission Investments to Customers

Published on: March 6, 2021 | by Iorio Altamirano

**Update: July 29, 2021** On July 28, 2021, Iorio Altamirano LLP announced that it is investigating potential claims involving investments in L Bonds offered by GWG Holdings (GWGH). Upon information and belief, former Wells Fargo broker Scott Reed recommended GWG “L Bonds” to customers. Customers of Scott Reed can contact Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights. To read more about Iorio Altamirano LLP’s investigation into GWG “L Bonds,” click on the following link: Iorio Altamirano LLP Investigates L Bonds offered by GWG Holdings (GWGH)

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Update: Broker Scott Reed, Formerly of Wells Fargo in Scottsdale, Arizona, Appears to Have a History of Recommending High Risk and High Commission Investments to Customers

Palm City, Florida Financial Advisor, Richard Shelley, Formerly of Packerland Brokerage Services, Inc., Suspended by FINRA

Published on: March 5, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended broker Richard Scott Shelley from the securities industry for one month and ordered him to pay a $5,000 fine. FINRA sanctioned Mr. Shelley because he solicited a client to purchase $29,500 worth of Future Income Payments, LLC. This blog has previously written about Future Income Payments, LLC.

Mr. Reed was a financial advisor with Packerland Brokerage Services, Inc. (“Packerland”) in Palm City, Florida, from December 2002 until December 2020.

Iorio Altamirano LLP is interested in speaking with customers of Mr. Shelley or Packerland Brokerage Services, Inc. Contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential evaluation of your account.

INVESTOR ALERT: ATTENTION CREDIT SUISSE-GREENSILL FUND INVESTORS

Published on: March 4, 2021 | by Iorio Altamirano

**Update #3: March 12, 2021** Credit Suisse Group AG has frozen four additional funds managed by Credit Suisse Asset Management that are directly invested in the four supply chain finance funds that Credit Suisse is liquidating. The four newly suspended funds, which hold $1.2 billion in assets, are:

Credit Suisse (Lux) Multi Strategy Bond Fund.
Credit Suisse (Lux) Multi Strategy Alternative Fund.

How to Recover Puerto Rico Bond Losses From David Lerner Associates, Inc.

Published on: March 3, 2021 | by Iorio Altamirano

Numerous stockbrokers at David Lerner Associates Inc. (“David Lerner Associates”) recommended risky and speculative Puerto Rico municipal bonds to customers.

An investor may be able to recover financial losses if the recommendation was not suitable for the customer or if David Lerner misrepresented or omitted material facts about the bonds in connection with making the recommendation.

Iorio Altamirano LLP, a securities arbitration law firm based in New York, has recently filed an arbitration claim against David Lerner Associates, alleging that President and CEO Martin Walcoe and David Lerner unsuitably recommended that the customer purchase and hold Puerto Rico municipal bonds. The claim also alleges that Mr. Walcoe made material misrepresentations and omitted material facts concerning the risk and safety of the bonds. The recommendations 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.

Rodgers, Arkansas Financial Advisor Rhett Bedwell BARRED by FINRA

Published on: March 3, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Rhett Douglas Bedwell from the securities industry. Mr. Bedwell was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation in whether Mr. Bedwell moved a client’s IRA to a different administrator and used forged documentation to invest the client’s money into a Ponzi Scheme.

Mr. Bedwell was a financial advisor with LPL Financial LLC (“LPL Financial”) in Rodgers, Arkansas, from November 2017 until his employment ended in August 2019. On September 9, 2020, LPL Financial disclosed that Mr. Bedwell had been identified in a pending customer arbitration alleging that in 2019, he moved a client’s IRA to a different administrator and used forged documentation to invest the client’s money into a Ponzi Scheme.

Before his employment with LPL Financial, Mr. Bedwell was a financial advisor at Arvest Wealth Management in Bentonville, Arkansas, from July 2015 until November 2017.

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