Securities Arbitration Lawyer Blog

Financial Advisor Lawrence Goldstein BARRED by FINRA – Nevada

Published on: November 11, 2020 | by Iorio Altamirano

FINRA has barred stockbroker Lawrence Goldstein from the securities industry. Lawrence Goldstein was a registered financial advisor with McNally Financial Services Corporation in Sparks, Nevada, from April 2010 until February 28, 2020.

According to public records, Mr. Goldstein refused to cooperate with a FINRA investigation in whether he engaged in unsuitable excessive trading in a customer’s account.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker. Excessive trading is unethical and illegal.

Oppenheimer Financial Advisor Ivan Shore (CRD# 1012943) SUSPENDED by FINRA for Short-Term Trading of Unit Investment Trusts in Customer Accounts – New York, NY

Published on: November 6, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Ivan Shore from the securities industry for three months and fined him $5,000. Ivan Shore has been a stockbroker at Oppenheimer & Co. Inc. since 1997.

FINRA alleged that between July 1, 2011, and December 31, 2015, Ivan Shore engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts in customer accounts.

If you have lost money with Ivan Shore, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential evaluation of your accounts.

Former Raymond James Financial Advisor Vonna Kay Husby (CRD# 1314070) BARRED by FINRA After Allegedly Co-Owning a Bank Account With an Elderly Customer – Fairbanks, Alaska

Published on: November 3, 2020 | by Iorio Altamirano

FINRA has permanently barred stockbroker Vonna Kay Husby from the securities industry. The expulsion was handed down by FINRA because Ms. Kay Husby ceased cooperating with FINRA in connection with FINRA’s investigation into whether Husby served as a Power of Attorney and opened an undisclosed bank account that she allegedly co-owned with one of her elderly customers.

Vonna Kay Husby was a financial advisor at Raymond James Financial Services, Inc. in Fairbanks, Alaska, from August 2003 until May 2019. Raymond James terminated her employment on May 9, 2019, alleging that Ms. Kay Husby was a co-owner on a bank account with a customer without providing disclosure to or receiving approval from the firm.

Being an undisclosed beneficiary in a customer account is a serious violation as it may give rise to misconduct, including potential conflicts of interest, or worse, elder abuse.

What is an in and out trading strategy?

Published on: November 3, 2020 | by Iorio Altamirano

An in and out trading strategy refers to short-term trading in an investor’s account. In other words, buying in and selling out of securities in a short period of time with no real basis for the stockbroker’s recommendation in either the suitability of the securities or the trading strategy.

In and out is a trading strategy that is commonly associated with day trading. While the strategy may be suitable for some investors or desired by other investors, it is a highly speculative trading strategy for most retail investors. A staple of the strategy is that it generates fees and commissions for the stockbroker and the broker-dealer while costing the investor money. Generally, the investor will be hit with high per-trade transaction costs and even principal losses if the stockbroker is selling investments at a loss in order to engage in the strategy. In and out trading is not appropriate for most investors, and stockbrokers should, at a minimum, have a reasonable basis to recommend this strategy to a particular investor.

Under FINRA rules, a stockbroker is required to perform reasonable due diligence to understand two key areas: 1) the stockbroker’s in and out trading strategy recommendation and 2) the impact the stockbroker’s recommendation has on the account’s ability to turn a profit. To do so, it must assess the cumulative impact that commissions and fees associated with an in and out trading strategy will have on an investor’s ability to earn a profit. Failure to observe these considerations about the quantitative suitability of the trades may lead to investor claims against a stockbroker for unsuitable and excessive trading. Investors may also have a failure to supervise claim against the broker-dealer firm if the trading activity in an account warranted further review by a supervisor, if the trading exceeded turnover and cost-to-equity ratios, and if the broker-dealer failed to take action or ignored its own system’s alerts.

National Securities Corporation Censured by FINRA and Fined $125,000 for Numerous Violations

Published on: October 29, 2020 | by Iorio Altamirano

FINRA has sanctioned National Securities Corporation for numerous violations, including failing to comply with reporting obligations and failing to enforce written supervisory procedures related to its reporting obligations between May 2015 and November 2018. National Securities Corporation was also sanctioned for failing to establish, maintain, and enforce written supervisory procedures relating to contingency offers from July 2015 through March 2017. FINRA’s most recent sanction is the third time National Securities Corporation has been censured and fined by FINRA since 2011. National Securities Corporation has also been the subject of customer complaints.

If you have lost money with National Securities Corporation, contact Iorio Altamirano LLP for a free and confidential evaluation of your investment or retirement accounts.

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

James Couture, Former LPL Financial Broker, BARRED by FINRA – Worcester, MA

Published on: October 28, 2020 | by Iorio Altamirano

**Update: June 2, 2021** The Securities and Exchange Commission (“SEC”) has charged James Couture with defrauding investors. The former LPL Financial broker-dealer and investment advisor allegedly defrauded his clients for about $2.9 million. According to the SEC’s complaint, from approximately 2009 to December 2019, Mr. Couture, while operating an investment advisory and brokerage business, fraudulently prompted his advisory clients to sell portions of their securities holdings in order to fund large money transfers to an entity (Legacy Financial Group LLC) that, unbeknownst to his clients, Couture owned and controlled. The SEC alleges that Mr. Couture inappropriately obtained his client’s authorization for the transactions by falsely claiming that the proceeds would be reinvested for the clients’ financial benefit. In reality, Mr. Couture’s alleged purpose in arranging these transactions was to divert the sale proceeds for his own benefit. A portion of the money was used to buy a book of advisory clients from another investment advisor representative.

Mr. Couture, 42, of Sutton, Massachusetts, is also facing criminal charges in a parallel action announced by the U.S. Attorney’s Office for the District of Massachusetts.

Mr. Couture owned the Private Wealth Management Group, which provided investment advisory services and sold insurance. According to the SEC, the business was not registered with the SEC or any state regulator.

INVESTIGATION: FINRA Suspends Indiana Firm CFD Investments, Inc. for Oil and Gas Private Placement Sales to 31 Customers – Kokomo, Indiana

Published on: October 27, 2020 | by Iorio Altamirano

CFD Investments, Inc. (“CFD”) and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) over CFD’s failure to conduct reasonable due diligence into Payson Petroleum, Inc.’s private placement offerings and its failure to document the limited due diligence that it conducted. As part of the August 24, 2020 AWC, CFD was censured and suspended for 45 days from all private placement activities. CFD’s suspension is in effect through November 18, 2020. CFD also agreed to pay $750,000 in partial restitution to customers.

The AWC allegations involve CFD’s oil and gas private placement sales to retail customers. Specifically, that between March 2015 and February 2016, CFD recommended and sold interests in Payson to 31 of its retail customers who invested nearly $2.2 million. CFD did not conduct reasonable due diligence into the offerings prior to making its recommendations. When Payson went bankrupt in 2016, CFD’s 31 customers lost all or substantially all of their investments. CFD and its representatives received $198,100 in commissions from Payson for these sales.

The private placement offerings were approved through CFD’s Chief Compliance Officer Matthew Bahrenburg (CRD#: 5295661). Bahrenburg has served in the role since 2012 and has been registered with FINRA since 2007. FINRA suspended Bahrenburg from engaging in principal and supervisory activities through November 4, 2020. The investigation found that CFD, through Bahrenburg:

Financial Advisor Cynthia Diane Cowden (CRD# 2054676) BARRED by FINRA for Recommending High- Risk Investments to Three Senior Customers – Lake Isabella, CA

Published on: October 23, 2020 | by Iorio Altamirano

**Update: 3/22/2021** Ms. Cowden has been the subject of two additional customer disputes since November 2020. First, in November 2020, a customer filed a securities arbitration complaint alleging $400,000 in damages concerning a real estate security recommendation. The causes of action included breach of fiduciary duty, unauthorized trading, and elder abuse. Second, in January 2021, a customer filed a written complaint with NPB Financial Group, LLC alleging $350,000 in damages related to an unsuitable investment recommendation. The customer has not yet filed a securities arbitration complaint. If you or a loved one were a customer of Diane Cowden, contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of the investment or retirement accounts.

Original Post:

Financial Advisor Cynthia Diane Cowden (CRD# 2054676) BARRED by FINRA for Recommending High- Risk Investments to Three Senior Customers – Lake Isabella, CA

Financial Advisor Donatas B. Vildzius (CRD# 2202883) SUSPENDED for a Third Time by FINRA for Excessive Trading – Danbury, CT

Published on: October 23, 2020 | by Iorio Altamirano

On October 9, 2020, FINRA suspended Donatas B. Vildzius from the securities industry for six months and fined him $5,000. This sanction is the third time Mr. Vildzius has been suspended by FINRA, with previous suspensions in 2006 and 2014. Donatas Vildzius is a stockbroker and registered representative at Network 1 Financial Securities Inc. in Danbury, CT.

The latest suspension is the result of a FINRA investigation alleging that between August 2015 and April 2017, while employed by Network 1 Financial Services Inc., Vildzius excessively traded the accounts of two customers.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker. Excessive trading is wrong.

Broker Bryan Mazliach Investigated by FINRA For Excessive Trading in 7 Customer Accounts and Hundreds of Unauthorized Trades

Published on: October 22, 2020 | by Iorio Altamirano

On September 8, 2020, FINRA filed a complaint against former Westpark Capital and Laidlaw & Company broker Bryan Gabriel Mazliach (CRD#: 5518438). The complaint alleges that Mazliach engaged in excessive trading in 7 customer accounts and executed over 400 unauthorized trades in 10 customer accounts. Many of the investors who suffered losses are elderly.

The allegations involve Mazliach’s conduct between February 2015 and July 2017:

Mazliach engaged in excessive and unsuitable trading in five customer accounts.

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