best interest

Another Day, Another Disciplinary Action Against Aegis Capital Corp.

Published on: March 24, 2021 | by Iorio Altamirano

**Update: November 11, 2021** On November 8, 2021, Aegis Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018. Click on the following link to read more: Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading

Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm. If you or a loved one were a customer of Aegis Capital, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

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Santa Barbara Financial Advisor, Mark Delgadillo, Formerly of D.A. Davidson & Co., Suspended by FINRA

Published on: March 24, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Mark Larry Delgadillo from the securities industry for one month. Mr. Delgadillo consented to the suspension after FINRA alleged that he engaged in discretionary trading without written authorization for 16 customers between August 1, 2019, and October 31, 2019, executing approximately 100 transactions. FINRA also fined Mr. Delgadillo $5,000.

The alleged conduct occurred while Mr. Delgadillo was employed by D.A. Davidson & Co. in Santa Barbara, California. D.A. Davidson & Co. allowed Mr. Delgadillo to voluntarily resign in April 2020 after discovering that he was making trades without first contacting clients.

If you have suffered financial losses investing with Mark Delgadillo, or suspect that Mr. Delgadillo did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Broker Chad Mackland, Who Is Facing Felony Criminal Charges, BARRED by FINRA

Published on: March 23, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred broker Chad Mackland from the securities industry. Mr. Mackland was barred from the brokerage industry for refusing to cooperate with a FINRA investigation into alleged theft and fraudulent sales practices.

According to his BrokerCheck report, Mr. Mackland is facing four felony charges in the District Court of Pottawattamie County in Iowa. He is accused of committing fraudulent sales practices and theft by deception.

Mr. Mackland was associated with Lion Street Financial, LLC in Council Bluff, Iowa, from December 2018 to February 2020.

Western International Securities Compliance Officer BARRED by FINRA – Pasadena, CA

Published on: March 23, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred compliance officer Corey White from the securities industry and fined him $20,000. Mr. White was expelled from the brokerage industry for supervisory failures during his tenure as a compliance officer for Financial West Group in Westlake Village, CA, from January 2013 to July 2017. Among other things, Mr. White was accused of failing to respond to red flags that indicated brokers were excessively trading customer’s accounts. FINRA previously barred Financial West Group from the securities industry in February 2020.

Mr. White left Financial West Group in August 2017 to become a compliance officer at Western International Securities, Inc. in Pasadena, CA.

Financial West Group and Western International Securities Inc. seem to be cut from the same cloth. Earlier this month, FINRA filed a disciplinary proceeding complaint against former Western International Securities broker Megurditch Patatian (aka Mike Patatian), alleging that he unsuitably recommended illiquid REITs to 59 customers. Mr. Patatian worked out of the firms’ branch office in Westlake Village, CA. You can read more about the charges here:

Trevor Rahn, Former J.P. Morgan Securities Broker, Suspended for Unauthorized Trades, Unsuitable Recommendations, and Mismarked Orders – Los Angeles, CA

Published on: March 22, 2021 | by Iorio Altamirano

FINRA has suspended financial advisor Trevor B. Rahn from the securities industry for 18 months and fined him $10,000.

FINRA alleged that Mr. Rahn engaged in a pattern of breaking up customer orders for execution in violation of FINRA Rules. Specifically, from January 2014 to September 2018, Mr. Rahn recommended an “average pricing” investment strategy to his customers in which he executed orders by breaking them into multiple small trades, each generating a separate commission. Mr. Rahn lacked a reasonable basis to believe this strategy was suitable for his customers. Connected with this strategy, Mr. Rahn exercised time and price discretion on over 7,500 trades without the required authorization.

FINRA also alleged that Mr. Rhan executed 577 unauthorized trades in a customer’s account and that he mismarked 4,714 solicited trades in three customer accounts as “unsolicited” in violation of FINRA Rules.

Former Aegis Capital Corp Broker, Kishan (Sean) Parikh, Facing Disciplinary Charges by FINRA for Unsuitable Investment Recommendations and Excessive Trading

Published on: March 17, 2021 | by Iorio Altamirano

**Update: November 11, 2021** On November 8, 2021, Aegis Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018. Click on the following link to read more: Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading

Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm. If you or a loved one were a customer of Aegis Capital, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

**Update: July 9, 2021** Update: Former Aegis Capital Corp Broker, Kishan (Sean) Parikh, SUSPENDED by FINRA for Excessive Trading and Unauthorized Trading

UBS Ordered to Pay $1 million to Yield Enhancement Strategy (YES) Customers

Published on: March 17, 2021 | by Iorio Altamirano

On March 5, 2021, a FINRA Dispute Resolution Services arbitration panel in Denver, Colorado, ordered UBS Financial Services, Inc. (“UBS”) to pay customers over $1 million in compensatory damages. The claims, which include breach of duty, violations of the Nebraska Securities Act, and professional negligence arising out of broker Jason Dworak’s recommendations concerning the UBS Yield Enhancement Strategy (“YES”). The arbitration panel also awarded prejudgment interest to the customers.

The $1 million judgment is the second arbitration award against UBS within a matter of months. In December 2020, a FINRA arbitration panel in Boca Raton, Florida, awarded a customer nearly $90,000. The Florida arbitration panel concluded that the UBS YES was not suitable for the investor, Gerald S. Backman, a retired partner at corporate law firm Weil Gotshal & Manges.

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.

Investigative Report: Iorio Altamirano LLP Investigation into Joseph Stone Capital L.L.C. Reveals Troubling Pasts for Owners, Executives, and Brokers

Published on: March 16, 2021 | by Iorio Altamirano

This post is part of a series of investigative blog posts that spotlight modern-day boiler rooms that operate under the guise of a reputable brokerage firm. Many of the broker-dealers featured in this series still use boiler room tactics such as cold-calling customers and high-pressure or aggressive sales tactics. Other brokerage firms have a propensity for broker misconduct, such as excessive trading, churning, unauthorized trades, and misrepresentation. Iorio Altamirano LLP is a securities arbitration law firm based in New York City. We represent investors nationwide who have suffered investment losses due to wrongful conduct by financial advisors and brokerage firms. We are investor advocates.

Other Investigative Blog Posts:

Arive Capital Markets, LLC

Former Ameriprise Financial Services Broker, Clyde Jensen, Facing Disciplinary Charges by FINRA

Published on: March 12, 2021 | by Iorio Altamirano

**Update: September 2, 2021** On August 27, 2021, FINRA accepted Mr. Jensen’s offer to settle disciplinary proceeding No. 2018059733101. As a result, Mr. Jensen has been suspended from associating with any brokerage firm in any capacity for six months and fined $10,000.

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Former Ameriprise Financial Services Broker, Clyde Jensen, Facing Disciplinary Charges by FINRA

Stockbroker George Warner BARRED by FINRA

Published on: March 10, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker George Marshall Warner from the securities industry. Mr. Warner, who has a history of customer complaints and disciplinary action, was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation in whether Mr. Warner participated in an undisclosed private securities transaction.

Mr. Warner has recently been associated with the following financial institutions: Chelsea Financial Services (2017 – 2019), Dominion Investor Services, Inc (2017), IFS Securities (2014 – 2017), NFP Advisor Services, LLC (2013 – 2014), and LPL Financial, LLC (2003 – 2013).

If you have lost money with broker George Warner, Chelsea Financial Services, Dominion Investor Services, Inc, or IFS Securities, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.