elder abuse

Dempsey Lord Smith Broker Raymond Sun Facing $1.2 Million Customer Claim

Published on: May 4, 2021 | by Iorio Altamirano

A FINRA customer complaint involving Dempsey Lord Smith broker Raymond Sun alleges elder financial abuse as defined by the Welfare and Institutions Code under California law. The claim seeks $1.2 million in damages, including $900,000 in punitive damages. The claim, which was filed on August 28, 2020, is related to Sun’s previous association with Sandlapper Securities, LLC.

FINRA expelled Sandlapper Securities, LLC from the securities industry in June 2020.

Iorio Altamirano LLP is currently investigating claims on behalf of defrauded investors who were victims of the GPB funds scheme. GPB Capital sold unregistered and high commission limited partnership interests in 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. According to publicly available records filed with the SEC, both Sandlapper Securities, LLC, and Dempsey Lord Smith, LLC likely received sales compensation for selling the GPB funds to retail investors.

Former IFS Securities Broker, Steven Schisler, Facing Disciplinary Charges by FINRA for Numerous Alleged Misconduct, Including Unsuitable Investment Recommendations to An Elderly Couple

Published on: April 14, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority’s Department of Enforcement has filed a disciplinary proceeding complaint against former broker Steven Schisler. The complaint alleges that from April 2009 to October 2020, Steven Schisler committed nine separate violations of FINRA and NASD rules related to his dealings with two sets of retired customers and IFS Securities, the firm that employed him. Specifically, the FINRA complaint alleges:

made an unsuitable recommendation to two elderly, married customers;
participated, without the approval of his firm, in a private securities transaction with those customers;

Broker Hebert Frey Suspended by FINRA After Excessively Trading and Placing Unauthorized Trades in The Account of a Disabled Client – Mount Vernon, Ohio

Published on: April 9, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Hebert Frey from the securities industry for sixteen months. Mr. Frey consented to the suspension after FINRA alleged that he excessively traded a customer’s account and placed unauthorized trades. The customer was a 54-year-old disabled homemaker. FINRA also fined Mr. Frey $15,000 and ordered him to disgorge $76,137 in commissions.

The alleged conduct occurred while Mr. Frey was employed by Lincoln Douglas Investments, LLC in Mt. Vernon, Ohio, and Union Capital Company in Tucson, Arizona.

As discussed more fully below, Mr. Frey has a long history of customer complaints, run-ins with regulators, and employment terminations. Throughout his career, Mr. Frey has been suspended six times by regulators, ordered to pay nearly $50,000 in fines, and been the subject of at least six customer complaints.

Joseph Ambrosole, a Joseph Stone Capital L.L.C. Broker, Suspended by FINRA

Published on: April 8, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Joseph Ambrosole from the securities industry for six months. Mr. Ambrosole consented to the suspension after FINRA alleged that he excessively and unsuitably traded the accounts of two customers. FINRA also fined Mr. Ambrosole, who was also suspended by FINRA in 2017 for unethical sales practices, $5,000 and ordered him to pay $147,031.50 in restitution.

Mr. Ambrosole, who has only eight years of experience in the securities industry, has a history of associations disreputable broker-dealers, customer complaints, and regulatory sanctions.

The alleged conduct occurred while Mr. Ambrosole was employed by Joseph Stone Capital L.L.C. in New York, New York.

Hutchinson Island, Florida Broker, Gregory Mancuso, Formerly of Crowdvest Securities LLC, BARRED by FINRA

Published on: April 2, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred broker Gregory Mancuso from the securities industry for providing false testimony during an on-the-record interview connected with an investigation into Mr. Mancuso’s handling of the brokerage accounts of two senior sisters with disabilities. The alleged conduct occurred while Mr. Mancuso was registered with BMA Securities, LLC, from August 2, 2016, to November 13, 2017.

On December 21, 2020, FINRA’s Department of Enforcement filed a complaint against Mr. Mancuso, alleging that Mr. Mancuso had his two elderly customers transfer a large part of their life savings to a company with which he was affiliated. One of the sisters was 73 years old and had dementia. The other sister was 68 years old and had multiple sclerosis. The complaint alleges that in 2017, Mancuso recommended that the elder sister use funds from her 401(k) account to purchase a variable annuity offered by a purported Swiss asset management firm, which Mr. Mancuso was affiliated. The complaint also alleges that Mr. Mancuso testified falsely during an on-the-record interview to conceal both his involvement in the transfer and actions he took to potentially change one of the sister’s power of attorney.

Mr. Mancuso failed to respond to the FINRA complaint. FINRA’s Department of Enforcement then requested a default decision, which the hearing officer granted.

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.

Original Post:

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

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.

Original Post:

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

Broker Megurditch Mike Patatian, Formerly of Western International Securities, Inc. Facing Disciplinary Charges by FINRA for Recommending Unsuitable Illiquid REITs to 59 Customers, Including 21 Elderly Customers – Westlake Village, California

Published on: March 1, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority’s Department of Enforcement has filed a disciplinary proceeding complaint against broker Megurditch Patatian (aka Mike Patatian) alleging that, while associated with Western International Securities, Inc., Mr. Patatian engaged in conduct in violation of FINRA rules, including:

making 81 unsuitable recommendations to purchase over $7.8 million in non-traded Real Estate Investment Trusts (REITs) to 59 customers, including 21 senior investors;
recommending illiquid non-traded REIT to six customers that also needed liquidity;

Moab, Utah Financial Advisor Scott Hansen, Formerly of LPL Financial LLC, Suspended by FINRA

Published on: February 26, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Scott Richard Hansen for three months from the securities industry over allegations that Mr. Hansen, who is not a lawyer and did not attend law school, prepared a will and trust agreement for an elderly client who was in hospice care. FINRA also fined Mr. Hansen $7,500.

At the time of the alleged conduct, Mr. Hansen was a financial advisor with LPL Financial in Moab, Utah. LPL Financial terminated his employment in March 2020 for his conduct.

If you have lost money with broker Scott Hansen or LPL Financial, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential review of your account.