investor advocates

Broker Spotlight: Martin Lerner of David Lerner Associates, Inc. Facing Pending Securities Arbitration Complaint Related to Energy 12 and SOAEX – Boca Raton, Florida

Published on: May 19, 2021 | by Iorio Altamirano

Martin Lerner is a stockbroker with David Lerner Associates, Inc. (“David Lerner Associates”) in Boca Raton, Florida, with a history of customer complaints.

Martin Lerner has been the subject of six customer complaints, which include one pending dispute and five resolved disputes that ended with monetary compensation being paid to a customer. The pending dispute is a securities arbitration claim filed by a customer against Martin Lerner and David Lerner Associates concerning energy-sector securities. The customer alleged that the recommendations to invest in Energy 12 L.P., an illiquid, non-traded limited partners, and Spirit of America Energy Fund (SOAEX), an energy mutual fund, were unsuitable. The customer also alleged that Martin Lerner made material misrepresentations or omissions regarding both energy-sector securities.

If you have invested in Energy 11, Energy 12, SOAEX, or lost money with broker Martin Lerner or David Lerner Associates, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Brokers International Financial Services, LLC and Broker Mark Perry Ordered to Pay $795,959 to Widow by a FINRA Arbitration Panel

Published on: May 19, 2021 | by Iorio Altamirano

On May 17, 2021, a FINRA arbitration panel issued an award in favor of customer Donna Wagner in a securities arbitration against Brokers International Financial Services, LLC and former broker Mark Christopher Perry. Brokers International Financial Services and Mr. Perry (the “Respondents”) were held jointly and severally liable for $795,929 in compensatory damages. The Respondents were also ordered to pay post-judgment interest at a rate of 8%, beginning 30 days after the issuance of the Award.

Ms. Wagner filed a securities arbitration claim in December 2019, seeking approximately $1.34 million in actual damages. The Statement of Claim alleged that Mr. Perry, while registered with Brokers International Financial Services, was also the President of Brendanwood Financial Brokerage, an insurance brokerage firm in Carmel, Indiana. The claim alleged that Brokers International Financial Services and Mr. Perry allowed Brian Simms, CEO of both Brendanwood Financial Brokerage and Brendanwood Financial Services, to use the company as a conduit to obtain funds from Mr. Wagner and convert those funds for his own personal use. According to the claim, Mr. Perry, who was responsible for its operations oversight, appears to be complicit in the actions of Mr. Simms.

According to public reports, Ms. Wagner also filed a lawsuit on December 2, 2019, in Hamilton Circuit Court against Brian Simms. The lawsuit alleged that Mr. Simms relied on Brian Simms after the 2017 death of her husband, Michael Wagner. Mr. Simms allegedly assisted Ms. Wagner in making death benefit claims on life insurance policies through North American Company for Life and Health Insurance and the Lincoln National Life Insurance Company and then convinced her to vest the proceeds in additional insurance, annuities, and investments. The lawsuit alleges in total, $1,342,482 of Ms. Wagner’s assets are missing and unaccounted for or misappropriated by Mr. Simms and Brendanwood.

GPB Automotive Portfolio, LP’s Latest Public Filing Raises Doubts That the Business Will Survive; Investors Should Contact an Attorney to Review Legal Rights

Published on: May 18, 2021 | by Iorio Altamirano

On Friday, May 14, 2021, GPB Capital Holdings LLC (“GPB Capital”), a private equity firm based in New York, registered some units in its GPB Automotive Portfolio, LP (“GPB Automotive”) with the Securities and Exchange Commission. As part of its filing, GPB Automotive disclosed that it had substantial doubt of its ability to continue operations. Specifically, GPB Automotive made the following risk factor disclosures to investors and potential investors:

We have determined that there is substantial doubt as to our ability to continue as a going concern, due to the expiration of the credit facility for the majority of our dealerships within 12 months, as well as certain other factors. Our inability to extend the maturity of our credit facility, or replace the credit facility, prior to its maturity in February 2022 would materially adversely affect our financial condition, results of operations, cash flows and business operations.
We may not have adequate funds to complete future capital improvement programs or to make additional acquisitions.

Orchard Securities Broker Alma Edwards Faerber Facing $1 Million Customer Claim

Published on: May 18, 2021 | by Iorio Altamirano

A FINRA customer complaint involving Orchard Securities broker Alma Edwards Faerber alleges that Ms. Faerber recommended alternative investments that were unsuitable. The claim, which was filed on December 11, 2020, is related to Ms. Faerber’s previous association with Triad Advisors. The claim seeks $1 million in damages.

Triad Advisors is one of the Advisor Group network broker-dealers. The firm was fined $150,000 by FINRA earlier this year for failing to adequately supervise short-term trades of mutual fund A shares and variable annuity exchanges. Last year, the firm reported three new investor claims related to private placements sales. According to InvestmentNews, per SEC filings, Advisor Group firms have increased legal reserves by about $4.4 million compared to the prior year.

Iorio Altamirano LLP is currently investigating claims on behalf of defrauded investors who were victims of the GPB funds scheme. GPB Capital sold unregistered, 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 Triad Advisors LLC and Orchard Securities, LLC likely received sales compensation for selling the GPB funds to retail investors.

Former Wells Fargo Broker Gary Len Wells Suspended by FINRA – Tacoma, WA

Published on: May 17, 2021 | by Iorio Altamirano

FINRA has suspended former Wells Fargo Advisors broker Gary Len Wells from the securities industry for 15 months for accepting a $600,000 bequest from a non-family member. He was also fined $20,000.

Mr. Wells’ suspension runs from May 3, 2021, until August 2, 2022.

If you have lost money with Gary Len Wells, or Wells Fargo Advisors Financial Network, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Former Morgan Stanley Broker in Miami, Candido Viyella, BARRED by FINRA

Published on: May 17, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Candido Viyella. from the securities industry. Mr. Viyella was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation. FINRA’s investigation originated after Morgan Stanley discharged Mr. Viyella and disclosed concerns regarding his participation, involvement, and a beneficial ownership interest in an outside investment.

Reportedly, Mr. Viyella recommended that his clients invest in the Conrad Hotel, a luxury hotel in Fort Lauderdale, Florida, in which he had a personal stake. Mr. Viyella reportedly knew the hotel was facing financial difficulties, yet recommended that his clients invest in the hotel, causing them to suffer financial losses.

Mr. Viyella was registered with Morgan Stanley in Miami, Florida, from June 2009 until December 2020. He has also been associated with the following entities: Terrena Enterprises, LLC, VSHC Management, LLC, VSHC Family Limited Partnership LP, and Earthview Capital, LLC.

Former LPL Financial LLC Broker John Simmons BARRED by FINRA – Gulf Breeze, FL

Published on: May 17, 2021 | by Iorio Altamirano

FINRA has barred former LPL Financial LLC broker John Edgar Simmons, Jr. from the securities industry for refusing to cooperate with a FINRA investigation.

Mr. Simmons, Jr. was most recently registered as a broker with LPL Financial LLC in Gulf Breeze, Florida.

If you have lost money with John Edgar Simmons, Jr., or LPL Financial LLC, contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Former Securities America, Inc. Broker, Bill Dixon, BARRED from the Securities Industry by FINRA – Urbana, Ohio

Published on: May 17, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker William Dixon. from the securities industry. Mr. Dixon was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation. FINRA’s investigation originated after Securities America, Inc. discharged Mr. Dixon and alleged that he signed his deceased client’s signature and initials on multiple annuity surrender forms.

Mr. Dixon was registered with Securities America, Inc. in Urbana, Ohio, from September 2016 until October 2019.

If you have suffered financial losses investing with William Dixon or Securities America, Inc., contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

Former Financial Advisor Eric Vici BARRED from the Securities Industry by FINRA – Melbourne, Florida

Published on: May 17, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Eric Vici. from the securities industry. Mr. Vici was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation that originated from a complaint made to FINRA by the executor of a customer’s estate about his handling of the customer’s funds.

Mr. Vici was registered with PFS Investments, Inc. in Melbourne, Florida, from November 2012 until October 2019. He has also been affiliated with Primerica Financial Services, an affiliate of PFS Investments.

If you have suffered financial losses investing with Eric John Vici, PFS Investments, Inc., or Primerica Financial Services, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

FINRA Files Enforcement Action Against Broker Adam Belardino, Formerly of MML Investors Services, LLC – Westchester County, New York

Published on: May 13, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority’s Department of Enforcement has filed a disciplinary proceeding complaint against former broker Adam Belardino. The complaint alleges that Mr. Belardino failed to cooperate with a FINRA investigation, which was initiated in Aril 2019 after Mr. Belardino’ s employment was terminated by MML Investors Services, LLC and disclosed (through a Form U5) that it discharged Mr. Belardino “in connection with [an] investigation into a customer complaint. The Form U5 (Uniform Termination Notice for Securities Industry Registration) also disclosed a complaint from customers alleging that beginning in November of 2018, Mr. Belardino “misrepresented [the customers’] account values, engaged in excessive levels of trading, and failed to comply with requests to have their accounts liquidated and the proceeds distributed. Additional customer complaints were subsequently disclosed, including a customer alleging that “the REITs that were sold to him [by Mr. Balardino] beginning in or around 2014 were unsuitable for his conservative portfolio.”

At the time of the alleged conduct, Mr. Balardino was associated with MML Investors Services, LLC (“MML Investor Services”) in Elmsford, New York. Prior to being a broker at MML Investor Services, Mr. Belardino was associated with MSI Financial Services, Inc. (“MSI Financial Services”), also in Elmsford, New York.

If you or a loved one were a customer of broker Adam Belardino, MML Investor Services, LLC, or MSI Financial Services, Inc., contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your legal rights.