investor protection

Titan Securities CEO and Owner Brad Brooks Suspended for One Year

Published on: June 9, 2021 | by Iorio Altamirano

On June 2, 2021, FINRA’s National Adjudicatory Council modified a FINRA’s Office of Hearing Officers decision from 2019 that was filed by FINRA’s Department of Enforcement against Titan Securities, Brad Brooks, and broker Richard Demetriou. The modified order has resulted in a one-year suspension of Titan Securities’ CEO and owner Mr. Brooks.

The enforcement action arose out of alleged misconduct of Mr. Demetriou’s involvement with a private placement of preferred units in a limited partnership, RBCP Preferred, LLC (“RBCP”). RBCP was organized by the owner of Mr. Demetriou’s previous member firm, who employed Mr. Demetriou to solicit investments from Mr. Demetriou’s previous firm, and Mr. Demetrious represented that RBCP was offered to them as a means of recouping those losses. Mr. Demetriou recommended RBCP, made misrepresentations concerning the supposed collateral securing the investments, and told customers that an investment of 10 percent of their previous losses would result in recovery of their lost investments, plus a profit – alleged returns of more than 1,000 percent. The investors did not recoup their losses but instead lost an additional $337,000 when RBCP failed, and the alleged collateral was not foreclosed.

FINRA’s National Adjudicatory Council made the following findings:

Former UBS Broker, Ricardo Turlan, Suspended by FINRA – San Antonio, Texas

Published on: June 8, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Ricardo Turlan from the securities industry for two months. Mr. Turlan consented to the suspension after FINRA alleged that he engaged in discretionary trading without written authorization in two customer accounts between June 2017 and February 2019. Mr. Turlan also allegedly mismarked approximately 72 trades as “unsolicited” when the trades should have been marked as “solicited.” FINRA also fined Mr. Turlan $7,500.

The alleged conduct occurred while UBS Financial Services Inc. (“UBS”) employed Mr. Turlan in San Antonio, Texas. UBS discharged Mr. Turlan in July 2019, alleging misconduct related to a non-discretionary account and trading in accounts that reached levels that could be considered unsuitable.

If you have suffered financial losses investing with Ricardo Turlan, or suspect that Mr. Turlan 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 brokerage account.

Boiler Room Broker, James Flower, Barred by FINRA for Excessive Trading, Churning, Unauthorized Trading, Mismarking Orders, and Targeting Elderly Investors

Published on: June 3, 2021 | by Iorio Altamirano

Financial Industry Regulatory Authority (“FINRA”) Office of Hearing Officers has barred stockbroker James W. Flower from the securities industry for excessively trading in five customers’ accounts, executing 17 unauthorized trades, and mismarking 58 transactions. According to the findings, although he is based in New York, Mr. Flower generated business by cold calling people all over the country, focusing primarily on senior and elderly customers who are small business owners and retirees. Cold-calling customers is a common tactic for “boiler room” brokerage firms.

Mr. Flower was also ordered to pay restitution plus prejudgment interest to harmed customers. However, it is unclear whether he will be able to satisfy the judgment.

Mr. Flower was associated with Spartan Capital Securities, LLC since June 2019. Previously, he was associated with SW Financial from December 2015 to June 2019.

Investor Alert: FINRA Files Enforcement Action Against Broker-Dealer NYPPEX, LLC, and Two Executives Alleging They Made Material Misrepresentations And Omissions to Prospective Investors of NYPPEX Holdings

Published on: June 2, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority’s Department of Enforcement has filed a disciplinary proceeding complaint against brokerage firm NYPPEX, LLC (CRD No. 47654), Former Chief Executive Officer (“CEO”) Laurence Allen (CRD No. 1063970), and Chief Compliance Officer (“CCO”) Michael Schunk (CRD No. 732595). The complaint alleges:

Allen continued to serve as NYPPEX, LLC’s CEO after being statutorily disqualified in December 2018 when the Office of the New York Attorney General (“New York Attorney General”) secured an Ex Parte Order (the “Order”) from the Supreme Court of the State of New York that preliminarily enjoined and restrained Mr. Allen and NYPPEX Holdings from engaging in securities fraud, violating New York Securities law, and converting or otherwise disposing of or transferring funds from ACP X, LP, a private equity fund controlled by Mr. Allen. NYPPEX, LLC’s CCO Michael Schunk allowed Mr. Allen to continue to associate as NYPPEX, LLC’s CEO despite his statutory disqualification.
In March 2019, Mr. Allen devised and orchestrated an aggressive sales campaign to raise $10 million for NYPPEX Holdings through the sale of securities in NYPPEX Holdings. While soliciting these investments, NYPPEX, LLC, and Allen intentionally or recklessly made a series of material misrepresentations and omissions of material fact to prospective investors concerning, among other things, NYPPEX Holdings’ valuation, its financial condition, and its management team. NYPPEX and Allen also failed to disclose to prospective investors the New York Attorney General’s ongoing investigation into Mr. Allen’s and NYPPEX Holdings’ alleged fraudulent activity and the Order that preliminarily enjoined both of them.

Broker Spotlight: Ross Barish of Joseph Stone Capital L.L.C. – Mineola, NY

Published on: May 31, 2021 | by Iorio Altamirano

Ross Barish is a stockbroker with Joseph Stone Capital L.L.C. (“Joseph Stone Capital”) in Mineola, New York. Mr. Barish is currently under investigation by the United States Securities and Exchange Commission (“SEC”) for defrauding sixteen retail customers by executing a high-cost, in-and-out pattern of trading that lost his customers over $800,000 while generating commissions and fees for him of more than $400,000.

The sixteen customers experienced total losses of $814,509.

If you have suffered financial losses investing with Ross Barish or Joseph Stone Capital L.L.C., or suspect that Mr. Barish 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.

Triad Advisors LLC Broker, Mark Just, Suspended by FINRA – Indianapolis, Indiana

Published on: May 25, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended Triad Advisors LLC broker Mark Just from the securities industry for three months for willfully failing to timely amend his Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose two state tax liens, which totaled $37,333.80. Mr. Just was also fined $5,000.

Mr. Just is also the subject of numerous customer complaints concerning allegedly unsuitable investment recommendations that he has made to customers involving alternative investments. According to his public disclosure report, those alternative investments include real estate securities (possibly REITs), business development companies (BDCs), direct participation programs (DPPs), Limited Partnerships (LPs).

If you have lost money with Mark William Just or Triad Advisors LLC, contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Calton & Associates, Inc. Sanctioned by FINRA Over Non-Traditional and Volatility-Linked Exchange Traded Products

Published on: May 20, 2021 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of customers of Calton & Associates, Inc. after the firm was censured, fined $250,000, and ordered to pay $472,007 in restitution to harmed investors by FINRA.

The sanctions involve supervisory failures between February 2014 and February 2020 related to suitability obligations connected with the sale of non-traditional and volatility-linked exchange-traded products (ETPs). Non-traditional and volatility-linked ETPs are complex products intended to be held for short periods of time as part of a trading strategy rather than as buy-and-hold investments. Although the firm was aware of the complex nature of the products, Calton permitted its representatives to offer the products to retail customers without a reasonable supervisory system to properly understand the products’ features and risks and review and monitor transactions. Consequently, Calton representatives recommended non-traditional and volatility-linked ETPs to retail customers without understanding the products were intended for short-term trading rather than as buy-and-hold investments, and the firm’s customers held the products for longer periods of time, resulting in losses.

In addition, during the period from January 1, 2014, to June 21, 2018, Calton failed to offer retail customers educational materials prior to their first purchases of collateralized mortgage obligations (CMOs), and it failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with FINRA rules.

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.