investor protection

Iorio Altamirano LLP Joins Congresswoman Maxine Waters in Urging the Biden Administration to Rescind Regulation Best Interest (Reg BI) and Replace it with a Uniform Fiduciary Obligation Standard.

Published on: January 20, 2021 | by Iorio Altamirano

As Joe Biden takes his place as the 46th President of the United States of America, House Financial Services Committee Chairwoman Maxine Waters, D-Calif., urges the Biden Administration to rescind Regulation Best Interest (Reg BI).

In a letter dated December 4, 2020, Rep. Waters outlined dozens of Trump-era regulations promulgated during the Trump administration that should be rescinded or replaced by the new administration.

Regulation Best Interest (Reg BI), which went into effect on June 30, 2020, establishes a standard of conduct for broker-dealers and brokers when they make a recommendation to a retail customer of any securities transaction or investment strategy involving securities. When a broker-dealer makes an investment recommendation, the investor is entitled to a recommendation that is in the investor’s best interest and does not place the interest of the financial professional or financial institution ahead of the retail investors’ interests.

Springfield, IL Financial Advisor Dustin P. Shafer BARRED by FINRA After Allegedly Borrowing Money from an Elderly Customer

Published on: January 8, 2021 | by Iorio Altamirano

**Update 4/14/2021** Iorio Altamirano LLP is currently investigating Newbridge Securities Corporation, Money Concepts Capital Corp, and Dustin Shafer for recommending that clients invest in private placement securities issued by GPB Capital. The GPB funds, which are private securities offerings exempt from registration with the Securities and Exchange Commission (SEC), are inherently risky investments. These investments are suitable only for highly sophisticated investors who understand the risks and can afford a significant monetary loss. Unfortunately, many brokerage firms and brokers sold the GPB Capital securities to retirees and unsophisticated investors because they paid a high up-front commission.

If you have suffered financial losses as a result of any of the following GPB private placement offerings, contact Iorio Altamirano LLP for a free and confidential review of your legal rights:

GPB Automotive Portfolio, LP

New Year’s Resolutions for Investors in 2021

Published on: December 31, 2020 | by Iorio Altamirano

Investing your money is a great way to grow your wealth, save for retirement, and reach your financial goals. If you invest in the appropriate products, you can also receive income from investments, build on-pre-tax dollars, or reduce taxable income.

If you do not invest, you miss out on opportunities to increase your wealth. However, all investments carry risk, and when you invest, you have the potential to lose money.

There are many different types of investments. Some common types of investments include stocks, bonds, certificates of deposit, mutual funds, money market funds, exchange-traded funds, and annuities. There are also more complex investment vehicles, such as real estate investment trusts (REITs), unit investment trusts (UITs), hedge funds, commodities, and private placements.

Jaime I. Sanchez Rivera, former First Southern, LLC Financial Advisor in Puerto Rico, Suspended by FINRA – Guaynabo, Puerto Rico

Published on: December 28, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Jamie I. Sanchez Rivera (CRD #6013022) from the securities industry for five months and fined him $10,000. Jamie I. Sanchez Rivera was a stockbroker at First Southern, LLC in Guaynabo, Puerto Rico, from April 2017 until May 2020.

First Southern, LLC fired Mr. Sanchez Rivera in May 2020, alleging the following:

Sanchez Rivera failed to immediately advise the firm of a customer’s complaint regarding an investment recommendation that he made, in violation of firm policy.

Top 15 Types of Securities Leading to Customer Disputes in 2020

Published on: December 27, 2020 | by Iorio Altamirano

When an investor suffers harm, including investment losses, due to misconduct by a financial advisor or broker-dealer, the investor can file a securities arbitration claim against their financial advisor and/or broker-dealer in an effort to be compensated. The case will be presented and defended in an arbitration proceeding to a panel of arbitrators instead of a court of law in front of a judge and jury.

Arbitration is the primary forum for resolving disputes between investors and brokerage firms or financial advisors because the parties have contractually agreed to use arbitration as an alternative dispute resolution process. When an investor opens an account with a broker-dealer, the investor is required to sign an array of account opening documents. These account opening documents regularly include an arbitration clause, which requires that arbitration be used as an alternative to litigation. This requirement is often a contractually binding obligation for both parties. As a result, disputes between investors and financial advisors or brokerage firms are resolved in arbitration as an alternative to court.

The Financial Industry Regulatory Authority (FINRA) is authorized by Congress to regulate the financial services industry and operates the largest arbitration forum for securities disputes. Most securities arbitrations take place using FINRA’s Dispute Resolution Services’ arbitration forum because, as FINRA members, financial advisors and brokerage firms are required to arbitrate customer complaints upon the filing of a claim through FINRA.

UBS Ordered to Pay $90,000 to Yield Enhancement Strategy Customer

Published on: December 23, 2020 | by Iorio Altamirano

On December 22, 2020, a FINRA Dispute Resolution Services arbitration panel in Boca Raton, Florida, ordered UBS Financial Services, Inc. to pay a customer $89,675 in compensatory damages. After considering the pleadings, the testimony and evidence presented at the hearing, the arbitration panel concluded that the UBS Yield Enhancement Strategy (“YES”) was not suitable for the investor, Gerald S. Backman, a retired partner at corporate law firm Weil Gotshal & Manges.

Many UBS customers, including wealthy and sophisticated investors, who invested in UBS’s Yield Enhancement Strategy have filed lawsuits against UBS in the form of FINRA arbitrations to recover financial losses. The customers have claimed that the strategy was not suitable for them and that UBS materially misrepresented and omitted the product’s risks.

Investors who have suffered investment losses due to UBS’s Yield Enhancement Strategy should contact experienced securities arbitration attorneys at Iorio Altamirano LLP for a free and confidential case evaluation. Partner August Iorio, who has been investigating YES for nearly two years, can be reached at august@ia-law.com or toll-free at (855) 430-4010.

Transamerica Financial Advisors, Inc. Sanctioned by FINRA and Ordered to Pay $8.8 Million for Supervisory Violations Related to Variable Annuities, Mutual Funds, and 529 Plans

Published on: December 21, 2020 | by Iorio Altamirano

FINRA has sanctioned Transamerica Financial Advisors, Inc. (“Transamerica Financial”) for its failure to reasonably supervise its financial advisors’ recommendations of three different products – variable annuities, mutual funds, and 529 plans. These recommendations resulted in significant customer harm and financial loss. Transamerica Financial was ordered to pay $4.4 million in restitution to approximately 2,400 affected customers and also fined an additional $4.4 million.

Investors who have received partial restitution from Transamerica Financial through FINRA’s order may still be entitled to additional recovery. A FINRA partial restitution order does not preclude investors from pursuing their own claims to seek restitution or other available remedies.

If you have lost money with Transamerica Financial Advisors, Inc., contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. Iorio Altamirano LLP represents investors with disputes with their financial advisors or brokerage firms, such as Transamerica Financial Advisors, Inc.

Investor Alert: Iorio Altamirano LLP Investigates SunTrust Investment Services, Inc. Over Non-Traditional ETF Supervisory Practices

Published on: December 17, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of SunTrust customers who invested in non-traditional exchange traded funds (ETFs). If you have lost money with SunTrust, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

SunTrust and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on May 18, 2020, over allegations that between January 2015 and January 2018, SunTrust violated FINRA rules. Specifically, that it:

Failed to establish, maintain and enforce a supervisory system, including written supervisory procedures (“WSPs”) that were reasonably designed to ensure compliance with FINRA Rule 2111 related to solicited sales of non-traditional ETFs by the firm’s registered representatives.

Investor Alert: Iorio Altamirano LLP Investigates Stifel, Nicolaus & Company Over Unit Investment Trust (UIT) Early Rollover Practices

Published on: December 16, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of Stifel, Nicolaus & Company customers who invested in Unit Investment Trusts (UITs). If you have lost money with Stifel, Nicolaus & Company, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Stifel and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on May 27, 2020, over allegations that between January 2012 and December 2016, Stifel violated FINRA rules. Specifically, that it:

Failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (“WSPs”) that were reasonably designed to achieve compliance with FINRA’s suitability rule as it pertains to early rollovers of UITs.

Investor Alert: Iorio Altamirano LLP Investigates SagePoint Financial, Inc. Over Unit Investment Trust (UIT) Early Rollover Practices

Published on: December 16, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating claims on behalf of SagePoint Financial customers who invested in Unit Investment Trusts (UITs). If you have lost money with SagePoint, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

SagePoint and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on June 10, 2020, over allegations that between January 2013 and December 2017, SagePoint violated FINRA rules. Specifically, that it:

Failed to establish and maintain a supervisory system, and failed to establish, maintain, and enforce written supervisory procedures (WSPs) that were reasonably designed to supervise the suitability of representatives’ recommendations to customers for early rollovers of Unit Investment Trusts (UITs).