investor protection

R.F. Lafferty & Co., Inc. and Financial Advisor Jay Clint Tomlinson Sanctioned by FINRA – New York, NY

Published on: December 15, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Jay Clint Tomlinson from the securities industry for three months and fined him $7,500. Mr. Tomlinson’s sanctions arise from his improper use of discretion without written authorization when placing 379 trades in three customers’ accounts.

FINRA has also censured Tomlinson’s employer, New York financial services firm R.F. Lafferty & Co., Inc., and ordered the firm to pay a fine of $55,000. R.F. Lafferty & Co., Inc. (“R.F. Lafferty”) failed to maintain order memoranda that accurately reflected whether trades were solicited or unsolicited for more than 56,000 trades in customer accounts. R.F. Lafferty also failed to establish and maintain a supervisory system, and failed to enforce written supervisory procedures, reasonably designed to achieve compliance with applicable recordkeeping laws, regulations, and rules pertaining to review and retention of order memoranda.

This is not the first time Mr. Tomlinson and R.F. Lafferty have been sanctioned by FINRA. In November 2012, Mr. Tomlinson was suspended for 30 days and fined $7,500 for failing to timely provide documents and information to FINRA. At the time, Mr. Tomlinson was the Chief Compliance Officer at Brimberg & Co. Brimberg & Co. was expelled from the securities industry by FINRA for failing to pay its monetary fines.

Former Ameriprise and Edward Jones Broker Drew R. Mantel Suspended by FINRA for Exercising Discretion Without Written Authorization In Customers’ Accounts – Ohio

Published on: December 15, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Drew R. Mantel from the securities industry for three months and fined him $5,000. Drew Mantel was registered with Ameriprise Financial Services, LLC in Miamisburg, Ohio, from March 2018 until November 2018. At that time, Ameriprise terminated his employment. Previously, he was registered with Edward Jones in Franklin, Ohio, from August 2003 until April 2018.

If you have lost money with Drew R. Mantel, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

Drew R. Mantel and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 15, 2020, over allegations related to Mr. Mantel’s conduct between June 2017 to September 2019, specifically that he:

Michael Edward Magill BARRED by FINRA – Portland, Maine

Published on: December 8, 2020 | by Iorio Altamirano

FINRA has barred financial advisor Michael Edward Magill (CRD #2024663) from the securities industry. Michael Magill was a stockbroker at Foreside Fund Services, LLC, in Portland, Maine, from August 2017 until January 2019.

If you have lost money with Michael Magill, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Mr. Magill has been a financial advisor and registered representative at the following firms:

Registration Dates	Firm Name	Branch Location
August 2017 – January 2019	Foreside Fund Services, LLC	Portland, Maine
August 2016 – July 2017	Crossroads Capital Distributors, LLC	Newport Beach, California
December 2004 – December 2015	Janus Distributors LLC	Denver, Colorado
January 2000 – January 2005	Davis Distributors, LLC	Tucson, Arizona
January 1996 – January 1997	TCC Securities Corporation	San Francisco, California
July 1995 – January 1996	Phoenix Securities, Inc.	San Rafael, California
June 1994 – November 1994	Continental Capital Group, Inc.
May 1991 – November 1992	John Hancock Distributors, Inc.	Boston, Massachusetts
May 1991 – November 1992	John Hancock Mutual Life Insurance Company	Boston, Massachusetts
January 1990 – July 1990	*Hibbard Brown & Co., Inc.	New York, New York

*FINRA expelled Hibbard Brown & Co., Inc. on February 22, 1996

Michael Magill and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 7, 2020, over allegations related to Magill recommending private securities transactions to three investors. The securities sold to the investors were not legitimate investments and the three investors, who were not customers of Foreside Fund Services, LLC, lost their entire investment, totaling $700,000. Specifically, FINRA alleged:

On December 3, 2018, while registered with Foreside Fund Services, LLC, Mr. Magill began working on behalf of a private issuer to find potential investors for a principal-protected note offered by the issuer.
Magill contacted prospective investors, provided them with marketing materials, explained the investment and terms of the note, and directed them to the issuer’s website to complete the paperwork necessary to make the investment.
In December 2018, Mr. Magill recommended the principal-protected note to three investors, who invested a total of $7000,000.
The first investor was 78 years old at the time of the investment and invested $100,000.
A second investor invested $250,000, and a third investor invested $100,000.
The investors were not customers of Foreside Fund Services, LLC.
To entice the prospective investors, Mr. Magill offered higher interest rates for immediate investments and told the investors that the investment was only available for a short time.
Magill earned $14,000 in commissions, a bonus for securing investments by the end of 2018, and the salary the private issuer paid him.
Before recommending the principal-protected note, Mr. Magill failed to conduct reasonable diligence to understand the features and risks of investing in the note.
In February 2019, federal authorities shut down the private issuer’s offices.
An executive of the private issuers and Mr. Magill’s supervisor at the private issuer both pled guilty to conspiracy to commit wire fraud and sentenced to prison. Another executive died in custody while awaiting trial.
Foreside Fund Services, LLC required its financial advisors to receive the firm’s written approval prior to participating in the transaction.
Magill did not provide written notice to Foreside Fund Services, LLC and received no written approval to participate in the three private securities transactions.

When a financial advisor solicits a customer to participate in a securities transaction that is not offered or approved by the advisor’s employing brokerage firm, it is often referred to as selling away.

This blog has previously written about other recent selling away allegations: Future Income Payments, LLC.

Brokerage firms like Foreside Fund Services, LLC must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.

If you have lost money with Michael Edward Magill or Foreside Fund Services, LLC, contact New York securities arbitration lawyer August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your account.

Iorio Altamirano LLP is a boutique law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.

INVESTIGATION: Kodak Stock Investment Losses

Published on: December 7, 2020 | by Iorio Altamirano

Iorio Altamirano LLP is investigating whether registered stockbrokers and financial advisors inappropriately recommended that customers purchase common stock of Eastman Kodak Company (KODK).

Iorio Altamirano LLP is an investor advocate law firm based in New York, NY. We help investors recover financial losses due to wrongful conduct by financial advisors and brokerage firms.

If you suffered financial losses from an investment in Kodak stock recommended to you or purchased on your behalf by a stockbroker or financial advisor, contact New York investor protection attorney August Iorio of Iorio Altamirano LLP. August Iorio, a native of Rochester, New York, can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.

Dee Dee Brooks BARRED by FINRA – Huntington Beach, California

Published on: December 7, 2020 | by Iorio Altamirano

In June 2020, FINRA permanently barred financial advisor Dee Dee Brooks (CRD #2559233) from the securities industry. Ms. Brooks was a financial advisor at Signator Investors, Inc. in Huntington Beach, California. FINRA’s disciplinary action arose from Ms. Brook’s solicitation of two private securities transactions, Woodbridge Group of Companies LLC (“Woodbridge”) and Future Income Payments, LLC. Both Woodbridge Group of Companies LLC and Future Income Payments, LLC were purportedly Ponzi schemes.

This blog has previously written about Future Income Payments, LLC.

FINRA alleged that between July 2016 and December 2017, Dee Dee Brooks participated in undisclosed and unapproved private securities transactions totaling $1.77 million. Specifically, FINRA alleged:

INVESTIGATION: Long Island Resident Mark Alan Lisser Charged with Defrauding Investors

Published on: December 1, 2020 | by Iorio Altamirano

**Update: 5/13/2021** On May 12, 2021, Long Island investment advisor, Mark Lisser, pleaded guilty in federal court to securities fraud conspiracy. As part of his plea, Mr. Lisser admitted to lying to customers about investments in shares of several companies prior to the initial public offering of those companies. As a result of his scheme, Mr. Lisser stole more than $700,000 of investors’ funds to make payments to companies controlled by Knightsbridge Private Partners LLC employees, pay salaries and sales commissions, pay his personal credit card bill, and make payments on a mortgage.

Original Post:

INVESTIGATION: Long Island Resident Mark Alan Lisser Charged with Defrauding Investors

Former Stifel, Nicolaus & Company, Inc. Financial Advisor Kurt Gunter Suspended by FINRA for Short-Term Trading of Unit Investment Trusts in Customer Accounts

Published on: November 23, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Kurt Jason Gunter (CRD No. 2747789) from the securities industry for three months and fined him $10,000.

FINRA alleged that between July 2013 through December 2016, Kurt Gunter engaged in an unsuitable pattern of short-term trading of Unit Investment Trusts in customer accounts. FINRA also alleged that Mr. Gunter signed switch letters that were sent to customers that contained inaccurate or missing information about the costs that the customers’ incurred due to early rollovers of Unit Investment Trusts.

Kurt Gunter was a stockbroker at Stifel, Nicolaus & Company, Inc. from June 2013 through August 2017. He was registered with Stifel, Nicolaus & Company, Inc.’s branch offices in St. Louis, Missouri, and Austin, Texas.

Neemit M. Shah Suspended for Six Months for Recommending Future Income Payments, LLC – Glen Allen, Virginia

Published on: November 23, 2020 | by Iorio Altamirano

In October 2020, FINRA suspended financial advisor Neemit M. Shah (CRD #4812480) for six months from the securities industry and ordered him to pay a $5,000 fine. These sanctions arose from Mr. Shah’s solicitation of Future Income Payments, LLC. This blog has previously written about Future Income Payments, LLC.

FINRA alleged that between March 2016 and April 2016, Neemit Shah participated in private securities transactions totaling $408,000, without prior disclosure and approval from his employer at the time, MML Investors Services, LLC. Specifically, FINRA alleged:

From March through April 2016, Shah solicited investors to purchase $408,000 in securities of Future Income Payments, LLC.

Micah W. Patterson Was Suspended for One Month for Soliciting Future Income Payments, LLC – Centerville, Utah

Published on: November 23, 2020 | by Iorio Altamirano

In June 2020, FINRA suspended financial advisor Micha W. Patterson (CRD #5562392) for one month from the securities industry and ordered him to pay a $5,000 fine. These sanctions arose from Mr. Patterson’s solicitation of Future Income Payments, LLC. This blog has previously written about Future Income Payments, LLC.

FINRA alleged that between June 2017 and November 2017, Micah Patterson participated in private securities transactions totaling $30,644 without prior disclosure and approval from his employer at the time, MML Investors Services, LLC. Specifically, FINRA alleged:

From June through November 2017, Patterson solicited an investor to purchase $30,644 in securities of Future Income Payments, LLC.

INVESTIGATION: Former Edward Jones Financial Advisor Matthew Jennings Barred by FINRA– Johnston, Iowa

Published on: November 21, 2020 | by Iorio Altamirano

FINRA has barred financial advisor Matthew Jennings (CRD# 6762685) from the securities industry for refusing to cooperate with a FINRA investigation. Mr. Jennings was fired by Edward Jones in August 2019 due to concerns that he introduced clients to investments not offered through the firm. This type of conduct is often referred to as “selling away.”

What is “selling away?”

“Selling away” is when a financial advisor solicits a customer to participate in a private securities transaction that is not offered or approved by the brokerage firm where the financial advisor is employed or registered.