investor protection

Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading

Published on: November 9, 2021 | by Iorio Altamirano

On November 8, 2021, the Financial Industry Regulatory Authority (“FINRA”) and Aegis Capital Corp. (“Aegis Capital”) entered into Letter of Acceptance, Waiver, and Consent No. 2016051704305 (the “AWC”). After conducting an investigation, FINRA alleged in the AWC that from July 2014 through December 2018, Aegis Capital failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with the suitability requirements of FINRA Rule 2111 as it pertains to excessive trading. As a result, Aegis Capital failed to identify trading in hundreds of customer accounts that were potentially excessive and unsuitable, including trading conducted by eight Aegis Capital registered representatives in the firm’s Melville and Wall Street branches whose trading in the accounts of 31 firm customers resulted in an average annualized cost-to-equity ratio (or break-even point) of 71.6%, an average annualized turnover rate of 34.9, combined customer costs (including commissions, markups or markdowns, margin interest, and fees) of more than $2.9 million, and cumulative losses of $4.6 million.

Additionally, the FINRA AWC alleged from July 2014 to June 2019, Aegis Capital failed to establish, maintain, and enforce a supervisory system, including WSPs, reasonably designed to achieve compliance with the suitability requirements of FINRA Rule 2111 when selling leveraged, inverse, and inverse-leveraged Exchange-Traded Funds (Non-Traditional ETFs) to retail customers. As a result, Aegis Capital failed to identify customers who purchased and held Non-Traditional ETFs for extended periods of time or whose purchase was inconsistent with their recorded investment objective, risk tolerance, or finances.

Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm. If you or a loved one were a customer of Aegis Capital, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

Broker Leonard Marzocco, Formerly of Woodstock Financial Group, Inc. and First Standard Financial LLC, Suspended by FINRA

Published on: November 9, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended stockbroker Leonard Marzocco from the securities industry. Mr. Marzocco consented to the suspension after FINRA alleged that between June 2019 and December 2019, while associated with Woodstock Financial Group, Inc. (“Woodstock Financial Group”), Mr. Marzocco excessively and unsuitable traded a customer’s account, in violation of FINRA Rules 2111 and 2010. As part of the agreement, Mr. Marzocco also agreed to pay $27,078 in restitution and a fine of $5,000.

Mr. Marzocco was registered as a broker with Woodstock Financial Group, Inc. in Nesconset, New York, from June 2019 to December 2019. Prior to joining Woodstock Financial Group, Mr. Marzocco was a registered stockbroker with First Standard Financial Company LLC in Miller Place, New York, from June 2017 to June 2019.

This is the second time Mr. Marzocco has been suspended for excessive trading. In July 2020, Mr. Marzocco contended to an 11-month suspension after FINRA alleged that he engaged in quantitatively unsuitable trading in a customer’s account. The findings stated that Marzocco’s trading of the accounts resulted in high turnover rates and cost-to-equity ratios, as well as significant losses. The customers suffered collective losses of $196,331 and paid $81,523 in commissions and fees. Marzocco also recommended a significant number of trades using margin in the customer accounts. In particular, Marzocco recommended using margin to a customer, even though he was aware that the customer’s financial circumstances made it unsuitable for him.

Former Cambridge Investment Research, Inc. and SagePoint Financial, Inc. Broker BARRED by FINRA – Moorestown, New Jersey

Published on: November 9, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred a former Cambridge Investment Research, Inc. stockbroker from the securities industry for refusing to cooperate with a FINRA investigation into whether he, among other things, exercised discretion without written authorization in a customer’s account. The investigation was launched after Cambridge Investment Research, Inc. terminated the broker in January 2020, alleging that he placed discretionary trades without authority.

The broker was associated with Cambridge Investment Research, Inc. in Moorestown, New Jersey, from September 2019 to February 2020. He was previously registered with SagePoint Financial, Inc. in Moorestown, NJ, from January 2010 until August 2019.

Customers of Cambridge Investment Research, Inc., or SagePoint Financial, Inc. who have suffered financial losses, or suspect that the firms did not have their best interest in mind when recommending investments or making account transactions, can contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights.

Former Joseph Stone Capital L.L.C. Broker, Michael May, Suspended for Excessive and Unsuitable Trading

Published on: November 8, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended stockbroker Michael May from the securities industry. Mr. May consented to the suspension after FINRA alleged that between June 2017 and May 2018, while associated with Joseph Stone Capital L.L.C. (“Joseph Stone Capital”), Mr. May excessively and unsuitable traded a customer’s account, in violation of FINRA Rules 2111 and 2010. As part of the agreement, Mr. May also agreed to pay $10,349 in restitution and a fine of $5,000.

Mr. May was registered as a broker with Joseph Stone Capital L.L.C. from July 2015 to June 2020 and again from March 2021 to October 2021. He is currently registered with VCS Venture Securities in New York, NY.

Iorio Altamirano LLP is investigating potential legal claims on behalf of customers of Michael May and Joseph Stone Capital related to investment recommendations and account activity made by Mr. May.

Michael Miles Hartlett, Formerly with LPL Financial LLC, Suspended by FINRA – East Petersburg, PA

Published on: November 5, 2021 | by Iorio Altamirano

FINRA has suspended former LPL Financial LLC broker Michael Miles Hartlett from the securities industry for ten business days. Hartlett consented to the sanctions and to the entry of findings that he exercised discretionary trading authority in a customer’s accounts without having obtained prior written authorization of the customer.

Hartlett’s suspension is scheduled to begin on November 15, 2021, and end on November 29, 2021. He was also fined $5,000.

If you have lost money with Michael Miles Hartlett, or LPL Financial LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Glenn Brandon, Jr., Formerly with BB&T Securities, LLC, BARRED by FINRA – Birmingham, AL

Published on: November 5, 2021 | by Iorio Altamirano

FINRA has barred former BB&T Securities, LLC broker Glenn Brandon, Jr. from the securities industry. Brandon consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with its investigation into whether he engaged in outside business activities (OBAs) that were not disclosed to or approved by his firm.

If you have lost money with Glenn Brandon, Jr., or BB&T Securities, LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.

Edgar Kleydman, Formerly with AXA Advisors, LLC, BARRED by FINRA – Brooklyn, NY

Published on: November 5, 2021 | by Iorio Altamirano

FINRA has barred former AXA Advisors, LLC broker Edgar Kleydman from the securities industry. Kleydman consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA during its investigation into whether he engaged in private securities transactions without providing written notice to his member firm.

If you have lost money with Edgar Kleydman, or AXA Advisors, LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.

Eric Shea Hollifield, Formerly with LPL Financial LLC, BARRED by FINRA – Dacula, GA

Published on: November 2, 2021 | by Iorio Altamirano

FINRA has barred former LPL Financial LLC broker Eric Shea Hollifield from the securities industry. Hollifield consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony or to produce the documents and information requested by FINRA in connection with its investigation into Hollifield’s potential conversion of funds from an elderly customer.

If you have lost money with Eric Shea Hollifield, or LPL Financial LLC, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms.

Iorio Altamirano LLP Investigates Investment Recommendations Made by Former UBS Broker Patrick Murray – Sandusky, Ohio

Published on: October 21, 2021 | by Iorio Altamirano

**Update: July 6, 2022** On June 24, 2022, former UBS broker Patrick R. Murray was suspended by the Financial Industry Regulatory Authority (FINRA). Mr. Murray, who is not currently associated with a brokerage firm, consented to the suspension after FINRA alleged that from March 2018 to January 2019, Murray violated FINRA Rules 3270 and 2010 by engaging in an outside business activity without providing prior written notice to his firm. As part of the agreement, Mr. Murray also agreed to pay a fine of $5,000.

Specifically, FINRA alleged that in March 2018, Mr. Murray and two other individuals established a company called Integrity Salt, LLC to buy and sell rock salt. Mr. Murray made capital contributions to Integrity Salt, LLC and made at least one vendor payment on behalf o the company by wiring more than a million dollars from his personal account directly to the vendor. Mr. Murray also earned approximately $78,704 in compensation from his activities related to Integrity Salt, LLC.

Iorio Altamirano LLP is investigating other potential claims related to Mr. Murray’s conduct and encourages anyone with information about Mr. Murray’s conduct or practices to contact our law firm. All conversations are confidential and privileged.

GPB Capital Founder Seeks Millions in Distributions from Fund Investors That He Allegedly Defrauded

Published on: October 7, 2021 | by Iorio Altamirano

David Gentile, the disgraced founder of GPB Capital Holdings LLC, who is facing criminal and civil fraud charges, is seeking to obtain millions of dollars from GPB. Despite being accused of running a Ponzi-like scheme when he was running GPB Capital, Mr. Gentile is asking for court-supervised mediation to obtain a distribution of more than $5 million to cover his personal tax liability from last year. Meanwhile, limited partners of GPB Capital private placement funds, such as GPB Automotive Portfolio LP, have not received distributions since 2019. Worse, their investments remain illiquid, as there is no secondary market to sell their units.

Mr. Gentile claims to be “entitled to distributions” under the private equity firm’s operating agreements. He also claims that GPB Capital and its funds, including GPB Holdings, LP / GPB Holdings Qualified, LP, GPB Automotive Portfolio, LP, GPB Holdings II, LP, and GPB Waste Management, LP, are responsible for paying his legal fees. He is essentially asking investors who have been defrauded to pay his legal fees to defend him against numerous allegations of wrongdoing.

Lawyers for the U.S. Securities and Exchange Commission (SEC) argue that Mr. Gentile’s request should be denied because he does not qualify for mediation according to rules issued by the court.