Private Securities Transactions

Former Broker Stewart Schram Suspended by FINRA Over Outside Business Activities and Private Securities Transactions – Northbrook, IL

Published on: February 24, 2021 | by Iorio Altamirano

FINRA has suspended Stewart Schram from the securities industry for four-months for engaging in outside business activity and private securities transactions without firm approval. In addition to his suspension, Mr. Schram was also fined $7,500.

FINRA began its investigation after receiving a regulatory tip. Mr. Schram is no longer associated with any FINRA member but remains subject to FINRA’s jurisdiction.

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

Former Wells Fargo Broker in Scottsdale, Arizona, Scott Reed, Barred by FINRA

Published on: February 19, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred broker Scott Wayne Reed from the securities industry over allegations that Mr. Reed, while associated with Wells Fargo, participated in private securities transactions totaling at least $3.5 million without providing prior written notice to his firm.

Mr. Reed was a financial advisor with Wells Fargo Clearing Services (“Wells Fargo”) in Scottsdale, Arizona, from April 2016 until April 2020. Mr. Reed was permitted to resign after a customer alleged that Mr. Reed recommended and facilitated investment opportunities in investments sold away from and not offered by Wells Fargo.

Wells Fargo appears to have denied any compensation to the complaining customer.

Somersworth, NH Financial Advisor Michael Francoeur, Formerly of Cambridge Investment Research, Inc, BARRED by FINRA

Published on: February 5, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Michael Paul Francoeur from the securities industry. FINRA expelled Mr. Francoeur from the brokerage industry because he refused to provide information and documents connected with FINRA’s investigation into his conduct after receiving a customer complaint.

Mr. Francoeur was a financial advisor at Cambridge Investment Research, Inc. in Somersworth, New Hampshire, from January 2012 until his employment was terminated in March 2020. Cambridge Investment Research fired Mr. Francoeur, alleging that he assisted a client with an investment that was not approved by the firm and that he used an unapproved email account, both against the firm’s policies.

If you have suffered financial losses investing with Michael Francoeur or suspect that Mr. Francoeur did not have your best interest in mind when recommending investments or account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

Former J.P. Morgan Securities Broker Jasmit Singh SUSPENDED by FINRA – New York, NY

Published on: February 3, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended former broker Jasmit Singh from the securities industry for seven months over allegations that Mr. Singh participated in private securities transactions and engaged in outside business activities without providing prior written notice to his firm. In addition to the suspension, FINRA fined him $10,000 and ordered him to disgorge $5,500 in finder’s fees.

Mr. Singh was registered as an Investment Banking Representative with J.P. Morgan Securities LLC (“J.P. Morgan”) in New York, NY, from August 2017 until February 2020.

If you have lost money with former broker Jasmit Singh or J.P. Morgan, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Former Merrill Lynch Broker in Atlanta, Tyler Delahunt, BARRED by FINRA

Published on: January 26, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred financial advisor Tyler Dean Delahunt from the securities industry. Tyler Delahunt was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) in Atlanta, Georgia, from October 2016 until August 2020. Merrill Lynch terminated Mr. Delahunt’s employment on August 3, 2020, alleging that his conduct involved improper solicitation of clients related to private securities transactions. Merrill Lynch also alleged that Mr. Delahunt participated in financial arrangements involving clients.

If you or a loved one were a customer of Tyler Delahunt and either sustained financial losses or suspect inappropriate activity, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Merrill Lynch.

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.

Former Merrill Lynch Financial Advisor, Rawad Roy Alame, Suspended by FINRA for Selling Away

Published on: December 22, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Rawad Roy Alame (CRD #5376696) from the securities industry for six months, fined $5,000, and ordered him to pay $2,700 to a former client. Rawad Alame was a stockbroker at Merrill Lynch, Pierce, Fenner & Smith Incorporated, working out of branch offices in Raleigh, North Carolina, and Provo, Utah, from January 2016 until June 2019. Mr. Alame’s employment was terminated by Merrill Lynch, which alleged that he completed an account-related document, signed by clients, to service a client’s account that was not held at Merrill Lynch and failed to be forthcoming with Merrill Lynch’s review of the matter.

Since leaving Merrill Lynch, Mr. Alame has been affiliated with Insight Advisors, LLC in Newtown, Pennsylvania, and Gate Key Financial, L.L.C., in Raleigh, North Carolina.

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

Former LPL Financial LLC Financial Advisor, Michael Anthony Tavel, Suspended by FINRA for Selling Away, Making an Unsuitable Recommendation, and Misrepresentation – Indianapolis, IN

Published on: December 18, 2020 | by Iorio Altamirano

FINRA has suspended financial advisor Michael Anthony Tavel (CRD #4862463) from the securities industry for 18 months and fined him $20,000. Michael Tavel was a stockbroker at LPL Financial LLC, in Indianapolis, Indiana, from September 2004 until April 2019. He has also been affiliated with Charter Advisory Corporation and Tavel Insurance & Financial Services, LLC.

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

Michael Tavel and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 17, 2020, over allegations related to Mr. Tavel recommending private securities transactions to three investors. One of the transactions involved a senior customer. Mr. Tavel did not have a reasonable basis to believe that the recommendation that the senior invest in the private security was suitable. Mr. Tavel also provided misleading materials to the customers and, after the customer orally complained, improperly attempted to settle the complaint away from the firm.

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.

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: