Articles Posted in Regulatory Sanction

Published on:

BrokerBank Securities Public records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on October 4, 2018 indicate that Minnesota-based broker-dealer firm BrokerBank Securities was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints BrokerBank Securities (CRD# 10641).

Established in Minnesota in 2003, BrokerBank Securities is headquartered in Minnetonka, Minnesota and registered with nine US states and territories: Arizona, California, Florida, Georgia, Michigan, Minnesota, Ohio, Texas, and Utah. According to the firm’s BrokerCheck report, it has been involved in three regulatory events.

In September 2108 FINRA sanctioned BrokerBank Securities in connection to allegations it failed to perform and record reasonable due diligence of a private placement security sold by a firm representative and additional allegations that its supervisory system was not reasonably designed to ensure compliance with due diligence obligations. According to FINRA’s findings, the firm’s written supervisory procedures required it to meet certain due diligence standards that assessed an issuer’s offering prior to the firm’s agreement to participated in that offering. The findings go on to state that the firm “served as a placement agent for a Regulation D private placement offering of securities issued by a corporation,” and the corporation raised a little more than $2.5 million in that offering, “of which $2,220,000 was raised by the firm’s sales to 24 accredited investors.” However, the firm allegedly “failed to conduct a reasonable due diligence investigation of the corporation, and also failed to document the findings of its due diligence investigation.” It also allegedly failed to obtain and document certain customer information which it was required to obtain. In connection with these and other findings, the firm was censured and issued a fine of $5,000.

Published on:

Stifel Nicolaus & Company

Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on October 4, 2018 indicate that Missouri-based broker-dealer firm Stifel Nicolaus & Company was recently sanctioned by FINRA in connection to alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints Stifel Nicolaus & Company (CRD# 793).

Established in Missouri in 1900, Stifel Niclaus & Company is headquartered in St. Louis, Missouri and registered with 53 US states and territories. According to its BrokerCheck report, it has been involved in 128 regulatory events and 48 customer complaints that evolved into arbitration.

In September 2018 FINRA sanctioned the firm in connection to allegations it “accepted and held customer orders in over-the-counter (OTC) securities… for its own account and prices that would have satisfied the customer orders, and failed to execute or immediately execute the customer orders up to the size and at the same price at which it traded for its own account or at a better price.” FINRA’s findings state additionally that as many as 45,024 of the firm’s order audit trail system (OATS) reports were inaccurate, in that they contained an “inaccurate information barrier identifier.” FINRA alleged further that the firm’s supervisory system failed to provide for supervision that was not reasonably designed to achieve compliance with relevant securities laws and regulations. The firm was censured, issued a fine of $37,500, and ordered to pay restitution to affected customers.

Published on:

John Cione

Publicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on September 25, 2018 indicate that California-based Independent Financial Group broker/adviser John Cione has received a pending customer dispute. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Cione (CRD# 1742561).

John Cione has spent 31 years in the securities industry and has been registered with Independent Financial Group in San Diego, California since 2003. Previous registrations include Sentra Securities Corporation in Phoenix, Arizona (1994-2003); Spelman & Company in Phoenix, Arizona (1995-1997); Foresters Equity Services in San Diego, California (1990-1995); LAM Wagner in La Jolla, California (1993-1994); Aimco Securities Company (1987-1992); and Yaeger Securities (1987-1992). He has passed four securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on April 22, 2002; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on December 18, 1987; Series 7 (General Securities Representative Examination), which he obtained on September 19, 1987; Series 24 (General Securities Principal Examination), which he obtained on April 27, 1998; and Series 27 (Financial and Operations Principal Examination), which he obtained on August 5, 1988. He is a registered broker and investment adviser with ten US states: Arizona, California, Connecticut, Massachusetts, Montana, New Jersey, New York, North Carolina, Texas, and Washington.

According to his BrokerCheck report, he has received one pending customer complaint and one regulatory sanction.

Published on:

Joseph EschlemanPublic records published by the Financial Industry Regulatory Authority (FINRA) and accessed on September 13, 2018 indicate that California-based Purshe Kaplan Sterling broker/adviser Joseph Eschleman has been sanctioned by FINRA in connection to alleged rule violations and issued a suspension from acting as a broker. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Eschleman (CRD# 3237843).

Joseph Eschleman has spent 18 years in the securities industry and has been registered with Purshe Kaplan Sterling Investments in Sacramento, California since August 2017. Previous registrations include Wells Fargo Clearing Services in Sacramento, California (2003-2017) and Prudential Securities in New York, New York (1999-2003). He is a registered broker and investment adviser with two US states: California and Pennsylvania.

According to his BrokerCheck report, he was recently sanctioned by FINRA and has received one customer complaint.

Published on:

Jason BeemPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on September 13, 2018 indicate that former Kentucky-based Morgan Stanley broker/adviser Jason Beem was recently sanctioned by FINRA in connection to alleged rule violations and suspended from acting as a broker. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Beem (CRD# 3083143).

Jason Beem has spent nineteen years in the securities industry and was most recently registered with Morgan Stanley in Louisville, Kentucky (2011-2018). He was previously registered with UBS Financial Services in Louisville, Kentucky (1998-2011). He has passed four securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on September 15, 1998; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on September 1, 1998; Series 31 (Futures Managed Funds Examination), which he obtained on March 31, 2006; and Series 7 (General Securities Representative Examination), which he obtained on August 25, 1998. He is currently not registered with any state or firm.

According to his BrokerCheck report, he has received one regulatory sanction and one denied customer complaint.

Published on:

Jesse WebbPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on September 13, 2018 indicate that Texas-based Oppenheimer & Company broker/adviser Jesse Webb, who has received several customer disputes, was recently named in a pending complaint by state regulatory authorities. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Webb (CRD# 2298761).

Jesse Webb has spent 25 years in the securities industry and has been registered with Oppenheimer & Company in The Woodlands, Texas since 2012. Previous registrations include Merrill Lynch in The Woodlands, Texas (2007-2012); UBS Financial Services in The Woodlands, Texas (2001-2007); and Morgan Stanley DW in Purchase, New York (1993-2001). He has passed four securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on July 13, 1996; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on January 9, 1993; Series 31 (Futures Managed Funds Examination), which he obtained on April 13, 1996; and Series 7 (General Securities Representative Examination), which he obtained on December 18, 1992. He is a registered broker and investment adviser with nine US states: Arizona, Florida, Indiana, Louisiana, Minnesota, Mississippi, Nevada, South Carolina, and Texas.

According to his BrokerCheck report, he has received three customer complaints and one pending regulatory complaint, and he resigned from his former employer in connection to alleged rule violations.

Published on:

Daniel Winger

Public records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on September 13, 2018 indicate that former Washington-based PFS Investments broker Daniel Winger has been sanctioned by FINRA in connection to alleged rule violations and barred from acting as a broker or otherwise associating with a broker-dealer firm. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Winger (CRD# 1542674).

Daniel Winger has spent thirty-one years in the securities industry and was registered with PFS Investments in Federal Way, Washington from 1986 until August 2018. He has no previous registrations. He has passed four securities industry examinations: Series 63 (Uniform Securities Agent State Law Examination), which he obtained on August 12, 1986; Series 6 (Investment Company Products/Variable Contracts Representative Examination), which he obtained on August 13, 1986; and Series 26 (Investment Company Products/Variable Contracts Principal Examination), which he obtained on November 8, 1988. He is currently not registered with any state or firm.

According to his BrokerCheck report, he has received one FINRA sanction and one customer complaint.

Published on:

Trustmont Financial GroupPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on September 6, 2018 indicate that an investors has won an award exceeding $1,000,000 in an arbitration claim against Trustmont Financial Group.

Filed in February 2017, the investor’s claim alleged Trustmont Financial Group violated the Florida Securities and Investor Protection Act, breached its fiduciary duty, committed fraud, failed in its supervisory duties, recommended unsuitable products, acted negligently, negligently misrepresented material facts, omitted material facts, breached contract, and was negligent in its supervisory duties in connection to investments in two 1035 annuity exchanges and a private real estate investment trust, or REIT.

Established in Pennsylvania in 1986, Trustmont Financial Group is headquartered in Greensburg, Pennsylvania and registered with 51 US states and territories. Its BrokerCheck report lists this customer complaint and three regulatory events on the firm’s disclosure records.

Published on:

Presidential Brokerage

Public records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on August 31, 2018 indicate that Colorado-based brokerage and advisory firm Presidential Brokerage has received several customer disputes and a regulatory sanction. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Presidential Brokerage (CRD# 28784).

Established in California in 1991, Presidential Brokerage is headquartered in Greenwood Village, Colorado and registered with 50 US states and territories. According to its BrokerCheck report, it has received one regulatory event and four customer complaints that evolved into arbitration.

In 2015 a customer alleged Presidential Brokerage breached its fiduciary duty, recommended unsuitable investments, breached contract, failed in its supervisory duties, and acted negligently. The complaint resulted in an award to the customer of more than $654,000.

Published on:

NYLife Securities

Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on August 31, 2018 indicate that New York-based brokerage firm NYLife Securities has received numerous customer disputes and regulatory sanctions. Fitapelli Kurta is interested in hearing from investors who have complaints regarding NYLife Securities (CRD# 5167).

Established in Delaware in 2007, NYLife Securities is headquartered in New York, New York and registered with 51 US states and territories. It is registered with two self-regulatory organizations (SROs): FINRA and the Securities and Exchange Commission (SEC). According to the firm’s BrokerCheck report, it has received ten regulatory events and nine customer complaints that evolved into arbitration.

In March 2017 the New Hampshire Bureau of Securities Regulation sanctioned the firm in connection to allegations it failed to take steps to ensure the shutdown of the office of a terminated representative in accordance with the firm’s supervisory manual. The firm was censured and issued a fine of $3,750.