Failure to Conduct Due Diligence

Archive | Failure to Conduct Due Diligence

GPB Investors Sue For Failure to Conduct Due Diligence

Guiliano Law Group, P.C. (Philadelphia) announced that is has filed investor claims against securities broker-dealers in connection the recommendation and sale of GPB Capital, and its related entities including GPB Automotive. The Statement of Claim filed before the Financial Industry Regulatory Authority or FINRA alleges the violation of the federal securities laws, the Pennsylvania Securities […]

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VSR Financial Sued By Investors For Misrepresentation

Scott Vincent Kaup of Stuart Nebraska a stockbroker formerly employed by VSR Financial Services Inc. is referenced in a customer initiated investment related arbitration claim which was resolved for $42,500.00 in damages based upon accusations that (1) unfounded statements and omissions had been made to the customer concerning real estate securities and direct investments (2) […]

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Newbridge Sanctioned By FINRA For Failure To Supervise

Newbridge Securities Corporation a securities broker dealer headquartered in Boca Raton Florida, and Bruce H. Jordan (Director of Investment Banking), have been censured by Financial Industry Regulatory Authority (FINRA) based upon findings that (1) Newbridge failed to supervise structured products sold to customers of the firm (2) Newbridge failed to supervise non-traditional exchange traded fund […]

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Lowell Company Sued For Exchanged Traded Fund Trading Misconduct

Jody Bryant Bowers of Abilene Texas a stockbroker formerly employed by Lowell Company Inc. is referenced in a customer initiated investment related arbitration claim where the customer sought between $100,000.00 and $500,000.00 in damages supported by accusations that (1) exchanged traded funds had been misrepresented and (2) the customer was provided with bad investment recommendations […]

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Money Concepts Capital Corp Sued For Negligence

Craig Alan Sutherland of Columbus Ohio a stockbroker registered with Money Concepts Capital Corp is the subject of a customer initiated investment related arbitration claim in which an Arbitration Panel ordered Money Concepts Capital Corp to pay the customer $698,979.00 in compensatory damages based on finding the firm liable on the customer’s claims including (1) […]

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David A. Noyes Sued Over Alternative Investments

Scott Lindsay Reed of Indianapolis Indiana a stockbroker registered with David A. Noyes Company is referenced in a customer initiated investment related arbitration claim which was settled for $395,000.00 in damages supported by allegations that (1) false or misleading statements and omissions had been made to the customers concerning the terms of non-traded real estate […]

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Investors Sue National Planning Corp For Negligence

Timothy David Ballard (also known as Tim Ballard) of Danville California a stockbroker employed by National Planning Corporation is referenced in a customer initiated investment related arbitration claim where the customer sought more than $100,000.00 in damages supported by allegations that (1) the customer’s account was handled in a negligent manner (2) fiduciary obligations were […]

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Kalos Sued By Investor For Bad Investment Recommendations

Daniel Ray Saur of Dallas Texas a stockbroker currently registered with Kalos Capital Inc. is referenced in a customer initiated investment related arbitration claim which was resolved for $60,000.00 in damages founded on accusations that (1) investment recommendations concerning real estate security and oil and gas products failed to be suitable for the customer and […]

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GF Investment Services Sued By Investors Over ETF Sales

Richard William Lunn Martin of Penang a stockbroker formerly employed by G.F. Investment Services LLC is the subject of a customer initiated investment related arbitration claim which settled for $117,000.00 in damages founded on accusations that (1) fiduciary duties owed to the customer had been breached (2) due diligence was not properly executed on investments […]

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Investor Sues Sigma For Failure To Supervise TIC Sales

Tomas Juhan Velken of Lafayette California a stockbroker currently employed by Sigma Financial Corporation is referenced in a customer initiated investment related arbitration claim which was resolved for $28,195.50 in damages supported by accusations that the customer was placed into tenant in common investments which had not been adequately investigated by Sigma Financial Corporation or […]

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Investors Sue WFG For Bad Alternative Investments

Mark Nelson Holloway of Edmond Oklahoma a stockbroker formerly registered with WFG Investments Inc. is referenced in a customer initiated investment related arbitration claim which was resolved for $10,000.00 in damages supported by allegations that (1) Holloway made omissions and misrepresentations to the customer concerning oil and gas direct investments and mutual funds and (2) […]

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UBS Stockbroker Suspended For Providing Unsuitable Investment Advice

Steven Paul Cooper of Century City California a stockbroker formerly employed by UBS Financial Services Inc. has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that (1) Cooper made bad investment recommendations to customers of the firm and (2) Cooper […]

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Investors Sue Merrill Lynch For Bad Investment Advice

Jacquin P. Fink of New York New York a stockbroker formerly registered with Merrill Lynch Pierce Fenner Smith Incorporated is the subject of a customer initiated investment related arbitration claim in which the customer requested $3,581,198.00 in damages supported by accusations of bad investment recommendations being made to the customer concerning (1) over-the-counter equities (2) […]

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Wilbanks Securities Sued For Failure To Disclose REIT Risks

Randall Lee Wilbanks of Oklahoma City Oklahoma a former executive of Wilbanks Securities Inc. has been named in a customer initiated investment related arbitration claim in which the customer sought $290,000.00 in damages based upon accusations that Wilbanks was responsible for (1) making omissions or misrepresentations concerning the risks pertaining to real estate security and […]

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Columbus Advisory Group Sued For $22.5 Million Private Placement Fraud

Michael Patrick Murphy of New York New York the Chief Executive Officer of Columbus Advisory Group Ltd. is the subject of a customer initiated investment related arbitration claim where the customer requested $22,500,000.00 in damages supported by accusations that the customer had been placed in direct participation program or limited partnership interests that were not […]

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Investors Sue LPL Financial For REIT Misconduct

Jordan John Boyle of Saratoga Springs Utah a stockbroker formerly employed by LPL Financial LLC is the subject of a customer initiated investment related written complaint on January 23, 2019 in which the customer requested $10,000.00 in damages founded on accusations that between September 10, 2014 and January 18, 2019, the customer was provided unsuitable […]

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Investor Sues Hennion Walsh For Muncipal Bond Fraud

Marc S. Strafaci of Parsippany New Jersey a stockbroker currently registered with Hennion Walsh Inc. is the subject of a customer initiated investment related arbitration claim which was resolved for $83,000.00 in damages supported by accusations that Strafaci made unsuitable investment recommendations to the customer concerning municipal debt products that the customer ultimately purchased and […]

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Sigma Financial Sued For Failure To Conduct Due Diligence

Harvey Allan Kaluzna of Northbrook Illinois a stockbroker currently employed by Sigma Financial Corporation is the subject of a customer initiated investment related arbitration claim which was settled for $28,000.00 in damages based upon accusations that (1) misrepresentations had been made to the customer concerning unit investment trust and real estate security investments held in […]

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FINRA Bars Ameritas Broker In Theft Investigation

Kristian M. Gaudet of Cut Off Louisiana a stockbroker formerly registered with Ameritas Investment Corp has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Gaudet failed to cooperate with a FINRA investigation into allegations of Gaudet’s misuse of customer funds during the […]

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Investors Sue TCM Securities For Massive Bond Fraud

James Hal Heafner (also known as Jim Heafner) of Charlotte North Carolina a stockbroker formerly registered with Taylor Capital Management Inc and former investment adviser representative of Retirement Wealth Advisors is the subject of a customer initiated investment related arbitration claim in which the customer requested $268,015.79 in damages founded on allegations that (1) inappropriate […]

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Investors Sue VSR Financial For Failure to Conduct Due Diligence

Scott Vincent Kaup of Stuart Nebraska a stockbroker formerly registered with VSR Financial Services Inc. is the subject of a customer initiated investment related arbitration claim where the customer requested $2,600,000.00 in damages founded on allegations that (1) misrepresentations and omissions had been made to the customer concerning investments (2) real estate security and direct […]

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Stockbroker Misconduct Continues to Plague Investors

The Financial Industry Regulatory Authority released its 2018 Examination Report, showing the areas in which the regulator has taken  some form of enforcement action against brokerage firms to prevent them from taking advantage of their customers, and to “better protect investors and maintain the integrity of the markets.” The Recommendation of Unsuitable Investments First, on […]

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Investors Sue WFG Investments For Misrepresentation

Stephen Anthony Pierce of Daphne Alabama a stockbroker formerly registered with WFG Investments Inc. is the subject of a customer initiated investment related arbitration claim in which the customer sought $50,000.00 in damages based upon accusations that (1) Pierce made omissions and misrepresentations concerning the customer’s private placement investments and (2) Pierce did not undertake […]

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FINRA Fines Brokerbank Securities For Due Diligence Failures

September 28, 2018  |   Posted by :   |   Failure to Conduct Due Diligence, Stockbroker Fraud News   |   0 Comments

Brokerbank Securities Inc. a FINRA member brokerage firm headquartered in Minnetonka Minnesota has been censured and fined by Financial Industry Regulatory Authority (FINRA) based on the firm’s consent to findings that it failed to conduct reasonable due diligence in a private placement. Letter of Acceptance Waiver and Consent No. 2015043584501 (Sept. 10, 2018). According to […]

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Berthel Fisher Sued For Unsuitable Investments

Alvery Anthony Bartlett Jr. of Saint Louis Missouri a stockbroker formerly registered with Berthel Fisher Company Financial Services Inc. is referenced in a customer initiated investment related civil action in which the customer sought $6,637,918.00 in damages founded on allegations that (1) unsuitable hedge funds and real estate securities had been effected in the customer’s […]

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Customer Sues Financial West For Oil And Gas Suitability

Mitchell Steven Morrison of Westlake Village, California is a former principal of Financial West Group who is the subject of a customer initiated investment related arbitration claim where the customer sought $1,937,365.00 in damages founded on accusations that Morrison failed to supervise a registered representative who made misrepresentations to the customer and placed unsuitable oil […]

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Financial West Group Sued For Misrepresentation

Sara Zhou of Oak Brook Illinois is a stockbroker formerly registered with Financial West Group who is the subject of a customer initiated investment related arbitration claim in which the customer sought one million seven hundred eighty-one thousand one hundred fifteen dollars in damages supported by allegations that (1) misrepresentations had been made regarding oil […]

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WFG Investments Sued By Customers For Fraud

James Neal Turner, of Plano, Texas, a stockbroker formerly registered with WFG Investments, Inc., has been identified in a customer initiated investment related arbitration claim on January 30, 2017, where the customer requested $75,000.00 in damages based upon allegations of misrepresentations made to customers in convertible preferred stock offering documents, and the failure to adequately […]

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Customer Arbitration Against RP Capital

Joel Matthew Price, of Gig Harbor, Washington, a stockbroker formerly registered with RP Capital LLC, has been named in a customer initiated investment related arbitration claim on August 31, 2016, in which the customer requested $158,491.00 in damages based upon allegations that Price made unsuitable investment recommendations to the customer, failed to conduct due diligence […]

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WFG Investments Named In FINRA Arbitrations

Garry Lynn Osing, of Cordova, Tennessee, a stockbroker currently registered with WFG Investments, Inc., has been named in a customer initiated investment related arbitration claim on January 31, 2017, in which the customer requested $30,924.00 in damages based upon allegations that Osing made unsuitable investment recommendations to the customer regarding real estate securities and equipment […]

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Customers File Arbitration Against Reef Securities For Failure To Supervise

Harris W. Kirk, of Richardson, Texas, a stockbroker Reef Securities, Inc., is subject to a pending customer dispute from February 11, 2016, in which a customer has requested $250,000.00 in damages after alleging that Kirk failed to conduct due diligence concerning investments, failed to disclose investment risks to the customer, committed breach of contract, and […]

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Centaurus Financial Stockbroker Martinsen In Customer Dispute

September 16, 2016  |   Posted by :   |   Failure to Conduct Due Diligence, Stockbroker Fraud News   |   0 Comments

Bryon E. Martinsen, of Northport, New York, a stockbroker with Centaurus Financial, Inc., was named in a customer dispute in which a customer is requesting $1,787,000.00 in damages after alleging that Martinsen sold the customer products that were unsuitable and had not been vetted with proper due diligence. According to FINRA BrokerCheck, Martinsen has also […]

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Financial West Group Fined For Due Diligence Failures

September 08, 2016  |   Posted by :   |   Failure to Conduct Due Diligence   |   0 Comments

Financial West Group, headquartered in Westlake Village, California, was censured and fined $40,000.00 by Financial Industry Regulatory Authority (FINRA) after consenting to findings that the firm’s supervisory systems and procedures concerning the due diligence of private placements were inadequate. Letter of Acceptance, Waiver and Consent, No. 66483 (Aug. 16, 2016). According to the AWC, between October […]

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First American Securities Compliance Officer Fined For Due Diligence Failures

Jervis B. Hough, of Orrville, Ohio, a stockbroker with First American Securities, Inc., was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any principal capacity after consenting to findings that he failed to conduct due diligence with regard to private placement transactions, and failed to follow supervisory […]

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