The Financial Industry Regulatory Authority has charged broker Thomas Sharp with making misleading communications to customers concerning non-traded REITs. FINRA alleges that Sharp violated NASD Rule 2210(d) by sending customers e-mails recommending the REITs that were not fair and balanced and failed to provide a sound basis for evaluating the facts. Sharp was associated with…
Continue reading ›During October 2014, LPL Financial agreed to reimburse nearly $550,000 to investors to resolve a Massachusetts claim that LPL had allowed its brokers to engage in “annuity switching” in the accounts of senior investors. “Annuity switching” means that a broker advises an investor to sell one annuity in order to purchase another for no legitimate…
Continue reading ›FINRA suspended Herbert Leonard Kaye, formerly a First Allied Broker, for four months beginning September 2015 and fined him $25,000, including a $11,000 in disgorgement of commissions charged to a customer. According to FINRA, Kaye carried out 2,000 discretionary trades in the account of a sole customer between June 2010 and April 2013. Kaye’s customer…
Continue reading ›FINRA has filed a complaint against registered reprensentative Darrell W. Mikulencak alleging forgery and failing to appear to testify in Kansas City. FINRA alleges that Mikulencak forged a bank employee’s signature as well as that of a notary public in order to transfer the registration of stock certificates. Mikulencak allegedly did not have authority or…
Continue reading ›The U.S. District Court for the Northern District of Illinois sentenced Oscar Donald Overbey, Jr. to 3.5 years in federal prison for defrauding more than 30 people out of $4 million. The court found that he had defrauded his clients to pay for personal expenses and fund a gambling habit. Overbey allegedly convinced his victims…
Continue reading ›During August 2014, Financial Industry Regulatory Authority (FINRA) filed a complaint against Steven L. Stahler, formerly a broker with VSR Financial Services, for making unsuitable recommendations to his customers. Allegedly, Stahler recommended high concentrations of private placements and real estate investment trusts (REITs) that exceeded his clients’ stated risk tolerance and investment objectives. His recommendations…
Continue reading ›FINRA has barred Jo Ellen Fisher, a former Raymond James broker who allegedly set up a scheme to steal nearly $1 million from her 95 year old client. By forging a godparent certificate, Fisher’s daughter was set to receive the money upon turning 21. Raymond James has sought to recoup the money but it is…
Continue reading ›In August 2014, the Financial Industry Regulatory Authority (FINRA) filed a complaint against Jeffrey Meyer for allegedly participating in 37 private securities transactions, totaling over $1.5 million in violation of firm policies and FINRA Rules. Meyer was affiliated with Waddell & Reed and WRP Investments, Inc. FINRA singled out the following private securities transactions in…
Continue reading ›The Securities and Exchange Commission (SEC) charged Donna Jessee Tucker with stealing $730,000 from her elderly clients in order to finance her luxurious lifestyle. The SEC alleges that Tucker purposefully arranged for her clients’ statements to be delivered electronically although some might not be able to access the internet due to their advanced age. Furthermore,…
Continue reading ›VSR Financial Services, Inc. was recently part of a $3.74 million settlement in Texas state court because a former VSR advisor, Charles Chapman, allegedly recommended high risk, illiquid alternative investments during the credit crisis. Chapman allegedly recommended that his client, Mr. Gordon McLendon, Jr. invest in Diversified Business Services & Investments Inc. (DBSI). However, DBSI…
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