Negligent Supervision

Johnny Clifton – Florida Oil and Gas Limited Partnership Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney

Published on: July 17, 2013 | By Russell L. Forkey, P.A.

The Securities and Exchange Commission Sanctions Johnny Clifton for Antifraud and Failure to Supervise Violations

The Securities and Exchange Commission (Commission) recently announced that it barred Johnny Clifton, who was president, chief executive officer, and principal of MPG Financial, LLC, a former Commission-registered broker-dealer, from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, entered a cease-and-desist order, and imposed a $150,000 third-tier civil money penalty. The Commission found that Clifton violated Sections 17(a)(1), 17(a)(2), and 17(a)(3) of the Securities Act of 1933 because he made material misrepresentations and omissions in the offer and sale of oil-and-gas limited partnership interests, and through those misrepresentations, omissions, and other misconduct he engaged in a fraudulent scheme and course of business that operated as a fraud on prospective investors. The Commission also found that Clifton violated Section 15(b) of the Securities Exchange Act of 1934 because he failed reasonably to supervise at least one MPG Financial sales representative with a view towards detecting and preventing the sales representative’s securities law violations. Concluding that it was in the public interest to impose a full collateral bar on Clifton, the Commission stated that “[h]is repeated and egregious misconduct evidences an unfitness to participate in the securities industry that goes beyond the professional capacity in which he was acting” and “demonstrates his unfitness to participate in the securities industry in any capacity.”

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Yield To Maturity (YMT) – South Florida Fixed Income Breach of Fiduciary Duty, Negligent Supervision and Fraud FINRA Arbitration and Litigation Attorney

Published on: July 13, 2013 | By Russell L. Forkey, P.A.

Yield to Maturity (YTM) – South Florida Breach of Fiduciary Duty, Negligent Supervision and Breach of Contract Litigation and FINRA Arbitration Attorney, Russell L. Forkey, Esq.

“Yield to Maturity” is a concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond is held to it maturity date. It takes into account the purchase price, redemption value, time to maturity, coupon yield, and the time between interest payments. Recognizing time value of money, it is the discount rate at which the present value of all future payments would equal the present price of the bond, also known as the internal rate of return. It is implicitly assumed that coupons are reinvested at the yield to maturity date.

Please keep in mind that the above referenced post is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice. If the reader has any questions concerning the contents of this post, you should contact a qualified professional.

Manhattan Beach Trading Financial Services dba MB Trading – South Florida Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: July 4, 2013 | By Russell L. Forkey, P.A.

Manhattan Beach Trading Financial Services dba MB Trading – South Florida Negligent Supervision FINRA Arbitration and Litigation Attorney:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

KeyBanc Capital Markets, Inc. f/k/a McDonald Investments Inc. – Florida Failure to Supervise and/or Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: July 4, 2013 | By Russell L. Forkey, P.A.

KeyBanc Capital Markets, Inc. f/k/a McDonald Investments Inc. – Florida Failure to Supervise and/or Negligent Supervision FINRA Arbitration and Litigation Attorney:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

Sales Practice Violations – Discretionary Trading Without Authorization, Unauthorized Trading, Unsuitable and Excessive Trading and Churning – South Florida FINRA Arbitration and Litigation Attorney

Published on: July 3, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission Sustains FINRA Disciplinary Action against Registered Representative and Supervisor

The Securities and Exchange Commission has sustained disciplinary action by the Financial Industry Regulatory Authority (“FINRA”) against William J. Murphy and Carl M. Birkelbach, formerly associated with member firm Birkelbach Investment Securities, Inc. In its opinion, the Commission sustained FINRA’s finding of sales practice violations by Murphy, which included discretionary trading without authorization, unauthorized trading, unsuitable and excessive trading, churning, and the creation and distribution of misleading communications. In one customer account at issue, Murphy engaged in excessive options trading that generated over one million dollars in commissions in the span of approximately three-and-half years. The Commission also sustained FINRA’s findings of supervisory violations by Birkelbach for ignoring obvious and repeated red flags with regard to Murphy’s handling of customer accounts. Finally, the Commission has sustained FINRA’s imposition of sanctions: a bar in all capacities and the disgorgement of $585,174.67 for Murphy and bar in all capacities for Birkelbach.

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Naked Option and Covered Option – Florida Securities Fraud, Misrepresentation, Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: May 25, 2013 | By Russell L. Forkey, P.A.

Naked Option – Florida Breach of Fiduciary Duty, Negligent Supervision and Mismanagement FINRA Arbitration and Litigation Attorney:

A Naked Option is an option for which the buyer or seller has no underlying security position. A writer of a naked Call Option, therefore does not own a Long Position in the stock on which the call has been written. Similarly, the writer of a naked Put Option does not have a Short Position in the stock on which the put has been written. Naked options are very risky and are not suitable for many investors, especially risk adverse investors. However, naked options can be potentially rewarding. If the underlying stock or stock index moves in the direction sought by the investor, profits can be large, because the investor would only have had to put down a small amount of money to obtain large returns. On the other hand, if the stock moves in the opposite direction, the writer of the naked option could be subject to huge losses.

Please keep in mind that the information being provided in this post is for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If the reader has any questions relative to this post, you should contact a qualified professional

Alison Marie Janke – Florida Securities and Investment Unapproved Loan FINRA Arbitration and Litigation Attorney

Published on: January 27, 2013 | By Russell L. Forkey, P.A.

Alison Marie Janke – Registered Representative, Port Richey, Florida:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

Brett Henderson – Florida Variable Annuity Switch and Surrender Mismanagement FINRA Arbitration and Litigation Attorney

Published on: January 27, 2013 | By Russell L. Forkey, P.A.

Brett Henderson – Registered Representative, North Salt Lake City, Utah:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

Sean K. Hannon – Boca Raton, Florida Securities and Investment Fraud and Misrepresentation Litigation and Arbitration Attorney

Published on: January 27, 2013 | By Russell L. Forkey, P.A.

Sean K. Hannon – Registered Representative, Cary, North Carolina:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

Joel William Carlson – South Florida Securities Theft and Conversion FINRA Arbitration and State and Federal Litigation Attorney

Published on: January 21, 2013 | By Russell L. Forkey, P.A.

Joel William Carlson – Registered Representative, Vadnais Heights, Minnesota:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links: