South Florida Arbitration & Litigation Lawyer Blog
FINRA Securities Fraud and Investment Fraud and Mismanagement Arbitration Attorney, Russell L. Forkey, Esq.
FINRA January, 2011 Enforcement Actions:
Cambridge Legacy Securities, L.L.C. (CRD #103722, Dallas, Texas) and Tommy Edward Fincher (CRD #1725266, Registered Principal, Mesquite, Texas) submitted a Letter of Acceptance Waiver and Consent in which the firm was censured and ordered to pay $218,400 in restitution to customers. If the firm fails to provide FINRA with proof of restitution, it shall immediately be suspended from FINRA membership until such proof has been provided. Fincher was fined $5,000 and suspended from association with any FINRA member in any principal capacity for six months. Read More.
Cohen & Company Securities, LLC (CRD #104002, Philadelphia, Pennsylvania) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $50,000, ordered to pay $899,251, plus interest, in restitution to customers, and required to review its supervisory system and procedures concerning its pricing of principal transactions with customers for compliance with FINRA rules and the federal securities laws, and to certify to FINRA within 90 days that it has in place systems and procedures reasonably designed to achieve compliance with laws, regulations and rules concerning charging fair prices in principal transactions with customers, including transactions in debt securities. Read More.
Fidelity Brokerage Services LLC (CRD #7784, Smithfield, Rhode Island) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $35,000. Read More.
First American Capital and Trading Corporation (CRD #118812, Boca Raton, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $22,500. Read More.
Janney Montgomery Scott, LLC (CRD #463, Philadelphia, Pennsylvania) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $175,000. Read More.
Jupiter Distribution Partners, Inc. (CRD #130850, Greenacres, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $20,000. Read More.
NEXT Financial Group, Inc. (CRD #46214, Houston, Texas) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $400,000 and ordered to pay $103,179.84, plus interest, in restitution to customers. Read More.
Peraza Capital and Investment, LLC (CRD #117851, St. Petersburg, Florida) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $12,500. Read More.
Scottrade, Inc. (CRD #8206, St. Louis, Missouri) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $35,000. Read More.
TD Ameritrade, Inc. (CRD #7870, Bellevue, Nebraska) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $35,000. Read More.
Hernan Esteban Arbizu (CRD #4610869, Registered Representative, Fairfield, Connecticut, formerly licensed with J.P. Morgan Securities, Inc.). Read More.
George Abbott Berry (CRD #4319797, Registered Representative, Tuscaloosa, Alabama) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.
David William Dube (CRD #3041983, Registered Principal, St. Petersburg, Florida, formerly licensed with Peak Securities Corporation) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.
Chad R. Duncan (CRD #4119031, Registered Principal, Hermitage, Pennsylvania, formerly licensed with LPL Financial Corporation and Invest Financial Corporation) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Read More.
Antonio Herrero-Rovira (CRD #1878587, Registered Principal, Rio Piedras, Puerto Rico, formerly licensed with UBS Financial Services Incorporated of Puerto Rico and Popular Securities, Inc.) was barred from association with any FINRA member in any capacity. Read More.
Claude Steven Mosley (CRD #1161832, Registered Representative, Myrtle Beach, South Carolina formerly licensed with Capital Investment Group, Inc.) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $15,000 and suspended from association with any FINRA member in any capacity for four months. Read More.
Michael Anthony Nemcik (CRD #5405918, Registered Representative, Tampa, Florida) was barred from association with any FINRA member in any capacity. Read More.
Robert Charles Pollock (CRD #4490116, Registered Representative, Palm Harbor, Florida formerly licensed with Workman Securities Corporation) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $94,650, which includes disgorgement of $34,650 in commissions, suspended from association with any FINRA member in any capacity for one year, and ordered to pay $76,922, plus interest, in restitution to customers. Read More.
Larrye Alfie Smith (CRD #1131839, Registered Principal, Miami, Florida) submitted a Letter of Acceptance, Waiver and Consent in which he was censured, fined $7,500 and suspended from association with any FINRA member in any capacity for six months. Read More.
Mahmood Hasan Usmani, (CRD #5727193, Associated Person, Bartlett, Tennessee) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity and ordered to disgorge $24,286.67 in unlawful profits. Read More.
Complaints filed by FINRA in January, 2011:
Daniel Edward Becerril II (CRD #4489715, Registered Representative, Huntington Beach, California, formerly licensed with Veritrust Financial, LLC.) was named as a respondent in a FINRA complaint alleging that a prospective customer gave Becerril $11,500 to invest in a mutual fund on her relative’s behalf, and although he fraudulently misrepresented that he was going to invest her funds in the mutual fund, he misused the customer’s funds by depositing the funds into a bank account he controlled. Read More.
Raymond Thomas Blunk (CRD #2011245, Registered Representative, Carmel, Indiana) was named as a respondent in a FINRA complaint alleging that he recommended that customers participate in a Stock to Cash program under which customers pledged stock to obtain loans to purchase other products; Blunk’s customers obtained loans totaling approximately $1.7 million. Read More.
Brendan Walter Coughlin (CRD #4917244, Registered Principal, Dallas, Texas) and Henry Deimel Harrison (CRD #4919907, Registered Principal, Dallas, Texas) were named as respondents in a FINRA complaint alleging that they were co-founders, managing partners and registered principals of a member firm that marketed and sold preferred stock interests in a series of private placements offered by the firm’s affiliated issuer, a nonregistered entity; and Coughlin and Harrison were also founders of the affiliated issuer. Read More.
Richard A. Garaventa (CRD #3101772, Associated Person, Dannemora, New York) was named as a respondent in a FINRA complaint alleging that he misappropriated over $2.5 million from his member firm, firm customers and a firm counterparty for his own benefit. Read More.
Hsin-Chuan Hsu aka Henry Hsu (CRD #1655196, Registered Representative, Marlboro, New Jersey) was named as a respondent in a FINRA complaint alleging that he fraudulently caused the transfer of profitable trades that were originally billed to the accounts of firm’s customers into his relatives accounts, resulting in profits to one of the relative’s account of approximately $47,118 and profits to the other relative’s account of approximately $2,625. Read More.
Paul James Marshall (CRD #1889692, Registered Supervisor, Atlanta, Georgia) was named as a respondent in a FINRA complaint alleging that he obtained the option to purchase shares of a company after he obtained bank financing for the company and offered to purchase shares for a member firm customer. Read More.
Brian Reuben Mitchell (CRD #5205677, Registered Representative, Streetsboro, Ohio) was named as a respondent in a FINRA complaint alleging that he engaged in an outside business activity selling legal and identity theft services, for compensation, and failed to provide prompt written notice to his member firm. Read More.
Miguel Angel Murillo (CRD #4875997, Registered Representative, Bayshore, New York) was named as a respondent in a FINRA complaint alleging that he recommended excessive transactions in a customer’s account that were unsuitable in light of the customer’s financial situations, needs and investment objectives. Read More.
Charles Edward Severt Jr. (CRD #2866408, Registered Representative, Dayton, Ohio) was named as a respondent in a FINRA complaint alleging that, while serving as a church treasurer, he took approximately $20,000 in funds from the church without that entity’s authorization. The complaint alleges that Severt failed to respond to FINRA requests for information. (FINRA Case #2010023062101)
Complaints Filed by FINRA in January 2011 Against Associated Persons:
Thaddeus Newel (CRD #2060528, Registered Representative, Farmington Hills, Michigan) was named as a respondent in a FINRA complaint alleging that he instructed a public customer-a senior investor-to write him checks totaling $135,000… Read More.