Securities Law

The Stockbroker Malpractice team of McCarthy, Lebit, Crystal & Liffman Co., LPA  is investigating claims against Mark N. Wesley, a former broker with Ameriprise Financial Services. Wesley, who worked in Independence, Ohio, now is out of the industry. Mark Wesley’s Fraudulent Practices According to his public record, Wesley recently was “permitted” by the Ameriprise to resign …

On October 17, 2016, broker-dealer ProEquities, Inc. of Birmingham, Alabama was censured and fined $165,000 by FINRA. The firm consented to the sanctions and to the entry of findings that (among other things) it failed to establish, maintain, and enforce adequate written procedures to supervise sales of non-traditional Exchange Traded Funds or “ETFs”. The findings …

This summer, the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) both fined Merrill Lynch, the brokerage arm of Bank of America Corporation, for negligently failing to adequately disclose information in connection with the sale of a product called “Strategic Return Notes” (“SRNs”). These structured notes were issued by Merrill Lynch’s …

The Stockmarketloss investment fraud team at McCarthy, Lebit, Crystal & Liffman Co. LPA is investigating claims against stockbroker Dominic Tropiano, formerly of America Northcoast Securities in Cleveland, OH. During much of Tropiano’s tenure with America Northcoast Securities, he allegedly serviced customers’ accounts and solicited securities sales despite the fact that he was neither registered with …

On October 17, 2016, broker-dealer ProEquities, Inc. of Birmingham, Alabama was censured and fined $165,000 by FINRA. The firm consented to the sanctions and to the entry of findings that (among other things) it failed to establish, maintain, and enforce adequate written procedures to supervise sales of non-traditional Exchange Traded Funds or “ETFs”. The findings …

Our financial advisor malpractice team is now accepting cases for review involving thirteen investment advisory firms penalized by the Securities and Exchange Commission (SEC). These firms provided customers with false information about AlphaSector Index Funds, a series of products designed by defunct investment manager F-Squared Investments and its former CEO Howard Present. F-Squared’s False Reporting …

Many investors buy exchange-traded funds, more commonly called ETFs.  ETFs are usually registered investment companies whose shares represent an interest in a portfolio of securities that track an underlying benchmark or index. Shares of ETFs trade daily on a securities exchange at prices established by the market. But watch out if your financial adviser is recommending …

Individual investors across the country have invested heavily in Master Limited Partnerships (MLPs) — tax-exempt, publicly traded companies that own pipelines, storage tanks, and other cash-generating infrastructure related to energy production. Energy MLPs are commonly divided into three types: upstream, midstream, and downstream. These designations pertain to the movement of energy-related natural resources from producing …

Economists have suggested for years that while stockbrokers and brokerage firms will occasionally outperform the market, those instances are pretty much a product of random chance. Over a longer period than one year, the recommendations of these “expert” advisors add no value to investors’ portfolios. Investors would likely receive the same results by throwing darts …

On November 17, 2015, The Financial Industry Regulatory Authority (“FINRA”) filed a disciplinary action against David Miller, formerly a stockbroker employed by the Huntington Investment Company. FINRA has charged that Miller acted improperly in recommending and selling investments known as Unit Investment Trusts (“UITs”).  Specifically, FINRA asserts that Miller failed to perform required due diligence …

If your broker ever sends you a letter saying he or she is leaving for another firm and would like you transfer your accounts, don’t just acquiesce. This is a big red flag and you need to investigate further. Reasons Brokers Move Brokers move to new firms for many reasons, most of which involve a …

On April 3, 2015, we mentioned that Thomas J. Buck, who was Merrill Lynch’s top financial adviser in Indiana by assets under management –reportedly $1.3 billion – had been suddenly and unexpectedly terminated for alleged compliance violations. We quoted the publication Investment News as saying: Mr. Buck was ultimately terminated because of ‘conduct including failing …

In our May 18th post, we discussed stockbrokers (sales persons who purportedly dispense advice only in conjunction with selling investment products) and investment advisors (who give investment advice but don’t sell products.) Although stockbrokers are fiduciaries under the law of some states — including our own state, Ohio — many courts have held otherwise, concluding …

We continue to see lots of activity involving unsuitable sales of non-traded Real Estate Investment Trusts (“non-traded REITs”). If you’re a retail customer who was sold one of these things with promises of higher yields, guaranteed returns, principal protection, or other bogus enticements, you’ve probably already lost money and may now find yourself stuck. Call …