Articles Posted in Unauthorized Trading

FINRA has suspended former RBC Capital Markets broker Scott Fergang from the securities industry for 15 business days for exercising discretion without written authorization in approximately four customer accounts. The suspension is scheduled to start on May 17, 2021, and end on June 7, 2021. Fergang was also fined $5,000.

If you have lost money with Scott Fergang, or RBC Capital Markets, contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors in disputes with their financial advisors or brokerage firms, such as RBC Capital Markets.

FINRA has suspended Cadaret, Grant & Co., Inc. broker Paul Spero from the securities industry for 15 business days for exercising discretion without written authorization in approximately 70 customer accounts. The suspension is scheduled to start on May 17, 2021, and end on June 7, 2021.

Spero was also fined $5,000.

If you have lost money with Paul Spero, or Cadaret, Grant & Co., Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

FINRA has suspended Crown Capital Securities, L.P. broker Kevin Barton from the securities industry for four months for engaging in an outside business activity, exercising discretion in customers’ accounts without prior written authorization, and mismarking trades as unsolicited. Barton was also fined $17,500.

If you have lost money with Kevin Barton, or Crown Capital Securities, L.P., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors in disputes with their financial advisors and brokerage firms, such as Crown Capital Securities, L.P.

FINRA has barred Kayan Securities, Inc. broker Sun Hyung Kim from the securities industry.

If you have lost money with Sun Hyung Kim, or Kayan Securities, Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.  

Iorio Altamirano LLP represents investors in disputes with their financial advisors and brokerage firms, such as Kayan Securities, Inc.

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Constantinos Maniatis from the securities industry for 30 days.  Mr. Maniatis consented to the suspension after FINRA alleged that he engaged in discretionary trading without written authorization in seven customer accounts between May 4, 2018, and February 27, 2019.  FINRA also fined Mr. Maniatis $5,000.

The alleged conduct occurred while Morgan Stanley employed Mr. Maniatis in Dallas, Texas.   Morgan Stanley discharged Mr. Maniatis in May 2019, alleging misconduct related to a non-discretionary account and diverting of revenue from “assigned rep code.”

If you have suffered financial losses investing with Constantinos Maniatis, or suspect that Mr. Maniatis did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your brokerage account.

FINRA has suspended former Insigneo broker Ignacio Erhart Del Campo from the securities industry for 2 months for exercising discretion in a customer’s account without proper authorization and engaging in unauthorized trading. Erhart Del Campo was also fined $7,500 and ordered to pay restitution of $19,189 plus interest.

If you have lost money with Ignacio Erhart Del Campo, or Insigneo, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

FINRA Letter of Acceptance, Waiver, and Consent (“AWC”)

FINRA has suspended former Aegis Capital broker Edmund Zack from the securities industry for eight months for engaging in unsuitable and excessive trading, exercising discretion in customer accounts without written authorization, and causing Aegis to maintain inaccurate books and records. Zack was also fined $10,000 and consented to disgorgement of $5,161 in commissions.

He is no longer associated with a FINRA member but remains subject to FINRA’s jurisdiction.

If you have lost money with Edmund Zack, or Aegis Capital, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

**Update: 4/15/2021** On February 1, 2021, another customer of Steven Luftschein filed a securities arbitration complaint against Mr. Luftschein and Aegis Capital Corp. for recommending unsuitable investments.    If you have suffered financial losses investing with Mr. Luftschein or Aegis Capital Corp, contact Iorio Altamirano LLP for a free and confidential review of your legal rights.

Original Post:

Steven Robert Luftschein, Formerly with Aegis Capital Corp, Barred by FINRA

FINRA has suspended financial advisor Jay Clint Tomlinson from the securities industry for three months and fined him $7,500.   Mr. Tomlinson’s sanctions arise from his improper use of discretion without written authorization when placing 379 trades in three customers’ accounts.

FINRA has also censured Tomlinson’s employer, New York financial services firm R.F. Lafferty & Co., Inc., and ordered the firm to pay a fine of $55,000.   R.F. Lafferty & Co., Inc. (“R.F. Lafferty”) failed to maintain order memoranda that accurately reflected whether trades were solicited or unsolicited for more than 56,000 trades in customer accounts. R.F. Lafferty also failed to establish and maintain a supervisory system, and failed to enforce written supervisory procedures, reasonably designed to achieve compliance with applicable recordkeeping laws, regulations, and rules pertaining to review and retention of order memoranda.

This is not the first time Mr. Tomlinson and R.F. Lafferty have been sanctioned by FINRA. In November 2012, Mr. Tomlinson was suspended for 30 days and fined $7,500 for failing to timely provide documents and information to FINRA.  At the time, Mr. Tomlinson was the Chief Compliance Officer at Brimberg & Co.   Brimberg & Co. was expelled from the securities industry by FINRA for failing to pay its monetary fines.

FINRA has suspended financial advisor Douglas William Stopkey from the securities industry for a 30-day period, which began on November 16, 2020, and runs through December 15, 2020. Douglas Stopkey was registered with Merrill Lynch, Pierce, Fenner & Smith in Richmond, VA, from March 1992 until September 2018, when he was terminated. Since then, he has been registered with Davenport & Company LLC in Richmond, VA.

If you have lost money with Douglas Stopkey, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Douglas Stopkey and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on October 26, 2020, over allegations related to Stopkey’s conduct between January 2016 and June 2018.  Specifically, FINRA alleged:

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