Articles Tagged with investor protection

Daniel Todd Lerner is a stockbroker with David Lerner Associates, Inc. (“David Lerner ”) in White Plains, New York, with a history of customer complaints.

Mr. Daniel T. Lerner has been the subject of seven customer complaints, which include three pending disputes. The pending disputes are securities arbitration claims filed by customers of Mr. Daniel T. Lerner, alleging that he unsuitably recommended purchasing Energy 11, LP, a limited partnership investment that invests in offshore oil and gas properties.  Two of the complaints also include allegations that Mr. Daniel T. Lerner unsuitably recommended the purchase of the Great Art Fund.   All three complaints allege that Mr. Lerner misrepresented and omitted material facts related to these investments.

Separately, in January 2021, a customer alleged $100,000 in damages resulting from unsuitable investment recommendations concerning a mutual fund, as well as interests in Direct Participation Programs (DPP) and Limited Partnerships (LPs).  A DPP is a financial security that enables investors to participate in a business venture’s cash flow and tax benefits.  The customer did not file a securities arbitration complaint.  Instead, the customer complained directly to David Lerner, and the firm denied the complaint. Customers such as this investor may still file a securities arbitration complaint.  They should contact an experienced securities arbitration attorney to further consultation.

On behalf of a client, securities arbitration law firm Iorio Altamirano LLP has filed an arbitration claim through FINRA Dispute Resolution Services against David Lerner Associates Inc. (“David Lerner”).  The claim alleges that President and CEO Martin Walcoe and David Lerner unsuitably recommended that the customer purchase and hold Puerto Rico municipal bonds and misrepresented and omitted material facts concerning the risk and safety of the bonds.  The recommendations and misrepresentations occurred at a time when credit rating agencies were downgrading Puerto Rico municipal bonds and indicated that further credit downgrades were imminent.   At the time of the recommendations, Mr. Walcoe was an investment counselor and branch manager.

The claim also alleged that David Lerner also failed to suitably and properly allocate the customer’s brokerage account. Instead, David Lerner concentrated the customer’s account in risky, speculative, and uninsured Puerto Rico municipal bonds.

David Lerner’s recommendations to purchase and hold speculative Puerto Rico municipal bonds and its repeated recommendations to concentrate the customer’s investment accounts into speculative junk bonds were unsuitable and not in the customer’s best interest in light of the customer’s investment objectives and “middle ground” risk tolerance.

Here is how you can file a claim to recover losses suffered from trading restrictions placed on GameStop, AMC, Blackberry, Nokia, and other stocks.

On February 12, 2021, in a letter addressed to Senator Elizabeth Warren, Robinhood Financial, LLC confirmed twenty-four (24) pending securities arbitrations.

Robinhood’s letter was written in response to an inquiry sent by Senator Warren on February 2, 2021, as to why Robinhood “abruptly changed the rules” for retail investors by restricting the purchase of certain securities.

FINRA has suspended financial advisors Wenru Liang (“Liang”) and Jenny Xinfang Feng (“Feng”) from the securities industry for a six-month period. Neither is currently associated with any FINRA member.

FINRA found that Liang and Feng engaged in unethical conduct between April 2017 and August 2020 by designating themselves as beneficiaries on an elderly customer’s variable annuity policy. The customer was not related to Liang or Feng. FINRA also found that they had misrepresented their relationship with the customer to the annuity company and attempted to conceal their conduct from their firm, Transamerica Financial Advisors, Inc. (“Transamerica”).

In addition to their six-month suspension, Liang and Feng were also fined $7,500 each.

Michael Joseph Hernandez is a stockbroker with Arive Capital Markets LLC (“Arive Capital Markets”) in Brooklyn, New York.  Mr. Hernandez has a history of associations with disreputable broker-dealers and at least one customer complaint, employment termination, and regulatory sanction.

If you have lost money with broker Michael Hernandez or Arive Capital Markets, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Arive Capital Markets

This post is the first in a series of investigative blog posts that spotlight modern-day boiler rooms that operate under the guise of a reputable brokerage firm.  Many of the broker-dealers featured in this series still use boiler room tactics such as cold-calling customers and high pressure or aggressive sales tactics.  Other brokerage firms have a propensity for broker misconduct, such as excessive trading, churning, unauthorized trades, and misrepresentation.  Iorio Altamirano LLP is a securities arbitration law firm based in New York City. We represent investors nationwide who have suffered investment losses due to wrongful conduct by financial advisors and brokerage firms.  We are investor advocates.

SUMMARY:

  • In 2017, in collaboration with Columbia Law School, Reuters analyzed FINRA data and identified 48 firms whose brokers have been flagged for serious incidents. In 2021, our firm set out to update that analysis. 

We are continuing our discussion of FINRA’s 2021 Report on Risk Monitoring and Examination Activities. In Part Two, we will focus on FINRA’s comments and findings related to Variable Annuities, Outside Business Activities, and Private Securities Transactions and Private Placements. These are all areas of interest that directly affect retail investors, and in which FINRA found deficiencies following its examination of member-firms. 

If you are interested in FINRA’s comments regarding Regulation Best Interest (Reg BI), Communications with the Public, and Best Execution, you can read Part One of our discussion here.

Variable Annuities

Lon Charles Faccini Jr. is a stockbroker with Arive Capital Markets LLC (“Arive Capital Markets”) in Brooklyn, NY, with a history of customer complaints and associations with disreputable broker-dealers.

Mr. Faccini has been the subject of seven customer complaints, which include two pending disputes. The pending disputes are securities arbitration claims filed by customers of Mr. Faccini.  At least one of the customers was also a client of Arive Capital Markets.  The Arive Capital Markets customer alleged excessive trading, churning, and unsuitability.  The second customer alleged misrepresentation and unsuitability.

If you have lost money with broker Lon Faccini or Arive Capital Markets, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

The Financial Industry Regulatory Authority (“FINRA”) has suspended former broker Jasmit Singh from the securities industry for seven months over allegations that Mr. Singh participated in private securities transactions and engaged in outside business activities without providing prior written notice to his firm. In addition to the suspension, FINRA fined him $10,000 and ordered him to disgorge $5,500 in finder’s fees.

Mr. Singh was registered as an Investment Banking Representative with J.P. Morgan Securities LLC (“J.P. Morgan”) in New York, NY, from August 2017 until February 2020.

If you have lost money with former broker Jasmit Singh or J.P. Morgan, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Earlier this week, FINRA released its 2021 Report on Risk Monitoring and Examination Activities. The Report replaced two of FINRA’s prior publications – FINRA’s Examination Findings and Observations Report and FINRA’s Risk Monitoring and Examination Priorities Letter. The Report provided an in-depth look at FINRA’s priorities, recommended best practices for broker-dealer members, and regulatory findings. The Report reiterated FINRA’s commitment to protecting senior and vulnerable investors and highlighted several important areas of interest that directly affect retail investors, including:

  • Regulation Best Interest (Reg BI)
  • Communications with the Public
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