Unsuitable

Alabama Financial Advisor, Kevin McCallum, Formerly of LPL Financial, Suspended for One Year for Making Unsuitable Investment Recommendations

Published on: June 22, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Kevin McCallum from the securities industry for one year. Mr. McCallum consented to the suspension after FINRA alleged that from May 2017 through June 2019, while associated with LPL Financial LLC in Birmingham, Alabama, he made unsuitable recommendations to 12 customers, resulting in their overconcentration in a high-risk, publicly-traded business development company (BDC), believed to be Medley Capital Corporation.

Additionally, FINRA alleged that during the same period, Mr. McCallum sent emails to customers about the BDC that contained unwarranted and exaggerated claims, opinions, and forecasts, did not provide fair and balanced treatment of the risks and benefits of the investment, and contained promissory statements in violation of FINRA rules.

In addition to the suspension, Mr. McCallum was ordered to pay a $25,000 fine, disgorge $14,231 of commissions, and pay over $1.2 million in restitution to customers. However, it is unclear whether he will be able to satisfy the restation order and repay customers.

FINRA Files Enforcement Action Against Financial Broker Michael Giovannelli, Formerly of Spartan Capital Securities, for Unauthorized Trades in an Elderly Customer’s Account

Published on: June 18, 2021 | by Iorio Altamirano

**Update: April 30, 2022** On November 19, 2021, the FINRA Office of Hearing Officers entered a default decision barring Mr. Giovannelli from associating with any FINRA member firm in any capacity for providing falsified documents and false testimony to FINRA staff and engaging in unauthorized trading in a customer account. For the unauthorized trading, Mr. Giovannelli was also ordered to pay $1,494 in restitution, plus interest, to the customer. In light of the bars, the hearing officers did not impose any additional sanctions for Mr. Giovannelli’s discretionary trading without written authorization in four additional customer accounts.

Original Post:

FINRA Files Enforcement Action Against Financial Broker Michael Giovannelli, Formerly of Spartan Capital Securities, for Unauthorized Trades in an Elderly Customer’s Account

Former Worden Capital Management Broker, Salvatore Pizzimenti, Barred by FINRA – New York, New York

Published on: June 14, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has barred stockbroker Salvatore Pizzimenti from the securities industry. Mr. Pizzimenti was expelled from the brokerage industry for refusing to cooperate with a FINRA investigation related to improper trading in customer accounts while associated with Worden Capital Management LLC in New York.

According to a 2017 investigation by Reuters, Worden Capital Management hired more brokers with a history of significant disclosures than all but twenty-three other firms in the country. In 2021, Iorio Altamirano LLP set out to update that analysis.

The investigation revealed that fifty-four percent (54%) of Worden Capital Management’s brokers and supervisors have significant “red flag” public disclosures. Significant red flag disclosures include:

Broker Spotlight: David Murray of Worden Capital Management LLC – New York, NY

Published on: June 10, 2021 | by Iorio Altamirano

David Murray is a stockbroker with Worden Capital Management LLC (“Worden Capital Management”) in New York, New York. Mr. Murray has a history of customer disputes and associations with disreputable brokerage firms that have been expelled by FINRA.

If you have lost money with broker David Murray or Worden Capital Management, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential review of your account.

Worden Capital Management

Investor Alert: Iorio Altamirano LLP Investigates Titan Securities Over Sale of Future Income Payments

Published on: June 9, 2021 | by Iorio Altamirano

On June 8, 2021, the Financial Industry Regulatory Authority (“FINRA”) and Titan Securities entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby Titan Securities consented to a censure and $20,000 fine. The sanctions are a result of Titan Securities’ failure to properly conduct an evaluation of a broker’s proposed sale of Future Income Payments to customers.

Unrelatedly, just last week, Titan Securities CEO and owner Brad Brooks was suspended for one year for failing to supervise a broker’s outside business activities between 2009 and 2012.

FINRA Letter of Acceptance, Waiver, and Consent No. 2019061705101

Titan Securities CEO and Owner Brad Brooks Suspended for One Year

Published on: June 9, 2021 | by Iorio Altamirano

On June 2, 2021, FINRA’s National Adjudicatory Council modified a FINRA’s Office of Hearing Officers decision from 2019 that was filed by FINRA’s Department of Enforcement against Titan Securities, Brad Brooks, and broker Richard Demetriou. The modified order has resulted in a one-year suspension of Titan Securities’ CEO and owner Mr. Brooks.

The enforcement action arose out of alleged misconduct of Mr. Demetriou’s involvement with a private placement of preferred units in a limited partnership, RBCP Preferred, LLC (“RBCP”). RBCP was organized by the owner of Mr. Demetriou’s previous member firm, who employed Mr. Demetriou to solicit investments from Mr. Demetriou’s previous firm, and Mr. Demetrious represented that RBCP was offered to them as a means of recouping those losses. Mr. Demetriou recommended RBCP, made misrepresentations concerning the supposed collateral securing the investments, and told customers that an investment of 10 percent of their previous losses would result in recovery of their lost investments, plus a profit – alleged returns of more than 1,000 percent. The investors did not recoup their losses but instead lost an additional $337,000 when RBCP failed, and the alleged collateral was not foreclosed.

FINRA’s National Adjudicatory Council made the following findings:

Former UBS Broker, Ricardo Turlan, Suspended by FINRA – San Antonio, Texas

Published on: June 8, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Ricardo Turlan from the securities industry for two months. Mr. Turlan consented to the suspension after FINRA alleged that he engaged in discretionary trading without written authorization in two customer accounts between June 2017 and February 2019. Mr. Turlan also allegedly mismarked approximately 72 trades as “unsolicited” when the trades should have been marked as “solicited.” FINRA also fined Mr. Turlan $7,500.

The alleged conduct occurred while UBS Financial Services Inc. (“UBS”) employed Mr. Turlan in San Antonio, Texas. UBS discharged Mr. Turlan in July 2019, alleging misconduct related to a non-discretionary account and trading in accounts that reached levels that could be considered unsuitable.

If you have suffered financial losses investing with Ricardo Turlan, or suspect that Mr. Turlan 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.

Cadaret Grant Broker Matthew Zanowiak Suspended by FINRA – Lancaster, Pennsylvania

Published on: June 8, 2021 | by Iorio Altamirano

The Financial Industry Regulatory Authority “(FINRA”) has suspended Cadaret, Grant & Co., Inc. broker Matthew Zanowiak from the securities industry for ten business days for exercising discretion without written authorization in approximately 15 customer accounts. Mr. Zanowiak was also fined $5,000.

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

Iorio Altamirano LLP represents investors who have disputes with their financial advisors or brokerage firms, such as Cadaret Grant & Co., Inc.

Boiler Room Broker, James Flower, Barred by FINRA for Excessive Trading, Churning, Unauthorized Trading, Mismarking Orders, and Targeting Elderly Investors

Published on: June 3, 2021 | by Iorio Altamirano

Financial Industry Regulatory Authority (“FINRA”) Office of Hearing Officers has barred stockbroker James W. Flower from the securities industry for excessively trading in five customers’ accounts, executing 17 unauthorized trades, and mismarking 58 transactions. According to the findings, although he is based in New York, Mr. Flower generated business by cold calling people all over the country, focusing primarily on senior and elderly customers who are small business owners and retirees. Cold-calling customers is a common tactic for “boiler room” brokerage firms.

Mr. Flower was also ordered to pay restitution plus prejudgment interest to harmed customers. However, it is unclear whether he will be able to satisfy the judgment.

Mr. Flower was associated with Spartan Capital Securities, LLC since June 2019. Previously, he was associated with SW Financial from December 2015 to June 2019.

Broker Spotlight: Ross Barish of Joseph Stone Capital L.L.C. – Mineola, NY

Published on: May 31, 2021 | by Iorio Altamirano

Ross Barish is a stockbroker with Joseph Stone Capital L.L.C. (“Joseph Stone Capital”) in Mineola, New York. Mr. Barish is currently under investigation by the United States Securities and Exchange Commission (“SEC”) for defrauding sixteen retail customers by executing a high-cost, in-and-out pattern of trading that lost his customers over $800,000 while generating commissions and fees for him of more than $400,000.

The sixteen customers experienced total losses of $814,509.

If you have suffered financial losses investing with Ross Barish or Joseph Stone Capital L.L.C., or suspect that Mr. Barish 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 account or annuity contract.