Breach of Fiduciary Duty

J.P. Morgan Broker Edward Turley Barred from Industry by FINRA

Published on: November 21, 2022 | by Greco & Greco, P.C.

FINRA recently issued a Letter of Acceptance, Waiver, and Consent relating to J.P. Morgan broker Edward Turley from San Francisco, California that resulted in Mr. Turley being barred from the securities industry by FINRA.

The letter alleges that Mr. Turley has been registered with J.P. Morgan Securities LLC since 2009, and that he was terminated by J.P. Morgan in 2021 for “[l]oss of confidence concerning adherence to firm policies and brokerage order handling requirements.” According to FINRA, Mr. Turley has had five FINRA multi-million dollar arbitrations filed in 2020 – 2021 relating to allegations regarding sales practice violations and unsuitable trading. One of these resulted in an arbitration award.

Mr. Turley apparently refused to provide on the record testimony to FINRA in response to a Rule 8210 Request.

Anthony (Tony) Liddle of Oshkosh Wisconsin Barred by FINRA for Loans from Customers

Published on: August 25, 2022 | by Greco & Greco, P.C.

FINRA recently barred Oshkosh, Wisconsin broker Anthony (Tony) Liddle who was registered with Landolt Securities. The FINRA AWC states that it allegedly learned that Mr. Liddle had borrowed $1.8 million dollars from 13 customers, and that Mr. Liddle agreed to the FINRA bar. FINRA Rules and most state securities regulations generally ban securities advisors from borrowing from customers. Prior to Landolt Securities, Mr. Liddle was registered with Western International Securities in Wausau, Wisconsin.

Mr. Liddle’s FINRA Brokercheck states that Mr. Liddle was permitted to resign after allegations that he took GWG investment monies and deposited them in a Prosper Wealth Management Account. The Brokercheck further lists five customer complaints alleging the stealing of assets and issuance of promissory notes.

Greco & Greco has extensive experience representing customers of financial advisors across the country who steal funds and assets and/or borrow monies from customers. Please contact W. Scott Greco for a free attorney consultation if you believe you may be a victim of Mr. Liddle or other advisors who engaged in wrongful conduct.

North Carolina Morgan Stanley Broker Accused by SEC of Operating Ponzi Scheme

Published on: June 24, 2022 | by Greco & Greco, P.C.

Shawn Edward Good, who was a registered broker with Morgan Stanley it its Wilmington, North Carolina office, was recently barred by FINRA by consent agreement. Mr. Good also has a pending SEC Complaint against him alleging the following involvement in a ponzi scheme:

From 2012 until 2022 Mr. Good solicited customers to transfer funds to his personal bank account, allegedly for investments in real estate and government bonds.
In ponzi scheme fashion, the transferred monies were used to repay earlier customers who had also invested, in addition to payment of Mr. Good’s personal expenses.

Virginia Securities Broker Barred by FINRA After Loan Investigation

Published on: June 2, 2022 | by Greco & Greco, P.C.

Former Richmond, Virginia Oppenheimer & Co. Inc. financial advisor Warren E. Rowe Jr. was barred from the securities industry by FINRA recently after an investigation related to alleged loans taken from customers.

According the the FINRA Letter of Acceptance Waiver and Consent found here, Mr. Rowe refused to provide documents in response to a request of FINRA investigators. The AWC, signed by Mr. Rowe, imposed a bar on Mr. Rowe’s association with any FINRA member in all capacities.

Mr. Rowe’s FINRA Brokercheck report reveals that he voluntarily resigned from Oppenheimer in May 2020 after an allegation that he took a loan from a client without disclosing it to the firm. The report also references multiple customer complaints related to alleged loans, as well as complaints related to unauthorized trading, and inappropriate margin use. Interestingly, a customer complaint regarding a loan made after his separation from Oppenheimer is still listed as “denied” by the firm.

Caution Urged in 401(K) Plan Investments in Cryptocurrencies

Published on: June 1, 2022 | by Greco & Greco, P.C.

The U.S. Department of Labor has sounded a warning regarding 401(k) plan investments in cryptocurrencies. In Compliance Assistance Release No. 2022-01 (issued March 10, 2022), 401(k) plan fiduciaries are urged to “exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants.” Because of the risks and uncertainties associated with cryptocurrencies, the guidance document raises “serious concerns about the prudence of a fiduciary’s decision to expose a 401(k) plan’s participants to direct invest in cryptocurrencies or other products whose value is tied cryptocurrencies.”

Under federal laws governing retirement plans (commonly known as ERISA), the investment manager of a 401(k) plan is considered a fiduciary, who must act solely in the financial interests of the plan participants. Courts hold fiduciaries to very high standards of professional care and prudence. When these standards are breached, the asset manager can be held personally liable for the losses resulting from the breach. For 401(k) plans, the fiduciary is obligated to evaluate independently which investments are suitable to include in the investment options from which plan participants may choose. Offering imprudent investment options to participants is considered a breach of duty.

The Department of Labor identified several areas of concern that make cryptocurrencies and cryptocurrency-tied products exceptionally risky investments for 401(k) participants.