Greco & Greco's lawyers represent investors to recover losses caused by securities fraud, churning, lack of suitability, negligence, sales of unregistered securities, unauthorized trading, and other misconduct by stock brokers, investment advisors, financial planners and their firms.
As reported by the Virginia Pilot, Joshua Abernathy was charged in U.S. District Court for the Eastern District of Virginia with mail fraud related to his alleged unlawful conversion of funds from customers. Court documents filed by the government allege he defrauded and stole almost 1.3 million dollars from various customers in Texas and Virginia. The government further alleged that he had many customers write checks to Omega Investment Group and he then converted funds for his personal use.
According to FINRA Brokercheck, Mr. Abernathy was registered with Next Financial from 2007 to 2012 and with The O.N. Equity Sales Company from 2013 to 2014. FINRA barred him from the securities industry in February, 2015.
Greco & Greco regularly represents investors in “selling away” cases such as this where the broker sells unauthorized securities or converts funds away from his firm. Customers may attempt to recover their losses in FINRA arbitration and/or court by demonstrating firms’ failures to supervise, failure to follow up on red flags, and by arguing the firm is responsible for the acts of its agent under the legal theories of respondeat superior and vicarious liability. Federal and state securities laws also mandate liability of control persons (such as brokerage firms) if certain requirements are met. If you are a victim of Mr. Abernathy, please contact one of our attorneys for a free consultation.
The SEC entered a Cease and Desist Order pursuant to an Offer of Settlement by H.D. Vest Investment Securities Inc. The Order can be found here.
The SEC charged H.D. Vest with failing to implement proper supervisory procedures and policies that would have discovered and prevented a fraudulent scheme by one its brokers who wired monies out of customer accounts to an account controlled by the broker. H.D. Vest further failed to monitor and preserve investment related emails from its brokers.
H.D. Vest was fined $225,000 and ordered to hire an independent consultant to recommend improvements to its supervisory systems.
Greco & Greco regularly represents investors in broker theft cases such as this. Customers may attempt to recover their losses in FINRA arbitration and/or court by demonstrating firms’ failures to supervise, failure to follow up on red flags, and by arguing the firm is responsible for the acts of its agent under the legal theories of respondeat superior and vicarious liability. Federal and state securities laws also mandate liability of control persons (such as brokerage firms) if certain requirements are met. If you are a victim of broker theft, please contact one of our attorneys for a free consultation. Contact
To date, FINRA Arbitration Panels have issued five awards relating to claims filed by investors against UBS and UBS of Puerto Rico regarding their Puerto Rico Closed End Bond Funds (CEFs).
The SEC and FINRA have brought charges and fined UBS relating to sales practices and supervision of their UBS Puerto Rico Bond Funds.
The SEC press release and Orders can be found here: SEC Press Release 2015-217. The SEC alleged that UBS Financial Services of Puerto Rico (UBSPR) failed to supervise its broker in relation to solicited loans used to purchase additional UBSPR closed end funds, while failing to disclose the risks of this strategy and misrepresenting the safety of the strategy. The SEC further alleged that UBSPR did not implement reasonable supervisory procedures and had inadequate systems in place to prevent and detect this wrongful conduct.
Greco & Greco is currently investigating possible claims regarding a Winchester, Virginia financial advisor, Randy Watts. Mr. Watts operated under the name Watts Financial Group, and was registered to sell securities with Lincoln Financial Securities until November, 2015.
If you believe you may have a legal claim regarding investments with Mr. Watts or Lincoln Financial, please contact Scott Greco for a free consultation: http://www.securities-lawyers.net/contact.html
FINRA recently entered a Letter of Acceptance Waiver and Consent regarding Capitol Securities Management Inc. regarding various alleged sales practice violations. The AWC can be found here: http://disciplinaryactions.finra.org/Search/ViewDocument/63638 The issues addressed by the AWC involved supervision, its anti-money laundering program, and the alleged unsuitable sales of Reverse Convertible Notes.
FINRA, a regulator of the securities industry, recently issued a Letter of Acceptance, Waiver, and Consent (AWC) regarding former FSC Securities Corporation broker, Andrew Corbman. Pursuant to the AWC, Mr. Corbman was suspended for one month from being registered with any FINRA firm.
The NASD has issued an Investor Alert regarding the purchase of life settlements, also known as senior settlements. Unlike viaticals, life settlements generally involve the sale of life insurance policies on policyholder individuals who are not terminally ill.
NASD Investor Alert
The National Association of Insurance Commissioners has also issued a statement regarding the risks involved in purchases of such settlements by individuals: it is not a liquid investment, there is no guaranteed rate of return, and you could be responsible for paying the premiums on the policy if the insured?s policy if they do not die within a certain time.
NAIC Statement to Consumers