Articles Posted in Disciplinary Actions

Adam Estes suspended by FINRA

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Adam Estes of Bloomington, Indiana,  a registered representative formerly with JJB Hilliard submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member  in any capacity for fifteen months and fined $15,000. The FINRA complaint asserted that Adam Estes participated in over one million dollars of private securities transactions away from the firm, without obtaining permission from JJB Hilliard.  FINRA also found that Estes made misrepresentations and omissions to JJB Hilliard regarding his involvement in the private securities transactions on the firm’s annual compliance questionnaires.

Registration and disciplinary history

Jonathan Casiano barred by FINRA

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Jonathan Casiano of Mansfield, Texas,  a registered representative formerly with J.P. Morgan Securities of Arlington, Texas submitted an acceptance, waiver and consent letter whereby he was barred from association with any FINRA member  in any capacity. The FINRA complaint asserted that Jonathan Casiano improperly caused debit cards to be issued on the accounts of bank customers and had friends and family members use the cards to make unauthorized withdrawals from the accounts

Registration and disciplinary history

FINRA suspends Thomas Brenner over private securities transactions.

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Thomas Brenner of Orrville, Ohio,  a registered representative formerly with First American Securities submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member  in any capacity for sixteen months and ordered to pay nearly $200,000. The FINRA complaint asserted that Thomas Brenner participated in two private securities transactions away from the firm, without obtaining permission from First American Securities.  FINRA found that Thomas Brenner participated in two separate private securities offerings, one involving notes from a medical receivables company.  FINRA found that Brenner’s statements to the investors were not fair and balanced, and contained misleading exaggerated and unwarranted representations.

Registration and disciplinary history

FINRA suspends former LPL broker Michael Barranco

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Michael Barranco of Montgomery, Alabama,  a registered representative formerly with LPL Financial submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member  in any capacity for two years and fined $20,000. The FINRA complaint asserted that Michael Barranco participated in three separate private securities transactions away from the firm, without obtaining permission from LPL in advance.  FINRA found that Michael Barranco engaged in nearly 40 private securities transactions between 2010-2015, many involving 13% notes issued by private companies

Registration and disciplinary history

FINRA fines Pro Equities $200,000.

In October, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Pro Equities of Birmingham, AL submitted an acceptance, waiver and consent letter regarding its failure to supervise sales of non-traditional exchange traded funds (ETFs).  The firm was fined $200,000 by FINRA.

FINRA’s allegations against Pro Equities concerned the firm’s failure to establish, implement and maintain an adequate supervisory system to oversee the firm’s sales of ETFs to customers.  The AWC stated that the firm did not have a supervisory system in place to gauge suitability or to supervise the recommendations of these non-traditional ETFs, and failed to provide training to its registered representatives on the risks  and unique characteristics of the ETFs.

FINRA charges Neal Moon over Boxx Technologies sales

In a complaint filed by the FINRA Department of Enforcement in July, 2016 Neal Moon of Dallas Texas, a former registered representative with Waddell & Reed was charged with participating in over two and a half million dollars of private securities transactions involving Boxx Technologies without providing notice to Waddell & Reed.   The allegations include that Moon initially mislead Waddell & Reed’s investigators when they questioned him about the private securities transactions, then later recanted.  Moon’s wife Natalie Fogiel Moon was also charged in the FINRA complaint.

The claim filed by FINRA is not final, and until the allegations have been proven in a court of law, no adverse inferences should be drawn.

FINRA charges David Braeger of Rubicon Capital

In a complaint filed by the FINRA Department of Enforcement in July, 2016 David Braeger of Bayside, Wisconsin was charged with misusing customer funds and failing to return funds to the customers.  The allegations include charges that the Barager misused customer funds intended for an investment in his Rubicon Capital Appreciation Fund.  According to the complaint, Braeger took $30,000 from the customers and failed to return the funds, despite the fact that he had closed Rubicon Capital.  He also represented that Rubicon Capital had been performing soundly, and even provided the customers with statements showing the funds had been invested as initially represented.

The claim filed by FINRA is not final, and until the allegations have been proven in a court of law, no adverse inferences should be drawn.

George Zedan barred by FINRA

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that George Zedan of Whittier, CA a registered representative formerly with Western International Securities of Glendale, CA and LPL Financial submitted an acceptance, waiver and consent letter whereby he was barred from association with any FINRA member  in any capacity. The FINRA complaint asserted that George Zedan converted funds belonging to an elderly customer in a failed real estate venture.  The complaint details a scheme whereby Zedan received three hundred thousand dollars from his customer, then began using the funds in a manner not agreed upon.  Eventually criminal charges were initiated, then dropped due to the death of the customer.

Registration and disciplinary history

J.R. Gladden suspended by FINRA.

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that J.R. Gladden of La Mesa, CA a registered representative formerly with Securities Equity Group of El Cajon, CA submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA in any capacity for twelve months. The FINRA complaint alleged that J.R. Gladden participated in private securities transactions concerning sales of Church Fund, LLC and the Church Development Fund without receiving written approval from Securities Equity Group.  Gladden raised over two million dollars for the Church Fund and the Church Development Fund without notifying his firm, or allowing the firm to approve or investigate the circumstances surrounding the outside business activity. In addition, Gladden represented to Securities Equity Group that he was not engaged in any capital raising activities outside the firm.

Registration and disciplinary history

In September, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Peter Alcure of Locust Valley, NY a registered representative with Petersen Investments of Locust Valley, NY  submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA for thirty days and fined $30,000. The FINRA complaint alleged that Peter Alcure settled a customer complaint without informing his member firm.  Alcure’s client had complained about losses to him, and rater than involve the firm in the process, which is required under FINRA rules, Allure privately settled the claim by sending the client 21 separate checks.

Registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Peter Alcure has been registered with Petersen Investments, Inc. since October, 2009.