Articles Posted in Disciplinary Actions

Tom Andrews, of Holladay, Utah, and a registered representative formerly with LPL Financial out of Salt Lake City was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

This FINRA rule provides if a FINRA member fails to provide information or testimony requested or required by FINRA’s By-Laws or FINRA rules, or fails to keep his or her membership and supporting documents current, FINRA, after providing  21 days’ notice may suspend the FINRA membership of the person.

Darnell Deans, of Jersey City, NJ, and a registered representative formerly with Blackbook Capital and John Carris Investments was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

This FINRA rule provides if a FINRA member fails to provide information or testimony requested or required by FINRA’s By-Laws or FINRA rules, or fails to keep his or her membership and supporting documents current, FINRA, after providing  21 days’ notice may suspend the FINRA membership of the person.

Russell Carbonara, a registered representative formerly with Aria Capital Advisors in St. Petersburg, Florida was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

This FINRA rule provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent.  In April, 2016 Russell Carbonara was suspended from FINRA membership for violating Rule 9554.

FINRA charges VFG Securities and Jason VanClef in Department of Enforcement complaint

In a complaint filed by the FINRA Department of Enforcement on February 9, 2016 VFG Securities of Culver City, CA and its principal owner Jason VanClef were charged with providing customers with misleading sales literature, including spreadsheets that contained false, exaggerated, unwarranted or misleading statements.   The FINRA complaint can be viewed here.

FINRA charged VFG and Jason VanClef with using a book VanClef wrote and published himself, called The Wealth Code; How the Rich Stay Rich in Good Times and Bad as a means to generate sales of direct participation programs and non-traded REITs.  According to the complaint VanClef used the book to bolster his sales presentations, which claimed that non traded REITs and DPPs provided safety and high returns, claims that FINRA alleges were misleading, and contradicted by the language in the prospectuses for the investments.  Approximately 95% of VFG’s revenue came from the sale of DPPs and non-traded REITs.

FINRA bars Gardnerville broker Steve Ybarra

In April, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Steve Ybarra of Gardnerville, Nevada was barred from association with any FINRA member in any capacity.  Ybarra consented to findings that he submitted fictitious insurance policy applications to his firm in order to meet certain production goals. The AWC can be found here.

FINRA’s complaint concerned allegations that Ybarra submitted fictitious insurance applications through his firm Farmer’s Financial Solutions’ insurance affiliate in order to meet production thresholds.  As a result of submitting the applications, Ybarra received subsidy payments and commissions that he was otherwise not entitled to receive. Ybarra signed the AWC with FINRA in January, 2016 and it became effective in February, 2016 when accepted by FINRA.

Bahram Mirhashemi barred by FINRA for excessive trading

In April, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Bahram Mirhashemi of Newport Coast, California was barred from association with any FINRA member in any capacity.  Mirhashemi consented to findings that he made excessive, unauthorized and unsuitable transactions in customer accounts.  The AWC can be found here.

FINRA’s complaint concerned allegations that Mirhashemi engaged in excessive and unauthorized mutual fund trading while he was registered with Accelerated Capital Group of Irvine, California.  The trading generated over $800,000 in commissions.  FINRA found that this conduct was a violation of section 10(b) of the Securities Exchange Act of 1933.

Accelerated Capital Group fined $32,000 by FINRA for supervisory lapses.

In January, 2014, the Financial Industry Regulatory Authority (“FINRA”) announced that Accelerated Capital Group, Inc. of Irvine, California submitted an acceptance, waiver and consent letter regarding supervisory lapses in its securities business. In agreeing to the AWC, the firm was fined $32,000. The AWC can be found here.

FINRA’s allegations against ACG included that the firm had allowed registered representatives to place misleading information on websites that fell within the supervisory responsibility of the firm. These reps placed misleading testimonials on the website, and also represented that the firm had worldwide offices, when that was not the case.

Daniel McCourt suspended two years by FINRA for Private Securities Sales.

In April, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Daniel McCourt of Aptos, California was suspended from association with any FINRA member for two years for his role in a private securities transaction.  McCourt submitted an acceptance, waiver and consent letter memorializing the suspension, and a $50,000 fine. The AWC can be found here.

FINRA’s complaint concerned allegations that McCourt engaged in private securities transactions while he was registered with Foothill Securities.  The private sales involved promissory notes in McCourt’s outside business, a coffee shop.  Foothill had initially approved the outside business, but did not provide the “requisite approval” for McCourt to raise money from clients on the promissory note transactions.

Securities America Fined $250,000 by FINRA.

In April, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Securities America, Inc. of La Vista, Nebraska submitted an acceptance, waiver and consent letter regarding the sale of preferred notes of an unregistered limited partnership investment sold by one of the firm’s registered representatives.  In agreeing to the AWC, the firm was fined $250,000.   The AWC can be found here.

Securities America had been named in a 2013 FINRA regulatory complaint alleging that one of their registered representatives sold securities without the firm conducting a meaningful due diligence review, which was inconsistent with the firm’s written supervisory procedures.  As a result, the registered rep sold over $8 million worth of the securities, despite what FINRA found to be numerous red flags concerning the financial health of the offeror.

GVC Capital, a FINRA registered broker dealer based in Greenwood Village, CO was fined $17,000 and censured by securities regulator FINRA for the firm’s role in a private offering of securities.  The fine and censure was announced in April, 2016 and relates to an 2013 securities offering.  The acceptance, waiver and consent letter is found here.

GVC Capital had been the subject of two FINRA regulatory investigations alleging the firm failed to maintain an adequate supervisory system pertaining to the issuance of research reports; and that the firm, acting in the capacity of placement agent for a private offering of securities, failed to refund money pursuant to an under-subscribed offering. The two investigations were consolidated, and the AWC signed by the firm resolved both matters.

GVC Capital’s registration and disciplinary history