Uncategorized

August 13, 2016

Centaurus Financial Hit With $150,000 Arbitration Award

Centaurus Financial was ordered to pay $150,000 to an investor.

In June, 2016, a three member FINRA arbitration panel sitting in Albuquerque, NM issued a $150,000 binding arbitration award against Centaurus Financial for the sale of illiquid, unsuitable investments.

The underlying matter involved the sale of non-traded REITs, including Inland American REIT, Phillips Edison – ARC Shopping Center REIT, Carter Validus Mission Critical REIT and Cole Credit Property Trust. The Claimants’ allegations were that Centaurus Financial made unsuitable recommendations, violated FINRA rules and violated New Mexico law in selling the risky investments to an elderly investor.

August 10, 2016

Royal Alliance Hit with $870,000 FINRA Award

by David Liebrader

Royal Alliance ordered to pay investor $870,000.

In January, 2015, a three member FINRA arbitration panel sitting in Los Angeles, CA issued an $870,000 binding arbitration award against Royal Alliance Associates for the sale of a variable universal life policy.

The underlying matter involved the surrender of a Provident Mutual variable universal life policy. The Claimants allegations were that Royal Alliance breached its fiduciary duties, failed to follow industry rules, engaged in unfair and deceptive trade practices and violated state and federal securities laws.

August 10, 2016

Cornerstone Wealth Management Ordered to Pay Investor

by David Liebrader

Cornerstone Wealth Management hit with FINRA award.

In June, 2015, a three member FINRA arbitration panel sitting in San Diego, CA issued a $176,500 binding arbitration award against Cornerstone Wealth Management and Chris Meacham, which included $90,000 in punitive damages.

The underlying matter involved an investment in Scripps Investment Mortgage Fund. The Claimants allegations were that Chris Meacham and Cornerstone mismanaged a customer account, breached fiduciary duties, failed to follow industry rules and standards and made intentional and negligent misrepresentations. The causes of action pertained to Meacham and Cornerstone’s sale of the Scripps fund which invested in risky second, third and fourth trust deeds and high-risk construction loans, when the offering materials represented that the fund invested solely in first trust deeds on real property.

August 10, 2016

Keith Bettex Suspended by FINRA

by David Liebrader

Keith Bettex suspended.

Keith Bettex, a registered representative from Apex, North Carolina formerly with Pruco Securities of Raleigh, NC was suspended from FINRA membership for violations of Rule 9552

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

August 9, 2016

Dennis Van Patter Suspended By FINRA

by David Liebrader

Finra suspends Dennis Van Patter.

In January, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Dennis Van Patter of Little Elm, Texas, formerly registered with VSR Financial Services of Plano, TX submitted an acceptance, waiver and consent letter whereby he was suspended from association with any FINRA member in any capacity for 45 days and fined $10,000. The FINRA complaint alleged that Van Patter improperly invested an undue portion of a client’s net worth in alternative investments such as REITs, oil and gas programs and other private securities. FINRA found that this allocation was not suitable for Van Patter’s retired customer.

Registration and disciplinary history

August 9, 2016

Xavier Endress Barred by FINRA

by David Liebrader

Finra bars Xavier Endress.

In January, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Xavier Endress of Bloomfield Hills, MI, formerly registered with Merrill Lynch of Bloomfield Hills, MI submitted an acceptance, waiver and consent letter whereby he was barred from association with any FINRA member in any capacity.. The FINRA complaint alleged that Endress engaged in an undisclosed outside business activity, and opened an account with Merrill in the name of a company he owned without disclosing this to the firm. The findings also stated that the account was opened under a different reps name and number, and that Endress signed the other reps name to the account without the other reps knowledge.

Registration and disciplinary history

August 9, 2016

FINRA bars Mark Ciriaco

by David Liebrader

Finra bars Mark Ciriaco.

In January, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Mark Ciriaco of Omaha, NE, formerly registered with Securian Financial Services of Omaha, NE submitted an acceptance, waiver and consent letter whereby he was barred from association with any FINRA member in any capacity.. The FINRA complaint alleged that Ciriaco improperly took $31,000 from a nonprofit organization and used the funds for his own personal benefit. When confronted by the organization, Ciriaco, who was the treasurer, agreed to repay the funds. The organization then terminated its relationship with him.

Registration and disciplinary history

August 8, 2016

FINRA Bars Zachary Bader

by David Liebrader

Finra bars Zachary Bader.

In January, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Zachary Bader of West Babylon, NY formerly with National Securities Corp. and Craig Scott Capital submitted an acceptance, waiver and consent letter whereby he was barred from association with any FINRA member in any capacity. The FINRA complaint alleged that Bader engaged in excessive and unsuitable trading in client accounts in regards to exchange traded notes. FINRA found that Bader failed to conduct his own due diligence into the notes, and did not have a reasonable basis to recommend it to his clients.

Registration and disciplinary history

August 8, 2016

Feltl and Company fined $50,000 by FINRA

by David Liebrader

Finra fines Feltl and Company.

In January, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Feltl and Company of Minneapolis, MN submitted an acceptance, waiver and consent letter regarding its failure to supervise its registered representatives in their trading of companies on the firm’s “watch list.” In agreeing to the AWC, the firm was fined $50,000.

FINRA’s allegations against Feltl and Company concerned the trading in a company that approached Feltl for assistance with a corporate merger. While Feltl placed the company on a watch list, FINRA contended that the firm did not properly supervise several registered representatives who traded shares of the company while corporate merger talks were underway. FINRA found that the firm failed to properly investigate the trading to ensure compliance with the securities laws.

August 8, 2016

FINRA Suspends Tom Labeau

by David Liebrader

Finra suspends Tom Labeau.

Tom Labeau, a registered representative from Canton, MI, formerly with Kalos Capital of Livonia, MI 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