Securities Fraud Lawyer Blog

Lincoln Financial fined by FINRA.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Lincoln Financial Advisors of Ft. Wayne, Indiana submitted an acceptance, waiver and consent letter regarding its failure to effectively implement a reasonable penny stock supervisory system designed to achieve compliance with the securities laws. In agreeing to the AWC, the firm was fined $90,000.

FINRA’s allegations against Lincoln Financial Advisors concerned a registered rep who made a series of penny stock transactions in amounts under $5,000.  By structuring the transactions in such small increments, the rep was able to evade detection by management. FINRA’s allegations concerned the firm’s failure to act on the numerous penny stock transactions submitted by the rep, and the failure to put the pieces together to see that the rep was structuring the transactions to evade detection by the firm.

Liberty Associates fined.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Liberty Associates New York, NY submitted an acceptance, waiver and consent letter regarding its failure to effectively implement a reasonable supervisory system designed to achieve compliance with the securities laws. In agreeing to the AWC, the firm was fined $3,500.

FINRA’s allegations against Liberty Associates concerned a registered rep working out of its New Mexico office who was engaged in the sale of private placements.  FINRA’s allegations concerned the firm’s failure to conduct due diligence into the offerings, and the failure to determine whether the investors in the private placements were accredited investors.  FINRA also took issue with the firm’s failure to retain emails.

Finance 500 fined $500,000.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Finance 500 of Irvine, CA submitted an acceptance, waiver and consent letter regarding its failure to effectively implement an anti-money laundering compliance program into its securities business. In agreeing to the AWC, the firm was fined $500,000.

FINRA’s allegations against Finance 500 concerned its participation in the trading of low priced securities.  The firm did not implement a supervisory system designed to identify red flags in the trading of low priced securities, which allowed registered reps to open accounts without properly identifying the account holder’s information.  The findings also criticized Finance 500 and its CEO Robert Hicks for failures in its market making activities in low priced securities, sales of unregistered securities, and its failure to review and retain email communications.

Robert Dull suspended.

Robert Dull, a registered representative formerly with Suntrust Investment Services and Securities America 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

Woodley Bagwell suspended.

Woodley Bagwell, a registered representative formerly with Morgan Keegan and Raymond James, both of Birmingham, AL 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

Eric Kuchel barred.

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Eric Kuchel of Yorba Linda, CA, formerly with Crown Capital Securities and LPL Financial, both of Brea, CA was named in a FINRA complaint alleging that he repeatedly failed to appear for on the record testimony over allegations that he and other registered representatives engaged in improper mutual fund transactions and participated in a private securities transaction.  A FINRA hearing officer’s panel entered default against Kuchel in May, 2016, barring him from the industry for refusing to cooperate with FINRA’s investigation

Registration and disciplinary history

Aon Miller suspended by FINRA.

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Aon Miller of Chattanooga, TN, formerly with Benjamin F. Edwards and Purshe Kaplan Sterling, both of Chattanooga, was suspended from association with any FINRA member in any capacity for two years and fined $50,000 as a result of findings that he participated in several private securities transactions.  The decision issued by the FINRA hearing officers is presently on appeal.  The findings in the decision identified Chestnut Development Partners, City Title Loan and KB International as the companies/securities at issue.  The findings state that Miller participated in the private securities transactions totaling over one and half million dollars without obtaining the proper authorization from his firm Benjamin F. Edwards.

Registration and disciplinary history

Michael Winegar barred by FINRA.

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Michael Winegar of Salem, OR, formerly with Wedbush Securities of Los Angeles, CA was barred from association with any FINRA member in any capacity as a result of findings that he converted one hundred thousand dollars from an elderly customer.  Winegar used the funds for his own personal expenses, to repay debts and to trade securities for his own account.  Winegar had promised the elderly customer that he would use the funds in furtherance of his securities business and that he would provide the client with “free” investment advice for four years.  FINRA’s findings stated that Winegar had no intention of doing this, and was planning on leaving the securities business.  Once the funds were spent, Winegar failed to return the money to the client.

Registration and disciplinary history

Kevin Wanner Barred from securities industry

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Kevin Wanner of Bismarck, North Dakota, formerly with Questar Capital of Bismarck, ND was barred from association with any FINRA member in any capacity as a result of his failure to cooperate with FINRA into their investigation into his termination from Questar.  The North Dakota Securities Department had previously issued a cease and desist order regarding Wanner’s purported sale of a certificate of deposit to a customer.  The findings stated that Wanner misrepresented to the customer that the funds would be invested in an FDIC insured CD, but instead Wanner deposited the funds into his own account.  In December, 2015 the North Dakota Securities Department revoked Wanner’s registration.

Registration and disciplinary history

Jason Sayles suspended 10 months.

In March, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Jason Sayles of St. Petersburg, FL, formerly with Cetera Financial of St. Petersburg, FL was suspended from association with any FINRA member in any capacity for ten months and fined $15,000.  The suspension and fine arise out of FINRA’s investigation into Sayles’ outside CPA business, and his practice of helping clients establish self-directed individual retirement account to purchase investments.  Sayles played a role in helping transfer nearly $2,000,000 in client funds from his member firm to an outside third party self-directed IRA custodian where the clients purchased unregistered securities.  Sayles was required to notify his firm of these activities in writing, but he failed to do so.

Registration and disciplinary history