Securities Fraud Lawyer Blog

October 21, 2019

FINRA Bars Nina Jessee

Nina Jessee barred for refusing to cooperate with a FINRA investigation.

Nina Jessee, a registered representative from Abingdon, Virginia, formerly with Cetera Advisors and Investors Capital Corp., was barred from FINRA membership as a result of her refusing to cooperate with a FINRA investigation into her recommendation of alternative inestments, and allegations she engaged in outside business activities. After receiving notice from FINRA of the investigation Jessee, though her counsel, notified FINRA that she would not appear for an interview conducted by FINRA as part of their investigation. As a result of her refusal to cooperate, Nina Jessee was barred from FINRA in any capacity in June, 2019.

FINRA opened the investigation in December, 2018 as a result of a series of customer complaints that had been filed alleging overconcentration and suitability. In addition, as part of their investigation, FINRA was looking into Jessee’s sales of alternative investments, and whether she engaged in outside busieness activities.

October 20, 2019

Roger Owens FINRA Broker Suspended over Woodbridge Sales

by David Liebrader

Roger Owens Cetera Advisors broker Woodbridge Mortgage Fund investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Roger Owens a registered representative formerly affiliated with Cetera Advisors in Elkton, Maryland.

The pending investigation concerns investments made by Roger Owens’ clients into the Woodbridge Mortgage Investment Fund.

June 29, 2019

Jeffrey Schwebach Woodbridge Mortgage Fund investigation

by David Liebrader

Jeffrey Schwebach Independant Financial Group broker Woodbridge Mortgage Fund investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Jeffrey Schwebach a registered representative formerly affiliated with Independant Financial Group in Dell Rapids, South Dakota.

The pending investigation concerns investments made by clients into the Woodbridge Mortgage Investment Fund, unregistered securities sold by Jeffrey Schwebach to his clients.

June 29, 2019

Frank Dietrich Woodbridge Mortgage Fund Investigation

by David Liebrader

Frank Dietrich Quest Capital broker Woodbridge Mortgage Fund investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Frank Dietrich a registered representative formerly affiliated with Quest Capital Strategies in Springfield, Virginia.

The pending customer dispute that gives rise to this investigation concerns an investment in Woodbridge Mortgage Investment Fund 4, an unregistered security sold by Frank Dietrich to the Claimant, an elderly retiree.

April 20, 2019

Patrick Teutonico Network 1 Broker Investigation

by David Liebrader

Patrick Teutonico Network 1 Financial Securities broker excessive trading investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Patrick Teutonico a registered representative affiliated with the Network 1 Financial Securities office in Seaford, New York. Mr. Teutonico partnered with Wesley Clinton, another Network 1 broker.

The pending customer dispute that gives rise to this investigation concerns a number of high risk private placements, as well as excessive trading, amounting to nearly 6 times turnover in the account. Turnover measures the number of times that investment positions in an account are replaced each year. Industry averages are 1.2 x per year. In this customer’s case the turnover ratio far exceeded industry standards. Furthermore, due to the use of margin, or borrowed money the cost to equity ratio in the account was extremely high, meaning the customer needed to generate a 10%+ return in the account just to break even.

March 27, 2019

Investor wins claim against Las Vegas businessman Ronald J. Robinson

by David Liebrader

Judgement against Ronald J. Robinson former CEO of Virtual Communications Corporation

The Law Office of David Liebrader is pleased to announce a judgment in the Reva Waldo vs. Virtual Communications Corporation and Ronald J. Robinson case in Clark County, Nevada District Court after a bench trial before Judge Timothy Williams in Dept. 16.

The Judgment is against Las Vegas businessman Ronald J. Robinson, who guaranteed the promissory note issued by Virtual Communications Corporation, creator of the ALICE virtual receptionist system.

June 30, 2018

EB-5 Fraud: Practical Advice for Investors

by David Liebrader

EB-5 Fraud is on the rise. From immigration attorneys acting as unregistered broker-dealers to scammers preying on unsuspecting investors the field is a potential trap for the unwary.

In 1990 the US Congress devised the Immigration Investment Program in the hopes of attracting capital to the US from foreign investors. The program came to be known as the EB-5 program. As a means to attract investments Congress offered the potential for Visas, “Green Cards” and residency status to foreigners who agreed to invest at least a million dollars into a business that agreed to employ or continued to employ at least ten full time US workers. The EB-5 program also provided that a $500,000 investment in a “rural area” or an area of “high unemployment” would qualify.

As a result, investments grew around so called “Regional Center Investments” such as hotels, business parks, warehouses or other “economic units” that offered the prospects for job growth.

June 29, 2018

Future Income Payments Recovery Information

by David Liebrader

Future Income Payments information for investors

In the past several years multiple state finance and securities regulators have filed enforcement actions against Henderson, Nevada based Future Income Payments LLC to stop them from targeting pensioners – many of them military veterans- with a pitch to “cash out” their pensions and receive a lump sum payment. Some of these pension advance transactions are structured like loans, charging above market rate interest rates. The decision to sell the rights to a pension at a discount is fraught with perils, and could be one of the worst mistakes a retiree ever makes.

On the other side of the Future Income Payments transaction are investors who were contacted by Registered Investment Advisors or brokers looking for investors to “fund” the “loans” to the Pension recipients. Investing in these transactions is full of risks, including the lack of transparency, high commissions and fees, and an inability to collect in the event of default.

February 15, 2018

Sheaff Brock Option Trading Investigation

by David Liebrader

Sheaff Brock Put Option Income Strategy Caused Losses

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Sheaff Brock a registered investment advisor that offered a put option income strategy that it described as a conservative way to earn income.

Sheaff Brock described the program as a conservative “income generator”, which belied the actual risks associated with the strategy that targeted stocks with increased volatility. Sheaff Brock represented that the strategy would stack small monthly gains from its proprietary strategy, which would amount to a six percent annual return, without incurring substantial risk.

February 15, 2018

Peter Lewis Morgan Stanley Broker Pending Investigation

by David Liebrader

Peter Lewis Morgan Stanley broker TSLA option trading investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Peter Lewis a registered representative affiliated with the Morgan Stanley office in Summerlin, Las Vegas, Nevada.

The pending customer dispute that gives rise to this investigation concerns a number of high risk option trades in TSLA Motors that Peter Lewis made for a customer while at Morgan Stanley in the Fall of 2016. TSLA is a growth stock that has enjoyed significant price appreciation over the past several years. The pending customer complaint describes an environment where Mr. Lewis was particularly negative on TSLA Motors, and made sizeable “bearish” options transactions in the customer’s account. These trades resulted in significant losses.