Securities Fraud Lawyer Blog

February 15, 2016

IBN Financial Services Inc. Securities Law Violation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of IBN Financial Services, a FINRA registered broker dealer that was sanctioned by the Pennsylvania Department of Banking and Securities in July 2014.

In July, 2014 IBN Financial Services entered into a consent agreement and order with the state of Pennsylvania pertaining to allegations that the firm operated in violation of the Pennsylvania Securities Act in regards to the way in which they supervised a registered representative employed with their firm.

The investigation arose from an examination conducted by the state in July 2013, which disclosed that a broker who was supposed to be on “heightened supervision” was not being supervised according to the requirements of the written guidelines.

February 15, 2016

Intervest International Hit With Arbitration Award

by David Liebrader

In July, 2015, a three member FINRA arbitration panel sitting in Detroit Michigan issued a $40,000 binding arbitration award against Tony Manaia and Intervest International Equities for violations in their Bloomfield Hills Michigan office.

The underlying matter involved allegations that Tony Manaia and Intervest International mismanaged a customer account, breached fiduciary duties, made unsuitable investments, failed to follow industry rules and standards and violated the Michigan Securities Laws. The securities involved in the case included Mammoth Horizon, Mammoth Destiny and Medical Capital Funding V aka “Med Cap.”

After a four day arbitration hearing in May, 2015, the arbitration panel rendered their decision and awarded the customers $40,000 in compensatory damages against Intervest International and Tony Manaia.

February 14, 2016

Steven Wyatt Ridgeland MS Broker Suspended

by David Liebrader

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Steven Wyatt, a FINRA registered representative formerly associated with Morgan Stanley in Ridgeland, Mississippi.

In October 2015 Steven Wyatt disclosed that he was the subject of an investigation by the Mississippi Secretary of State into whether or not he had violated the Mississippi Securities Laws pertaining to conduct that occurred between 2007 and 2012. This investigation follows on the heels of a FINRA investigation into Steven Wyatt’s sales of securities of a company known as Morris Innovative. Wyatt entered into an acceptance waiver and consent (“AWC”) decree with FINRA whereby for purposes of the proceeding he consented to the entry of findings that he engaged in conduct that was a violation of FINRA rules pertaining to his recommendations and purchases of Morris Innovative securities. As a result of the AWC, Wyatt was fined $12,500 and suspended from FINRA membership association for a period of four months.

FINRA maintains a database that the public can access to check the credentials of their financial advisors. The website, also known as broker check contains a listing for Steven Wyatt, who, in addition to the FINRA and MS Secretary of State investigations, has been the subject of eight customer complaints, including those for churning, and making unsuitable investments.

February 14, 2016

Fred Brister Ridgeland MS Broker Ordered to Pay $2.3 Million

by David Liebrader

In July, 2015, a three member FINRA arbitration panel sitting in Jackson, MS issued a $2,382,851 binding arbitration award against Fred Brister and Morgan Stanley for violations in their Ridgeland, MS office.

The underlying matter involved allegations that Fred Brister and Morgan Stanley mismanaged several customer’s accounts, breached fiduciary duties, failed to supervise, failed to follow industry rules and standards and violated the Mississippi Securities Laws. The securities involved in the case included Oculus Innovative, ProShares Ultra ETFs, Morris Innovative, Legend International and Southern Financial Group.

After a 20 day arbitration hearing stretching from November 2014 to May 2015, the arbitration panel rendered their decision and awarded the customers $1,522,978 in compensatory damages; $104,000 in punitive damages; $609,190 in attorney’s fees; $78,733 in expert witness fees; and $68,350 in costs. The panel also awarded interest at 2.5% from the time of the investments. Brister and another Respondent, Stephen Mark Wyatt requested expungement of the claim from their industry record, and the panel denied those requests.

February 14, 2016

Kevin Fifer, Capital City Securities Ordered to Pay $32,312

by David Liebrader

In October, 2015, a sole public arbitrator convened a FINRA arbitration proceeding, and after receiving evidence issued an award against Kevin Fifer and Regis Asset management and Capital City Securities in the amount of $32,312.

The underlying matter involved claims for breach of contract; breach of fiduciary duty; and excessive trading or churning. The customers alleged that they transferred their accounts to Capital City with the understanding that they would be invested in safe conservative holdings, but once the accounts were transferred, Kevin Fifer liquidated their accounts and re-invested their money in various speculative and risky equities.

The customers also alleged that in 2011, Fifer started a new trading strategy of investing their entire portfolio into one stock and then selling all of the positions within a week, causing losses in their account. After considering the evidence the arbitrator ordered Kevin Fifer and Capital City Securities to pay the customer for 100% of her losses, interest from 2010, and also awarded her $5,000 in attorney’s fees.

February 14, 2016

Zak Chivi Subject of $346,881 arbitration Award

by David Liebrader

In January, 2016, a three member FINRA arbitration panel issued a $346,881 binding arbitration award against Wells Fargo Advisors LLC for conduct related to one of its registered representatives, Zak Chivi.

The underlying matter involved claims by one of Zak Chivi’s customers that between 2011 and 2013 there were an excessive number of transactions executed in the customer’s account. After hearing evidence over four days at an arbitration hearing held in Newark N.J. the panel handed down the award for $346, 881. The panel also denied Zak Chivi’s request for expungement. In the claim, the Claimant brought claims for misrepresentations, breach of fiduciary duty, violations of FINRA rules and violations of the New Jersey securities Act. Zak Chivi was not named as a Respondent, and the award was issued solely against his employer, Wells Fargo Advisors.

As a result of this award The Law Office of David Liebrader has opened an investigation into Wells Fargo Advisors and Zak Chivi

February 14, 2016

Nomura Securities Ordered to Pay $250,000 Bonus to Rep

by David Liebrader

In February, 2016, Nomura Securities was ordered to pay former rep Gopla Tampi $250,000. A three member FINRA arbitration panel issued the $250,000 binding arbitration award for failure to pay an agreed upon bonus.

The underlying matter involved allegations that Nomura failed to pay the bonus, and the Claimant sued Nomura in arbitration under several theories including breach of contract and violations of labor law. In an explained decision, the panel found that the written terms of Claimant’s employment contained a bonus provision that was part of Claimant’s compensation package. The panel reviewed Nomura’s manual on eligibility for bonus compensation, and found it unclear on the issue. But based on the evidence resented, as well as Claimant’s performance and conduct, he was entitled to a bonus.

As a result of this award The Law Office of David Liebrader has opened an investigation into Nomura Securities.

February 14, 2016

Unionbanc Investment Services Hit with $450,000 Award

by David Liebrader

In February, 2016, a three member FINRA arbitration panel issued a $450,000 binding arbitration award against Unionbanc Investment Services for conduct related to one of their former registered representatives Cynthia Higgins.

The underlying matter involved allegations that Higgins made unsuitable investments, over concentrated the accounts’ assets, and failed to disclose material facts. The claims made were for negligence, breach of fiduciary duty and failure to supervise.

As a result of this award The Law Office of David Liebrader has opened an investigation into Unionbanc and registered rep Cynthia Higgins.

February 9, 2016

Gopi Vungarala Purshe Kaplan Broker – Pending Investigation

by David Liebrader

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Gopi Vungarala, a FINRA registered representative with Purshe Kaplan Sterling Investments in Midland, Michigan

Gopi Vungarala has been FINRA licensed to sell securities for eleven years, and spent the last eight years with Purshe Kaplan in Midland, MI, where he is approved to sell securities in Michigan and Texas. Prior to joining Purshe Kaplan, Vungarala was registered with American General Securities from 2004- 2007.

FINRA maintains a database that the public can access to check the credentials of their financial advisors. The website, also known as broker check contains a listing for Gopi Vungarala, who is presently the subject of a FINRA investigation. FINRA contends that Vungarala failed to disclose $11,000,000 in commissions that were charged to his client, an American Indian tribe. The commissions were generated off of investments in real estate investment trusts and business development companies that Vungarala sold to the tribe.

February 6, 2016

Woodbury Financial Services Ordered to Pay $444,000 to Investor

by David Liebrader

A FINRA arbitration panel issued a $444,000 securities arbitration award against Woodbury Financial Services as a result of the conduct of one of its registered representatives, “JG” of “G” Wealth Management out of Culver City, CA. Counsel for the Claimant was The Law Office of David Liebrader. The award, issued by a FINRA panel sitting in Los Angeles, CA was one of the first 1031/TIC awards obtained at FINRA as a result of the 2008 market collapse.

The case was tried over five days before a three member arbitration panel, and featured the testimony of several expert witnesses. The underlying facts concerned a tenant in property (TIC) that was sold to one of Woodbury Financial’s customers. The Claimant alleged that Woodbury Financial Services failed to conduct an appropriate level of due diligence, and failed to follow its own internal policies concerning the percentage of a customer’s assets that could be invested in investments like the TIC sold by Woodbury’s “JG”.

The failure to conduct due diligence resulted in the approval of an over leveraged property that quickly defaulted on its mortgage, leaving the investors without a means to recover their investment.