Ernest Romer has been barred by FINRA
Update August, 2017: Michigan seeks cease and desist, intent to bar.
On August 16, 2017 the state of Michigan’s Securities Division issued a notice of intent to revoke the securities licensing of Ernest Romer and asked that a cease and desist order be issued.
William Jordan Investments Barred by California DBO; Bankruptcy Filing!
On August 16, 2017 the State of California’s Department of Business Oversight announced a consent order and issued a bar which prevents William Jordan Investments from acting as an investment advisor or a broker dealer in California. The Order also bars William Jordan from acting as a registered representative or investment advisor in the state. The denial relates back to a January, 2017 filing by the Commissioner that described the DBO’s investigation into William Jordan Investments and William Jordan’s history of selling unregistered (unqualified) securities.
The Department of Business oversight found that William Jordan Investments sold unregistered securities and made material misstatements and omissions when making the sales. They also found that Jordan failed to disclose his prior FINRA disciplinary history, and that the investments he sold to clients were losing money.
Kevin Wanner barred over CD sales
In January, 2016 FINRA barred broker Kevin Wanner formerly of Questar Capital Corporation and Woodbury Financial for his role in brokering certificates of deposit and selling unregistered securities.
In August, 2017 the North Dakota Securities Department made findings that Kevin Wanner, doing business as Precision Financial allegedly ran a Ponzi scheme for over fifteen years and victimized dozens of investors in a bogus CD scam as well as by selling unregistered securities. The findings by the North Dakota department state that Kevin Wanner pocketed most of the money raised from investors and used it to support his lifestyle, and to pay newly raised funds to older investors. Also as part of the North Dakota findings, Kevin Wanner was referred to the U.S. Attorney’s office for a criminal investigation.
Jacqueline Georgio, Paul Howard, Bryan Perderson and RBC Capital Markets hit with large FINRA Award
In August, 2017, a FINRA arbitration panel sitting in Cheyenne, Wyoming issued a $569,000 binding arbitration award against Jacqueline Georgio (aka Jacqueline Westover) Paul Howard, Bryan Pederson and RBC Capital Markets. The award also provided for 10% interest on the award until paid in full.
The underlying matter involved claims that Respondents negligently caused the Claimant to lose his retirement benefits by transferring money out of a qualified retirement plan. As a result of the transfer, Claimant lost a guaranteed income benefit of $3200 a month for life from the Wyoming state pension system.
On June 7, 2017 Thunder Energies Corporation, a Tarpon Springs Florida corporation, stock symbol TNRG, announced an unregistered issuance of equity securities. The restricted securities were issued pursuant to approval from the board of directors to Dr. Santilli and Carla Santilli in lieu of payment of accrued salary. As a result, Thunder Energies Corporation issued 16,530,769 shares to Mr. and Ms. Santilli at a price of six cents a share.
Thunder Energies Corporation maintains a website where investors, customers and vendors can go to get information on the company. The website is located here.
The most recent news on Thunder Energies Corporation as of the time of this blog post can be found on globenewswire.com, and is posted here.
In July, 2017, a FINRA arbitrator panel sitting in New York, NY issued a $2.6 million binding arbitration award against Northeast Securities a FINRA registered broker dealer. The award was joint and several against Northeast Securities and registered reps Stephen Perrone, Diane Hawkins and Jonathan Zucker. The award includes nearly $900,000 in pre award interest and reimbursement for close to $34,000 in expert witness costs. Perrone, Hawkins and Zucker’s requests to expunge the claim from the CRD system was denied by the panel.
The underlying matter involved corporate bonds, and Claimant asserted claims for breach of fiduciary duty, negligence, churning, misrepresentations and violations of FINRA rules. During the pendency of the case, the Claimant filed a request with the panel to make a disciplinary referral to FINRA for Respondents alleged refusal to turn over presumptively discoverable telephone records that could have aided Claimant’s case. The panel denied the request to make the disciplinary referral.
Improbably, despite making such a large award on behalf of the Claimant, the panel split the arbitration hearing session fees 50-50, requiring Claimant to pay $13,500 to FINRA.
In July, 2017, a FINRA arbitrator panel sitting in Los Angeles, CA issued a $1,797,100 binding arbitration award against Wedbush Securities a FINRA registered broker dealer. The award included nearly $1.2 million in punitive damages pursuant to the California Elder Abuse and Dependent Adult Act. The panel also added nearly $300,000 in attorney’s fees.
The underlying matter involved structured products and steepeners, synthetic securities that allow speculators to bet on the direction of interest rates. The panel also made an affirmative finding that Wedbush Securities and broker Mark Augusta engaged in unauthorized trading in the Claimant’s account. Among the securities at issue were Citigroup FDG Medium Term, Lloyds TSB Bank Steepner Note, SG Structured Prods Medium Term and Citibank NA Principal Protected MLCD Quarterly Notes
After a seven day arbitration hearing over March and May, 2017, the arbitrators rendered their decision, and awarded the Claimant $250,000 in compensatory damages, with the remainder being commission disgorgement, punitive damages, attorney’s fees and costs. The panel found Wedbush solely liable, based on Wedbush’s obligation to indemnify Mark Augusta, and no portion of the award is owed by Augusta. The panel, nevertheless found that both Wedbush Securities and Mark Augusta engaged in “improper conduct.” Augusta left Wedbush in May, 2015 after four years with the firm. He is now registered with Hilltop Securities in Del Mar, California.
Former Orem, Utah broker Clark Gardner has been barred by FINRA and the SEC
In June, 2016 the SEC announced a bar against former Sammons Securities and Cetera Advisors broker Clark Gardner. This followed on the heels of a bar issued by FINRA in 2014. The FINRA bar related to Gardner’s outside business activities, and sales of unregistered securities. That year, in May, 2014 Gardner was discharged by Cetera Advisors with allegations pending that he failed to disclose his outside business activities and sold unapproved products.
Gardner, of Orem Utah consented to the entry of findings against him in the SEC action. The SEC proceeding was filed shortly after Gardner plead guilty to securities fraud in Utah District Court, and was sentenced to between one and fifteen years in prison, with the sentence suspended by the court.
Vincent Mehdizadeh agrees to a ban, and a $12 million fine to settle SEC charges related to Medbox.
In March, 2017 entrepreneur Vincent Mehdizadeh agreed to settle charges brought by the SEC against him and his company Medbox, a legal Marijuana consulting company (now known as Notis Global- ticker symbol NGBL).
According to the complaint filed by the SEC, Mehdizadeh mistated Medbox’s revenues and used sham transactions to give the appearance that the company was profitable. According to the complaint 90% of Medbox’s revenues came from transactions in a company created by Mehdizadeh, and not from legitimate business generated by Medbox. Instead of record revenue, as was claimed, Medbox used a shell company formed by Mehdizadeh to sell company stock, then claimed the proceeds as revenue for Medbox.
Bart Ellis pleads guilty to defrauding clients
In July, 2017 former Ameriprise Financial broker Bart Ellis plead guilty to money laundering and defrauding his clients in a case involving over one million dollars.
Ellis will be sentenced on October 2 where he faces up to 10 years in prison for his crimes.
Securities Fraud Lawyer Blog