Category Archives: unsuitable investments
Report: Troubled Private Placement GPB Capital Holdings Paid Steep Commissions to Brokers and Broker-Dealers
According to reporting from InvestmentNews, GPB Capital Holdings — the troubled alternative investment company that is currently the subject of Ponzi scheme accusations — paid large commissions to the securities representatives as a substantial inducement to sell the private placement to investors. Specifically, commissions were paid at a rate of 9.3 percent. In total,… Read More »
Morgan Stanley Settles Customer Arbitrations Over Unsuitability
Scott J. Donato (CRD: 2336331) is a prior registered representative of Morgan Stanley from the Miami, Florida area who was terminated on March 21, 2017. He disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that his activities have resulted in a customer-initiated investment-related arbitration dated October 27, 2017. The arbitration alleges that Donato engaged… Read More »
Morgan Stanley’s Stewart Malloy Charged With Failing To Testify to FINRA
Stewart Clinton Malloy (CRD: 1029931) is a former registered representative of Morgan Stanley located in Riverhead, New York. Financial Industry Regulatory Authority (“FINRA”) Department of Enforcement filed a Complaint against Malloy on August 24, 2018 (Disciplinary Proceeding #2016051299201) alleging that he violated FINRA Rules 8210 and 2010 by twice failing to testify in an… Read More »
Customers File Suits Against B. Riley & Co. For Mismanaging Accounts
Norman Joel Caris (CRD: 40535) is a registered representative of B. Riley FBR, Inc. based in Los Angeles, California. According to Caris’ Financial Industry Regulatory Authority (“FINRA”) BrokerCheck file, he was previously referenced in five customer-initiated, investment-related disputes containing allegations of sales practice violations which include suitability, account mismanagement, excessive commissions, and fraud. Those… Read More »
Customers Suing Morgan Stanley Over Unsuitable Equities
Kirk J. Gill (CRD: 2291503) is a former Morgan Stanley financial advisor from Tucson, Arizona. According to Gill’s FINRA BrokerCheck file, he is currently, or was previously, referenced in fifteen customer-initiated, investment-related disputes (comprised of complaints or FINRA arbitrations) containing allegations of sales practice violations including unsuitable trading, unauthorized trading, misrepresentation, breach of contract… Read More »
SEC Shuts Down $102 Million Ponzi Scheme
The Securities and Exchange Commission today filed charges and obtained an asset freeze against the individuals and companies behind a $102 million Ponzi scheme that bilked investors throughout the U.S. According to the SEC’s complaint, the defendants defrauded more than 600 investors through sales of securities in issuers they controlled, including First Nationle Solution… Read More »
Real Estate Investment Trusts (REITS): What You Need to Know
Recently, the SEC Office of Investor Education and Advocacy released a bulletin to help investors better understand publicly traded Real Estate Investment Trusts (REITs). REITs are an increasingly popular investment, especially in Florida. While REITs do offer considerable benefits for some investors, these complex financial products are certainly not appropriate for everyone. In this… Read More »
Investor Bulletin: 10 Investment Tips for 2016
Whether you are a first-time investor or have been investing for years, here are ten tips from the SEC’s Office of Investor Education and Advocacy to help you make more informed investing decisions and avoid common scams in 2016. Always check the background of an investment professional − it is easy and free. Details… Read More »
SEC, U.S. Attorney Charge Utah Man With Running Fake Investment Club
Investment clubs are a way for individuals to meet and pool their resources to purchase stock, bonds, mutual funds or other securities. Many investment clubs operate as partnerships or limited liability companies, where individuals purchase memberships and participate in joint decision-making. Unlike larger investment groups, an investment club with fewer than 100 members generally… Read More »
Do You Know Who You Are Investing With?
In a recent Investor Alert, the U.S. Securities and Exchange Commission warned, “In order to attract unsuspecting investors and gain their trust, fraudsters may boast about credentials they do not have.” Indeed, a key part of many securities fraud schemes is the operator’s ability to mislead investors about his or her expertise and track… Read More »