Active Investigations

Philip Marchese (CRD #5905008, Staten Island, New York) was suspended for 12 months and ordered to pay $50,000, plus interest, in deferred partial restitution to customers, for allegations of exercising de facto control over the customer accounts when he recommended high frequency trading in their accounts. Marchese’s trading in these accounts was excessive and unsuitable given the customers’ investment profiles. As a result of Marchese’s excessive trading, the customers suffered …

Robert C. David Jr. (CRD #5211223, Farmington, Michigan) was fined $15,000 and suspended from association with any FINRA member in all capacities for 20 months based on allegations of falsifying client account information so he could circumvent Morgan Stanley’s internal procedures and sell clients non-investment grade, fixed-income securities. The findings state that David increased the net worth and liquid net worth of customers and changed the customer’s risk tolerance so …

If you purchased GWG Holdings L Bonds from a broker-dealer or financial advisor, then you may be able to seek recourse against the firm that sold you GWG L Bonds. We understand the brokerage firms that sold GWG L Bonds include, Aegis Capital Corp., Cabot Lodge SecuritiesCapital Investment GroupCentaurus FinancialCenter Street SecuritiesCoastal EquitiesEmerson EquityLandolt Securities, Lion …

If you have lost your money with Carlos Cortez (CRD # 5378014) and/or Cortez Wealth Advisors, LLC (CRD # 285131) related to investments in Bullet Capital & Contract Occurrence Management Merchants (“BCCOMM”), you may be able to recover your losses. The Schwartz Law Firm continues to investigate claims against Carlos Cortez for his recommendations for clients to invest in BCCOMM. We understand that Cortez directed clients to BCCOMM without completing …

FINRA announced that a FINRA extended hearing panel has expelled Salt Lake City-based broker-dealer Alpine Securities Corp. from FINRA membership, and ordered the firm to pay more than $2.3 million in restitution to customers for converting and misusing customer funds and securities, engaging in unauthorized trading, charging customers unfair prices in securities transactions and unreasonable fees, and making an unauthorized capital withdrawal.

The hearing panel also issued a permanent …

FINRA announced that it has fined Deutsche Bank Securities, Inc. $2 million for failing to comply with its obligation to seek best execution for its customers’ orders

“The duty to seek best execution for customer orders is a fundamental obligation of any broker-dealer that buys or sells securities on behalf of customers,” said Jessica Hopper, Executive Vice President and Head of FINRA’s Department of Enforcement. “We will continue to pursue …

March 31, 2022 – Velten was named a respondent in a FINRA complaint alleging that he failed to respond in any way to FINRA’s requests for information in connection with its investigation into an allegation that he churned and flipped his elderly customers’ accounts at his member firm, encouraging them to surrender their annuities and sell mutual fund holdings away from the firm and use the proceeds to purchase bonus …

March 31, 2022 – Orlando was named a respondent in a FINRA complaint alleging that he willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and violated FINRA Rule 2020 by churning a customer’s account. The complaint alleges that Orlando exercised de facto control over the customer’s account by controlling the volume and frequency of trading, deciding what securities to buy and sell, the quantities, the price, …

March 15, 2022 – Hanshew was named a respondent in a FINRA complaint alleging that he failed to provide a complete response to FINRA’s requests for information and documents during the course of its investigation into concerns that he was engaged in various sales practice violations involving senior investors, as well as failures to disclose OBAs, and judgments and liens while he was associated with his member firm. The complaint …

March 8, 2022 – Whitman was named a respondent in a FINRA complaint alleging that he failed to provide information and documents requested by FINRA during the course of its investigation into the circumstances of his termination by his member firm and his alleged acceptance of a loan from a customer. (FINRA Case #2021071227301)…

March 7, 2022 – The firm was named a respondent in a FINRA complaint alleging that it willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and violated FINRA Rule 2020 by engaging in securities fraud in connection with its sale of bonds in two private offerings for a company. In the alternative, the firm acted in contravention of Sections 17(a)(2) and 17(a)(3) of the Securities Act …

March 31, 2022 – An AWC was issued in which Weiner was fined $5,000 and suspended from association with any FINRA member in all capacities for 30 days. Without admitting or denying the findings, Weiner consented to the sanctions and to the entry of findings that he impersonated nine customers of his former member firm, during telephone calls to the firm’s insurance affiliate to obtain information about the customers’ existing …