LUFRANO LAW, LLC'S BLOG
The Financial Industry Regulatory Authority (FINRA) recently announced it censured and fined Liberty Associates, Inc. (“Liberty Associates”). FINRA alleged Liberty Associates maintained inadequate supervisory systems and written supervisory procedures to supervise the private placement activities conducted by a former registered representative operating out of its Santa Fe, New Mexico branch office.
WFG Investments Broker Larry Michael Crabtree Suspended for Unsuitable Stock Recommendations and Unauthorized Trading
The Financial Industry Regulatory (FINRA) recently announced Larry Michael Crabtree (Crabtree) settled allegations he recommended three unsuitable investments to a customer and exercised discretion in three customers’ accounts without written approval. Crabtree also provided the customer with a graph and a chart that purported to demonstrate how her account would grow at either a 9% or 12% return without any pertinent risk disclosures. As a result of this alleged misconduct, FINRA suspended Crabtree for six months from the financial industry.
Lufrano Law, LLC is currently investigating claims against financial advisors and brokerage firms for the inappropriate sale of risky and speculative oil and gas master limited partnership investments, like NGL Energy Partners LP (symbol NGL), to investors throughout the United States. Over the last 52 weeks, NGL Energy Partners LP is down approximately 75%. The recent decline in NGL Energy Partners LP is consistent with the significant drop in the price of energy-related commodities like oil and natural gas over the past year.
Unfortunately, we have spoken to many investors who have seen their retirement savings dwindle due to inappropriate investments in oil and gas master limited partnerships. If you were recommended NGL Energy Partners LP by a financial advisor, you may be able to recover your investment losses as explained below.
The Financial Industry Regulatory Authority (FINRA) recently announced it censured, fined Barclays Capital, Inc. (“Barclays Capital”) $3.75, and ordered the firm to pay approximately $10.00 in restitution to mutual fund customers from 2010 to June 2015. FINRA alleged Barclays Capital had inadequate supervisory systems and written supervisory procedures for supervising the sale of mutual funds to retail brokerage customers, which failed to stop many customers from swapping one mutual fund for another when the benefits of switching might be undermined by the transaction costs.
Carl W. Busch (Busch) recently submitted an Acceptance, Waiver & Consent (“AWC”), without admitting or denying the findings, in connection with allegations he failed to adequately supervise one of his registered representative’s sales misconduct. Specifically, Busch failed to supervise the broker’s unsuitable investment recommendations, as well as unauthorized discretionary trading activity in three customer accounts. Accordingly, the Financial Industry Regulatory Authority (FINRA) suspended Busch for 45 days and fined him $5,000.
FINRA Brings Complaint against Securities Equity Group Broker J. Randall Gladden Suspended for Outside Business Activities in Church Development Loans
On December 28, 2015, the Financial Industry Regulatory Authority (FINRA) filed a complaint against J. Randall Gladden (Gladden) in connection with allegations Gladden engaged in outside business activities and lied about the sales activity when questioned. FINRA alleges Gladden solicited seven investors to collectively invest more than $2.1 million in church development loans primarily for refinancing the churches existing real estate loans. If FINRA’s allegations are true and proved, then Gladden may be liable to the purchasers for investment damages or disciplined by FINRA, or both.
Former Wells Fargo Broker Valentino Infante Suspended for Outside Business Activities in Heavy Machinery Resale Helicopter Medical Evacuation Business
The Financial Industry Regulatory Authority (FINRA) recently announced Valentino Infante (Infante) entered into a Letter of Acceptance, Waiver and Consent to settle allegations he participated in private securities transactions by soliciting one of his customers to invest in a heavy machinery resale business without his employer’s knowledge. The unlawful business practice of recommending investments outside of a financial advisor’s employer is referred to as “selling away.” As a result, FINRA barred Infante from the financial industry for life.
Securities Service Network Broker Barry David Abrams Disciplined for Discretionary Trades in Customer’s Account
The Financial Industry Regulatory Authority (FINRA) recently announced Barry David Abrams (Abrams) entered into a Letter of Acceptance, Waiver and Consent to settle allegations he executed 87 discretionary transactions in one of his customer’s accounts without written authorization or designating the account as a discretionary account. As a result, Abrams was suspended from the financial industry for 15 business days and is subject to a $5,000 fine.
The Financial Industry Regulatory Authority (FINRA) recently announced Lincoln Financial Advisors Corporation (“Lincoln Financial”) settled allegations it failed to adequately supervise the activities of a registered representative who engaged in unsuitable penny stock trading, in violation of FINRA rules and the its written supervisory procedures.
According to FINRA, Lincoln Financial failed to supervise approximately 1,7000 penny stock transactions in 15 customers’ accounts between January 2010 and September 2011. Without admitting or denying the facts, Lincoln Financial resolved the enforcement action and consented to a public censure and $90,000 fine.
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