Geneos Broker Barred For Not Cooperating With FINRA Investigation

Bradley Joseph Tennison (CRD#: 1561988), who is a previous registered representative of Geneos Wealth Management, Inc., consented to Financial Industry Regulatory Authority (“FINRA”) barring him in all capacities according to Tennison’s submission of a Letter of Acceptance, Waiver and Consent No. 2018058302101, accepted by FINRA on July 2, 2018. FINRA stated that Tennison failed to comply with FINRA’s investigation concerning his possible misconduct in the securities industry.

After Geneos Wealth Management’s April 2018 termination of Tennison’s registration, FINRA began an investigation into Tennison’s possible sales practice violations. FINRA’s investigation centered in on Tennison seemingly recommending for a customer to invest $300,000 away from the firm. Tennison apparently failed to provide FINRA with documentation and information in the time of FINRA’s investigation. FINRA also found Tennison uncooperative when Tennison’s testimony was requested. Apparently, Tennison retained legal counsel, who contacted FINRA in June 2018 to state that Tennison would not testify in FINRA’s investigation. FINRA stated that Tennison violated FINRA Rules 8210 and 2010 because of failing to cooperate.

FINRA BrokerCheck indicates that Geneos Wealth Management discharged Tennison after a customer complained about Tennison’s investment recommendations. According to Geneos Wealth Management, Tennison failed to fully cooperate with the firm’s investigation into his possible unsuitable recommendations.

Customers of First Allied Securities and Geneos Wealth Management Inc. have filed disputes concerning Tennison’s sales practices. Records show that a First Allied Securities customer filed NASD arbitration #02-04176 on January 13, 2003, asserting claims against Tennison of breach of fiduciary duty and unsuitability in connection with the customer’s equity investments. The arbitration was settled for $79,380.00 in damages on March 16, 2004.

The second dispute was filed by a Geneos Wealth Mangement Inc. customer on March 4, 2010, who alleged that Tennison gave the customer bad advice regarding limited partnership investments. Tennison agreed to provide the customer $10,000.00 to settle the matter. And on April 24, 2018, a Geneos Wealth Mangement Inc. customer filed a complaint asserting that Tennison advised the customer to invest $300,000.00 away from the firm. According to the customer, the investment was supposed to have matured after one year; however, Tennison did not return the customer’s principal. At least $300,000.00 in damages has been demanded by the customer in the pending matter.

Investors who have lost money by investing with Geneos Wealth Mangement brokers such as Bradley Joseph Tennison should consider contacting the Law Office of Peter M. Spett at (561) 463-2799 for a free consultation regarding their legal rights and claims. Peter M. Spett is experienced at recovering investor losses.

Independent Financial Group Rep Barred For Unsuitable Sales

Kyusun Kim (CRD #: 2864085), who is a previous registered representative of Independent Financial Group, LLC (San Diego, California) consented to Financial Industry Regulatory Authority (“FINRA”) barring him in all capacities according to Kim’s submission of a Letter of Acceptance, Waiver and Consent #: 2017052705001, accepted by FINRA on June 6, 2018. Kim was found liable for making unsuitable investment recommendations.

FINRA stated that when Kim worked for Independent Group, he advised several customers to liquidate their 401(k) and pension plans, and transfer those funds to Independent Financial Group accounts so that the customers would invest with Kim. Kim had apparently recommended for customers to invest in alternative investments including non-traded REITS and structured notes.

The AWC showed that Kim’s customers were inexperienced investors who had conservative or moderate investment objectives and risk tolerances. The AWC stated that Kim’s recommendations were unsuitable because those alternative investments did not provide customers with liquidity, and were not consistent with the customers’ objectives and risk tolerances.

In the AWC, FINRA referred to more than one situation where Kim advised elderly customers to invest a large portion of their liquid net worth in the alternative investments. FINRA also stated that when Kim made those recommendations, he failed to disclose the risks. The AWC reported that Kim’s customers incurred significant losses. As a result, FINRA stated that Kim violated NASD Rules 2310 and 2110 and FINRA Rules 2111 and 2010.

Kim has reported that at least 23 Independent Financial Group, LLC customers have disputed his sales practices. Customers have brought claims of breach of fiduciary duty, breach of contract, unsuitable investments, violation of federal and state laws, financial elder abuse, negligence, misrepresentation, and fraud. So far, 13 of those customer disputes have been settled for a total of $2,995,443.00 in damages, while 9 customer disputes are pending.

The Law Office of Peter M. Spett is experienced in representing investors in cases of unsuitable investment recommendations, fraud, negligence, and the failure of brokerage firms to supervise their financial advisors. If representatives such as Kyusun Kim have traded in your account in an inappropriate manner, contact Peter M. Spett at (888) 217-4919 for a free consultation concerning the possible recovery of your investment losses.

Laidlaw & Company Customer Alleges Excessive Trading

Craig Aaron Bonn (CRD #: 2280460), who was previously a registered representative of Laidlaw & Company (UK) Ltd. located in New York New York, has disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that a Laidlaw customer filed FINRA Arbitration #18-02628 on August 29, 2018, alleging excessive trading and unsuitability.

Bonn’s BrokerCheck records show that the customer alleged Bonn to have made unsuitable stock trades, and traded excessively in the customer’s account between 2008 and 2016. At least $228,128.47 in damages have been requested by the customer as a result of Bonn’s alleged sales practice violations.

In addition, Bonn also disclosed that FINRA Arbitration #14-00033 was filed by a Laidlaw customer on January 17, 2014. Bonn was accused of giving the customer poor advice regarding equities and limited partnership interests or direct participation programs. Laidlaw resolved the customer’s allegations by paying the customer $325,000.00 in damages.

On March 23, 2004, Bonn was alleged in a complaint to have made unsuitable investments in the account of a Sands Brothers & Co. customer. The customer alleged that it was inappropriate for the customer to have been placed in certain equities. That complaint has not been pursued by the customer as of August 6, 2004.

Bonn is presently a registered representative of National Securities Corporation.

If you believe you are a victim of sales practice violations such as those alleged to have been committed by Craig Aaron Bonn, contact the Law Office of Peter M. Spett for a complimentary consultation to evaluate your legal rights and claims.

Ameriprise’s Michael Dellaporta Terminated For Unauthorized Trading

Michael Joseph Dellaporta Jr. (CRD #: 500214), who previously was a registered representative of Ameriprise Financial Services, Inc. in Fort Lauderdale, Florida (September 10, 2010 to June 23, 2015), has divulged through Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that Ameriprise discharged him as a result of Dellaporta’s failure to follow Ameriprise’s policies relating to trading in its customers’ investment accounts.

Ameriprise alleged that Dellaporta was discharged for violating the company’s policies. According to Ameriprise, Dellaporta exercised discretion in customer accounts without obtaining authorization. He was also alleged to have steered customers to effect fixed income securities transactions despite those securities not being approved by Ameriprise. In addition, Ameriprise alleged that Dellaporta solicited option trades at volumes that were prohibited by the firm, and falsely disclosed that his trades were not solicited.

At least three Oppenheimer & Co. Inc. customers and one Ameriprise customer have contested Dellaporta’s sales practices by filing investment-related disputes. The first dispute concerns an Oppenheimer customer who filed a complaint on July 20, 2009, claiming unsuitability and unauthorized trading. That customer alleged that there was an over-concentration of financial preferred securities in the customer’s account.

Apparently, the allocation of stocks in the customer’s account was not suitable because it conflicted with the customer’s risk tolerance. In addition, the customer claimed that an investment strategy selected for the customer’s account was switched without the customer’s permission, and unauthorized investments held in the customer’s account led the customer to experience losses. On August 14, 2009, Oppenheimer agreed to pay the customer $150,000.00 in order to settle the claim.

Next, a FINRA arbitration #11-03266 was filed by an Oppenheimer customer on September 13, 2011, who alleged that trades were unsuitable and excessive. Apparently, the inappropriate and unwarranted transactions concerned mutual funds, stock, direct investments, corporate-debt and municipal-debt products. The arbitration was settled for $52,500.00 in damages on October 4, 2012.

A third Oppenheimer customer brought FINRA arbitration #13-02086, claiming that trades were excessively placed on margin, and the investments were unsuitable. A settlement was reached on November 18, 2016, under which the customer was paid $375,000.00.

On December 29, 2016, FINRA arbitration #16-03636 was filed by a customer of Ameriprise Financial Services, Inc. The customer stated that securities had been purchased for the customer’s account without consent from the customer. Moreover, according to the customer, recommendations of sub-par collateralized mortgage obligations were inappropriate, and the selection of those investments led the customer’s account to be over-concentrated in unsuitable investments. Ameriprise resolved the customer’s matter for $150,000.00.

Since being discharged from Ameriprise, Dellaporta has worked for Fusion Analytics Securities LLC (August 28, 2015 – August 13, 2018) and B.B. Graham & Company, Inc. (August 10, 2018 – present).

If you have suffered losses as a result of investing with a broker from Ameriprise or Oppenheimer such as Michael Joseph Dellaporta Jr., call the Law Office of Peter M. Spett at (561) 463-2799 for a free consultation concerning your legal rights and claims. Peter M. Spett has extensive experience recovering investor losses.

SunTrust Settles Customers' Claims Of Unauthorized Trading

Daniel Antonio Pacheco (CRD#: 5278626), who was a prior financial advisor of SunTrust Investment Services, Inc. in Hollywood, Florida from January 19, 2016 to April 14, 2016, has disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that a customer filed a FINRA Arbitration #17-02124 on September 13, 2017, asserting a claim against Pacheco of unsuitability.

The customer indicated that Pacheco misrepresented the customer’s suitability profile – documentation which generally refers to an investor’s risk tolerance, investment objectives, and financial status. The customer asserted that Pacheco also placed the customer in equities, including common or preferred stock, that were not suitable for the customer. SunTrust and the customer agreed for the customer to be paid $35,000.00 to settle the claim.

At least three other SunTrust customers have come forward disputing Pacheco’s sales practices, according to Pacheco’s FINRA BrokerCheck file. In one customer dispute filed on December 14, 2015, a customer alleged that Pacheco made stock trades in the customer’s account without the customer’s permission. On December 18, 2015, SunTrust settled that customer’s claim of unauthorized trading.

In another customer complaint filed January 15, 2016, Pacheco was accused of providing the customer written confirmation that the customer’s account value would not fall below $485,000.00. Apparently, the promise made by Pacheco was left unfulfilled. The customer also alleged that Pacheco was supposed to have contacted the customer if the customer sustained more than three percent losses on mutual funds and equity investments; however, Pacheco failed to communicate with the customer. On February 24, 2016, SunTrust settled the customer’s dispute by paying $35,000.00 in damages.

Another SunTrust customer filed a complaint on January 22, 2016, claiming that Pacheco made unauthorized trades of stock in the customer’s account. Pacheco was additionally accused of buying securities for the customer’s account that did not match the customer’s risk tolerance. Records show that the customer was provided $28,740.65 by SunTrust on April 18, 2016 to resolve the customer’s allegations of unsuitability and unauthorized trading.

Investors who have lost money by investing with SunTrust financial advisors such as Daniel Antonio Pacheco are welcome to contact the Law Office of Peter M. Spett at (561) 463-2799 for a free consultation regarding their legal rights and claims. Peter M. Spett is experienced at recovering investor losses.

SEC Alleges Morgan Stanley Advisers Committed Securities Fraud

The Securities and Exchange Commission (“SEC”) filed a Complaint in the United States District Court for the District of Massachusetts, charging James S. Polese (CRD #:2636427) and Cornelius Peterson (CRD #: 5769919), both prior investment advisers of Morgan Stanley in Boston, Massachusetts, with defrauding several customers and stealing their assets. The Securities and Exchange Commission vs. James S. Polese and Cornelius Peterson [Case 1:18-cv-10186, Filed January 31, 2018]. The United States Attorney’s Office also filed a parallel action, in which Peterson and Polese were charged with investment adviser fraud, bank fraud, conspiracy and identify theft.

The SEC’s Complaint alleged that between August 2014 and May 2017, Peterson and Polese participated in a fraudulent scheme, part of which involved an elderly client’s $450,000.00 in assets being stolen. Peterson and Polese allegedly misappropriated $350,000.00, where $100,000.00 had been used by them to invest in their personal accounts, with the remainder directed to a bank account controlled by Polese.

The Complaint also stated that between March 2017 and May 2017, a number of unapproved withdrawals totaling $93,000.00 had been executed by Polese from the elderly client’s account to pay Polese’s childrens’ college tuition and Polese’s credit cards.

The Complaint additionally alleged that Peterson and Polese breached fiduciary duties to their customers. Particularly, unbeknownst to customers, Peterson and Polese invested the funds of their customers in investments that Peterson and Polese maintained a financial stake. Peterson and Polese also mysteriously used the assets belonging to a customer to secure a loan for purposes of financing an entity that Peterson and Polese invested in. Further, two customers had been defrauded by Polese when he procured a loan from a customer under terms that were not beneficial to the customer, and charged another customer fees that were 50% greater than what the customer and Polese had previously agreed upon.

The SEC alleged that Peterson and Polese violated Section 10(b) of the Exchange Act; Rule 10b-5; Section 206 of the Advisers Act; and aided and abetted Section 204 of the Advisers Act. SEC sought civil penalties, permanent injunctions and disgorgement of Polese’s and Peterson’s ill-gotten gains.

While Polese’s fate is yet to be determined, on January 31, 2018, Peterson pled guilty to investment adviser fraud, conspiracy, and bank fraud. United States v. Cornelius Peterson, Crim. Information No. 1:18-cr-10027. Subsequently, on July 17, 2018, Peterson consented to the SEC’s Order Instituting Administrative Proceeding Pursuant to Section 15(b) of the Exchange Act and Section 203(f) of the Advisers Act, Making Findings, and Imposing Remedial Sanctions, under which SEC barred Peterson from acting as a broker or investment adviser or associating with firms that sell securities or provide the public with investment advice.

Polese and Peterson have disclosed on FINRA BrokerCheck that customers have filed disputes alleging Polese’s and Peterson’s sales practices violations. On My 26, 2017, two Morgan Stanley Smith Barney customers filed complaints alleging Polese misrepresented fees charged in their managed accounts between January 2015 and May 2017. One of those complaints was settled for $33,260.00 in damage; the other is pending.

On November 7, 2017, a customer filed arbitration #17-02954, alleging that Peterson and Polese misappropriated the customer’s assets. The arbitration is still ongoing. And on May 21, 2018, a Morgan Stanley customer demanded $136,500.00 in damages as a result of Polese’s alleged unauthorized stock trading.

Prior to the SEC’s Complaint, Morgan Stanley discharged Peterson and Polese on June 26, 2017, citing allegations of misappropriation of customer assets. In addition, on September 1, 2017, Financial Industry Regulatory Authority (“FINRA”) barred Peterson and Polese in all capacities for failing to respond to FINRA’s request for their information.

If you believe that you are a victim of investment-related misconduct committed by Cornelius Peterson or James S. Polese, contact the Law Office of Peter M. Spett at (561) 463-2799 for a complimentary consultation to evaluate your legal rights and claims. Peter M. Spett has extensive experience recovering losses for investors.

Customers Allege Oppenheimer Committed Fraud

Gregory Baines Iglow (CRD#: 2783963), who has been a registered representative of Oppenheimer & Co. Inc. (Los Angeles, California), disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that he is referenced in a July 11, 2018 FINRA arbitration #18-02493. The Oppenheimer customer raised allegations of negligent supervision, breach of fiduciary duty, breach of contract, common law fraud, omissions, misrepresentation, unsuitability, violation of California’s Elder Abuse statutes, and violation of California Securities Act. The customer’s claims of misconduct pertain to investments in Puerto Rican bonds. A total of $300,000.00 in damages has been alleged by the customer in the pending matter.

According to FINRA BrokerCheck, allegations of Iglow’s sales practice violations are referenced in seven consumer-initiated, investment-related disputes. According to two July 17, 2014 complaints, customers of Oppenheimer alleged that omissions were made about municipal debt investments when they were purchased by the customers. The customers also contended that the investments were inappropriate given the customers’ ages and health conditions. The customers demanded a combined $324,482.90 in damages. Oppenheimer denied the customers’ allegations.

On December 17, 2009, civil suit #BC427035 was filed by an Oppenheimer customer concerning Iglow’s sales practices. Apparently, the customer contended that auction rate securities had been misrepresented, and omissions were made regarding those securities. The customer’s matter was settled for a total of $3,164,250.00 in damages on March 16, 2011.

Additionally, a consumer-initiated arbitration #09-05195 was filed on October 12, 2009. A customer who held assets with RBC Capital Markets Corporation and Oppenheimer accused Iglow of placing the customer in unsuitable corporate bonds. Apparently, the issuer of those bonds filed for bankruptcy, causing the customer to sustain losses. On May 14, 2010, the arbitrator found Iglow liable for negligence, omission of facts, non-disclosure, misrepresentation, breach of fiduciary duty, fraud and unsuitability. The arbitrator ordered Iglow to pay the customer $17,121.00 in damages.

In a March 6, 2009 complaint, an Oppenheimer customer alleged that Iglow was dishonest with the customer in reference to the customer’s Fannie Mae corporate debt investments. The customer’s claim was denied by Oppenheimer on April 15, 2009. Iglow was additionally subject of an April 7, 2003 complaint where a Prudential Securities Incorporated customer claimed that Black Rock Income Municipal Income Trust Fund investments had been misrepresented. Prudential Securities Incorporated denied the customer’s matter on May 16, 2005.

If you have suffered losses as a result of investing with Gregory Baines Iglow or another Oppenheimer broker, call the Law Office of Peter M. Spett at (561) 463-2799 for a free consultation concerning your legal rights and claims. Peter M. Spett has extensive experience recovering investor losses.