Morgan Stanley’s Lloyd Layton Fined For Unsuitable UIT Trading

Lloyd Thomas Layton (CRD #: 1618414) is a prior Morgan Stanley registered representative (2009 – 2015) who consented to Financial Industry Regulatory Authority (FINRA) fining him $5,000.00 and suspending him from having any association with a FINRA member firm in all capacities for three months according to Layton’s submission of Letter of Acceptance, Waiver and Consent #: 2017055691701, accepted by FINRA on August 13, 2018. FINRA held that Layton engaged in unsuitable trading in 54 Morgan Stanley customer accounts.

Specifically, the AWC stated that from July 2012 to December 2014, Layton engaged in the short-term trading of unit investment trusts (UITs). Those investments, as discussed in the AWC, are comprised of investment companies offering shares of a fixed securities portfolio in a public offering, and terminate on a maturity date specified in advance for investors. UITs, FINRA specified, generally contain hefty charges that are assessed to investors on an upfront basis, so the trading of UITs, especially on a short-term basis, is typically inappropriate.

From July 2012 to December 2014, Layton evidently made recommendations for customers to buy the UITS and subsequently sell the securities long before they matured. In fact, the findings revealed that most of the time, Layton recommended UITS containing 24-month maturities, and a customer would be assessed a sales charge of 1.95% up to 3.95% each time a UIT was purchased.

Despite the 24-month maturities, Layton supposedly made recommendations for customers to dispose of the UITs when those securities had only been held by customers for less than 12 months. The findings stated that customers held UITS for an average of 265 days before they were sold. Moreover, Layton evidently recommended in more than 60 occasions that customers take the proceeds from UIT sales and buy other UITS that were similar, if not identical, to those that customers sold before their maturities.

FINRA found that it was in no way suitable for customers to invest pursuant to Layton’s recommendations given the frequency and costs of the UIT transactions. Layton consented to FINRA’s findings of him violating NASD Rule 2310 and FINRA Rules 2111 and 2010 based on his unsuitable short-term UIT trading in Morgan Stanley customer accounts.

Morgan Stanley terminated Layton’s registration on March 26, 2015. He is currently employed with Wells Fargo Clearing Services, LLC in Washington, DC.

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 Layton 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.

UBS Sued For Unsuitable Investment Recommendations

David Richard Watkins (CRD #: 1043375) is a UBS Financial Services Inc. financial advisor (2004 – present) who disclosed a consumer-initiated, investment-related complaint from August 14, 2017 containing allegations that Watkins made unsuitable investment recommendations. The customer specifically alleged to have been poorly advised between May 2013 and October 2016 about the purchasing and holding of investments including exchange-traded funds (ETFs), equities and fixed-income municipal bonds. The customer is seeking $5,000,000.00 in damages.

There are at least two other UBS customers who have alleged Watkins to have committed sales practice violations. According to FINRA BrokerCheck, on September 24, 2015, a UBS customer filed a complaint alleging that from January 3, 2011 to August 12, 2015, the customer’s assets were allocated in bonds that were not appropriate for the customer. The customer alleged Watkins failed to follow the customer’s investment instructions of buying municipal bonds with a credit rating of AA or higher. Watkins was accused by the customer of knowing the bonds were classified as subordinated debt. Watkins’ investment recommendation, the customer contended, was driven by the fact that UBS had underwritten the bonds. UBS and the customer settled the complaint for $60,000.00 in damages.

On June 15, 2018, another customer of UBS filed a complaint alleging he was not provided important information about the reduction of a coupon rate on a municipal-debt investment and corresponding increase in the price of the security. The customer contended that he never authorized a bond to be purchased at the lower coupon rate. UBS estimated that the customer’s alleged damages exceed $5,000.00.

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

Investors Sue Janney Montgomery Scott For Unsuitability

Charles James Euler Jr. (CRD #: 202696) is a financial advisor who disclosed a consumer-initiated, investment-related complaint from June 4, 2018 containing allegations against Euler of recommending unsuitable over-the-counter equities to the investor while registered with Janney Montgomery Scott LLC (Radnor, Pennsylvania), resulting in the investor’s account having been over-concentrated in speculative securities and causing losses. The complaint was settled for $45,000.00.

According to FINRA BrokerCheck, this is the seventh disclosure making reference to allegations of Euler’s sales practice violations affecting Janney Montgomery Scott LLC investors. The first disclosure, dated September 28, 2004, was a complaint involving allegations of misrepresentation of unit investment trust investments, where the investor alleged $50,000.00 in damages.

The second disclosure, which was dated March 7, 2016, involved an arbitration containing allegations that unsuitable stocks were held in the accounts of multiple investors. (Case#: 16-00248). The arbitration was settled for damages totaling $75,000.00. A third disclosure concerned an arbitration dated April 19, 2016 in which Euler was alleged to have allocated the investors’ accounts in stocks that were not suitable for them. (Case #: 16-01026). The investor agreed to settle the matter for $40,000.00 in damages.

In the fourth disclosure, a May 9, 2016 arbitration, the investor contended that Euler misrepresented and omitted facts pertaining to securities purchases, and further alleged that Euler executed trades for the investor’s account which neither reflected the investor’s investment objectives nor was authorized by the investor. (Case #: 16-01980). That arbitration was settled for damages totaling $250,000.00. The fifth disclosure also concerned a May 9, 2016 arbitration containing identical allocations of Euler’s sales practice violations. (Case #: 16-02087). The investor agreed to resolve the dispute for $350,000.00 in damages.

The sixth disclosure consisted of an arbitration dated January 26, 2017 involving allegations of unsuitable, speculative equities being held in the investor's account, resulting in an unbalanced investment portfolio. (Case #: 17-00209). A settlement was reached for the investor to be paid $150,000.00 in damages.

On April 30, 2018, following the sixth consumer-initiated investment-related dispute, Janney Montgomery Scott LLC terminated Euler’s registration.

If you believe that you are a victim of sales practice violations such as those alleged to have been committed by Charles James Euler, Jr., 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.

Customer Lodges Dispute Against Dakota Securities For Investment Losses

Thomas Patrick Beattie (CRD#: 1321866) is a general securities representative who disclosed a pending consumer-initiated, investment-related complaint from April 16, 2018 containing allegations against Beattie of committing sales practice violations while registered with CP Capital Securities (Miami, Florida) and Dakota Securities International, Inc. (Miami, Florida), which caused the customer to experience losses on mutual funds, over-the-counter equities and other investments. The customer has alleged $250,000.00 in damages.

According to FINRA BrokerCheck, this is the fourth consumer-initiated, investment-related dispute in which Beattie’s sales practices have been called into question. The first complaint, dated May 12, 2011, involved allegations of nine unauthorized equity trades having been executed in a customer’s account when Beattie was registered with Great American Advisors, Inc. (Homestead, Florida). The customer alleged damages of $19,038.00.

A second complaint, dated February 11, 2013, alleged that Beattie misrepresented the customer’s information, and recommended unsuitable penny stock and corporate debt investments for the customer’s account while registered with Lincoln Investment (Homestead, Florida). That customer’s complaint was settled for $5,609.82. The third complaint, which is currently pending, concerned Beattie’s activities when registered with CP Capital Securities (Miami, Florida) and Dakota Securities International, Inc., where the customer alleged poor investment performance and excessive trading in the customer’s account between March 1, 2016 and January 1, 2018.  The customer alleged $251,000.00 in damages.

Beattie has additionally disclosed three regulatory actions regarding allegations of his misconduct. In particular, the Florida Department of Banking and Finance, Division of Securities and Investor Protection, authorized Beattie’s application for registration in the state subject to a Heightened Supervision Agreement containing restrictions on him from serving in a principal capacity in the securities industry or exercising discretion in customer accounts. (Case#: 88.206.DOS). The sanctions were based upon allegations that Beattie effected unauthorized trades in customer accounts and accrued customer complaints.

Subsequently, to resolve allegations of Beattie’s excessive and unsuitable trading in customer accounts, Beattie entered into a Stipulation and Consent Agreement with the Florida Division of Securities and Investor Protection, where he was ordered to pay a $5,000.00 fine and his registration was suspended. (Case#: 2824-S-6/99).

Beattie is no longer registered with Dakota Securities International, Inc. He has been registered with SW Financial (Melville, New York) since July 31, 2018.

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

Fifth Third Securities Unsuitable Variable Annuity Exchanges

The Law Office of Peter M. Spett is investigating customer complaints against Fifth Third Securities for unsuitable variable annuity exchanges.  The Financial Industry Regulatory Authority recently sanctioned Fifth Third Securities $6 Million for cost and fee disclosure failures and unsuitable recommendations related to variable annuity exchanges.  Variable annuities are complex investments commonly marketed and sold to retirees or people saving for retirement.  FINRA found that Fifth Third failed to ensure that its agents and financial advisors obtained and assessed accurate information concerning annuity exchanges and misstated or omitted material facts regarding the costs and benefits of such exchanges.  If you believe you may have been the victim of a fraudulent variable annuity exchange, please contact the Law Office of Peter Spett at (561) 463-2799.

Broker Investigation: Barry Connell and Jeffrey Crystal of Morgan Stanley

The investment loss recovery attorney, Peter M. Spett, Esq., is investigating financial fraud charges against Barry Connell, a broker formerly employed by Morgan Stanley out of its Ridgewood, NJ branch office.  In November 2016, Mr. Connell was discharged after Morgan Stanley began probing charges that he had stolen money from an elderly client's household accounts.  Other customers have accused Barry Connell caused significant financial losses by making unsuitable investment recommendations and mishandling their accounts.  Jeffrey Crystal, who was Barry Connell's branch manager and supervisor, has been suspended and placed on leave by Morgan Stanley.  Jeffrey Crystal was responsible for supervising over forty brokers in each of Morgan Stanley's Ridgewood and Paramus, NJ offices.

Investors who have suffered losses may be able to recover their losses through securities arbitration. The Law Office of Peter M. Spett is experienced in representing investors in cases of financial fraud and negligence, unsuitable investment recommendations, and the failure of brokerage firms to supervise their registered financial advisors.  All consultations are free of charge.  Often, cases are handled on a contingency fee basis, which means that no attorney fees are charged unless and until there is a recovery of investment losses.

Peter M. Spett represents clients across the United States and may be contacted by calling (888) 217-4919.

FINRA Accuses Success Trade Securities of Massive Fraud

FINRA has accused Success Trade Securities of being involved in an alleged Ponzi scheme involving professional athletes, among others.  "The Financial Industry Regulatory Authority (FINRA) has accused Success Trade Securities and it’s owner, Fuad Ahmed, of lying about key facts surrounding investments secured by 58 clients. FINRA did not release the names of the athletes ensnared in the scam, however, an 18-month investigation by Yahoo! Sports determined that a large portion of those involved were players represented by Jade Private Wealth Management."

http://sports.yahoo.com/blogs/not-for-attribution/feds-nfl-nba-players-ensnared-18-million-investment-181232863.html

If you believe you are the victim of a Ponzi scheme such as the one allegedly perpetrated by Success Trade Securities and Jade Private Wealth Management, please contact the Law Office of Peter M. Spett for a free consultation to evaluate your legal rights and claims:  www.spettlaw.com