FINRA Charges Broker David Randall Lockey of SWS Financial Services, Now Known As Hilltop Securities Unsuitable Short-Term Trading

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Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against stockbroker David Randall Lockey, formerly registered with SWS Financial Services, now known as Hilltop Securities Independent Network Inc.

On March 30, 2016, FINRA’s Department of Enforcement filed a complaint alleging that Mr. Lockey “engaged in unsuitable short-term trading and switching in” mutual funds and unit investment trusts in customer accounts between May 2012 and March 2014.

If you or someone you know has a complaint or lost money investing with David Randall Lockey, SWS Financial Services, or Hilltop Securities Independent Network Inc. you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in churning, suitability, fraud and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

CMD Investigating Claims Against Caldwell International Securities Corporation For Excessive Commissions, Fees and Unauthorized Trading

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Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against Caldwell International Securities Corporation, and securities brokers Greg Allen Caldwell, Alex Evan Etter, Alain J. Florestan, Lennie Simmons Freiman, Paul Joseph Jacobs, Richard Andrew Lee, Lucas Dylan Lichtman and Richard Lim.

FINRA’s Department of Enforcement filed a complaint alleging that  alleging that Caldwell International Securities Corporation, by and through one or more of its registered representatives and principals, put profits before customers, growth before compliance and subterfuge before transparency. The complaint alleges that the Caldwell International Securities Corporation’s culture of non-compliance led to serious sales practice, supervisory and reporting violations at its home office and multiple branches. Alex Evan Etter, Alain J. Florestan, Richard Andrew Lee, Lucas Dylan Lichtman and Richard Lim made unsuitable recommendations of an active trading investment strategy to their customers despite the fact these representatives failed to understand the risks of the investment strategy being recommended, or the impact the staggering commissions and fees generated by this active trading investment strategy would have on their customers’ accounts. These representatives had no reasonable basis to recommend such a strategy to their customers. As a result of the recommendation of an unsuitable active investment trading strategy, customer accounts suffered more than $1.1 million in realized trading losses while paying over $1 million in commissions and fees.

The complaint alleged that Caldwell International Securities Corporation and its brokers are liable for the unsuitable recommendations of an active trading investment strategy made by Etter, Florestan, Lee, Lichtman and Lim under the doctrine of respondeat superior because each representative was an agent of the firm acting within the scope of his duties when he engaged in this misconduct. Caldwell International Securities Corporation, acting by and through its registered representatives, made unsuitable recommendations involving inverse and/or leveraged Exchange Traded Funds (ETFs) without a reasonable basis for believing these investments were suitable for their customers.

The complaint also alleges that the Caldwell International Securities Corporation, Caldwell, Freiman and Jacobs failed to establish and maintain a system to supervise the activities alleged that was reasonably designed to achieve compliance with applicable securities laws and regulations and NASD/FINRA rules. Caldwell International Securities Corporation, Caldwell, Freiman and Jacobs failed to monitor for, detect and, when detected, investigate multiple instances of potential misconduct by the firm’s brokers involving unsuitable active trading investment strategies, unsuitable ETFs, discretionary trading without written authorization and excessive trading/churning in multiple customer accounts across multiple branches of the firm. In addition, the firm, Caldwell, Freiman and Jacobs failed to implement a reasonable supervisory system to adequately review trades for unsuitable recommendations, such as ETFs, and to adequately monitor whether the firm’s representatives understood the risks and benefits of the active trading investment strategy they were recommending, nor did the firm monitor whether the representatives had done any due diligence on the recommended active trading investment strategy. This grossly inadequate supervisory system resulted in many firm customers suffering significant losses and paying staggering commissions and fees. Caldwell International Securities Corporation, Caldwell, and Freiman failed to establish and maintain a system to supervise the firm’s activities that was reasonably designed to achieve compliance with applicable securities laws and regulations and NASD/FINRA rules and/or the firm’s written supervisory procedures in multiple other ways. Caldwell International Securities Corporation, Caldwell, and Freiman failed to place representatives on heightened supervision, review all electronic correspondence to and from customers, identify and report customer complaints received, and apply right of reinvestment/right of reinstatement fee waivers, resulting in overcharges of $107,367.08 to customers’ accounts.  Moreover, the complaint alleges that the firm willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-10 by charging customers misleading and/or discriminatory miscellaneous fees in several transactions.

If you or someone you know has a complaint or lost money investing with Caldwell International Securities Corporation, and/or securities brokers Greg Allen Caldwell, Alex Evan Etter, Alain J. Florestan, Lennie Simmons Freiman, Paul Joseph Jacobs, Richard Andrew Lee, Lucas Dylan Lichtman and Richard Lim, you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in fraud, suitability, unauthorized trading, excessive commissions, excessive fees, ETFs and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

CMD Investigating Claims Against Ridgeway & Conger, Inc., And Securities Brokers Kenley Brisard, Philip Brisard and Leigh McCobb Garber

Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against Ridgeway & Conger, Inc., and securities brokers Kenley Brisard, Philip Brisard and Leigh McCobb Garber.

FINRA’s Department of Enforcement filed a complaint alleging that Ridgeway & Conger, Inc., Kenley Brisard and Philip Brisard sold an unregistered security that consisted of interest-only strips from loans issued by the United States Small Business Association (SBA) meant only for Qualified Institutional Buyers (QIBs) to individual retail investors at undisclosed markups using general solicitation emails that fraudulently misrepresented the product and their role in its development.

The complaint alleges that Kenley Brisard and Philip Brisard willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder when they engaged in fraudulent misrepresentations and omissions of material fact in connection with customer purchases of securities with respect to the emails they sent to customers.  The misrepresentations and omissions in Kenley Brisards’ statements to customers were material because a reasonable investor would consider them important in making investment decisions, because they significantly altered the total mix of information made available to the solicited customers, and because they denied the investors the opportunity to make an informed decision about whether to invest in the SBA interest-only security. The complaint also alleges that Kenley Brisard and Philip Brisard, in connection with offers of the SBA interest-only security, sent false and fraudulent emails containing similar misrepresentations and omissions to additional customers and prospects, and failed to comply with Section 17(a)(1) of the Securities Act of 1933.   FINRA alleges that Kenley Brisard and Philip Brisard knowingly, willfully and/or recklessly ignored and/or contradicted the PPM for the SBA interest-only security to which they had ready access, and they made statements that had no underlying factual basis.  Kenley Brisard and Philip Brisard failed to reasonably and/or independently investigate and understand the SBA interest-only security before they recommended the investment to customers and failed to reasonably consider the information contained in the PPM.

The complaint further alleges that Ridgeway & Conger, Inc. charged excessive markups on customers’ unregistered securities transactions. In each of the transactions, the firm purchased the SBA interest-only security for its own account from a placement agent, and shortly thereafter sold it to individual retail customers. In each of these transactions, the firm already had the order from the customer in hand before it purchased the security from the placement agent. In each instance Leigh McCobb Garber, on the firm’s behalf, signed the trade tickets approving the markup. In total, the firm charged approximately $112,408 in markups for a security which the firm purchased for a total of about $548,722 and sold to customers for a total of about $661,131. Nothing in the nature of the Ridgeway & Conger, Inc.’s or Kenly Brisard or Philip Brisard’s business or the identified purchases of the SBA interest-only security justified the size of the markups on the purchases by the firm’s customers.  In addition, the complaint alleges that the firm fraudulently failed to disclose the excessive markups on trade confirmations or otherwise to purchasers of the SBA interest-only security, thereby willfully violated Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5 thereunder, and violated FINRA Rule 2020. Ridgeway & Conger, Inc.’s misrepresentations and omissions were material because a reasonable investor would consider them important in making investment decisions.

Furthermore, the complaint alleges that Ridgeway & Conger, Inc. and Leigh McCobb Garber failed to establish and maintain proper supervisory systems and procedures for the firm’s sales of Securities Act of 1933 Rule 144A securities, markup and Section 5 activities related to the sales of the interest-only unregistered security.

If you or someone you know has a complaint or lost money investing with Ridgeway & Conger, Inc., and/or securities brokers Kenley Brisard, Philip Brisard and Leigh McCobb Garber, you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in fraud, suitability, private placements, and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

CMD Investigating losses In ICON Leasing Fund Twelve

Carmel, Milazzo & DiChiara LLP (CMD) is investigating investors who sustained losses in ICON Leasing Fund Twelve (“ICON”).

Investors who purchased ICON may not have been aware of the risks and lack of liquidity of the ICON Leasing Fund Twelve. ICON’s registration statement, Form S-1, filed with the SEC warns that ICON involves a high degree of risk and you should purchase shares only if you can afford complete loss of your investment. In addition, the registration statement states that the ability to sell shares will be limited because their is no public trading market, as the shares are illiquid.

Brokerage firms that sold ICON had a fiduciary duty to make investment recommendations that were suitable with an investor’s risk tolerance, investment objectives and financial needs. Further, brokerage firms are required to adequately disclose the risks associated with the investment and perform the necessary due diligence to determine whether the investment had a reasonable likelihood of success.

According to LPsales.com, a secondary marketplace for limited partnerships, units of ICON Leasing Fund Twelve selling for $145.00 as of February 2016. That’s nearly 85% less than the original purchase price of $1,000.00 per unit.

If you or someone you know lost money investing in ICON Leasing Fund Twelve, you may be able to recover your losses through securities arbitration.  Brokerage firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim. The attorneys at CMD are experienced in representing investors in suitability, fraud, private placements and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

CMD Investigating Oil and Gas MLP losses

Carmel, Milazzo & DiChiara LLP (CMD) is investigating investors who sustained losses in Oil and Gas MLPs.

MLP is the common acronym for a Master Limited Partnership.  MLPs are a type of limited partnership or limited liability company that is publicly traded, and receive the same tax benefits as a limited partnership, i.e., it is treated as a “pass through” entity for tax purposes.  Therefore, MLPs combine the tax benefits of limited liability partnership (or company) with the liquidity of a publicly traded security.    Because MLPs are required to draw at least 90 percent of their revenue from natural resources (such as oil and gas), MLPs have been increasingly used as the entity of choice in the energy sector.

For years now, brokerage firms and financial advisors have been recommending oil and gas stocks and master limited partnerships (“MLP”) as “low-risk” investments that provide a steady stream of income.  Many brokers and financial advisors targeted investors seeking income, particularly retirees, claiming that these products would generate immediate income, while being secure because of worldwide growth in the demand for oil and gas.

However, MLPs and oil and gas stocks are extremely complex and high-risk investments.  Oil and gas prices have historically been volatile, subject to significant swings in price (as the market has recently demonstrated).  Additionally, many brokers and investment advisors advised investors to invest large portions of their portfolios in the energy sector, further increasing their exposure to losses in the financial sector.  Moreover, these products are known for the high fees they generate, making them attractive products for unscrupulous brokers to sell their clients.

If you or someone you know has lost money investing in Oil and Gas MLPs, you may be able to recover your losses through securities arbitration.  Brokerage firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim. The attorneys at CMD are experienced in representing investors in suitability, fraud, over concentration and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

According to Bloomberg, here is the performance of MLPs that CMD is currently investigating:

LP                                                           Sector                                   Ticker Symbol                   1 Year Performance

Alliance Holdings GP LP Coal AHGP -69.29%
Alliance Resource Partners Coal ARLP -68.57%
Alon Partners USA Refiner ALDW -34.71%
American Midstream Partners Natural Gas Midstream AMID -65.92%
Arc Logistic Partners Crude/Refined Storage ARCX -27.04%
Blueknight Energy Partners Oil and Gas Services BKEP -25.73%
Boardwalk Pipeline Partners Natural Gas Midstream BWP -20.60%
Breitburn Energy LP (Monthly) Oil and Gas Production BBEP -91.19%
Calumet Specialty Products LP Specialty Oil Products CLMT -63.26%
Capital Products Partners Tanker Shipping CPLP -57.17%
Columbia Pipeline Partners Natural Gas Midstream CPPL -33.93%
Crestwood Equity Partners Natural Gas Midstream CEQP -82.30%
CrossAmerica Partners Motor Fuel Distribution CAPL -21.75%
CSI Compressco Oil and Gas Services CCLP -60.64%
CVR Partners LP Nitrogen Fertilizer UAN -40.51%
CVR Refining LP Refiner CVRR -38.39%
DCP Midstream Partners Natural Gas Midstream DPM -35.10%
Delek Logistics Partners Oil Gathering/Pipeline DKL -25.74%
Dominion Midstream Partners LNG Import/Export Pipel DM -21.97%
Dorchester Minerals Oil and Gas Production DMLP -57.61%
Dynagas LNG Partners LP Liquid Natural Gas Ship DLNG -48.04%
Emerge Energy LP Frac Sand EMES -92.95%
Enable Mistream Partners LP Midstream Gas and Oil ENBL -61.91%
Enbridge Energy Partners Oil/Gas Pipelines EEP -52.33%
Energy Transfer Equity Partners Natural Gas Midstream ETE -76.13%
Energy Transfer Partners Natural Gas Midstream ETP -49.72%
Enlink Midstream LP Natural Gas Midstream ENLK -61.83%
Enterprise Products Partners Natural Gas Midstream EPD -25.81%
EV Energy Partners LP Oil and Gas Production EVEP -83.99%
Ferrellgas Partners Propane Marketing FGP -18.21%
Foresight Energy LP Coal Production FELP -86.82%
GasLog Partners LNG Shipping GLOP -30.82%
Genesis Energy Partners Oil/Gas Pipelines GEL -40.36%
Global Partners Oil & Gas Marketing GLP -63.47%
Green Plains Partners Ethanol Distribution GPP -20.37%
Hi-Crush Partners Frac Sand HCLP -87.80%
JP Energy Partners LP Oil and Gas Midstream JPEP -58.79%
Legacy Reserves LP Oil and Gas Production LGCY -93.39%
Martin Midstream Partners Natural Gas Midstream MMLP -43.38%
Memorial Production Partners Oil and Gas Production MEMP -86.10%
Mid-Con Energy Partners Oil and Gas Production MCEP -82.69%
Midcoast Energy Partners Natural Gas Midstream MEP -69.76%
MPLX LP Crude Oil Midstream MPLX -65.49%
Natural Resource Partners Coal NRP -87.06%
Navios Maritime Partners Dry Bulk Shipping NMM -90.21%
Navios Maritime Midstream Partners Tanker Shipping NAP -29.72%
New Source Energy Partners LP Oil and Gas Production NSLP -99.56%
NGL Energy Partners Oil and Gas Midstream NGL -69.13%
Nustar Energy Partners Midstream Refined Prod NS -36.02%
OCI Partners Methanol/Ammonia OCIP -60.41%
Oneok Partners Natural Gas Midstream OKS -21.73%
PBF Logistics Partners Oil/Refined Midstream PBFX -21.03%
Phillips 66 Partners LP Oil/Refined Pipelines PSXP -16.32%
Plains All American Pipeline Oil/Gas Pipelines PAA -53.75%
Rose Rock Midstream LP Oil Pipelines and Storage RRMS -76.18%
Southcross Energy LP Natural Gas Midstream SXE -94.41%
Sprague Resources Wholesale Fuels SRLP -22.94%
Suburban Propane Partners Fuel Distribution SPH -29.76%
Summit Midstream Partners Natural Gas Midstream SMLP -53.43%
SunCoke Energy Partners LP Coke Manufacturing SXCP -62.13%
Sunoco Logistic Partners Crude & Refined Pipel SXL -39.24%
Sunoco LP (was Susser) Fuel Distribution SUN -32.53%
Tallgrass Energy LP Natural Gas Midstream TEP -20.80%
Targa Resource Partners LP Natural Gas Midstream NGLS -35.57%
Teekay LNG Partners Liquid Natural Gas Ship TGP -68.27%
Teekay Offshore Partners LP Shuttle Tankers TOO -80.81%
Tesoro Logistics LP Oil Terminals TLLP -22.55%
USA Compression Partners Natural Gas Midstream USAC -45.32%
VTTI Energy Partners Storage VTTI -26.95%
Western Gas Equity Partners Natural Gas Midstream WGP -50.13%
Western Gas Partners Natural Gas Midstream WES -37.22%
Western Refining Logistics Gas/Oil Midstream WNRL -24.97%
Westlake Chemical Partners Ethylene Production WLKP -32.39%
Westmoreland Resource Partners Coal WMLP -61.22%
Williams Partners Natural Gas Midstream WPZ -54.40%
World Point Terminals LP Crude and Refined Storage WPT -23.45%

 

Contact CMD today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

CMD Investigating Claims Against Securities Broker Edward Beyn

Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against securities broker Edward Beyn, formerly registered with Craig Scott Capital and now with Rothschild Lieberman.

On March 16, 2016, FINRA’s Department of Enforcement filed a complaint alleging that Mr. Beyn churned nine accounts of six customers, all over the age of 60, from March 2012 through May 2015, profiting as he violated securities laws.  According to the complaint, Mr. Beyn’s short-term trading strategy involved quickly turning over the accounts to generate “outsize commissions for himself” and Craig Scott Capital.

If you or someone you know has a complaint or lost money investing with Edward Beyn, you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in churning, suitability, fraud and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 for a free and confidential case evaluation.

SEC Charges Rhode Island Agency and Wells Fargo With Fraud in 38 Studios Bond Offering

Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against Wells Fargo and the Rhode Island Economic Development Corporation (RIEDC, now called the Rhode Island Commerce Corporation).

The Securities and Exchange Commission has charged a Rhode Island agency and its bond underwriter Wells Fargo Securities with defrauding investors in a municipal bond offering to finance a startup video game company 38 Studios.

According to the SEC’s complaint filed in federal district court in Providence:

  • The RIEDC loaned $50 million in bond proceeds to 38 Studios.  Remaining proceeds were used to pay related bond offering expenses and establish a reserve fund and a capitalized interest fund.
  • The loan and, in turn, bond investors would be repaid from revenues generated by video games that 38 Studios planned to develop.
  • The bond offering document produced by the RIEDC and Wells Fargo failed to disclose to investors that 38 Studios had conveyed it needed at least $75 million in funding to produce a particular video game.
  • Therefore, investors weren’t fully informed when deciding to purchase the bonds that 38 Studios faced a funding shortfall even with the loan proceeds and could not develop the video game without additional sources of financing.
  • When 38 Studios was later unable to obtain additional financing, the video game didn’t materialize and the company defaulted on the loan.

The SEC’s complaint further alleges that Wells Fargo misled investors in an additional way in bond offering materials:

  • Wells Fargo disclosed its bond offering compensation as a share of the placement agent fee plus a $50,000 payment from 38 Studios.  No other fees or compensation to Wells Fargo were disclosed, and the bond placement agreement stated that no other money was anticipated.
  • Investors weren’t informed that Wells Fargo had a side deal with 38 Studios that enabled the firm to receive nearly double the amount of compensation disclosed in offering documents.
  • This additional compensation, totaling $400,000 and paid from bond proceeds, created a conflict of interest that Wells Fargo should have disclosed to bond investors.
  • Peter M. Cannava was responsible for Wells Fargo’s failure to disclose its additional fees.

The SEC’s complaint charges the RIEDC and Wells Fargo with violations of Sections 17(a)(2) and (a)(3) of the Securities Act of 1933, and charges Keith W. Stokes, James Michael Saul, and Peter M. Cannava with aiding and abetting those violations.  Wells Fargo also is charged with violations of Section 15B(c)(1) of the Securities Exchange Act of 1934 and Rules G-17 and G-32 of the Municipal Securities Rulemaking Board (MSRB).  Peter Cannava is charged with aiding and abetting those violations.

If you or someone you know lost money investing in Rhode Island Economic Development Corporation bonds, you may be able to recover your losses through securities arbitration or litigation. The attorneys at CMD are experienced in representing investors in bond, fraud and failure to supervise actions against underwriters, issuers, brokers and brokerage firms.  CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

Timothy S. Dembski and Walter F. Grenda Barred For Fraud

Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against securities brokers Timothy S. Dembski and Walter F. Grenda.  FINRA has announced that Messrs. Dembski and Grenda received a lifetime ban from the securities industry for lying about a hedge fund they were selling.

According to FINRA, Timothy S. Dembski and Walter F. Grenda told potential investors that the hedge fund in question, the Prestige Wealth Management Fund LP, was a growth fund that in reality lost 80 percent of its value in the last month it traded.

At the time of the fraud, Dembski and Grenda were employed with Mid Atlantic Capital Corporation in Buffalo, New York. FINRA’s investigation found that Dembski and Grenda made material misrepresentations and omissions to lead investors to believe the hedge fund was based on a computer algorithm that automatically included risk protections and stop-losses to limit losses in the fund.  According to FINRA,  the fund was a highly speculative investment, the fund’s chief investment officer had complete control over the investments made, and it was not obligated to follow the computer algorithm.

Dembski and Grenda distributed marketing information saying the chief investment officer worked in the financial services industry for more than 14 years, co-managed a portfolio of more than $500 million and was a vice president of investments for a New York based investment company, all of which were false.

If you or someone you know has a complaint or been defrauded by Timothy S. Dembski, Walter F. Grenda and/or Mid Atlantic Capital Corporation, you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in fraud and failure to supervise actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 for a free and confidential case evaluation.

Winston Wade Turner, Ex-MetLife, And Prudential Broker Accused of Deceptive Conduct Involving Variable Annuity Sales

Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against Winston Wade Turner, a former registered representative with Pruco Securities Inc. and MetLife Securities Inc., of misconduct related to the exchanges and sales of variable annuities.

FINRA has alleged that Turner persuaded clients to exchange certain investments, including variable annuities, which compelled them to surrender existing contracts to pay for the purchase of new variable annuities. In certain situations, this led to surrender charges for the client and additional commissions for Turner.

FINRA contends that Turner concealed the transactions’ unsuitable nature from brokerage firms and his clients.  He allegedly did this by falsifying documents and misrepresenting how certain income features on the annuity contracts functioned. FINRA claims that Turner hid the nature of the VA transactions from his firm by managing to get around the additional documentation and supervisory examination mandated for the exchanges. He also sometimes would recommend to clients that they put proceeds from the contract surrenders into their bank accounts first—as opposed to a direct annuity to annuity transfer—and then use those funds to purchase new variable annuities.

Turner is being accused of falsifying VA applications, documents related to VA exchanges, and customer information forms. He allegedly forged customer signatures and used his own e-mail address, misrepresenting it as the address of customers so that he would receive their account notifications instead.

If you or someone you know has a complaint or been defrauded by Winston Wade Turner, you may be able to recover your losses through securities arbitration. The attorneys at CMD are experienced in representing investors in fraud actions against brokers and brokerage firms. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 for a free and confidential case evaluation.

CMD Investigating Unsuitable Recommendations to Purchase The Morgan Stanley Cushing MLP High Income ETN

Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against Morgan Stanley and its brokers who may have recommended unsuitable investments in the Morgan Stanley Cushing MLP High Income Exchange Traded Note (ETN).

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor in light of that investor’s age, investment experience, net worth, income, and investment objectives.

The Morgan Stanley Cushing MLP High Income Index ETN is an exchange-traded note issued by Morgan Stanley.  The Notes aim to provide investors with a cash payment at the scheduled maturity or early repurchase and variable coupon payments each quarter, in each case based on the performance of the underlying index, the Cushing MLP High Income Index.

If you or someone you know lost money after a stock broker recommended an unsuitable investment in the Morgan Stanley Cushing MLP High Income Exchange Traded Note (ETN), CMD wants to hear from you. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid. Your time to file a claim may be limited, so contact us today at (212) 658-0458 for a free and confidential case evaluation.