CMD Investigating Claims Against Kelly Althar and Financial West Group for Unsuitable Recommendations and Engaging in Excessive Trading

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against Kelly Althar and Financial West Group for unsuitable recommendations, engaging in excessive trading (churning) and failure to supervise, particularly related to elderly customers.

According to FINRA, Kelly Althar made unsuitable recommendations and engaged in excessive trading in an elderly customer’s accounts. FINRA alleges that Althar engaged in high-volume trading to generate commissions and over-concentrated the customer’s accounts in risky securities, despite the fact that the customer was close to retirement and wanted only low-risk investments. Althar’s trading decimated the customer’s accounts, which constituted the bulk of her net worth and retirement savings. Althar exercised control over the customer’s account at his member firm. Althar rarely consulted the customer about the transactions in her accounts and made the investment decisions for her, including what to buy and sell, the quantities, and when each transaction would occur.  Althar used this control to excessively trade the accounts in a manner that was inconsistent with the customer’s investment objectives, financial situations and needs.

If you or someone you know lost money investing with Kelly Althar and Financial West Group you may be entitled to recover your investment losses through FINRA arbitration. 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 Mauricio Jaramillo and Ultralat Capital Markets, Inc. for Unsuitable Trading, Unsuitable use of Margin, Short-term Trading and for Failure to Supervise

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against Mauricio Jaramillo and Ultralat Capital Markets, Inc. for unsuitable trading, unsuitable use of margin, short-term trading and for failure to supervise.

As reported by FINRA, Mr. Jaramillo recommended unsuitable trades in at least three customer accounts, in that he recommended short-term trading in bonds, undue concentration of positions, and the use of margin to customers who were not suitable for such trading. The findings stated that Jaramillo maintained limited trading authorization over various customer accounts at his member firm and received compensation on trades he placed in such accounts. Two of the customers had long-term growth investment objectives and another customer had a moderate risk tolerance, but their accounts were almost totally concentrated in bonds typically denominated in Brazilian Reais. These customers also had significant margin balances in their accounts. Jaramillo did not have any reasonable basis to believe that such short-term trading, concentrations of positions and use of margin was suitable for the customers, or that such trading was consistent with their investment objectives, risk tolerances, and financial situations and needs.

If you or someone you know lost money investing with Mauricio Jaramillo or Ultralat Capital Markets, Inc., you may be entitled to recover your investment losses through FINRA arbitration. 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 Christopher B. Ariola, Bay Mutual Financial, LLC and Financial Telesis Inc. for Unsuitable Recommendations in High-Risk Gold and Energy Stocks

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against Christopher B. Ariola, Bay Mutual Financial, LLC and Financial Telesis Inc. for unsuitable recommendations and failure to supervise related to high-risk gold and energy stocks.

As reported by FINRA, Christopher B. Ariola or Chirs Ariola, made unsuitable recommendations to elderly retirees to invest a substantial portion of their limited retirement assets in certain high-risk gold and energy stocks. The findings stated that these recommendations were unsuitable given these customers’ financial circumstances, investment objectives and low risk tolerances, and because the recommendations resulted in the customers’ accounts being unduly concentrated in gold and energy stocks. Ariola made similar unsuitable recommendations with respect to a former customer’s retirement account that he controlled on the former customer’s behalf. As a result of his unsuitable recommendations, these customers suffered combined realized losses of $137,993.13.

If you or someone you know lost money investing with Christopher Ariola, Bay Mutual Financial, LLC and Financial Telesis Inc., you may be entitled to recover your investment losses through FINRA arbitration. 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 Scott Forrest Goldman, Cambridge Investment Research, Inc. and H. Beck, Inc. for Unsuitable and Over-Concentration in Precious Metals

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against Scott Forrest Goldman, Cambridge Investment Research, Inc. and H. Beck, Inc. for recommending unsuitable over-concentrations in precious metals and failure to supervise.  Mr. Goldman’s CRD evidences a history of customer complaints, with at least six reported customer complaints.

As reported by FINRA, Scott Forrest Goldman recommended an investment strategy to an elderly customer that was unsuitable because it unduly concentrated her in risky, leveraged precious metal products. The findings stated that the customer received a prospectus but was not adequately informed of the investment components in that she did not understand the nature of and market risk associated with it.

If you or someone you know lost money investing with Scott Forrest Goldman, Cambridge Investment Research, Inc. or H. Beck, Inc., you may be entitled to recover your investment losses through FINRA arbitration. 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 Foothill Securities, Inc. for Unsuitable, Over-Concentration of Customer Accounts in REITs

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against Foothill Securities, Inc. for failure to supervise and for  over-concentrating and recommending unsuitable REITs in customer accounts.

FINRA’s findings stated that Foothill Securities, Inc. maintained written guidelines for limiting customers’ investments in non-exchange-traded REITs and other non-liquid investments that stated that no single order in one non-liquid product should equal more than 10 percent of a customer’s investable net worth as of the time the order is placed, and that no order should cause a customer to have more than 20 percent of his or her investable net worth in non-liquid investments.  FINRA found that Foothill Securities, Inc.’s registered representatives recommended these illiquid, non-traded REITs to its customers that exceeded these concentration guidelines.

If you or someone you know lost money investing with Foothill Securities, Inc. you may be entitled to recover your investment losses through FINRA arbitration. 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 VFG Securities and Jason Bryce Vanclef for Over-Concentration in Illiquid Alternative Investments

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against VFG Securities and securities broker Jason Bryce Vanclef for over-concentration and failure to supervise in in connection with the recommendation and sale of illiquid alternative investments, such as non-traded direct participation programs (DPPs) and non-traded real estate investment trusts (REITs).  According to Mr. Vanclef’s FINRA BrokerCheck, he has been the subject of at least six (6) customer complaints.

VFG Securities and Jason Bryce Vanclef allegedly falsely claimed that non-traded direct participation programs (DPPs) and non-traded real estate investment trusts (REITs) provided both solid returns and capital preservation, according to the regulator. Vanclef allegedly promoted these illiquid alternative investments through a book he had written and peddled at company events. In the book, Vanclef allegedly claimed that investors could “reasonably achieve 8-12% results” with non-traded DPPs and non-traded REITs.

VFG also allegedly lacked any supervisory system from November 2009 to June 2013 to ensure that clients weren’t overly concentrated in such alternative investments, with at least two customers holding 90% of their net worth in just five non-traded DPP and non-traded REIT investments.  From November 2010 to June 2012, VFG allegedly received around 95% of its revenue from the sales of the two instruments. The regulator fined VFG $50,000 and suspended Vanclef from the industry for 10 days.

If you or someone you know lost money investing with VFG Securities and/or Jason Vanclef , you may be entitled to recover your investment losses through FINRA arbitration. 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 is Investigating Claims Against IMS Securities, Inc. and Jackie Wadsworth Over the Sale of Variable Annuities and Real Estate Securities

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims against IMS Securities, Inc. and Jackie Wadsworth for unsuitable recommendations, over-concentration and failure to supervise.

According to FINRA, Ms. Wadsworth faces allegations of negligence, over-concentration, breach of fiduciary duty, misrepresentations and failure to supervise.  The product types in the complaint are variable annuities and real estate securities, such as REITs.

IMS Securities, Inc. is a small Houston, Texas based firm that posted $11.5 million in revenue last year, according to a filing with the Securities and Exchange Commission. Its balance sheet is tilted heavily in the direction of high-commission products like variable annuities and non-traded REITs; close to 86% of its revenue in 2015 came from commissions, according to the SEC filing.

IMS Securities was one of the four leading sellers of real estate investment trusts sponsored by United Development Funding (UDF).  The bottom fell out of those REITs last December, after an investor website posted a report that alleged that UDF IV, which was a non-traded REIT that later listed as a publicly traded REIT, operated for years like a Ponzi scheme.  Management at UDF has denied those allegations.

If you or someone you know lost money investing with IMS Securities, Inc. and/or Jackie Wadsworth, you may be entitled to recover your investment losses through FINRA arbitration. 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 Andrew S. Corbman and Newbridge Securities Corporation for Over-Concentration and Unsuitable Recommendations

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Carmel, Milazzo & DiChiara LLP (CMD) is investigating potential claims against securities broker Andrew S. Corbman and Newbridge Securities Corporation for over-concentrating customer accounts and making unsuitable investment recommendations.

Recently, Mr. Corbman submitted an Acceptance, Waiver and Consent (AWC) with FINRA, in which he was suspended from association with any FINRA member in any capacity for one month. Without admitting or denying the findings, Mr. Corbman consented to the sanction and to the entry of findings that he made unsuitable recommendations to customers that were inconsistent with the customers’ investment objectives and risk tolerances, and resulted in over-concentration of their liquid net worth in these investments. FINRA found that the investments exposed the customers to a risk of loss that exceeded each customer’s risk tolerance and investment objectives. FINRA further found that Mr. Corbman distributed a sales brochure for an alternative mutual fund to his customers that contained information that was misleading and failed to provide a sound basis for evaluating the referenced alternative mutual fund.

According to Mr. Corbman’s FINRA BrokerCheck, he has been the subject of nine (9) customer complaints and one (1) regulatory event.  http://brokercheck.finra.org/individual/2513558

In making an investment recommendation, a broker must make recommendations that are consistent with the customer’s risk tolerance, needs and investment objectives.  A broker has a duty to know his client and only recommend investments and trading strategies that are suitable for that specific client.  An investment may be unsuitable if a customer does not have the financial ability to incur the risk associated with a particular investment, if the investment was not in line with the investor’s financial needs, if the customer did not know or understand risks associated with certain investments or if the customer’s investment account was over-concentrated in a single type of asset or sector.

A broker has a duty to gather essential information in order to understand the risk tolerance of an investor, the tax considerations for the client, the client’s prior experiences and appetite for risk, and the level of return desired. It is the duty of a broker to make recommendations that are appropriate and suitable given his client’s circumstances. If a broker breaches those duties and makes unsuitable recommendations for a client, the broker may be liable for damages to that client.

If you or someone you know lost money after Andrew S. Corbman and/or Newbridge Securities Corporation over-concentrated your account or made unsuitable investment recommendations, you may be entitled to recover your investment losses through FINRA arbitration.  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.