New York Securities Fraud Lawyers Blog

Banner picture of a key atop a balance sheet

EMPLOYEE RECOVERY $2M FOR A WHISTLEBLOWING TRADER

INVESTOR RECOVERY $7.2+M FOR PONZI SCHEME VICTIMS

INVESTOR RECOVERY $3.9M FOR TAX SHELTER FRAUD VICTIMS

BROKER PONZI SCHEME $7.4 MILLION

FAILURE TO SUPERVISE $4+ MILLION

BROKERAGE THEFT $3.8 MILLION

PONZI AT MAJOR FIRM $4+ MILLION

FAILED PRODUCT 28 EXPUNGEMENTS

WHISTLEBLOWER AWARD MAX 30% BOUNTY

NO ACTION INSIDER TRADING CASE

NO ACTION EMBEZZLEMENT CASE

NO ACTION MARKET MANIPULATION

Successful, Strategic & Straight-Talking SECURITIES LAWYERS

START WITH A FREE CONSULTATIONReferrals Welcome

Representing investors, financial professionals, whistleblowers, witnesses
and commercial clients around THE US and the world since 1999

New York Securities Fraud Lawyers Blog

Leveraged ETFs Remain a Risky Investment, Not Suitable for Most Individual Investors

September 8, 2015 | Malecki Law Team

Investors who have been watching the recent financial news know that securities markets have become very volatile over the past month. Increased volatility in the markets makes leveraged products like Exchange Traded Funds (EFTs) and Exchange Traded Notes particularly risky for most individuals investors, as noted in a recent Wall Street Journal article published on September 4, 2015.

These securities products incorporate borrowed money (termed leverage in the securities industry), which has the effect of amplifying gains and losses tied to baskets of securities that are often concentrated in one industry or commodity.

Malecki Law has written about these products in the past, noting that broker-dealer firms such as Stifel, Nicolaus & Co., Inc. and Century Securities Associates Inc. were fined by the Financial Industry Regulatory Authority (FINRA) for making unsuitable recommendations to investors.

BROKER REPORT: Customer Complaints Against Financial Adivisor Jared Cohen

September 8, 2015 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Jared Cohen. Mr. Cohen is reportedly registered with Ameriprise Financial Services, Inc., based out of Armonk, NY. He has also recently been registered with IDS Life Insurance Company, according to industry records.

According to BrokerCheck, as maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Cohen has been the subject of two customer complaints in the past six years. Mr. Cohen has been the subject of complaint alleging misrepresentations of investment risk and over-concentration in non-traded Real Estate Investment Trusts (“REITs”), as well as misrepresentations surrounding the sale of preferred stock recommendations, per FINRA records.

Of these customer disputes, FINRA records indicate that one customer initiated a FINRA arbitration and recovered $25,000 in a settlement with Ameriprise.

BROKER REPORT: John Smallwood of Commonwealth Financial

September 5, 2015 | Malecki Law Team

The securities fraud attorneys are interested in hearing from investors with complaints involving John Smallwood of Commonwealth Financial Network. Per his BrokerCheck Report, maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Smallwood is a registered stock broker with Commonwealth, based out of Red Bank, NJ.

Mr. Smallwood’s BrokerCheck Report indicates that he has been the subject of at least two customer complaints in the past three-plus years. Per FINRA, the complaints against Mr. Smallwood have alleged unsuitable investment recommendations and breach of fiduciary duty, among other things.

FINRA records indicate that Mr. Smallwood’s customers have recovered $90,000 and $97,500 respectively in connection with their complaints.

FINRA Cautions Investors of Financial Fraud On WhatsApp

September 4, 2015 | Jenice L. Malecki, Esq.

Financial Industry Regulatory Authority (FINRA ) issued a new investor alert this week, Messaging Apps Are Latest Platform for Delivering Pump-And-Dump Scams, warning investors to be wary of investment schemes forwarded to them on the popular messaging platform WhatsApp.

Recently, there were messages forwarded on the WhatsApp platform, claiming that the stocks of the microcap company Avra Inc (OTC: AVRN) were set for double digit growth. FINRA’s Senior VP for Investor Education, Gerri Walsh warned that financial schemers are keeping up with times and leveraging popular technology platforms to bilk investors. In this instance, the financial prediction about AVRA stocks appeared to be coming from well-known brokerage firms.

In traditional pump and dump schemes, microcap stocks are artificially inflated by fraudsters through false and misleading statements, to sell their cheaply purchased stocks at a high price. Once all the overvalued stocks are “dumped” by them, the prices crash and investors lose their money. This latest Avra scam is a variation of the pump-and-dump, where they were trying to use the mass message push feature to inflate the price of the stock and then leave investors holding nearly worthless investments.

BROKER REPORT: Joseph A. Miles Is the Subject of Third Customer Complaint

September 4, 2015 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Joseph A. Miles. Mr. Miles is believed to be currently employed and registered with St. Bernard Financial Services, Inc. based in Russellville, Arkansas. He was also previously registered with Clearing Services of America, Inc., American Capital Equities, Inc., Dominick & Dominick, Inc. and David Lerner Associates, Inc., according to industry records.

According to his BrokerCheck, as maintained by the Financial Industry Regulatory Authority (FINRA), Mr. Miles has been the subject of three recent customer complaints, including one complaint seeking $169,865.70 alleging that Mr. Miles sold bonds that declined in value, with damages granted of $100,000. The second most recent customer complaint alleged securities fraud, breach of fiduciary duty, common law fraud, and breach of contract related to South African Bonds which was settled for $75,000, according to FINRA records. The third complaint involved allegations of fraud, breach of contract and negligence and was settled after the death of the customer, per BrokerCheck records.

If you or a family member lost money that was invested with Joseph A. Miles, you are encouraged to contact the securities fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.

Adam F. Coblin Is No Longer A Registered Broker and Financial Advisor and Has Been the Subject of Ten Customer Complaints

August 28, 2015 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in hearing from investors with complaints involving Adam F. Coblin. Per his BrokerCheck Report, maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Coblin is currently not a registered stock broker or investment advisor. He was previously registered with the Gilford Securities Incorporated in New York.

Mr. Coblin’s BrokerCheck Report indicates that he has been the subject of at least ten customer complaints. At the center of several of these complaints was unsuitable investments leading to huge financial losses, negligence in handling customer accounts, unauthorized sales. In 2013, Adam Coblin resigned from Gilford Securities while he was being reviewed for customer complaints involving unsuitable investments, activity and negligence.

According to BrokerCheck, there are numerous customer disputes in the past, dating from 2012 to 1995, involving Mr. Coblin which have been settled by awarding damages of $910,000, $3,000, $107,500 and $32,000. He has also been registered with the GMS Group LLC, Spencer Clarke LLC, Broadband Capital Management LLC, Dalton Kent Securities Group, Bluestone Capital Partners, Gruntal & Co., Prudential Securities Inc., Oppenheimer & Co., Merill Lynch, Pierce, Fenner & Smith Co., Bear Stearns & Co.

Seven Complaints Against Broker and Financial Advisor Jeffrey A. Fladell

August 28, 2015 | Jenice L. Malecki, Esq.

The securities fraud team at Malecki Law is interested in investigating possible claims on behalf of investors who have complaints regarding broker and investment advisor Jeffrey A. Fladell. Registered with RBC Capital Markets, Fladell has been the subject of multiple investigations, customer disputes and settlements since 1987, according to Financial Industry’s Regulatory Authority (FINRA’s) BrokerCheck.

In 2014, there was a customer complaint reported against Fladell for alleged unsuitable investments and overconcentration in municipal bonds which was adverse to their investment objectives, and the claimant was granted $75,000 in damages. In another customer complaint involving similar securities misconduct allegations, the customer dispute was settled for $1,000,000 in 2013. Previous complaints registered with FINRA against Fladell involve allegations of unsuitability, overconcentration and misrepresentation dating back to 1987.

In 1992, National Association of Securities Dealers (NASD) subjected him to a statutory disqualification as a result of his guilty plea to one misdemeanor count of submitting a false document to the IRS in connection with his income tax return. Fladell was previously registered with J.B. Hanauer & Co, Halpert and Company, Travelers Equities Sales, Swanton Securities, Hermes Securities and Bernard Schnitzer.

Senior-Aged Investors and other Conservative Investors Likely at Risk in Current Low-Yield Environment

August 26, 2015 | Malecki Law Team

The recent market correction has caused many people to worry about the performance of their securities accounts. Senior-aged investors (and other conservative investors) are particularly at risk for losses in their accounts if they were inappropriately invested too heavily in equities and other alternative investments.

The Op-Ed published in the Wall Street Journal on August 24, 2015 notes that the low-yield bond environment has enticed some investors to “climb on the bandwagon of rising share prices.” Brokers may be similarly tempted to recommend risky stocks to their conservative investors, and to recommend concentrated levels of stocks. However, what may be suitable for a middle-aged investor may not be suitable for an senior-aged investor.

Suitability is an important investor-specific inquiry both the broker and broker-dealer must perform to ensure the investments that are recommended are appropriate given the age, relative wealth, experience and risk tolerance of each investor, among other factors. A broker’s unsuitable recommendations could be especially problematic for those investors seeking stability and safety of principal, including senior-aged investors who rely on their securities portfolios to generate income.

BROKER REPORT: Former Financial Advisor Manuel Dopazo

August 25, 2015 | Malecki Law Team

The securities fraud attorneys at Malecki Law are interested in investigated possible claims on behalf of investors who have complaints regarding former stockbroker Manuel Dopazo. According to his BrokerCheck report maintained by the Financial Industry Regulatory Authority (“FINRA”), Mr. Dopazo has been the subject of multiple customer disputes in just the past ten years.

Per FINRA, in 2015 a customer complaint involving Mr. Dopazo alleged misrepresentations, omissions, failure to supervise, and the recommendation of unsuitable investments seeking $640,000 in damages.

In 2009, Mr. Dopazo was involved with another customer dispute alleging a $30,000 loss, per BrokerCheck. Another customer complaint, in 2008, alleged more than $50,000 in losses stemming from suitability violations.

Are We Still At A “Sweet Spot” for SEC Whistleblowers?

August 21, 2015 | Malecki Law Team

According to an article by Rob Lenihan of Thomson Reuters, published in August 2014, Sean McKessey, head of the SEC’s whistleblower program, was quoted by the Wall Street Journal as saying that the numbers [of whistleblower complaints] will soon grow and “we’re getting close to the sweet spot.” Malecki Law had reported on this Wall Street Journal article and examined the state of Dodd-Frank Whistleblower program, as it existed then, in this blog post. A year into it, let’s examine where we are at with the growing numbers.

During the 2014 fiscal year, the number of whistleblower tips and complaints received by the Commission grew 10.1 % from the year before to 3,620. The Dodd- Frank Whistleblower program, which promises cash rewards for those whose tips lead to a successful investigation by the SEC, has witnessed many milestones in past four years. In a recent development, SEC paid a handsome $3 million to a company insider in July 2015, who helped crack a complex fraud case.

According to Andrew Ceresney, Director of the SEC’s Division of Enforcement. “Insiders may hold the key to helping our investigators unlock intricate fraudulent schemes,” and “by providing significant financial incentives for people to come forward, the SEC’s whistleblower program continues to be profoundly effective in helping us protect investors and hold wrongdoers accountable.” The SEC’s whistleblower program has already paid more than $50 million to 18 whistleblowers, since its inception in 2011, including $30 million in awards in 2014, more than doubling the $14 million rewards it paid in 2013. Let’s hope the trend continues!