Former Wells Fargo Broker Barred for allegedly cancelling and rebilling transactions.
Thursday, May 16th, 2013FINRA recently announced that Adrienne Marie Llamas, a former financial advisor with Wells Fargo in Long Beach, California, has been barred from the association with any FINRA member in any capacity.
Without admitting or denying the findings, Llamas consented to the described sanction and to the entry of findings that following a registered representative’s instructions, Llamas cancelled and rebilled numerous transactions between customer accounts and accounts that the representative owned or controlled. Cancelling and rebilling profitable trades between accounts is a fraudulent practice known as cherry-picking. Llamas exclusively processed approximately 90 fraudulent cancel-rebills. The rebills allegedly transferred approximately $4,127,669.56 in securities transactions from customer accounts to accounts the representative controlled.
Llamas’ FINRA Broker Report also reveals that she was terminated by Wells Fargo in November 2011 for “issues relating to moving cancel and rebill transactions in a customer account to a financial advisor account without proper documentation.”
The White Law Group is investigating the liability that Llamas’ employers may have for his alleged conduct. To the extent that her employers failed to properly supervise Llamas contributing to clients’ losses, the employers may be held liable for damages in a FINRA arbitration claim.
If you suffered losses investing with Llamas and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit http://www.whitesecuritieslaw.com.
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Broker barred from securities industry for alleged theft.
Thursday, May 16th, 2013FINRA recently announced that Joseph Mahmud, a registered representative in Lafayette, Louisiana has been barred from the securities industry.
Without admitting or denying the findings, Mahmud consented to the described sanction and to the entry of findings that without a customer’s knowledge or authorization, he made unauthorized withdrawals and misappropriated approximately $95,000 from the customer’s annuity. The customer did not receive the proceeds from the withdrawals. Mahmud’s member firm, after detecting Mahmud’s conduct, credited the customer’s annuity in the amount of $99,959.88, which represented the amount misappropriated plus interest. In a related criminal proceeding, based in part on the described conduct, Mahmud pled guilty to grand larceny in the second degree and identity theft in the first degree.
According to a Forbes report, Mahmud entered the securities industry in August 2005 and from November 2, 2009 through June 17,2011, he was dually employed with Chase Investment Services Corp. (“CISC” ) as an investment representative; and Chase Bank as a personal banker.
The White Law Group is investigating the liability that Mahmud’s employers may have for his alleged conduct. To the extent that his employers failed to properly supervise Mahmud contributing to clients’ losses, the employers may be held liable for damages in a FINRA arbitration claim.
If you suffered losses investing with Mahmud and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit http://www.whitesecuritieslaw.com.
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Investor Alert Regarding Lump-Sum Payments for Retirees
Wednesday, May 15th, 2013Are you thinking of selling your pension or structured settlement for a lump-sum payment? Have you been contacted by a salesperson soliciting a “pension income program” or “factored structured settlement”? If so the following information may be of importance to you.
Selling your pension or settlement income-stream may sound enticing during financially hard times. However, the report warns that lump-sum offering is often significantly lower than the total you would receive if you continued with periodic payments. In addition, selling your pension or settlement may
involve extremely high transaction fees, tax consequences, and in many cases you may be required to take out a life insurance policy in case you die before the company you sold your income stream to has received all payments.
Before you purchase a pension or settlement income-stream product, the Investor Alert warns ,that these types of products are often pitched using word like “guaranteed and “safe.” However, you should be aware that these products are risky, illiquid and may involve commissions of 7% or higher.
In addition, pension or settlement income-stream products are not always structured as securities and therefore would not have to register with the SEC or state security regulators. “ As such, reliable information about these products may be difficult to find an resolving disputes should an
investment go sour may also be difficult.”
Interestingly, a number of state security regulators have begun to investigate pension and settlement income-stream products. The states of Massachusetts and New York have opened an inquiry into multiple firms that are offering lump-sum payments for pensions, according to Investment News.
Massachusetts Securities Division is investigating how these firms conduct business and how they are marketing the lump-sum offers. New York security regulators have similar concerns and are “looking into possible fraud, misrepresentation and violation of usury laws.
The Investor Alert is available in full, here.
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Investigation into Fisker Automotive Investment Losses
Wednesday, May 15th, 2013Have you suffered invested losses in Fisker Automotive Inc.? If so, the securities attorneys of The White Law Group May be able to help you recover your losses through a FINRA arbitration claim against the brokerage firm that sold you the investment.
According to CNN Money the luxury hybrid and electric automaker, Fisker Automotive, is on the verge of bankruptcy and missed its first payment to the Department of Energy on a $192 million dollar loan. In addition, Fisker has laid off 75% of its employees and has suspended production. According to their website, Fisker automotive was founded in 2007 and is based in Anaheim, California.
The White Law Group is investigating the liability that brokerage firms may have for recommending Fisker Automotive Investments. According to SEC filings, one such brokerage firm, Advanced Equities, Inc., sold approximately $103 million in private placement offerings in Fisker Automotive Holdings Inc.
Private placements, like Fisker Automotive, are often high-risk investments intended for accredited investors. Brokerage firms are required to make suitable recommendations that are consistent with a client’s age, financial objective, liquidity needs, risk tolerance, and investment experience. Additionally, brokerage firms have a fiduciary duty to their clients to provided adequate due diligence on any investment offered. Based on what is known about Fisker Automotive, it appears that the brokerage firms that sold the investment failed to perform adequate due diligence on the offering and may be held liable for financial losses.
If you have concerns regarding your investment in Fisker Automotive and would like to speak with a securities attorney, please call The White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http:/www.whitesecuritieslaw.
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Recovery of Waste2Energy Investment Losses
Friday, May 10th, 2013Have you suffered losses inWaste2Energy Holdings? If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.
Waste2Energy, which purported to possess technology for converting waste into clean energy, filed for bankruptcy in 2011.
According to a recent SEC news release, Gregg Lorenzo, founder of Charles Vista brokerage firm, has been accused by the SEC of making false and misleading statement to solicit investors into risky investments with Waste2Energy Holdings. The SEC news release further states that Lorenzo led investors to believe that Waste 2Energygy was a “risk-free” investment opportunity that would provide lucrative returns, when in fact it was a speculative debt security offering.
According to the SEC’s order, Charles Vista was the exclusive placement agent for the issuance of these Waste2Energy securities, and the firm’s financial interest in the offering was considerable. Documents attached to some of Waste2Energy’s SEC filings indicate that Charles Vista had arranged to receive a 10 percent “commission” on the gross proceeds of all debentures sales, a consulting fee of $10,000 per month for 12 months, and various other commissions and fees.
When brokers make fraudulent statements and deliberately mislead investors, both the broker and the brokerage firm may be liable for investment losses.
If you suffered losses investing in Waste2Energy and would like to discuss your litigation options, please contact the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago Illinois and Boca Raton, Florida.
For more information on The White Law Group and the firm’s securities fraud practice visit http://www.whitesecuritieslaw.
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