Securities Fraud Lawyer Blog

November 19, 2019

David Ferwerda barred by FINRA

David Ferwerda sold Woodbridge and 1 Global Capital Investments

David Ferwerda, a registered representative from Grand Rapids, Michigan, formerly with Signator Investors and Valic Financial Advisors, was barred from FINRA membership as a result of an investigation into his participation in a private securities transactions without obtaining his firm’s prior approval, which is a violation of FINRA rules. Ferwerda entered into an acceptance waiver and consent agreement with FINRA in which he neither admitted nor denied the findings, but was barred from FINRA.

In October, 2018 David Ferwerda agreed to the suspension, and FINRA published its findings that Ferwerda sold unregistered securities in the Woodbridge Group of Companies, as well as for 1 Global Capital. Both of these companies collapsed over allegations that the firms were selling unregistered securities and paying existing investors distributions from funds raised from new investors.

October 31, 2019

Centaurus Financial Investigation into Structured CDs

by David Liebrader

Centaurus Financial investigation into Structured CDs

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Centaurus Financial a registered FINRA broker dealer based in Anaheim, California.

The pending customer disputes that gives rise to the investigation concern a number of high risk Structured CDs that Centaurus’ registered representatives sold to the firms’ clients. According to Investment News, an industry publication, the State of Colorado filed a notice of charges through its Securities Commissioner alleging that Centaurus and two of its brokers have been the subject of a large number of customer complaints involving structured CDs.

October 26, 2019

Cory Burnell Investment Advisor Investigation

by David Liebrader

Cory Burnell Blueprint Wealth Partners Investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the investment activity of Cory Burnell and Blueprint Wealth Partners, who are the subject of a regulatory filing (Consent Order) issued in September, 2019.

The pending regulatory filling that gives rise to this investigation is the CA Department of Business Oversight’s Consent Order entered into with Cory Burnell and Blueprint Wealth Partners dated September, 2019 whereby Cory Burnell and Blueprint Wealth Partners consented to the entry of an order containing the following facts; that Burnell managed client funds through broker dealers LPL Financial and Interactive brokers; that the clients gave Burnell discretion to purchase investments; that Burnell did not adequately inform the clients of the risks of investing in options, leveraged exchange traded funds and other speculative investments; that Burnell made unsuitable investments for clients, and used excessive leverage. As a result of these actions, the clients suffered losses, some losing their entire principal investment.

October 26, 2019

Artec Global Media and Caleb Wickman subject to CA Desist and Refrain

by David Liebrader

CA Dept. of Business Oversight files action against Artec Global Media and Caleb Wickman

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the investment activity of Artec Global Media and Caleb Wickman, who are the subject of a regulatory filing (Desist and Refrain Order) issued in July, 2019.

The pending regulatory filling that gives rise to this investigation is the CA Department of Business Oversight’s Desist and Refrain Order against Artec Global Media and Caleb Wickman dated July 19, 2019 whereby the Commissioner of the Department determined that Artec Global Media and Caleb Wickman offered and sold unqualified securities to investors by means of a general solicitation, selling securities to members of the public with whom they did not have a substantive, pre-existing relationship.

October 26, 2019

Alvin Cohen Michael Reinboth and Ralph Muscatelli Desist and Refrain Order

by David Liebrader

Alvin Cohen Michael Reinboth and Ralph Muscatelli subjects of CA Desist and Refrain Order

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the investment activity of Alvin Cohen Michael Reinboth and Ralph Muscatelli and their companies Encore Releasing, Incorporated Productions and Mammoth Film Group who are the subjects of a regulatory filing (Desist and Refrain Order) issued in June, 2019.

The pending regulatory filling that gives rise to this investigation is the CA Department of Business Oversight’s Desist and Refrain Order against Alvin Cohen Michael Reinboth and Ralph Muscatelli and their related companies dated June 11, 2019 whereby the Commissioner of the Department of Business Oversight determined that Cohen, Reinboth and Muscatelli offered and sold securities to investors while omitting material facts. Among the omissions were that Muscatelli was the subject of an S.E.C. lawsuit in 1985 whereby he was permanently enjoined from violating the registration and antifraud provisions of the federal securities laws; that Cohen was barred from association with any broker dealer by the NASD (now FINRA); that Cohen was the subject of a court judgment, and numerous state and federal tax liens; that the Pennsylvania Securities Commission had ordered Encore Releasing and Alvin Cohen to cease and desist selling securities in Pennsylvania; that in 2012 the California Dept. of Corporations ordered Cohen to cease selling unqualified securities in California; and that investors’ money would be used to pay Alvin Cohen Michael Reinboth and Ralph Muscatelli salaries and commissions and for personal expenses.

October 25, 2019

George Pidgeon Fund Raise for Francis Capital Management

by David Liebrader

CA Dept. of Business Oversight Settles Claim Over George Pidgeon Fund Raising for Francis Capital Management

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the sales activity of George Pidgeon, a former registered representative with Triple A Partners of Los Angeles, CA. Pidgeon’s activities raising funds for Francis Capital Management were the subject of two regulatory filings by the California Department of Business Oversight and the Department of Corporations.

The pending regulatory filling that gives rise to this investigation is the CA Department of Business Oversight’s settlement agreement with Francis Capital Management dated June 3, 2019 whereby the Commissioner of the Department determined that Francis Capital Management engaged George Pidgeon as an unregistered solicitor/investment advisor who introduced investors to Francis Capital Management’s funds, and compensated the broker dealers with whom Pidgeon was affiliated with for his efforts in raising capital for the firm. The Commissioner also determined that FCM made untrue statements to the Commission concerning Pidgeon’s employment. This settlement follows the June, 2018 filling of a statement in support of an order imposing administrative penalties against Francis Capital Management whereby the facts state that Pidgeon was paid over $300,000 is sales compensation and finder’s fees by FCM.

October 25, 2019

Michael Carter Henderson Nevada Broker Woodbridge Sales

by David Liebrader

Michael Carter Foresters Equity Services broker Woodbridge Mortgage Fund investigation

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Michael Carter a registered representative formerly affiliated with Foresters Equity Services in Henderson, Nevada.

The pending investigation concerns investments made by Michael Carter’s clients into the Woodbridge Mortgage Investment Fund.

October 25, 2019

Bryan Gill Wedbush Securities Unlicensed Branch Office

by David Liebrader

Wedbush Securities Bryan Gill activities subject of Nevada Secretary of State Order

securities attorneys at The Law Office of David Liebrader have opened an investigation into the sales activity of Bryan Gill, a North Las Vegas based former registered representative and investment advisor formerly affiliated with Wedbush Securities, who was investigated for doing business out of an unlicensed branch office in North Las Vegas. Gill has been the subject of at two customer complaints that went to arbitration, resulting in awards to the customers.

The administrative action that gives rise to this investigation is the NV Secretary of State (Securities Division) administrative order dated September 17, 2017: “In the matter of Wedbush Securities, Inc.” In its findings of fact, the Securities Division found that Bryan Gill, while licensed with Wedbush Securities did business out of an unlicensed branch office in North Las Vegas. According to the finding of fact in the order, the Secretary of State began inquiring into Gill’s activities in North Las Vegas beginning in August, 2016. Subsequent notices were sent in October, 2016 and March, 2017 asking for information. On May 3, 2017 investigators for the NV Secretary of State’s Securities Division attempted to conduct an on-site inspection of Gill’s unlicensed branch office but Gill refused to admit his identity to the investigators. Finally, in May, 2017 Wedbush provided the NV SOS with documents establishing that Gill was conducting securities related business out of the North Las Vegas location from July, 2016 through May 2017 while the branch was not licensed.

October 25, 2019

Jeremy Kisner Securities America Unlicensed Branch Activity

by David Liebrader

Former Securities America Broker Jeremy Kisner Conduct Subject of NV Secretary of State Action

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the sales activity of Jeremy Kisner, a Phoenix based investment advisor formerly affiliated with Securities America, and formerly doing business out of an unlicensed branch office in Las Vegas. Kisner has been the subject of at least one customer complaint that went to arbitration, resulting in an award to the customer.

The administrative action that gives rise to this investigation is the NV Secretary of State (Securities Division) administrative order dated March 5, 2018: In the matter of Securities America, Inc.” In its findings of fact, the Securities Division found that Jeremy Kisner, while licensed with Securities America did business out of an unlicensed branch office on Hillwood Drive in Las Vegas. According to the finding of fact in the order, the same location housed four businesses: American Dream U, Nevada Benefits (Surevest Capital and Financial Services and Investment corporation. Mr. Kisner has been affiliated with Surevest Wealth Management since 2009, and was the subject of a separate Nevada Secretary of State regulatory action in 2009 regarding Surevest.

October 25, 2019

Ricardo Cabrera Found Operating Unlicensed Branch Office

by David Liebrader

Activities of Ricardo Cabrera subject of Nevada Secretary of State’s Administrative Order against G.F. Investment Services.

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the sales activity of Ricardo Cabrera, a Las Vegas based investment advisor formerly affiliated with G.F. Investment Services as well as Wittman Capital Management. Our firm has received multiple calls from investors who were placed into illiquid investments through Cabrera and Wittman’s sales activities in Nevada.

The administrative action that gives rise to this investigation is the NV Secretary of State’s (Securities Division) administrative order dated September 4, 2018: “In the matter of G.F. Investment Services, LLC”. In its findings of fact, the Securities Division found that Ricardo Cabrera, while licensed with G.F. Investment Services operated an unlicensed branch office in Sun City Summerlin that was a co-location with Wittman Capital Management. The NV SOS found that Cabrera transacted business from the Sun City branch, which was never properly licensed through G.F. Investment Services.