Securities Fraud Lawyer Blog

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Aldo Marchena of Boca Raton, FL, formerly with Northeast Securities and Kovack Securities, both of Boca Raton, FL, was suspended from association with any FINRA member for five months.  Marchena submitted to findings that he engaged in outside business activities without obtaining firm permission.  Marchena had sought firm permission to refer clients to his business consulting LLC, but the firm denied his request.  Marchena then continued to engage in the outside business activity, and made inaccurate statements on the firm’s annual compliance questionnaire regarding this outside business.  Marchena’s suspension ends on September 3, 2016.

Aldo Marchena’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Aldo Marchena was registered with:

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Kevin Kuhlow of Los Gatos, CA, formerly with LPL Financial was barred from association with any FINRA member.  Kuhlow submitted to findings that he introduced LPL customers to an unapproved investment, and when questioned by FINRA about this conduct, he refused to cooperate, testify or produce documents to the investigators.  As a result, he received a permanent bar.

Kevin Kuhlow’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Kevin Kuhlow was registered with LPL Financial from January 2005 to March 2016.

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Jeff Ingros of Beaver, PA, formerly with Raymond James Financial and Merrill Lynch, both of Beaver, PA was barred from association with any FINRA members.  Ingros submitted to findings that he borrowed money from customers, a violation of firm and industry rules.  The findings further stated that Ingros also engaged in outside business activities.

Jeff Ingros’ registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Jeff Ingros was registered with:

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Richard Crescenzo of Stony Brook, NY, formerly with Capital Securities Management of Melville, NY was suspended from association with any FINRA member for two years.  Crescenzo submitted to findings that he borrowed money from elderly customers, violations of firm and industry rules.  The findings further state that Crescenzo never informed his firm of the loans, and represented on his annual compliance questionnaire with the firm that he had not engaged in any loan transactions with customers.

Richard Crescenzo’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Richard Crescenzo was registered with:

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Christopher Burtraw of Lakewood, Colorado, formerly with JP Turner and Purshe, Kaplan, both of Lakewood, CO was barred from association with any FINRA member for borrowing money from customers, a violation of firm and industry rules.  The findings further state that Burtraw failed to provide FINRA documents and information during their investigation of the underlying regulatory matter.

Christopher Burtraw’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Christopher Burtraw  was registered with:

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Noyeg Arkoian of Las Vegas, Nevada formerly with US Bancorp Securities was fined $5,000 and suspended from association with any FINRA member for three months for accepting loans from customers, a violation of firm rules.  The findings further stated that Arkoian failed to disclose the loans or seek firm approval prior to entering into the loan transactions.  The suspension was effective from March, 2016 through June, 2016.

Noyeg Arkoian’s registration and disciplinary history

In order to lawfully sell investments to the public,  a registered rep must either be registered or exempt from registration.  Noyeg Arkoian  was registered with:

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Oakbridge Financial Services of Kirkwood, Missouri submitted an acceptance, waiver and consent letter regarding supervisory lapses in its securities business. In agreeing to the AWC, the firm was fined $20,000. The AWC can be found here.

FINRA’s allegations against Oakbridge included that the firm failed to supervise the outside business activities of its registered representatives. FINRA contended that the firm did not document and review the trading in “church bonds” to ensure that the trades were suitable for, and sold at a fair price to the firm’s customers.

Oakbridge Financial Services’ registration and disciplinary history

In May, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Lombard Securities, Inc. of Baltimore, Maryland submitted an acceptance, waiver and consent letter regarding supervisory lapses in its securities business. In agreeing to the AWC, the firm was fined $50,000. The AWC can be found here.

FINRA’s allegations against Lombard Securities included that the firm failed to implement a supervisory system designed to prevent unsuitable mutual fund switching and the sale of inverse and leveraged exchange traded funds.  FINRA found the firm’s supervisory system unreasonable which caused it to fail to detect the violations.  .

FINRA also found that the firm failed to provide clients with sales charge discounts in their sales of unit investment trusts.

David Seigerman, a registered representative from Morristown, NJ, formerly with Janney Montgomery Scott and Morgan Stanley was suspended from FINRA membership for violations of Rule 9554.

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

The rule provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent.  In April, 2016 David Seigerman was suspended from FINRA membership for violating Rule 9554.

Rudy Luo, aka Jaoshiang Luo, a registered representative in Flushing, NY, formerly with Clark Dodge & Co., Andrew Garrett and Buckman, Buckman and Reid was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

This FINRA rule provides if a FINRA member fails to provide information or testimony requested or required by FINRA’s By-Laws or FINRA rules, or fails to keep his or her membership and supporting documents current, FINRA, after providing  21 days’ notice may suspend the FINRA membership of the person.