Securities Fraud Lawyer Blog

Kim Dee Isaacson, a registered representative from Farmington, Utah, formerly with Ameriprise Financial Services, Inc., was barred from FINRA membership as a result of an investigation into his providing false and misleading information to a customer about his investment account, which is a violation of FINRA rules. Isaacson entered into an acceptance waiver and consent agreement with FINRA, in which he neither admitted nor denied the findings, but was still barred.

In June, 2017 Isaacson agreed to the sanction, and FINRA published its findings that Isaacson lied to a customer multiple times, telling him that his accounts had more money in them than they actually did. FINRA also found that Isaacson misled the customer further, claiming that he sold portions of securities and bonds from his account when he had not. The FINRA claim alleges that Isaacson knew that he was giving his customer misleading information, and never tried to correct himself or to let the customer know.

Kim Dee Isaacson’s registration and disciplinary history

North Carolina broker Jason Likens suspended.

Jason Likens, a registered representative from Asheville, North Carolina, formerly with International Assets Advisory, LLC, was suspended from FINRA membership as a result of an investigation into his borrowing money from customers without obtaining firm approval, which is a violation of LPL and FINRA rules. Likens entered into an acceptance waiver and consent agreement with FINRA in which he neither admitted nor denied the findings but agreed to a suspension of 15 months and a fine of $10,000.

In July 2017, Jason Likens agreed to the suspension and FINRA published its findings that he borrowed $23,500 from a customer, which he did not start paying back until after the agreed upon deadline had passed and multiple petitions were made. FINRA also found that Likens misled International Assets Advisory, LLC when he submitted a compliance questionnaire in which he denied engaging in any loan transactions.

David Gott suspended for outside business activities.

David Gott, a registered representative from Tipton, Iowa, formerly with Ausdal Financial Partners, Inc., was suspended from FINRA membership as a result of an investigation into his selling of private investment equities to customers without obtaining his firm’s approval, which is a violation of FINRA rules. Gott entered into an acceptance waiver and consent agreement with FINRA in which he neither admitted nor denied the findings. He was suspended for six months and fined $5,000.

In July 2017, Gott agreed to the suspension and FINRA published its findings. The report said Gott sold more than $546,000 of private capital to clients and did not notify his firm. FINRA found that Gott’s firm also profited from selling these investments. However, Ausdal Financial Partners, Inc. does not allow their brokers to take part in these types of transactions without their written approval. Gott did not follow the correct guidelines in this process,and compromised his position with the firm.

Craig Langweiler accused of excessive trading.

Craig Langweiler, a registered representative from Philadelphia, Pennsylvania, formerly with Windsor Street Capital, is facing a FINRA complaint as a result of an investigation into a complaint regarding his excessive trading in a customer’s account. FINRA is currently looking into this complaint and has begun a formal investigation.

In July 2017, Craig Langweiler was the focus of a complaint that claimed that he had traded a customer’s account unreasonably.   He allegedly traded 257 times, and lost as much as 25 percent of the customer’s account value. The complaint alleges that Langweiler made over $27,000 from this excessive trading, disregarding the obviously extreme cost cost-to-equity ratio in the account.

Trident Partners hit with fine over complex steepeners trading.

In July, 2017, the Financial Industry Regulatory Authority (“FINRA”) announced that Trident Partners Ltd. of Woodbury, NY, submitted an acceptance, waiver and consent letter regarding its failure to supervise its reps in their selling of steepeners. The firm was censured and fined $50,000.

Steepeners are complex products that entail significant risk.  FINRA has issues several notices to members on steepeners, which are frequently used to “juice” returns on mundane, low risk products like certificates of deposit.

Mercury Securities hit with censure and fine

In July 2017, the Financial Industry Regulatory Authority (“FINRA”) announced that Mercury Securities of San Rafael, CA submitted an acceptance, waiver and consent letter regarding its failure to effectively approve and document private securities transactions made by their representatives. The firm was censured and fined $5,000.

FINRA’s allegations against Mercury Securities concerned the firm’s authorization of private securities transactions made by three of its brokers. They were compensated by outside businesses through these private transactions despite their Written Supervisory Procedures clearly stating that the representatives would need proper approval and written documentation of their outside business dealings. The AWC stated that the firm did not follow the correct protocol and failed to record adequate information about the private deals. It was also discovered that the firm did not record the transactions in their files and allowed the business dealings with their representatives to go unsupervised.

Sean Sladek pleads guilty in Las Vegas USDC

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the investment related conduct of Sean Sladek, who plead guilty on October 4, 2017 to defrauding investors as part of a scheme to support his gambling lifestyle in Las Vegas.  Despite not having any securities licenses, Sladek held himself out as a successful securities trader, and told prospective investors that he could generate substantial returns.

FINRA hosts a database that the public can access to check the credentials of their financial advisors.  The website, also known as broker check does not contains a listing for Sean Sladek, which implies that he was never licensed either as a broker dealer, a sales representative or as a registered investment advisor.

Terry Bahgat who was barred by FINRA in March, 2017, has now been sued by the SEC.

In March, 2017 FINRA barred former Cambridge Investment Research and Gradient Securities broker Terry Bahgat, aka Tarek Bahgat for refusing to cooperate with a FINRA investigation.  On September 29, 2017 the SEC filed fraud charges against Terry Bahgat alleging that he siphoned money out of seven elderly client accounts and directed the money to a company he controlled before fleeing to Egypt in 2016.

Bahgat’s FINRA ban was for avoiding his obligations to provide information and respond to FINRA regulators when conducting investigations.