Securities Fraud Lawyer Blog

October 6, 2017

Sean Sladek Sentenced to 46 Months for Wire Fraud

Sean Sladek pleads guilty in Las Vegas USDC

jail-handcuffs
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.

October 1, 2017

Terry Bahgat Barred by FINRA Sued by SEC

by David Liebrader

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.

August 27, 2017

Sonya Camarco Charged by SEC

by David Liebrader

Sonya Camarco charged with Fraud by SEC

SEC alleges over $400,000 in client funds used to pay credit card bills

The securities attorneys at The Law Office of David Liebrader have opened an investigation into the securities related conduct of Sonya Camarco (aka Sonya Fatchett), a licensed FINRA registered representative from Colorado Springs, Colorado, formerly affiliated with LPL Financial Services.

August 17, 2017

Ernest Romer Barred by FINRA: Pending Investigation

by David Liebrader

Ernest Romer has been barred by FINRA

Update August, 2017: Michigan seeks cease and desist, intent to bar.

On August 16, 2017 the state of Michigan’s Securities Division issued a notice of intent to revoke the securities licensing of Ernest Romer and asked that a cease and desist order be issued.

August 17, 2017

William Jordan Investments Investigation

by David Liebrader

William Jordan Investments Barred by California DBO; Bankruptcy Filing!

On August 16, 2017 the State of California’s Department of Business Oversight announced a consent order and issued a bar which prevents William Jordan Investments from acting as an investment advisor or a broker dealer in California. The Order also bars William Jordan from acting as a registered representative or investment advisor in the state. The denial relates back to a January, 2017 filing by the Commissioner that described the DBO’s investigation into William Jordan Investments and William Jordan’s history of selling unregistered (unqualified) securities.

The Department of Business oversight found that William Jordan Investments sold unregistered securities and made material misstatements and omissions when making the sales. They also found that Jordan failed to disclose his prior FINRA disciplinary history, and that the investments he sold to clients were losing money.

August 14, 2017

Kevin Wanner barred over CD Sales

by David Liebrader

Kevin Wanner barred over CD sales

In January, 2016 FINRA barred broker Kevin Wanner formerly of Questar Capital Corporation and Woodbury Financial for his role in brokering certificates of deposit and selling unregistered securities.

In August, 2017 the North Dakota Securities Department made findings that Kevin Wanner, doing business as Precision Financial allegedly ran a Ponzi scheme for over fifteen years and victimized dozens of investors in a bogus CD scam as well as by selling unregistered securities. The findings by the North Dakota department state that Kevin Wanner pocketed most of the money raised from investors and used it to support his lifestyle, and to pay newly raised funds to older investors. Also as part of the North Dakota findings, Kevin Wanner was referred to the U.S. Attorney’s office for a criminal investigation.

August 14, 2017

Jacqueline Georgio hit with $559k FINRA award

by David Liebrader

Jacqueline Georgio, Paul Howard, Bryan Perderson and RBC Capital Markets hit with large FINRA Award

In August, 2017, a FINRA arbitration panel sitting in Cheyenne, Wyoming issued a $569,000 binding arbitration award against Jacqueline Georgio (aka Jacqueline Westover) Paul Howard, Bryan Pederson and RBC Capital Markets. The award also provided for 10% interest on the award until paid in full.

The underlying matter involved claims that Respondents negligently caused the Claimant to lose his retirement benefits by transferring money out of a qualified retirement plan. As a result of the transfer, Claimant lost a guaranteed income benefit of $3200 a month for life from the Wyoming state pension system.

August 9, 2017

Thunder Energies Corporation Unregistered Securities Issuance

by David Liebrader

On June 7, 2017 Thunder Energies Corporation, a Tarpon Springs Florida corporation, stock symbol TNRG, announced an unregistered issuance of equity securities. The restricted securities were issued pursuant to approval from the board of directors to Dr. Santilli and Carla Santilli in lieu of payment of accrued salary. As a result, Thunder Energies Corporation issued 16,530,769 shares to Mr. and Ms. Santilli at a price of six cents a share.

Thunder Energies Corporation maintains a website where investors, customers and vendors can go to get information on the company. The website is located here.

The most recent news on Thunder Energies Corporation as of the time of this blog post can be found on globenewswire.com, and is posted here.

July 30, 2017

Northeast Securities slammed with $2.6MM arbitration award

by David Liebrader

In July, 2017, a FINRA arbitrator panel sitting in New York, NY issued a $2.6 million binding arbitration award against Northeast Securities a FINRA registered broker dealer. The award was joint and several against Northeast Securities and registered reps Stephen Perrone, Diane Hawkins and Jonathan Zucker. The award includes nearly $900,000 in pre award interest and reimbursement for close to $34,000 in expert witness costs. Perrone, Hawkins and Zucker’s requests to expunge the claim from the CRD system was denied by the panel.

The underlying matter involved corporate bonds, and Claimant asserted claims for breach of fiduciary duty, negligence, churning, misrepresentations and violations of FINRA rules. During the pendency of the case, the Claimant filed a request with the panel to make a disciplinary referral to FINRA for Respondents alleged refusal to turn over presumptively discoverable telephone records that could have aided Claimant’s case. The panel denied the request to make the disciplinary referral.

Improbably, despite making such a large award on behalf of the Claimant, the panel split the arbitration hearing session fees 50-50, requiring Claimant to pay $13,500 to FINRA.

July 30, 2017

Wedbush Securities hit with $1.8MM Arbitration Award

by David Liebrader

In July, 2017, a FINRA arbitrator panel sitting in Los Angeles, CA issued a $1,797,100 binding arbitration award against Wedbush Securities a FINRA registered broker dealer. The award included nearly $1.2 million in punitive damages pursuant to the California Elder Abuse and Dependent Adult Act. The panel also added nearly $300,000 in attorney’s fees.

The underlying matter involved structured products and steepeners, synthetic securities that allow speculators to bet on the direction of interest rates. The panel also made an affirmative finding that Wedbush Securities and broker Mark Augusta engaged in unauthorized trading in the Claimant’s account. Among the securities at issue were Citigroup FDG Medium Term, Lloyds TSB Bank Steepner Note, SG Structured Prods Medium Term and Citibank NA Principal Protected MLCD Quarterly Notes

After a seven day arbitration hearing over March and May, 2017, the arbitrators rendered their decision, and awarded the Claimant $250,000 in compensatory damages, with the remainder being commission disgorgement, punitive damages, attorney’s fees and costs. The panel found Wedbush solely liable, based on Wedbush’s obligation to indemnify Mark Augusta, and no portion of the award is owed by Augusta. The panel, nevertheless found that both Wedbush Securities and Mark Augusta engaged in “improper conduct.” Augusta left Wedbush in May, 2015 after four years with the firm. He is now registered with Hilltop Securities in Del Mar, California.