Miller Lawyers

Merrill Settles Claim for $4.25 Million Regarding Suitability Allegations

March 2, 2022 | Dan Miller

Merrill terminated 38-year Birmingham, Alabama based Advisor after settling a customer claim for $4.25 million, according to Advisor Hub and FINRA Brokercheck.

Merrill fired the advisor for “conduct including making an unsuitable investment strategy recommendation and misrepresentation to a client” tied to an options investment and also for failing “to follow Firm standards related to business communications,” according to BrokerCheck.

The customer submitted a written complaint to Merrill for unspecified damages over unsuitable sales and misrepresentations between November 2019 and November 2020, according to the CRD report for the Advisor.

FINRA To Hire A Law Firm to Review Arbitrator Selection After Judge Rebukes FINRA in Vacating a Wells Fargo Award

March 1, 2022 | Dan Miller

Bull Bear
The Financial Industry Regulatory Authority hired an “independent” law firm to conduct a review of its arbitrator selection procedures after a Judge rebukes FIRNA in an order vacating a Wells Fargo award in a controversial case, according to FINRA.

Finra, whom denied any flaw in its process, hired the law firm of Lowenstein Sandler after a scathing order to vacate a Wells Fargo award. The Judge had said Finra and Wells Fargo’s lawyer appeared to have a secret agreement to strike potential arbitrators from a neutral list and questioned the fairness of the process.

The concerns were reiterated by the Public Investors Advocate Bar Association, which called for “an immediate investigation” by the Securities and Exchange Commission and hearings in Congress, and by Senator Elizabeth Warren (D-Mass.) and Rep. Katie Porter (D-Calif.) in a February 10 letter.

$950,000 Fine to Merrill – Flawed Supervision Allowed Two Advisors to Steal $6M

March 1, 2022 | Dan Miller

According to Advisor Hub, the Financial Industry Regulatory Authority has censured and imposed a $950,000 fine on Merrill Lynch Wealth Management for allegations that they engaged in ignoring flaws in its fraud detection systems allowed for two of their brokers to steal $6 million from clients.

“Merrill’s systems did not properly screen Automated Clearing House transfers from customers’ accounts to detect when one of its registered representatives was the beneficiary of those transfers,” FINRA said. Merrill’s internal fraud-detection system was only “designed to detect fraud by third parties” or “persons other than its own brokers,” it continued.

FINRA warned Merrill in 2013 about problems with its monitoring of customer fund transfers, according to the settlement letter, as quoted in Advisor Hub and FINRA rulings.

J.P. Morgan to Pay $4 Million to Client

January 26, 2022 | Dan Miller

Miller Stern Lawyers is currently investigating claims against J.P. Morgan. According to Advisor Hub and industry records, J.P. Morgan Advisors was ordered to pay $4 million in damages to a former client in their San Francisco office.

Industry records confirms that Lacey Winston Keath alleged unsuitability in filings against J.P. Morgan’s traditional brokerage unit in high-risk equities and junk bonds–without authorization, according to the Financial Industry Regulatory Authority award.

A J.P. Morgan spokeswoman declined to comment on the arbitration outcome or underlying dispute.

Finra Fines and Supends Ex-Ameriprise Broker Angel W. Bardeche

January 12, 2021 | Dan Miller

Bull Bear Miller Stern Lawyers – 410-Law-Firm is currently investigating clients of Ex Ameriprise Broker Angel Bardeche CRD4698117 and all firms and broker dealers who may be victims of, and suffered damages and losses, due to abuses such as flipping “A” Shares, mutual fund abuses, unsuitable mutual fund investments and failure to supervise, breach of fiduciary duty, overcharging , and unauthorized trading.

Financial Industry Regulatory Authority has fined and suspended a former Ameriprise Financial broker in Cincinnati, Ohio, who allegedly generated $450,000 in commissions from unsuitable mutual fund switches over two years, according to FINRA and Advisor Hub. Ms. Bardeche agreed to a nine-month suspension and $10,000 fine as well as $5,000 in disgorgement to resolve Finra’s allegations of costly mutual fund trading, according to a letter of settlement.

Between January 2017 and March 2019, Bardeche recommended 112 short-term ‘switches’ of Class A mutual funds in 32 customer accounts, Finra said. Class A funds carry large up-front sales charges and “are generally only suitable as long-term investments.”

Finra Hits Veteran Broker Over UIT (Unit Investment Trust) Sales

December 15, 2020 | Dan Miller

Bull Bear FINRA’s ongoing campaign to rein in alleged sales abuses involving short-term trading of unit investment trusts in customer accounts has led a 23-year veteran advisor to accept a $10,000 fine and three-month suspension.

Miller Stern Lawyers – 410-Law-Firm is currently investigating clients of Stifel Nicolaus and all firms and broker dealers who may be victims of, and suffered damages and losses, due to abuses such as short-term trading of unit investment trusts, breach of fiduciary duty, overcharging , and unauthorized trading.

Kurt J. Gunter, an Austin, Texas-area broker with no previous disciplinary record, accepted the sanctions for allegedly recommending more than 270 early rollovers of UITs—almost half into virtually identical portfolios—in order to generate commissions over three years while employed at Stifel Nicolaus, according to a letter of acceptance from FINRA.

The Second Largest FINRA Settlement in last decade – Merrill Lynch to pay $26 million, in part to former NH Governor Craig Benson, to settle churning allegations by Charles Kenahan

December 10, 2020 | Dan Miller

Bull Bear Miller Stern Lawyers – 410-Law-Firm is currently investigating clients of Merrill Lynch and Charles Kenahan and Dermond Cavanaugh who are may be victims of, and suffered damages and losses, due to abuses such as churning, beach of fiduciary duty, overcharging , and unauthorized trading.

According to CNBC and other new outlets, the State of New Hampshire “is ordering Merrill Lynch to pay $26.25 million in fines and restitution to the state and to an investor, the former Governor of New Hampshire, who claimed he suffered losses at the hands of a former Boston-based broker, to settle allegations including unauthorized and excessive trading”, or what is commonly known as Churning.

This is the largest monetary sanction in New Hampshire history and proportedly the second largest FINRA settlement in at least a decade.

Morgan Stanley Fires Brokers over Inherited Account Credits Blake Ridenour Jazmin Gabriela Carpenter and others

November 20, 2020 | Dan Miller

cropped-High-Res-TA-2018-2019-284x300 Morgan Stanley terminated around ten brokers following a nationwide probe of alleged abuses in its inherited account program, according to lawyers, firm sources and former managers per advisor Hub. Miller Stern Lawyers – 410-Law-Firm is currently investigating clients of Morgan Stanley who are victims of, and suffered damages and losses, due to these abuses.

The investigation was prompted by complaints about underpayments from at least one retired broker who entered the Former Advisor Program (FAP), a so-called sunsetting plan that Morgan Stanley and other large firms have promoted heavily in an attempt to keep older brokers from joining other firms and taking clients with them.

according the the article, the programs allow older brokers to receive a split of fees and commissions paid by former clients for several years if the brokers let their practices lapse after they leave.

Stern v. Stifel – Excerpt from the Experts Examiner reading the post arbitration motions

September 29, 2020 | Dan Miller

Securities Experts Roundtable

The Expert’s Examiner

Stifel, Nicolaus & Co. v. Stern, No. 1:20-cv-00005 (D. Md. Mar. 31, 2020).

Brokers get hit for cutting corners

August 25, 2020 | Dan Miller

cropped-High-Res-TA-2018-2019-284x300 According to Advisor Hub, “Joseph Woitkoski, who was terminated by Raymond James Associates in 2018 after 20 years as a registered rep, was suspended for 30 days and fined $7,500 for allegedly making discretionary trades for 12 customers without their written authorizations, according to an acceptance, waiver and consent letter that Finra accepted on August 20.” Miller Stern Lawyers, LLC – 410-Law-Firm is currently investigating claims and allegations of brokers making discretionary non-authorized trades in clients accounts at brokerages such as Stifel, Morgan Stanley, Wells Fargo and others. If you or someone you know are victims of losses in your accounts because of unauthorized discretionary trades, please call for a free evaluation.

Finra has imposed the sanctions even though “over the course of longstanding relationships, the customers gave authorization to Woitkoski to exercise discretion in their accounts,” according to the letter that the Massachusetts-based former broker signed without admitting or denying the findings. This often occurs in elderly clients, with issues such as elder abuse. Eight of the 12 customers were “seniors,” according to Finra.

“In addition to failing to get permission from customers in writing, Woitkoski never requested or obtained approval from Raymond James. The firm maintained inaccurate books and records because the broker attested in a 2017 compliance questionnaire that he did not exercise discretion in non-fee based accounts, according to the consent letter.” according to Advisor Hub