Oppenheimer Ordered to Pay Investor $1.2 Million in Case

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Oppenheimer Ordered to Pay Investor $1.2 Million in Case By Caitlin Nish | January 18, 2013 NEW YORK–An arbitration panel has ordered Oppenheimer & Co. to pay nearly $1.2 million to a Texas investor who accused two of the firm’s brokers of excessive trading in his account to generate hefty commissions. The investor, Lloyd A. Gillespie, claimed the brokers inappropriately concentrated his account in highly speculative stocks, including penny stocks, and occasionally used margin to buy them, according to the ruling from the Financial Industry Regulatory Authority arbitration panel. Mr. Gillespie further alleged the annual turnover ratio was indicative of…

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Stifel Nicolaus To Pay $42,000 Award To Investor

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Stifel Nicolaus To Pay $42,000 Award To Investor By Diana Barr | April 1, 2011 An investor who lost money more than a year ago in a Ponzi scheme run by a former St. Louis-area broker has been awarded more than $42,000 in damages and fees from Stifel, Nicolaus & Co. by a FINRA dispute resolution panel. Barbara Bush Cook of St. Louis had filed a claim for $500,000 with FINRA (Financial Industry Regulatory Authority) in 2009 against the broker’s former employers, Stifel and AXA Advisors. AXA settled with Cook in January 2010 for an undisclosed amount. Cook alleged in…

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Oakes And Fosher Sues New England Securities For Alleged Failure To Supervise

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Tale Of Cheating Planner Teaches Lesson By Jim Gallagher | September 27, 2009 In December 2006, Marge and Clyde Crutcher of Godfrey got a letter from the financial planner managing their life savings: “Dear Marge, By the time you receive this I’ll be dead. The noted programs you participated in were my creation and are worthless,” said the letter, signed by Robert M. Smart. “The regulatory authorities have gotten wind of what I have been doing and I am sure I face eminent (sic) arrest,” he added. The Crutchers, who are in their 70s, were in shock. They had given…

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Oakes & Fosher Convinces FINRA Arbitrators To Order Trustmont Financial To Pay Client $1 Million In Damages

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FINRA Arbitrators Order Pennsylvania Brokerage To Pay Client $1 Million In Damages By Sarah Min | August 23, 2018 Financial Industry Regulatory Authority Inc. arbitrators ordered Pennsylvania-based Trustmont Financial Group Inc. to pay a client more than $1 million in damages. James E. Grimes accused Trustmont, headquartered in Greensburg, Penn., of breaching fiduciary duty, committing fraud and negligence in a case related to two 1035 annuity exchanges and a private real estate investment trust. Mr. Grimes demanded damages of approximately $500,000. Trustmont denied all the allegations. A representative from Trustmont was not immediately available for comment. Trustmont was ordered to…

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Oft-Sanctioned Ex-Broker Kathleen Tarr Loses Expungement Request

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Oft-Sanctioned Ex-Broker Kathleen Tarr Loses Expungement Request By Jed Horowitz | March 29, 2017 The same day that an arbitrator last week completed a six-hour hearing on former independent broker Kathleen J. Tarr’s bid to expunge a customer’s complaint about allegedly unsuitable sales of privately-traded REIT sales from her regulatory record, he denied the request. The decision, published on the Financial Industry Regulatory Authority’s online arbitration award site on Monday, is unusual because Tarr, who accumulated at least 42 customer complaints over her 12-year career at three firms, is challenging them and because Royal Alliance Associates, which employed her  for…

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Couple Wins $922k Arbitration Claim Over Illiquid Real Estate Investments

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Couple Wins $922K Arbitration Claim Over Illiquid Real Estate Investments By Bruce Kelly | December 15, 2016 Mid Atlantic Capital Corp., an independent broker-dealer, lost a $922,000 arbitration award on Tuesday to a couple who sued the company over sales of illiquid real estate private placements and nontraded real estate investment trusts. The claimants, married couple Beverly Bien and David Wellman, claimed negligence, negligent representation, omissions and other allegations in the matter, which was decided by a three-member panel of Finra Office of Dispute Resolution arbitrators. According to the award, the claimants’ invested in a real estate private placement, Sonoma…

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Royal Alliance to pay $1.4 million over nontraded REIT, VA Sales

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Royal Alliance to Pay $1.4 million Over Non-Traded REIT, VA Sales By Mason Braswell | July 16, 2015 Royal Alliance Associates Inc., one of four subsidiary broker-dealers of AIG Adviser Group, has been ordered to pay $1.4 million to three retirees over allegations that it was negligent in supervising sales of nontraded real estate investment trusts and variable annuities. The retirees, who were former employees of AT&T Inc., were encouraged by a former broker, Kathleen Tarr, to take a lump-sum buyout from their employer rather than a lifetime annuity, according to an attorney for the claimants, Richard B. Fosher, a…

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Will New Rules Oust The IRA Scoundrels?

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Will new rules oust the IRA scoundrels? By Jim Gallagher | April 18, 2015 “The Labor Department has set out to purify the sometimes putrid advice people get on investments in their retirement accounts. But will the new rule proposed last week do the trick? The rule says that financial advisers have to put the clients’ interest before their own when advising on retirement plans such as IRAs and 401(k)s. That’s a change for most of them. But here’s the rub: The Labor Department lets the advice industry keep broker compensation schemes that can prompt rotten, self serving advice, making…

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Madison County Seeks To Recover Investment Losses

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Madison County Seeks To Recover Investment Losses By Christina Stueve | April 20, 2012 Attorneys for Madison County claim that brokerage firm Sterne Agee & Leach of Birmingham, Ala. defrauded the county by selling it inappropriate securities and generating millions of dollars in excessive commissions and fees, according to an amended complaint filed with the Financial Industry Regulatory Authority (FINRA). Madison County is represented by Bruce Oakes and Richard Fosher of St. Louis. The attorneys originally filed a complaint against Sterne Agee last August seeking $400,000 in losses it alleges were due to the purchase of risky bonds. They recently…

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