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Finra fines UBS $250,000 for overcharging mutual-fund customers

The firm allegedly failed to provide about 2,700 customers waivers tied to upfront sale charges InvestmentNews.com By Christine Idzelis A unit of UBS Group AG will pay a $250,000 fine to settle charges that it failed to waive certain fees for eligible mutual-fund customers, according to the Financial Industry Regulatory Authority Inc. The brokerage firm charged customers an excess of $277,636 to invest in mutual funds from September 2009 to June 2013, according to a settlement notice that Finra accepted Monday. The alleged supervisory failures were tied to so-called reinstatement rights that allow investors to avoid front-end sales charges. “We are pleased to have resolved...

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Attorney: Locals Invested $750K in Reported Scam

More than 20 shareholders from Cass, Pulaski spark local lawyer’s investigation PharosTribune.com By Mitchell Kirk More than 20 people from Cass and Pulaski counties contributed about $750,000 to a former Logansport man facing federal charges of defrauding investors, according to a local attorney. Larry Westby, 64, Vanderbilt, Michigan, faces charges of mail fraud, money laundering and fraud in the offer and sale of securities. The FBI, IRS and Indiana Secretary of State's office accuse the former Logansport resident of scamming investors out of more than $985,000. Westby started a company called LMW Inc. he based in Indianapolis with the reported objective of selling respiratory...

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Former Eagle player defrauds football coaches, others out of $6 million

SEC complaint alleges Merrill Robertson Jr. and partner promised 20% and took client funds InvestmentNews.com By Liz Skinner Former Philadelphia Eagle Merrill Robertson Jr. defrauded his former coaches and other investors out of about $6 million, the Securities and Exchange Commission alleged in a complaint filed on Wednesday. Mr. Robertson, Sherman Vaughn Jr., and the company they owned together called Cavalier Union Investments, raised more than $10 million from investors who were told their money would go towards diversified holdings, the complaint filed in federal court in Richmond, Va., said. However, nearly $6 million was used to pay for personal expenses of Mr. Robertson and...

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Finra panel orders adviser to pay $333,000 to Morgan Stanley

Louis D. Dworsky was found in breach of promissory notes when he left the brokerage firm InvestmentNews.com By Christine Idzelis A former broker for Morgan Stanley must pay the wirehouse $333,000 in damages for failing to pay back money he owed when leaving the firm in 2013, according to the Financial Industry Regulatory Authority Inc. Morgan Stanley will recoup money tied to four promissory notes issued to Louis D. Dworsky in 2007, 2008 and 2009, according to a Finra dispute resolution document released on Monday. Promissory notes are a form of compensation that brokers receive from their employer. Mr. Dworsky now works at Zermatt Wealth...

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Former Merrill Edge adviser accused of misleading customers

Finra said the adviser misled five IRA customers and then did not give an honest account of his actions InvestmentNews.com By Tanvi Acharya The Financial Industry Regulatory Authority Inc. accused former Merrill Lynch adviser of allegedly misleading five clients with individual retirement accounts at the firm by providing incorrect information while making recommendations. Landon L. Williams, who is currently not registered as a Finra member, also “made false statements about what he discussed with and disclosed to the customer” in his notes, according to the complaint filed Thursday. Mr. Williams was an adviser at Merrill Lynch Edge Advisory Center, which serves customers with $250,000 or...

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FINRA panel directs broker to pay Wells Fargo almost $1 million after his termination

Robert Edward Loftus was discharged in 2013 and found in breach of a promissory note InvestmentNews.com By Christine Idzelis Broker Robert Edward Loftus must pay Wells Fargo almost $1 million in compensatory damages after his termination in 2013, according to the Financial Industry Regulatory Authority Inc. An arbitration panel decided that Mr. Loftus owes the firm $930,874 in damages for breach of a promissory note, a form of compensation that he received upfront when he joined Wells Fargo in 2009, according to a Finra document dated Aug. 3. Mr. Loftus is also responsible for $300,000 of the brokerage firm's attorney fees. Mr. Loftus, who now...

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Two Chattanooga brokers investigated for securities fraud

A release from the TDCI says James Hugh Brennan III and Douglas Albert Dyer, co-owners operating Chattanooga-based Broad Street Ventures, LLC., allegedly raised more than $5 million from investors without using the money as promised. By WTVC – newschannel9.com Two former brokers with disciplinary histories from Chattanooga are under investigation for securities fraud by the Securities & Exchange Commission (SEC), the Tennessee Department of Commerce & Insurance (TDCI) and the FBI. The investigation, started by the TDCI, ultimately led to a recent court-ordered asset freeze in order to stop the fraud. A release from the TDCI says James Hugh Brennan III and Douglas Albert...

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JPMorgan Settlement With Indiana Draws Interest of Other States

by Neil Weinberg, Bloomberg.com JPMorgan Chase & Co. has reached a settlement with Indiana regulators related to its asset management business, and now other states are expressing interest in how Indiana built its case. JPMorgan agreed on July 28 to pay $950,000 to settle claims by the Indiana secretary of state that the bank failed to disclose conflicts of interest to wealthy clients. Andrew Lang, a spokesman for Secretary of State Connie Lawson, said the settlement prompted officials from other states to ask how Indiana had pursued its claim. He wouldn’t identify the states. “Investors have the right to know all the facts...

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$21 Million Dollar Ponzi Scheme Exposed

Patrick E. Churchville, a Rhode Island investment adviser has pleaded guilty to running a massive $21 million ponzi scheme. Churchville used approximately $2.5 million of investor funds to purchase a home in Barrington, Rhode Island. Since the purchase of the home, he has failed to pay almost $1 million in personal federal income taxes, according to a statement from the U.S. Attorney’s Office. Churchville will plead guilty to one count of tax fraud and five counts of wire fraud, according to the statement. He is also a defendant in a civil case brought forth by the SEC in May 2015. Ponzi Scheme...

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Finra Bans Turner for Misrepresentation

Winston Wade Turner was banned by Finra for making unsuitable variable annuity recommendations while working for MetLife and Prudential Financial. It was revealed that Turner deceived his clients by neglecting specific material facts about their current variable annuities. In some cases, Turner suggested to his clients they sell their other investments in order to fund the purchase of variable annuities he recommended. It is a known fact that exchanging any annuity should be highly monitored, due to their relatively high commissions. In August of 2015, Turner was terminated by Prudential for his deceptive sales practices. In the July 8 Finra document...

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