Articles Posted in FINRA Investigation

LPL FinancialPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on November 1, 2018 indicate that FINRA has sanctioned LPL Financial in connection to allegations the firm violated rules concerning the reporting of customer complaints as well as rules concerning anti-money laundering procedures. Fitapelli Kurta is interested in hearing from investors who have complaints regarding LPL Financial (CRD# 6413).

According to a FINRA release, FINRA found that LPL Financial failed in its duty “to file or amend registered representatives’ Forms U4 or U5 to disclose dozens of reportable customer complaints.” FINRA alleges specifically that the firm made an overly narrow interpretation of a regulatory requirement that firms report any complaint that contains “a claim for compensatory damages of $5,000 or more,” erroneously taking the phrase “to mean that the firm was not required to report any complaint that did not expressly request compensation,” even if the complaint concerned allegations that resulted in losses of $5,000 or more, and a holistic view of the complaint would make clear that the customer sought compensation. FINRA’s findings state that this incorrect interpretation resulted in the failure to report “at least 31 reportable customer complaints alleging sales practice violations,” as well as the failure to timely amend its representatives’ disclosure forms to reflect “at least 149 customer complaints and other reportable events,” such as judgments, bankruptcy filings, employment terminations, and other actions, whether regulatory, civil or criminal.

FINRA also found that the firm had an “unreasonably designed” anti-money laundering program that resulted in a failure to look into “numerous attempts to gain unauthorized access to electronic systems that could have resulted in the filing of Suspicious Activity Reports.” FINRA’s findings state that this failure resulted from LPL’s use of a chart that gave inaccurate guidance to anti-money laundering employees, ultimately resulting in the firm’s failure to file over 400 such reports.

Jesse GilPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on October 24, 2018 indicate that Texas-based AllState Financial Services broker Jesse Gil has been named in a FINRA investigation into alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Gil (CRD# 5188650).

Jesse Gil has spent eleven years in the securities industry and has been registered with AllState Financial Services in Corpus Christi, Texas since 2016. Previous registrations include Merrill Lynch in Corpus Christi, Texas (2015-2016); AllState Financial Services in Corpus Christi, Texas (2011-2015); SWS Financial Services in Corpus Christi, Texas (2011); Edward Jones in Aransas Pass, Texas (2008-2011); and AllState Financial Services in Corpus Christi, Texas (2007-2008). He has passed five securities industry examinations: Series 66 (Uniform Combined State Law Examination), which he obtained on March 19, 2009; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on February 5, 2007; SIE (Securities Industry Essentials Examination), which he obtained on October 1, 2018; Series 7 (General Securities Representative Examination), which he obtained on December 8, 2008; and Series 6 (Investment Company Products/Variable Contracts Representative Examination), which he obtained on January 15, 2007. He is a registered broker in Texas.

According to his BrokerCheck report, he was recently named in a FINRA investigation into alleged rule violations.

William KaczmarekPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on July 19, 2018 indicate that former Wisconsin-based Questar Capital Corporation broker/adviser William Kaczmarek has been named in an investigation by state regulatory authorities into alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Kaczmarek (CRD# 1434947).

William Kaczmarek has spent 32 years in the securities industry and was most recently registered with Questar Capital Corporation in Delavan, Wisconsin (2013-2018). Previous registrations include Cetera Advisor Networks in Delavan, Wisconsin (2010-2013); Ameritas Investment Corporation in Elkhorn, Wisconsin (2008-2010); ING Financial Partners in Elkhorn, Wisconsin (2002-2008); New England Securities in New York, New York (2000-2002); Financial Network Investment Corporation in El Segundo, California (1999-2000); SII Investments in Appleton, Wisconsin (1998-1999); H. Beck in Bethesda, Maryland (1998); Harbour Investments in Madison, Wisconsin (1997); WMA Securities in Duluth, Georgia (1994-1997); Harbour Investments in Madison, Wisconsin (1994); Wellington Investment Services Corporation in Brookfield, Wisconsin (1990-1994); and Pruco Securities Corporation in Newark, New Jersey (1985-1990). He has passed five securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on January 14, 1999; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on January 21, 1986; Series 7 (General Securities Representative Examination), which he obtained on August 9, 1993; Series 6 (Investment Company Products/Variable Contracts Representative Examination), which he obtained on December 6, 1985; and Series 24 (General Securities Principal Examination), which he obtained on February 14, 1997. He is currently not registered with any state or firm.

According to his BrokerCheck report, he has been named in an investigation by state regulatory authorities and has received three denied customer complaints.

Michael BrumleyPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 8, 2018 indicate that Missouri-based Farmers Financial Solutions broker Michael Brumley has been named in an investigation by state regulatory authorities. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Brumley (CRD# 4695724).

Michael Brumley has spent three years in the securities industry and has been registered with Farmers Financial Solutions in St. Genevieve, Missouri since October 2017. He was previously registered with Money Concepts Capital Corporation in Farmington, Missouri (2014-2017). He has passed two securities industry examinations: Series 63 (Uniform Securities Agent State Law Examination), which he obtained on July 25, 2014, and Series 6 (Investment Company Products/Variable Contracts Representative Examination), which he obtained on June 9, 2014. He is registered as a broker in Michigan.

According to his BrokerCheck report, Michel Brumley has been named in an investigation by state regulatory authorities and a pending complaint by state regulatory authorities.

Rafael GolanPublic records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on June 8, 2018 indicate that Florida-based Crystal Bay Securities broker Rafael Golan, who has received several resolved or pending customer disputes, has been named in several regulatory investigations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Golan (CRD# 1074079).

Rafael Golan has spent 33 years in the securities industry and has been registered with Crystal Bay Securities in Delray Beach, Florida since 2007. Previous registrations include Independent Financial Group in Delray Beach, Florida (2004-2006); Sentra Securities in Phoenix, Arizona (2001-2004); Prime Capital Services in Poughkeepsie, New York (1999-2001); Avalon Research Group in Boca Raton, Florida (1999); Shochet Securities in Boca Raton, Florida (1998-1999); Baxter Banks & Smith in St. Petersburg, Florida (1997-1998); US Securities & Futures Corporation in New York, New York (1996); Securities America in La Vista, Nebraska (1992-1996); Painewebber in Weehawken, New Jersey (1990-1992); AG Edwards & Sons in St. Louis, Missouri (1989-1990); Shearson Lehman Hutton (1988-1989); Kidder Peabody & Company (1984-1988); CVR Financial Corporation of America (1983-1984); and the Keyes Investment Group (1983). He has passed six securities industry examinations: Series 66 (Uniform Combined State Law Examination), which he obtained on December 29, 2003; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on May 22, 1984; Series 3 (National Commodity Futures Examination), which he obtained on August 4, 1988; Series 7 (General Securities Representative Examination), which he obtained on January 21, 1984; Series 22 (Direct Participation Programs Representative Examination), which he obtained on January 10, 1983; and Series 24 (General Securities Principal Examination), which he obtained on January 22, 2002. He is a registered broker with eight US states: California, Connecticut, Florida, New Jersey, Ohio, Pennsylvania, South Carolina, and Texas.

According to his BrokerCheck report, Rafael Golan has received two customer complaints, five pending customer complaints, and three regulatory investigations.

David Apted

Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on May 31, 2018 indicate that former Missouri-based Forest Securities broker/adviser David Apted, who has been sanctioned by FINRA, was recently named in a FINRA investigation into alleged rule violations. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Apted (CRD# 1255773).

David Apted has spent 33 years in the securities industry and was most recently registered with Forest Securities in St. Louis, Missouri (2016-2018). Previous registrations include Smith Moore & Company in Clayton, Missouri (2013-2016); Securities Service Network in St. Louis, Missouri (2007-2013); Genworth Financial Securities Corporation in St. Louis, Missouri (2001-2007); Royal Alliance Associates in Jersey City, New Jersey (2000-2001); Walnut Street Securities in El Segundo, California (1990-2000); MML Investors Services in Springfield, Massachusetts (1985-1990); and Massachusetts Mutual Life Insurance Company (1985-1988). He has passed three securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on August 23, 2013; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on February 4, 1985; and Series 7 (General Securities Representative Examination), which he obtained on January 19, 1985. He is currently not registered with any state or firm.

According to his BrokerCheck report, he has received one FINRA sanction, was recently named in a FINRA investigation, and was discharged from his former employer in connection to alleged rule violations.

Harold CouglarPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on December 19, 2017 indicate that former California-based Montage Securities broker/adviser Harold Couglar has been named in a FINRA investigation into alleged rule violations. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Couglar (CRD# 1193367).

Harold Couglar has spent 31 years in the securities industry and was most recently registered with Montage Securities in San Diego, California (2012-2017). Previous registrations include CBIZ Financial Solutions in Cleveland, Ohio (2005-2012) and Linsco/Private Ledger Corporation in Boston, Massachusetts (1983-2003). He has passed three securities industry examinations: Series 63 (Uniform Securities Agent State Law Examination), which he obtained on September 6, 1985; Series 7 (General Securities Representative Examination), which he obtained on October 15, 1983; and Series 24 (General Securities Principal Examination), which he obtained on January 14, 1992. He is currently not registered with any state or firm.

According to his BrokerCheck report, he has been named in a pending FINRA investigation.

Thomas NilesPublicly available records provided by the Financial Industry Regulatory Authority (FINRA) and accessed on December 7, 2017 indicate that New York-based Janney Montgomery Scott broker/adviser Thomas Niles has been named in a pending FINRA investigation. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Mr. Niles (CRD# 2264883).

Thomas Niles has spent 25 years in the securities industry and has been registered with Janney Montgomery Scott in Saratoga Springs, New York since 2015. Previous registrations include Morgan Stanley in Saratoga Springs, New York (2009-2015); Morgan Stanley & Company in Saratoga Springs, New York (2009); Wachovia Securities in Latham, New York (2003-2009); Prudential Securities in New York, New York (2000-2003); Salomon Smith Barney in New York, New York (1995-2000); and Merrill Lynch in New York, New York (1992-1995). He has passed five securities industry examinations: Series 65 (Uniform Investment Adviser Law Examination), which he obtained on July 10, 1993; Series 63 (Uniform Securities Agent State Law Examination), which he obtained on October 8, 1992; Series 31 (Futures Managed Funds Examination), which he obtained on January 14, 2010; Series 7 (General Securities Representative Examination), which he obtained on September 9, 1992; and Series 8 (General Securities Sales Supervisor Examination [Options Module & General Module]), which he obtained on May 5, 1998. He is a registered broker and investment adviser with 18 US states and territories: California, Colorado, Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas and Vermont. He is registered with three self-regulatory organizations (SROs): FINRA, the Nasdaq Stock Market, and the New York Stock Exchange.

According to his BrokerCheck report, he has been named in a pending FINRA investigation into alleged rule violations.

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