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J.P. Morgan, Schwab Pursue Claims Against Departed Advisors

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Friday, November 8, 2019.

Another week, and two more temporary restraining orders have been sought against advisors departing J.P. Morgan Securities and Charles Schwab. On Tuesday, a Florida judge issued a TRO barring transitioning financial advisor Justin Barroso from contacting clients after joining a UBS Wealth Management office in Fort Lauderdale, Florida. J.P. Morgan alleged Barroso, who reportedly managed $184 million in client assets at J.P. Morgan, aggressively solicited “at least 8” clients after joining UBS in alleged violation of her J.P. Morgan employment agreements [...] Read More

LPL to Debut Employee Financial Advisor Channel

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Wednesday, October 2, 2019.

What was old is new once again. LPL Financial, the nation’s largest independent broker-dealer, recently announced plans to debut a new “employee-based” advisor channel. As part of the roll-out, the firm acquired Florida-based Allen & Co., which has 30 financial advisors and approximately $3 billion in assets under management. [...] Read More

What is FINRA? Part 2 – What Does FINRA Do?

By Jonah A. Toleno of Shustak Reynolds & Partners, P.C. posted on Friday, September 6, 2019.

In Part 1 of this blog series, we established that FINRA (the Financial Industry Regulatory Authority), formerly known as the National Association of Securities Dealers (NASD), is a self-regulated organization (“SRO”) that engages in multiple functions in the financial services and securities industry. Our firm represents entities and individuals in varying capacities before FINRA. [...] Read More

Woodbridge CEO Pleads Guilty to $1.3 Billion Fraud

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Wednesday, August 14, 2019.

Robert Shapiro, the ex-CEO of the Woodbridge Companies, has pled guilty to orchestrating a $1.3 billion fraud impacting more than 7,000 investors across the country, according to prosecutors in Miami. According to a statement prepared by his lawyer, “Shapiro has taken personal responsibility for the failure of Woodbridge. [...] Read More

What is FINRA? Part 1 – FINRA’s Mission

By Jonah A. Toleno of Shustak Reynolds & Partners, P.C. posted on Monday, July 29, 2019.

FINRA (the Financial Industry Regulatory Authority), formerly known as the National Association of Securities Dealers (NASD), is a self-regulated organization (“SRO”) that engages in multiple functions in the financial services and securities industry. Our firm represents entities and individuals in varying capacities before FINRA. [...] Read More

FIRMS CONTINUE AGGRESSIVE TACTICS AGAINST DEPARTING ADVISORS BUT FACE OBSTACLES IN CALIFORNIA COURTS

By Katherine S. Bowles, Esq. of Shustak Reynolds & Partners, P.C. posted on Monday, July 1, 2019.

Since Morgan Stanley and others started withdrawing from the Protocol for Broker Recruiting in the fall of 2017, there has been a significant uptick in firms bringing legal action against departing advisors to prevent them from soliciting clients after they leave. [...] Read More

SEC Adopts Best Interest Rule

By Joseph M. Mellano, Esq. of Shustak Reynolds & Partners, P.C. posted on Thursday, June 6, 2019.

On Wednesday, June 5, 2019, the Securities and Exchange Commission formally adopted Regulation Best Interest, establishing a new standard of conduct for broker-dealers in addressing conflicts of interest when making investment recommendations to retail customers. [...] Read More

SEC ISSUES RISK ALERT FOR BROKER-DEALERS AND INVESTMENT ADVISORS RELATED TO CLIENT PRIVACY ISSUE

By Katherine Bowles & Jason Jacobs of Shustak Reynolds & Partners, P.C. posted on Monday, May 6, 2019.

The SEC’s Office of Compliance Inspections and Examinations (“OCIE”) has published a risk alert warning of widespread deficiencies in broker-dealers’ and investment advisors’ implementation of Regulation S-P.[...] Read More

Welcome Kara Siegel, the Newest Addition to our Shustak Reynolds & Partners Team!

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Friday, April 5, 2019.

Kara Siegel has broad experience in complex commercial and employment litigation, including financial-services and class-action matters. She began her career at major New York law firms, where she litigated complex commercial matters on behalf of public corporations and privately held firms in the U.S. and abroad, as well as their individual directors, officers, and stakeholders.[...] Read More

Securities America Faces $18 Million Lawsuit Following Former Advisor’s Cop to Ponzi Scheme

By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Friday, March 22, 2019.

In late February 2019, former music industry executive Robert Jamieson and his family sued their former broker, Hector A. May, and the FINRA firm with which he was registered, Securities America Inc., seeking $18 million in damages arising out of May’s alleged fraud and misappropriation of their funds. The suit follows May’s December 2018 plea of guilty to operating a multi-million dollar Ponzi scheme for nearly two decades. [...] Read More