James Eccleston achieved the highest rating in both Legal Ability and Ethical Standards from Martindale Hubbell for 2020. This is a reflection of the confidential opinions of members of the Bar and Judiciary.
In connection with an alleged $6.3 million Ponzi scheme, Phillip Roy Wasserman and Kenneth Murry Rossman (collectively, “Defendants”) have been charged by federal prosecutors with mail fraud, wire fraud, and conspiracy to commit wire and mail fraud. Defendants are alleged to have targeted elderly individuals and convinced those individuals to liquidate traditional investments in order to invest in “FastLife,” an insurance venture by Wasserman. Wasserman and Rossman are alleged to have made fraudulent misrepresentations and to have concealed material information when soliciting investments in FastLife.
The Financial Industry Regulatory Authority (“FINRA”) filed a Complaint against Adam James Makkai alleging that he shared commissions with an unregistered former coworker. FINRA Enforcement alleged that Makkai, a former LPL Financial advisor, shared commissions with a former LPL advisor who had been terminated.
A federal court judge in Florida denied Regions Bank’s motion to reinstate a temporary restraining order (“TRO”) filed against the bank’s former financial advisors, Michael Montalvo and Mauricio R. Cardenas. Regions Bank sought a TRO in an effort to restrain Montalvo and Cardenas from soliciting former clients serviced at Regions Bank.
The U.S. Securities and Exchange Commission (“SEC”) filed a Complaint against Paul R. Montgomery, Jr., Michael D. Fisher and James H. Willingham, Jr. (collectively “Defendants”), alleging that Defendants committed fraud in connection with the sale of joint venture interests in two oil and gas projects. According to the SEC, Defendants told investors that new oil and gas wells would be drilled and existing wells would be reworked as part of Navarro Phase I project and Seguin Development Phase II project. The SEC alleged that Defendants promised investors 32% returns on their investment.
Steven Hour Heng was terminated from Wells Fargo Advisors following what Wells Fargo determined to be improper cash withdrawals from his personal bank account. According to the Form U5 filed by Wells Fargo, in December 2019, Heng made six cash withdrawals in an amount that was designed to avoid currency transaction reporting requirements. Under the Bank Secrecy Act, banks are required to report any transactions above $10,000. Heng is disputing Wells Fargo’s characterization of the situation.
Merrill Lynch agreed to a censure and a $150,000 fine to settle alleged violations with FINRA Enforcement. According to FINRA Enforcement, Merrill Lynch allowed an executive to function as a principal in its prime brokerage business, despite the fact that the executive was not registered with FINRA.
The market correction last week caused target-date funds to drop, resulting in up to 10% negative returns. However, market commentators argue that performance is far better than what happened to target-date funds in 2008. Funds last week saw just a 30% decrease in negative returns compared to 2008.
From the Desk of Jim Eccleston at Eccleston Law LLC:
Dear Friends,
As the unprecedented events of this week have unfolded, and as the environment has become more unpredictable due to COVID-19, our goal at Eccleston Law, LLC is to continue to be predictable, reliable, available, and responsive to your needs – legal or otherwise. Your health and well-being come first, and part of that well-being is the comfort of knowing your immediate concerns and legal needs are addressed.
Whether it is Coronavirus or any other exigent circumstance, rest assured we have plans, systems, and the technological infrastructure in place to ensure that you continue to receive uninterrupted and uncompromised services. At present, our building and office remain open, but this may of course be subject to change based on the changing building or city policies. Should Eccleston Law team members ultimately be required to work remotely in order for us to best protect their well-being, all would be connected real-time with full functionality. At moments like these, when your family, business, and personal planning are at risk, we are here to help you sort through the implications and provide solutions where necessary. Please feel free to contact us with any questions regarding our policies or to determine how your affairs may be currently impacted.
Like you, we will be doing our best to stay as healthy and positive as we can.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
Former Morgan Stanley Manager, Ben Fujihara, agreed to a $5,000 fine and a 30-day suspension from association with any FINRA member firm, following allegations by FINRA Enforcement that Fujihara failed to notify his FINRA-member firm about the full nature of his participation in an outside business activity, in violation of FINRA Rules 3270 and 2010.
I have the best legal firm in the country to defend me. Awesome job!
Amidst swirling speculation regarding its connections with a client linked to the Prophecy Asset Management collapse, B. Riley Financial Inc. has conducted an internal
review, concluding no affiliations with the defunct hedge fund.
A recent analysis by Golsan Scruggs reveals a staggering 231 percent increase in errors-and-omissions (E&O) liability claims among registered investment advisor (RIA)
insurers.
According to a recent analysis, Reg BI-related actions quickly have ascended to the top five issues for FINRA, with fines totaling $6 million in 2023.
