September 2011 Archives

September 22, 2011

California Securities Fraud Lawyer News Flash: AXA Investment Executive Settles Securities Fraud Charges

Thumbnail image for Thumbnail image for sec crest.bin.jpgBarr M. Rosenberg, co-founder and chairman of Orinda, California, investment firm AXA Rosenberg agreed to pay $2.5 million to settle securities fraud charges that involved hiding a computer error that caused $217 million in losses to his clients. As part of the settlement, Rosenberg will also be banned from the securities industry His company, AXA Rosenberg, which is owned by french company AXA SA, has also agreed to pay $242 million to settle civil charges.

September 1, 2011

California Stockbroker Discipline Report for May - August 2011

Thumbnail image for Thumbnail image for Thumbnail image for Thumbnail image for warning_flag.jpgThe following information regarding broker misconduct and disciplinary actions taken against California stockbrokers was released by the Financial Industry Regulatory Authority (FINRA) in May, June, July and August 2011:

Midas Securities, LLC, in Anaheim, CA, was fined $80,000 in connection with a finding by FINRA that they failed to reasonably supervise registered representatives in the sale of unregistered securities.

Brecek & Young Advisors, Inc., in Folsom, CA, was censured and fined $125,000 in connection with a failure maintain adequate supervisory procedures and a failure to supervise its representatives in complying with applicable securities laws with respect to variable annuities.

Ronald Lee Gershon, with Oppenheimer & Co. Inc in Los Angeles, CA, was suspended from association with any FINRA member for 10 days and fined $5,684.75 in connection with the recommendation and sale of unsuitable securities to a customer of Oppenheimer, including auction rate securities and preferred securities that were below investment grade.

Ernesto Zuniga Gomez, formerly with Merrill Lynch, Pierce, Fenner & Smith in San Diego, CA, was barred from association with any FINRA member in connection with the use of verbal authorization forms that falsely stated customer approval for the transfer of funds from their accounts to other customers' accounts.

Jerrold Robin Sexton, formerly with Capital Growth Resources in El Cajon, CA, was barred from association with any FINRA member in connection with findings that Sexton received checks from a customer to be invested in a company he represented as safe. The customer did not know that the company was Sexton's company and that Sexton would use the funds for personal and business expenses.

Mark Andrew Sibert, formerly with Uvest Financial Services Group, Inc. in San Diego, CA, was barred from association with any FINRA member in connection with findings that he engaged in private securities transactions without approval from Uvest and solicited his firm's customers to invest in his company, which was supposed to raise money to invest in real estate and gold-mining.

Ace Diversified Capital, Inc. and chief compliance officer Lynnwood Jen in San Gabriel, CA, were jointly fined $25,000 in connection with a failure maintain adequate supervisory procedures for complying with applicable securities laws with respect to private placements. The findings state that the firm sold interest in Medical Capital Holdings, Inc. without a permit to engage in the sale of private placements.

Carla Wendy Cooper, formerly with Crowell, Weedon & Co. in Los Angeles, CA, was barred from association with any FINRA member in connection with forging a LOA for a customer to authorize the transfer of funds into the account of Cooper's relatives' account.

Priscilla Sabado, formerly with AXA Advisors in Irvine, CA, was barred from association with any FINRA member in connection with findings that she sold investments in Texas oil and gas projects without consent of her member firm.