Investor Rights Blog

Under the law, there are several key legal and equitable defenses available​ to a financial advisor who finds himself defending against a promissory note or employee forgivable loan FINRA Arbitration case filed by a former employing broker-dealer seeking the unpaid balance on a note or forgivable loan. While there are variances in state laws, and the facts in a particular case may or may not support the defense, the following are several of the key legal and equitable affirmative defenses I...Read More

The Law Firm of David Chase is reviewing allegations involving former Atlanta, Georgia-based Merrill Lynch broker Blake P. King concerning the exercise of discretion in a client’s brokerage accounts and unauthorized trading. In January 2017, Blake voluntary resigned from Merrill Lynch for purportedly violating firm policies and improperly exercising discretion in a client’s nondiscretionary accounts. Later in June 2017, FINRA permanently barred King for failure to respond to a FINRA request for information. Unauthorized trading...Read More

The Law Firm of David Chase is reviewing allegations against former Hilo, Hawaii-based First Allied Securities broker John K Kai (CRD#2163244) involving the improper exercise of discretion in client brokerage accounts, unsuitable investment recommendations and engaging in unauthorized outside business activity. According to FINRA’s BrokerCheck report on Kai, a customer filed a complaint against him while he was employed at Commonwealth Financial Network alleging Kai provided investment advice that was unsuitably risky for the client....Read More

The Law Firm of David Chase is investigating allegations involving Tampa, Florida-based Merrill Lynch (CRD#7691) broker Joel T Summerlin (CRD#2289767) with respect to possible excessive trading (churning) and unsuitable investment recommendations. According to FINRA’s BrokerCheck report on Summerlin, a customer filed a complaint alleging he churned or excessively traded a customer account and rendered unsuitable investment advice from 2010 to 2017. Merrill Lynch has employed Summerlin from December 1992 in Tampa. Unauthorized trading takes place...Read More

The Law Firm of David Chase is investigating former Boston, Massachusetts based Morgan Stanley (CRD#149777) broker James S Polese (CRD#2636427) concerning allegations of misrepresentation and misappropriation of client funds. According to Polese’s FINRA BrokerCheck report, a customer filed a complaint against Polese in May of 2017 alleging he misrepresented managed account fees from 2015 to 2017. The complaint was later settled for $33,260. Polese has one other disclosure on his BrokerCheck report — in June...Read More

The Law Firm of David Chase is investing former Ohio based Merrill Lynch (CRD#7691) broker David R. Kondracke (CRD#849161) following a FINRA bar after he failed to respond to FINRA’s request for information, which FINRA deems to be a failure to cooperate. According to FINRA’s BrokerCheck, FINRA permanently barred Kondracke in June of 2017 while it was looking at the possible improper exercise of discretionary authority in customer accounts, the making of unauthorized trades and...Read More

The Law Firm Of David Chase is investigating Merrill Lynch (CRD#7691) broker Charles D Watson (CRD#4063528) after a customer filed a $1.2 million FINRA arbitration against him alleging unsuitable investment recommendations. According to FINRA’s BrokerCheck report on Watson, a customer filed a FINRA arbitration complaint in June of 2017 against Watson alleging unsuitable investment recommendations and omissions of material facts with alleged damages of $1.2 million. Merrill Lynch has employed Watson from September of 2009....Read More