FINRA Enforcement Action: Glenn Allen Donnell Formerly of Several Florida Brokerage Firms

The Financial Industry Regulatory Authority (FINRA) took enforcement action against broker Glenn Allen Donnell after he was accused of improperly exercising trading discretion in the accounts of 11 different clients. Notably, the alleged FINRA violation took place over the court of three years and while Mr. Donnell was a registered representative of three different brokerage firms (Investacorp, Securities America, Inc., and Sigma Financial Corporation).

Broker Sanctions: Fine and Suspension

Without admitting to or denying any of the specific allegations raised against him, Mr. Donnell consented to FINRA’s proposed penalties. Specifically, the self-regulatory body issued a fine of $12,500 and suspended the broker from the securities industry for four months. That suspension will last until December 16th, 2024.

 An Overview of the Relevant FINRA Regulations (FINRA Rule 3260) 

Discretionary trading refers to transactions executed by a broker on behalf of a client without the client’s prior specific approval of each individual transaction. Brokerage accounts are split into two broad categories: Discretionary accounts and non-discretionary accounts. If you have a non-discretionary account, your broker has to get express permission for every individual transaction/trade. FINRA Rule 3260 sets the regulations for discretionary trading. Here is an overview of the key things investors should understand about the specific of the regulation:

• FINRA Rule 3260(a): FINRA Rule 3260(a) holds that before exercising discretion in a customer’s account, a broker must first receive express written authorization from the client. Beyond that, the brokerage firm must have approved the account for discretionary trading. The rule is designed to ensure a formal understanding and agreement between the client and the firm regarding the handling of the account. A formal agreement is required.
• FINRA Rule 3260(b): FINRA Rule 3260(b) holds that discretion can only be exercised in a manner consistent with the client’s objectives and financial situation. Put another way any discretionary decisions made by the broker should align with the investment goals, risk tolerance, and financial conditions outlined by the client. The broker must also ensure that all discretionary trades are conducted in a reasonable manner that is consistent with what the investor would want given the circumstances.

 Consult With Our Miami Securities Losses Attorney Today

At ​Carlson & Associates, P.A., our Miami securities losses lawyer is standing by, ready to fight for your rights. If you suffered significant financial losses because your broker improperly authorized trading discretion in your brokerage account, we are here to help. Contact our legal team today for your confidential case review.

Source:

brokercheck.finra.org/individual/summary/2239397

Broker Sanctions: John Rollin Revelle Formerly of Merrill Lynch 

John Rollin Revelle was separated from his member firm—Merrill Lynch at a branch office in Daytona Beach—after allegations of misconduct arose in 2022. In August of 2024, FINRA announced sanctions against this broker. Specifically, FINRA determined that Mr. Revelle acted without member firm (Merrill Lynch) approval when he drafted, signed, and sent asset verification letters for clients. Notably, these letters included false information—including the overstating of a person’s assets and the false claim that the person was a client of Merrill Lynch with a valid account. Beyond that, Mr. Revelle reportedly failed to disclose that he was being paid for an outside business activity (OBA) related to a cryptocurrency start-up venture.

FINRA Fined and Suspended the Broker 

Without admitting or denying any of the specific allegations raised in this case, former Merill Lynch broker John Revelle consented to the proposed penalties. More specifically, Mr. Revelle agreed to a deferred fine of $7,500 and a ten-month suspension from the securities industry. That suspension will last until June of 2025.

 A Violation of FINRA Rules 

As part of the enforcement action taken in this case, FINRA cited former Merill Lynch representative John Revelle for violating specific securities industry rules:

• FINRA Rule 2010: FINRA Rule 2010 is effectively the “catch-all” regulation to ensure that brokers act in a professionally responsible manner. The rule demands that all actions by brokerage firm members maintain high standards of commercial honor and just and equitable principles of trade. In other words, it requires ethical conduct from brokers. Mr. Revelle was cited for violating Rule 2010 because he misrepresented and overstated assets.
• FINRA Rule 3270: FINRA Rule 3270 regulates the outside business activities or “OBAs” of brokers and other associated persons. The regulation requires brokers to notify and obtain approval from their firms before engaging in any outside business activities. It ensures that the firms are aware of potential conflicts of interest and can manage risks appropriately. Mr. Revelle broke this rule by working for a crypto exchange—earning income for doing so—without his firm’s knowledge. It created a conflict of interest that was not disclosed.

When brokers violate FINRA rules, it puts investors at risk. It can lead to situations in which investors sustain serious financial losses. Brokers and brokerage firms must be held responsible.

 Contact Our Miami, FL FINRA Arbitration Lawyer Today

At ​Carlson & Associates, P.A., our Florida FINRA arbitration attorney is proud to provide experienced legal advocacy to investors. If you suffered major losses because your broker or your broker dealer violated FINRA rules, we are here to help. Give us a phone call today to request a fully confidential, no commitment initial consultation.

Source:

brokercheck.finra.org/individual/summary/5619752

Suspended Broker: Ariel A. Rivero Formerly of Jefferies LLC and Insigneo Securities 

The allegations raised in this case stem to a time when Ariel A. Rivero was a representative of Jefferies LLC in Miami, Floria. According to findings made by FINRA, Mr. Rivero used improper channels of communication to securities-related business with clients. As a consequence, his brokerage firm maintained incomplete records. Notably, FINRA emphasized that this broker falsely claimed he did not use such unapproved communication methods.

Further, FINRA determined that Mr. Rivero borrowed $500,000 from a client without proper notification or approval from his firm. He tried to settle a conflict over that loan without properly notifying his firm. Without admitting to or denying any of the specific allegations raised, former Jefferies LLC broker Ariel A. Rivero consented to the agency’s proposed penalties, including a $10,000 fine and a six month suspension.

An Overview of FINRA Regulations 

As part of the enforcement action taken in this case, FINRA cited three different securities industry regulations. Here is an overview of the relevant regulations involving allegations against the Miami financial advisor: 

• FINRA Rule 2010: FINRA Rule 2010 requires members to observe high standards of commercial honor and just and equitable principles of trade. The rule mandates that all actions by members—whether directly related to securities activities or otherwise—must reflect ethical conduct and integrity. It serves as a broad, overarching standard.
• FINRA Rule 3240: FINRA Rule 3240 addresses the conditions under which registered persons can borrow money from or lend money to their clients. It establishes specific circumstances and approvals required to engage in such financial arrangements to prevent conflicts of interest and protect clients.
• FINRA Rule 4511: FINRA Rule 4511 requires members to maintain accurate books and records as prescribed by FINRA rules, the Exchange Act, and all other applicable Exchange Act rules. The rule emphasizes the importance of keeping detailed and precise records. A broker that violates record-keeping measures causes their firm to breach Rule 4511.

 Contact Our Miami, FL FINRA Arbitration Lawyer Today

At ​Carlson & Associates, P.A., our Miami securities fraud and investment fraud attorney puts the rights of clients first. If you suffered investment losses because a broker or brokerage firm engaged in any type of FINRA rules violations, your case should be reviewed by an experienced lawyer. Contact us today for a completely confidential, no obligation initial appointment. With an office in Miami, our firm is well-positioned to represent investors in Florida and beyond.

Source:

brokercheck.finra.org/individual/summary/4236679

In December of 2016, Nancy Kimball Mellon was discharged by Wells Fargo after the brokerage firm allegedly discovered evidence indicating that she submitted false expenses for reimbursement. Soon after, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement launched its own investigation into this broker’s conduct. On November 9th, 2018, FINRA filed a complaint against former Wells Fargo broker Nancy Kimball Mellon.

Allegations of Misconduct: False Reimbursement Claims 

In its complaint, FINRA alleges that Nancy Kimball Mellon submitted at least four inaccurate expense reports to her brokerage firm (Wells Fargo). In total, these false reports allowed her to obtain $4,300 in financial reimbursements from the broker-dealer. It was this conduct that eventually led Wells Fargo to terminate her as a securities representative.

FINRA also alleges that when the agency undertook its own investigation into her alleged misconduct, Nancy Kimball Mellon provided false information to investigators. Pursuant to rule 8210, FINRA requested personal bank records and other related financial documents from this broker. In a response to FINRA, Ms. Mellon claimed that she requested the records from her bank — but that the bank denied her request, stating that its internal policy prohibited it from producing such records. FINRA alleges that this never actually occurred, and that Ms. Mellon eventually acknowledged the lie and admitted that she could obtain such records. After that, they were produced for investigators.

FINRA is requesting that the Hearing Panel makes conclusions of facts and law, and that it imposes the appropriate sanctions. This could potentially include suspension or expulsion from the securities industry and financial penalties. 

Investor Complaint: Unsuitable Investment Recommendations

Investors need to be able to put their full faith in the hands of their financial advisor. In May of 2017, a customer filed a complaint against former Wells Fargo broker Nancy Kimball Mellon alleging that investment losses were sustained as a result of unsuitable investment advice that she offered. According to the allegations raised in the complaint, Ms. Mellon negligently over-concentrated (failed to diversify) a client’s investment holdings. More specifically, this investor alleged that their portfolio was over-concentrated in the energy sector and, as a result, considerable losses were sustained when crude oil prices fell in 2014 and 2015. Eventually, this investor’s complaint was settled for $40,000 in financial compensation.

Get Help From an Experienced Florida Investment Fraud Lawyer

At Carlson & Associates, P.A., we are a trial law firm specializing in securities arbitration and securities litigation. If you sustained significant investment losses due to broker misconduct, our legal team is here to help. To arrange a fully private review of your legal claim, please call our Miami law office today at (305) 372-9700.

Resources:

brokercheck.finra.org/individual/summary/1253484

finra.org/sites/default/files/fda_documents/2017052760001%20Nancy%20Kimball%20Mellon%20CRD%201253484%20COMPLAINT%20va.pdf

On August 1st, 2018, Wells Fargo filed a Uniform Termination Notice, indicating that the brokerage firm was discharging Mr. Rodriguez Jr. following allegations of misconduct. Soon after, the Financial Industry Regulatory Authority (FINRA) initiated its own inquiry. In violation of securities industry rules, Mr. Rodriguez Jr. declined to cooperate with the investigation. As a result, he has been barred by FINRA.

In this post, our Miami investment fraud lawyers review the allegations against former Wells Fargo broker Wilfred Rodriguez Jr. For full details regarding this disciplinary action, please refer to FINRA Case No. 2018059379401.

Understanding the Allegations Against Former Wells Fargo Broker Wilfred Rodriguez Jr. 

Background 

According to the Letter of Acceptance, Waiver, and Consent signed by Mr. Rodriguez Jr., FINRA staff was in the early stages of conducting an investigation into allegations that he converted funds from the account of a Wells Fargo customer and that he attempted to cover up the misconduct by falsifying official documents. In the course of its investigation into these allegations, FINRA requested financial documents, financial records, and other information from this broker. While Mr. Rodriguez Jr. acknowledged that he received the request for information via email, he stated that he will not be complying or providing the information. 

Violative Conduct 

Under FINRA Rule 8210, registered representatives and other associated persons have an obligation to provide relevant documents, records, and testimony when asked by FINRA. All brokers must cooperate with investigations. This is one of the most important rules in the securities industry. It is crucial that regulators are able to conduct effective investigations. For investors, these investigative efforts help to ensure that misconduct can be uncovered as early as possible by regulators. Not only does this help to stop fraud and negligence, but it also helps to give wronged investors the information that they need to pursue compensation for illegitimate financial losses.

Sanctions

Without admitting to or denying any wrongdoing in relation to this case, former Wells Fargo broker Wilfred Rodriguez Jr. consented to the penalties proposed by the agency. This financial advisor is now barred from associating with any FINRA member firm in any capacity.

Get Help From a Miami FINRA Arbitration Attorney Today

At Carlson & Associates, P.A., our skilled Florida FINRA arbitration lawyers are committed advocates for investors. We handle the full range of investment fraud and broker negligence claims. If you sustained major investment losses due to a financial advisor’s misconduct, our legal team is here to help.

To schedule a fully private initial consultation, please do not hesitate to contact our law firm today. From our office in Miami, we serve investors throughout Southeastern Florida, including in West Palm Beach, Fort Lauderdale, Miami Beach, Homestead, and Jupiter.

Resources:

brokercheck.finra.org/individual/summary/2504369

finra.org/sites/default/files/fda_documents/2018059379401%20Wilfred%20Rodriguez%20Jr.%20CRD%202504369%20AWC%20va.pdf

Allegations of Broker Misconduct: Alex Gerardo Herrera 

Private Placements and Outside Business Activities 

In May of 2018, broker Alex Gerardo Herrera voluntarily resigned from his position at UBS Financial Services. Under industry regulations, UBS Financial Services had a legal duty to report this resignation to securities regulators. The brokerage firm informed FINRA that Mr. Herrera resigned while he was under an active internal review due to the fact that he engaged in an undisclosed outside financial and real estate relationship with UBS Financial Services clients. This was in violation of industry rules and the written policies of UBS, since Mr. Herrera did not receive approval from his member firm before participating in these transactions.

Under FINRA Rule 3280, registered investment advisors have a professional duty to report private securities transactions to their member firm. If the investment advisor is receiving compensation for their participation in the transaction, they must get prior approval from their member firm. When brokerage firms give such approval, they then become responsible for overseeing the transaction. In this case, Alex Herrera failed to disclose the private placements and he never received the required authorization from UBS Financial Services.

Notably, a customer filed a complaint against former UBS Financial Services broker Alex Herrera in May of 2018. According to the information available on BrokerCheck, the investor alleges that Mr. Herrera stole money to purchase a vacation home. At the current time, this customer dispute is still pending. There has been no finding of wrongdoing against Mr. Herrera or UBS Financial Services. 

Violation of FINRA Rule 8210 

FINRA Rule 8210 compels brokers to cooperate with an investigation into potential misconduct. Specifically, FINRA members and all associated persons must provide written or oral testimony when it is requested by investigators. In this case, FINRA was actively investigating allegations of misconduct related to this broker’s private securities transactions. Mr. Herrera informed FINRA that he received their request for on-the-record testimony. However, he stated through his legal representative that he had no intention of offering testimony. As a result, Mr. Herrera has been barred from associating with any FINRA member in any capacity. 

Get Help From Our Miami Private Placement Lawyers Today

At Carlson & Associates, P.A., our experienced South Florida securities fraud lawyers have deep experience handling cases involving private placements and brokers ‘selling away’ from their member firm. If you or your family member sustained serious investment losses in a private securities transactions, please do not hesitate to reach out to our Miami law office at 1 (305) 372-9700 for a fully confidential investment fraud consultation.

Resources:

brokercheck.finra.org/individual/summary/3204779

finra.org/sites/default/files/fda_documents/2018058446601%20Alex%20G.%20Herrera%20CRD%203204779%20AWC%20jm.pdf

The Allegations: Failure to Supervise  

In this case, the investor raised several different causes of action against the respondents, Vanguard Capital and broker Aaron Ray. The specific allegations include unsuitable investment recommendations, breach of fiduciary duty, broker negligence, and failure to implement proper supervisory procedures. The underlying issue in this case related to the liquidation of the investor’s brokerage account. Following this liquidation, the proceeds from the investor’s account were used to purchase annuities that were being offered by Vanguard Capital.

Notably, Vanguard raised a statute of limitations defense in this case. The brokerage firm argued that the claim must be dismissed on the grounds that it was brought after the six-year eligibility period had already lapsed. In general, investors must file their FINRA arbitration claim within six years. However, there can sometimes be questions over the specific date at which the fraud or negligence occurred. For example, in this case, the investor countered that the statute of limitations had not expired because the discovery of the fraud did not occur until the fall of 2016. She argued that the reason for this was because Vanguard Capital was actively concealing the misconduct. Therefore, she was still eligible to bring the claim. The FINRA arbitration panel agreed with the investor on this issue, and it allowed her claim to move forward.

Relevant FINRA Rules and Regulations 

Registered brokerage firms are legally responsible for the conduct of their representatives. The Financial Industry Regulatory Authority (FINRA) has several key supervisory rules. Brokerage firms must have an effective supervisory system in place and these firms must reasonably ensure that all associated persons are in full compliance with state and federal securities laws. If an investor sustained losses due to an individual broker’s fraudulent or negligent conduct, their member firm may potentially be held financially responsible for the investor’s damages.  

The Decision and Arbitration Award 

Upon hearing all of the evidence, the FINRA arbitration panel awarded the investor $90,000 in compensatory damages plus costs and fees. The panel specifically noted that Vanguard Capital and broker Aaron Ray were being held financially liable for ‘lack of supervision’ and ‘negligence’. Under securities industry rules, registered brokers and brokerage firms have 30 days to comply with the terms of FINRA arbitration award.

Contact Our Miami FINRA Arbitration Lawyers Today

At Carlson & Associates, P.A., our investment fraud lawyers have deep experience handling FINRA arbitration and securities litigation. If you lost sustained large investment losses due to fraud or negligence, we can help. For a confidential review of your legal claim, please call our Miami law office today at 1-(305) 372-9700.

Resources:

brokercheck.finra.org/individual/summary/4613258

brokercheck.finra.org/firm/summary/22081

finra.org/sites/default/files/aao_documents/16-03105.pdf

Failure to Cooperate With FINRA

Earlier this year, FINRA suspended Stephen Allen Murray for his failure to comply with a request for information. Under FINRA Rule 8210, all registered representatives have a professional obligation to provide FINRA investigators with information when it is requested. More specifically, FINRA regulations require that registered representatives must produce documents and records when requested by the agency. The regulations also require that registered representatives must submit to on-the-record testimony when requested by the agency.

These rules are critically important to ensure that FINRA investigations can proceed in the most effective manner. If brokers and brokerage firms fail to cooperate, the rights and interests of investors could be put at risk. The failure to comply with regulatory investigations can result in suspension. Mr. Murray was suspended on May 4th, 2018. At that date, FINRA noted that Mr. Murray has three months to comply with the agency’s initial request. If this broker does not take action by August 7th, 2018, he will be automatically barred from the industry.

Customer Dispute: Settlement Reached Over Excessive Trading Allegations 

Former Raymond James broker Stephen Allen Murray has ten disclosures listed on his FINRA BrokerCheck record. Most notably, in the spring of 2017, while he was employed at a Raymond James Branch office in Palm Beach Gardens, FL, an investor filed a complaint alleging several causes of action against this broker. Specifically, this investor alleged that Mr. Murray:

• Made excessive trades on his brokerage account (churning);
• Made unauthorized transactions on his account;
• Acted in a negligent manner;
• Breached the terms of an investment contract; and
• Breached his fiduciary duty.

This investor also alleged that Mr. Murray violated multiple FINRA rules, including the suitability rules, which requires that brokers ensure that transactions are reasonably suitable for their specific client, and FINRA Rule 2330, which require registered representatives to abide by certain standards when selling or recommending variable annuities.

The investor in this dispute requested $100,000 in financial compensation. According to FINRA records, this complaint was eventually settled for $60,000.

Get Help From Our Miami Securities Fraud Lawyers

At Carlson & Associates, P.A., we are proud to be advocates for investors in Miami and throughout South Florida. If you or your family member lost money due to broker fraud or broker negligence, our law firm can help. To set up a fully private investor losses consultation, please do not hesitate to reach out to our Miami law office today.

Resources:

brokercheck.finra.org/individual/summary/343722

brokercheck.finra.org/firm/summary/705

Investigators report that Lisa Lowi declined to provide the requested testimony. Under FINRA Rule 8210, registered brokers have a professional duty to fully cooperate with investigations, including submitting to on-the-record testimony when it is requested as part of a broader FINRA investigation into potential misconduct.

As a result of her failure to do so, Ms. Lowi has been permanently barred from associating with FINRA members in any capacity. Without admitting to or denying the alleged misconduct, Ms. Lowi consented to the sanctions. To get full information regarding this enforcement action, please refer to the FINRA Case Number: 2016048424901.

Allegations of Unsuitable Investments  

In recent years, Lisa J. Lowi was employed as a securities broker at RBC Capital Markets, LLC in West Palm Beach, Florida (2009-2015) and as a security broker at Janney Montgomery Scott LLC in Boca Raton, Florida. Over the last few years, many different investors have brought complaints against this broker. Indeed, on her FINRA BrokerCheck report, there are 35 different customer disputes that were filed in the three-year period from 2015 and 2017. As of January of 2018:

• 2 complaints have been withdrawn;
• 2 complaints were denied;
• 25 complaints were settled; and
• 6 complaints are still pending.

The vast majority of these customer complaints involve allegations of unsuitable investment recommendations. Most involve unsuitable corporate bond investment recommendations, with many of those corporate bonds being related to the energy sector. For the full available details regarding any specific complaint, investors should refer to BrokerCheck.

Victims of Unsuitable Investment Recommendations Should Take Legal Action

Brokers and brokerage firms have a legal responsibility to ensure that they are only recommending suitable investments for their customers. This is an affirmative duty, meaning that your broker must take proactive steps to ensure compliance. In practice, your financial advisor should carefully analyze your specific investment goals and your financial situation in order to determine which financial products and investment strategies are most appropriate for your individual needs. If you sustained serious losses because your advisor pushed you into unsuitably risky investments, you may be entitled to financial compensation. Your case should be review by a qualified legal professional.

Contact Our Miami Unsuitable Investments Lawyers Today

At Carlson & Associates, P.A., our law firm is committed to fighting for the rights and interests of investors. We have helped many unsuitable investment victims recover full and fair compensation for their losses. To get a confidential review of your broker negligence, please contact our legal team today. From our office in Miami, we serve investors throughout South Florida, including in West Palm Beach, Jupiter, Boca Raton, Fort Lauderdale, Hialeah, and North Miami Beach.

Resources:

brokercheck.finra.org/individual/summary/1347790

finra.complinet.com/en/display/display.html?rbid=2403&element_id=3883

finra.org/sites/default/files/fda_documents/2016048424901%20Lisa%20J.%20Lowi%20CRD%201347790%20AWC%20jm.pdf%20REDACTED.pdf

The Misconduct By Legend Equities Corporation

The Background 

The relevant period in this case runs from January of 2009 through January of 2017. During that time, Legend Equities managed many retirement accounts as well as many investment accounts for registered charitable organizations. In certain circumstances, these types of accounts are entitled to receive waivers on front-end sales charges on mutual fund purchases.

Failure to Identify Discounts   

As brokerage firms have a legal duty to look out for the best financial interests of their customers, they must take proactive steps to properly identify any available sales charge discounts. Unfortunately, Legend Securities Corporation failed to live up to this legal obligation. Indeed, FINRA investigators determined that the firm failed to create or maintain an adequate supervisory system that would be necessary to effectively identify and apply all available front-end sales charge waivers. This is a direct violation of FINRA Rule 3010, which requires firms to put proper supervisory systems in place.

The Effect of the Negligence 

Overcharging customers for investment positions, even if unintentionally, is a form of brokerage firm negligence. In the long run, overcharging customers on fees can have a tremendous impact on the value of their account. Small losses now can add up to very big losses over time. This case provides an illustrative example of just how damaging the failure to provide relatively minor sales discounts can be.

Indeed, the misconduct of Legend Securities Corporation meant that most affected investors were improperly charged a front-end sales fee that was equal to 0.25 percent of the total value of their transaction. In reality, no charge should have been applied. Over multiple transactions, that difference can quickly add up. In all, FINRA estimates that 4,000 customer accounts were affected for a total of $2.0 million in improper sales charges, with another $300,000 in lost interest that would have been earned had no misconduct taken place. The improper charges were by no means distributed evenly; indeed, multiple investment accounts were reportedly overcharged by more than $10,000.

Speak to a Miami Securities Fraud Lawyer Today 

Were you a victim of securities fraud or broker-dealer negligence? If so, our highly qualified legal team can help. At Carlson & Associates, P.A., we are ready to fight hard to help you recover the full and fair compensation you rightfully deserve. From our office in Miami, we serve fraud victims throughout the region, including in Cape Coral, Hollywood, Homestead, Fort Lauderdale, West Palm Beach and Coral Springs.

Resources:

brokercheck.finra.org/firm/summary/30999

disciplinaryactions.finra.org/Search/ViewDocument/68584