In a separate action, the U.S. Attorney’s Office for the Eastern District of New York filed criminal charges against Mr. Perera. He was arrested on Monday, March 27, 2023, and arraigned on a 16-count indictment charging him with securities fraud, investment advisor fraud, wire fraud, and money laundering, in connection with a scheme to induce an investor to purchase stock in companies that traded on the NASDAQ and New York Stock Exchange (NYSE).

Customers of Mr. Perera or Aegis Capital Corp. who have suffered financial losses as a result of Mr. Perera’s negligence or misconduct can contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Aegis Capital Corp.

Securities and Exchange Commission v. Surage Kamal Roshan Perera and Janues Capital Incorporated, 2:23-cv-02316

On March 27, 2023, the United States Securities and Exchange Commission (“SEC”) filed a lawsuit in federal court against Mr. Perera and his firm, Janues Capital Incorporated (“Janues”), alleging that from February 2022 until March 2023, Mr. Perera defrauded at least one investor (“Investor A”) out of millions of dollars by lying about investment opportunities and strategies; misappropriating the investor’s money by, in part, not purchasing the securities she subscribed to through Janues and using a substantial portion of her money to engage in high volume, highly leveraged trading in other securities; lying to her about non-existent investment profits; and concealing large trading losses.

According to the complaint, Mr. Perera falsely told Investor A that his firm had access to specific restricted securities at discounted prices through connections with large institutional investors. Investor A first met Mr. Perera through a mutual friend when Mr. Perera was a registered broker of Aegis Capital Corp.

Mr. Perera also allegedly claimed to exercise a trading strategy—which he called “options straddles”—that would not only prevent any trading losses but also, for some of the supposed investments, guarantee returns on the investment of at least 9% and up to as much as 50%. Perera’s false promises convinced the investor to give him approximately $4.3 million.

According to the lawsuit, Mr. Perera did not use Investor A’s funds to purchase the securities she had subscribed to and did not engage in the promised “options straddles” to prevent trading losses and generate the profits he had guaranteed. Instead, he transferred at least $3.5 million of Investor A’s funds to a brokerage account in the name of his wife, Nishani Alahakoon, and used those funds to engage in highly speculative, leveraged trading, which resulted in over $3 million in trading losses.

Mr. Perera allegedly concealed his misappropriation of Investor A’s funds and his trading losses by providing Investor A with phony trade confirmations and account statements that falsely showed the expected returns and by using funds received from other sources to partially repay the investor victim.

The SEC’s complaint alleges that Mr. Perera and Janues violated antifraud provisions of the federal securities laws. Mr. Perera also was charged with aiding and abetting Janues’ alleged violations. The SEC’s complaint names Nishani Alahakoon, whose brokerage account Perera and Janues traded, as a relief defendant.

Financial Advisor Surage Kamal Roshan Perera (CRD No. 4716321)

Roshan Perera had 18 years of experience in the securities industry and was associated with 11 different brokerage firms, including five different firms that have been expelled from the securities industry by the Financial Industry Regulatory Authority (“FINRA”). Mr. Perera was registered with Aegis Capital Corp from April 18, 2018, through September 12, 2018.

According to his public disclosure report with FINRA, Mr. Perera has been the subject of at least one customer dispute, which included allegations of unauthorized trading. The 2009 dispute was settled.

Investors who have disputes with their financial advisors and brokerage firms can file securities arbitration claims to resolve the disputes and seek recovery of investment losses.

FINRA’s BrokerCheck tool can be used to obtain Mr. Perera’s complete and updated disclosure report.

Aegis Capital Corp. – A Duty to Supervise

Selling away is when a financial advisor solicits a customer to participate in a private securities transaction that is “away” from the firm. In other words, when a broker recommends a transaction to buy or sell a security that is not offered or approved by the brokerage firm where the financial advisor is employed or registered.

A brokerage firm can be held responsible for its financial advisors’ conduct in “selling away” cases under certain circumstances.

Pursuant to FINRA Rule 3280, when a broker-dealer approves a private transaction away from the firm, the firm assumes legal responsibility for the trade. There are no exceptions to this rule. Broker-dealers can be held responsible for the conduct of their financial advisors in connection with these approved transactions.

Even if a transaction is not approved by a firm, a brokerage firm can also be held liable if the financial advisor acted with apparent authority or the investor reasonably believed that the advisor’s activities were approved or part of the broker’s services.

Brokerage firms like Aegis Capital Corp. must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

See Also:

Law Firm Investigating the Sale of GWG L Bonds to Retail Investors by Aegis Capital Corp

Iorio Altamirano LLP Files GPB Automotive Claim Against Aegis Capital Corp

Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading

How to Recover Financial Losses or Obtain a Free Consultation

If you have suffered investment losses with Mr. Perera or Aegis Capital Corp or suspect other inappropriate activity occurred in your investment or retirement account, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.

The former stockbroker, Lawrence (Larry) Fawcett, was barred from the securities industry by FINRA in March 2018 for failing to cooperate with a FINRA investigation into his outside business activities. FINRA subsequently revoked Mr. Fawcett’s securities license for failing to pay a fine and suspended him for failing to comply with an arbitration award. Mr. Fawcett, who had only been in the securities industry for five years, had an extensive history of customer complaints, regulatory sanctions, associations with disreputable brokerage firms, and an employment termination after allegations of wrongdoing.

If you have lost money with Lawrence Fawcett or Westpark Capital, Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Iorio Altamirano LLP represents investors nationwide that have disputes with their financial advisors or brokerage firms, such as Westpark Capital, Inc.

Charles A. Hailey and Karen G. Hailey v. Westpark Capital, Inc., FINRA Case No. 20-00320

On May 25, 2021, a FINRA Dispute Resolution Services arbitration panel awarded customers Charles A. Hailey and Karen G. Hailey nearly $800,000.

In the Statement of Claim, filed in January 2020, Claimants asserted the following causes of action: breach of fiduciary obligations; breach of contract; negligence/professional negligence; violations of the Virginia Securities Act and blue sky statutes; violations of federal securities law; common law fraud/ misrepresentations and, omissions; unsuitability, including both quantitative and qualitative, specifically including overconcentration and use of significant margin; failure to supervise; violations of state and federal rules and regulations; agency, respondeat superior and control person liability; and general equitable principle that apply in arbitration.

The causes of action related to private placement investments in Monster Digital, Inc., Miramar Labs, Inc., Protagenic Therapeutics, Inc. stock, the volume of trading (i.e., excessive trading/churning) in other securities. In addition, the claim sought damages for the recommended purchase of gold, through GFS Associates, and precious metals, through Omega Knight 2 LLC. In 2018, Omega Knight 2, LLC was charged by the Commodity Futures Trading Commission for fraud. The investments in GFS Associates and Omega Knight 2 LLC were private securities transactions sold by Mr. Fawcett without the approval of his firm, Westpark Capital, Inc.

In a rare occurrence, the arbitration panel devoted uncompensated time to drafting and issuing an explained decision which the parties did not request. A summary of the panels’ findings are below:

Private Placements:

The arbitration panel found that Mr. Fawcett had no prior experience in recommending private placement investments to customers prior to joining Westpark Capital, Inc. in June 2015. The panel also found that the customer, Mr. Hailey, had invested in only one private fund prior to following Mr. Fawcett’s recommendations and investing in the subject private placements. The prior private fund related to real estate and was recommended by people whom Mr. and Mrs. Hailey had known well from their years of experience in the Richmond, Virginia scene. Accordingly, the arbitration panel concluded that the three private placement investments recommended by Mr. Fawcett were far outside of Mr. Hailey’s range of sophistication, and therefore unsuitable for him. The panel also concluded that the illiquid private placement investments were unsuitable given the Hailey’s advanced age and lack of liquidity in their assets. Ultimately, the panel determined that the recommendations to invest in the private placements were made for Mr. Fawcett’s best interests, not those of the customers.

Private placements are private securities offerings exempt from registration with the Securities and Exchange Commission (SEC). There are significant risks associated with investments in private placements, particularly their lack of liquidity and speculative nature.

Churning:

The arbitration panel concluded that the level of activity in the customers’ accounts was unsuitable for any investor and that it was done in order to generate commissions. The panel held Westpark Capital, Inc. liable for permitting the churning and responsible for returning the commissions to the Haileys.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.

Churning is a more egregious variation of excessive trading. Churning refers to a situation where the broker executed an excessive number of trades and did so with the intent to defraud or reckless disregard for the customer’s interest.

Excessive trading and churning are unethical and illegal practices in the securities industry. They are all also violations of securities rules and regulations and can cause enormous harm to customers.

Failure to Supervise:

The customers argued that Westpark Capital, Inc. failed to adequately supervise Mr. Fawcett and their accounts. They argued that Westpark Capital, Inc. took a laissez-faire approach to supervision, ignoring warning signs of trouble. Their expert concluded that Westpark Capital, Inc.’s failure to follow up on these “red flags” was negligent. The incidents that the panel found the most troubling included the following:

• Westpark Capital, Inc. hired Mr. Fawcett without an in-person interview, despite his brief and checkered history as a broker. Mr. Fawcett twice failed his Series 7 (General Securities Representative Qualification Examination), then moved from firm to firm six times in four years. One of the firms terminated him for “failure to provide services to the firm for he was engaged.” Another was subsequently expelled by FINRA. Although members of the five-person hiring committee testified, they never made clear why they hired someone with such a weak track record in the first place.
• Westpark Capital, Inc. permitted Mr. Fawcett to work from his home in Queens, New York, even though Westpark Capital, Inc. maintained an office in Manhattan. The two members of Westpark Capital, Inc.’s office in Boca Raton, Florida, assigned to supervise Mr. Fawcett had FINRA infractions on their records that did not inspire confidence.
• Six months after Westpark Capital, Inc. hired Mr. Fawcett, FINRA required him to participate in an in-person interview. Two months later, Mr. Fawcett settled an arbitration claim filed by a client at Salomon Whitney by agreeing to pay $30,000.00 out of personal funds. Westpark Capital, Inc. evidently did not regard the claim, interview, or settlement as cause for concern.
• For its only in-home inspection of Mr. Fawcett, Westpark hired Bernard E. Young, who had been banned from the securities industry for participating in a Ponzi scheme. Not surprisingly, Mr. Young noted that Mr. Fawcett had a personal fax machine but did not inquire how it was being used. Nor did he follow up when Mr. Fawcett described Bullhammer, which he listed on his application as an account used for tax purposes, as a software program. No one from Westpark followed up either. Mr. Fawcett used the fax machine to send false information to Mr. Hailey. He used the back account to accept funds from Mr. Hailey for purchases of gold from other firms.

The arbitration panel held that Westpark Capital, Inc. accorded Mr. Fawcett far more freedom and trust than he had earned and that the consequences were predictable.

Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.

Selling Away:

The arbitration panel concluded that Westpark Capital, Inc. was not liable for Mr. Fawcett selling the gold and precious metal securities that were not approved by the firm.

When a financial advisor participates in a private securities transaction that is not approved by a firm, it is referred to as “selling away.” The prohibitions on selling away are designed to protect investors by ensuring that all brokers’ activities are reasonably supervised by firms that employ them. Further, securities that are sold away from a firm have not been vetted by the firm.

Financial Advisor Lawrence John Fawcett Jr. CRD No. 5851474

Lawrence John Fawcett Jr., who also goes by Larry, was barred from the securities industry in December 2020. Mr. Fawcett’s license was revoked by FINRA for failing to comply with another arbitration award.

Mr. Fawcett, who had only been in the securities industry for five years, had an extensive history of customer complaints, regulatory sanctions, associations with disreputable brokerage firms, and an employment termination after allegations of wrongdoing.

Past Associations:

Mr. Fawcett entered the securities industry in 2012. During the course of his brief 5-year career as a broker, Mr. Fawcett was associated with five different brokerage firms, including two firms that have been expelled from the securities industry by FINRA:

• Westpark Capital, Inc., from June 2015 to March 2018.
• Salomon Whitney Financial, from September 2013 to June 2015.
• Rockwell Global Capital LLC, from June 2013 to September 2013.
• John Thomas Financial (expelled by FINRA), from April 2013 to June 2013.
• Rockwell Global Capital LLC, from August 2012 to April 2013.
• EKN Financial Services Inc. (expelled by FINRA), from April 2012 to August 2012.

One of the firms terminated him for “failure to provide services to the firm for he was engaged.”

Mr. Fawcett was fired from Westpark Capital, Inc. in March 2018 for conducting business from a non-disclosed location and making false representations to the firm.

Regulatory Sanctions:

In November 2017, Mr. Fawcett and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”), after FINRA alleged that Mr. Fawcett recommended unsuitable mutual fund transactions to a customer. Mr. Fawcett consented to a 15-business day suspension and a fine of $2,500.

In March 2018, FINRA barred Mr. Fawcett from the securities industry after he refused to cooperate with FINRA’s investigation regarding Mr. Fawcett’s outside business activities.

In June 2018, FINRA revoked Mr. Fawcett’s license pursuant to FINRA Rule 8320 for failing to pay the monetary fine that was issued in 2017.

In December 2020, FINRA suspended Mr. Fawcett for failing to comply with an arbitration award.

Customer Complaints:

In just five years, Mr. Fawcett racked up numerous customer complaints:

• Customer Dispute (October 2020): A customer filed a securities arbitration complaint alleging nearly $85,000 in damages as a result of unsuitable investment recommendations related to equity positions (common or preferred stock) and private securities. The claim alleged the following causes of action: suitability, churning, unauthorized trading, fraud, negligent misrepresentation, breach of fiduciary duty, breach of covenants of good faith, breach of fair dealing, negligent supervision, breach of contract, Section 20 violations, failure to supervise, unjust enrichment, and lost opportunity. The dispute is pending.
• Customer Dispute (March 2020): A customer filed a securities arbitration complaint alleging negligence, qualitative and quantitative unsuitability, failure to supervise, breach of fiduciary duty, breach of contract, negligent misrepresentation and omissions, and lost opportunity damages. The causes of action related to BlackBerry Ltd. stock and the customer sought $15,633 in damages. An arbitrator found Mr. Fawcett to be liable and ordered him to pay $5,663 in compensatory damages and $30,0000 in punitive damages. As of December 2020, Mr. Fawcett has not paid the arbitration award to the customer.
• Customer Dispute (February 2020): Westpark Capital, Inc. was found liable, and the Haileys were awarded nearly $800,000 in damages, including over $545,000 in compensatory damages, $33,500 in costs, and $215,000 in attorneys’ fees.
• Customer Dispute (May 2018): A customer filed a securities arbitration complaint seeking $33,271 in damages as a result of excessive trading, churning, and unsuitable transactions. The dispute is pending.
• Customer Dispute (April 2018): A customer filed a securities arbitration complaint seeking $260,038 in damages as a result of churning, negligence, unsuitability, unauthorized trading, and breach of contract. The causes of action related to equities (common or preferred stock). The alleged conduct occurred when Mr. Fawcett was employed by SW Financial. The dispute is pending.
• Customer Dispute (June 2017): A customer submitted a written complaint to Westpark Capital Inc. alleging that Mr. Fawcett purchased 1000 shares of Blackberry stock without his knowledge. According to Westpark Capital, Inc., Mr. Fawcett’s supervisor contacted the client, where the client “changed his tone” and stated that he was “sill” for writing the note and that it was “mainly due to buyer remorse.” The client supposedly apologized for the letter and misunderstanding. The dispute was marked closed and withdrawn.
• Customer Dispute (September 2015): A customer filed a FINRA arbitration claim against Salomon Whitney and Mr. Fawcett for unauthorized trading. The claim alleged $20,000 in damages. Salomon Whitney and Mr. Fawcett settled the matter for $13,500.
• Customer Dispute (November 2014): A customer filed a FINRA securities arbitration claim against Salomon Whitney and Mr. Fawcett for unauthorized trading, unsuitable investments, and an unsuitable investment strategy. The claim alleged $214,000 in damages. The parties entered into an agreement to present to the arbitration panel a Stipulated Award. The panel accepted the award and found Mr. Fawcett liable for $30,000.
• Customer Dispute (April 2013): A customer submitted a written complaint to Rockwell Global Capital, LLC alleging unauthorized trades. The customer did not file a securities arbitration complaint. The firm denied the customer any compensation.

How to Recover Losses or Obtain a Free Consultation

If you have lost money with financial advisor Lawrence (Larry) Fawcett Jr. or Westpark Capital, Inc., contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.

Mr. Dellaporta, who was a broker for over forty years, most recently worked at B.B. Graham & Company, Inc. in Fort Lauderdale, Florida, from August 2018 to August 2019. Previously, he was affiliated with Fusion Analytics Securities LLC, from 2015 until 2018, and Ameriprise Financial Services, Inc, from 2010 to 2015.

Since 2009, Mr. Dellaporta has been the subject of numerous customer disputes.

If you have suffered financial losses investing with Michael Joseph Dellaporta, Jr., B.B. Graham & Company, Inc, Fusion Analytics Securities LLC, or Ameriprise Financial Services, Inc., contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as B.B. Graham & Company, Inc, Fusion Analytics Securities LLC, or Ameriprise Financial Services, Inc.

FINRA Letter of Acceptance, Waiver, and Consent No. 202006902001

Michael Joseph Dellaporta, Jr. and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on April 14, 2021, after Mr. Dellaporta refused to provide information and documents in connection with FINRA’s investigation into an outside business activity while associated with Fusion Analytics Securities LLC. FINRA’s investigation arose out of a customer complaint.

On March 23, 2021, in connection with FINRA’s investigation, FINRA sent a letter to Mr. Dellaporta to produce information and documents pursuant to FINRA Rule 8210. On April 6, 2021, Mr. Dellaporta stated on a phone call that he would not provide the requested information or documents at any time.

By refusing to provide the information or documents, Mr. Dellaporta violated FINRA Rule 8210. Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.

Financial Advisor Michael Joseph Dellaporta, Jr. (CRD# 500214)

Michael Dellaporta, Jr. was affiliated with 16 different firms during his 42-year career in the securities industry. Most recently, he has been associated with the following brokerage firms:

• B.B. Graham & Company, Inc. in Fort Lauderdale, Florida, from August 2018 to August 2019.
• Fusion Analytics Securities LLC in Coral Springs, Florida, from August 2015 to August 2018.
• Ameriprise Financial Services, Inc. in Fort Lauderdale, Florida, from September 2010 to July 2015.

Ameriprise terminated Mr. Dellaporta, Jr.’s employment in 2015, alleging that he violated company policy related to the unauthorized use of discretion, soliciting fixed-income securities that did not meet the firm’s rating requirements, soliciting prohibited options trading levels, and mismarking trade tickets as unsolicited.

According to this public disclosure report with FINRA, Mr. Dellaporta, Jr. has been the subject of at least four customer disputes:

• Customer Dispute (December 2016): A Customer filed a securities arbitration complaint, alleging monetary damages as a result of unsuitable recommendations that were over-concentrated in low-rated collateralized mortgage obligations and other mortgage-backed securities. The customer also alleged unauthorized trading. Ameriprise settled the matter for $150,000.
• Customer Dispute (July 2013): A customer filed a FINRA securities arbitration complaint that alleged $800,000 in damages. The customer alleged that Mr. Dellaporta, Jr. excessively traded the customer’s account on margin in unsuitable investments. Oppenheimer & Co. Inc., the firm that employed Mr. Dellaporta, Jr. at the time of the alleged conduct, settled the matter for $375,000.
• Customer Dispute (August 2011): A customer filed a securities arbitration complaint alleging $647,000 in damages from excessive and unusable transactions. Oppenheimer & Co. Inc., the firm that employed Mr. Dellaporta, Jr. at the time of the alleged conduct, settled the matter for $52,500.
• Customer Dispute (August 2009): A customer filed a securities arbitration complaint alleging unsuitable over-concentration of financial preferred securities and an unauthorized change in strategy and investments resulting in $350,000 in losses. The case was settled by Mr. Dellaporta, Jr. for $150,000.

Supervisory Duties

Brokerage firms like B.B. Graham & Company, Inc, Fusion Analytics Securities LLC, and Ameriprise Financial Services, Inc. must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as suitable investment recommendations, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.

How to Recover Financial Losses or Obtain a Free Consultation

If you have lost money with financial advisor Michael Dellaporta, Jr., B.B. Graham & Company, Inc, Fusion Analytics Securities LLC, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.

Mr. Francis was a broker at MML Investors Services, LLC, Inc. in Ft. Lauderdale, Florida, from July 2008 to May 2017. At that time, MML terminated his employment connected with an investigation into an undisclosed outside business activity, selling away, and an unauthorized non-securities life insurance transaction. In August 2018, Mr. Francis pleaded guilty to wire fraud after admitting that between June 25, 2012, and May 31, 2017, he devised a scheme to defraud at least eleven investors out of approximately $665,000. Mr. Francis was subsequently sentenced to 41 months in prison and ordered to pay over $420,000 in restitution to clients. In May 2019, he was also barred by the SEC from association from associating with any broker, dealer, or investment advisor.

Iorio Altamirano LLP is also investigating the sales practices and due diligence of MML Investors Services, LLC related to its sale of GPB Capital funds. It is believed, according to reports, that MML has been subjected to numerous lawsuits from customers in the form of FINRA securities arbitration claims to recover investment losses.

Securities arbitration is a unique and complex practice area. Investors should seek out experienced counsel who can navigate the arbitration process and effectively advocate on their behalf.

Iorio Altamirano LLP is a securities arbitration law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.

If you have suffered financial losses as a result of any of the following GPB private placement offerings, contact Iorio Altamirano LLP for a free and confidential review of your legal rights:

• GPB Automotive Portfolio, LP
• GPB Cold Storage LP
• GPB Holdings, LP
• GPB Holdings II, LP
• GPB Holdings III, LP
• GPB Holdings Qualified, LP
• GPB NYC Development, LP
• GPB Waste Management Fund, LP

Financial Advisor Oscar Francis (CRD No. 5094722)

Mr. Francis had 11 years of experience and has been associated with three different brokerage firms:

• MML Investors Services, LLC in Ft. Lauderdale, FL, from July 2008 to May 2017.
• AXA Advisors, LLC in Ft. Lauderdale, FL, from March 2007 to July 2018.
• Raymond James & Associates, Inc. in Boca Raton, FL, from April 2006 to February 2007.

MML Investors Services fired Mr. Francis on May 31, 2017, connected with a U.S. Department of Justice investigation into an undisclosed outside business activity and selling away. In August 2018, Mr. Francis pleaded guilty to wire fraud after admitting that between June 25, 2012, and May 31, 2017, he devised a scheme to defraud at least eleven investors out of approximately $665,000. Mr. Francis solicited his MML Investor Services clients, with whom he attended church, to invest in Mahum, Inc., which he incorporated and controlled. Mr. Francis falsely represented that Mahum, Inc. was affiliated with MML, and the investments in Mahum, Inc. would generate high rates of return. Mr. Francis also stole the funds he received, spending them on cocaine, alcohol, strip clubs, and luxury items. When investors inquired or complained about their investments’ status, Mr. Franciss would obtain loans and use other investment funds to repay the investors to prevent them from reporting Mr. Francis’s activity to MML or law enforcement.

Mr. Francis was subsequently sentenced to 41 months in prison and ordered to pay over $420,000 in restitution to clients. In May 2019, he was also barred by the SEC from association from associating with any broker, dealer, or investment advisor.

According to Mr. Francis’s public disclosure report with FIRNA, MML Investor Services, LLC has paid nearly $400,000 to five complaining customers:

• Customer Dispute (December 2018): In December 2018, a customer filed a complaint alleging $24,000 in damages. The customer alleged that in 2016, he believed that he was investing in a MassMutual product, which was later discovered to be a fraudulent investment, in which Mr. Francis misappropriated client funds. MML Investor Services, LLC settled the matter for $31,828.
• Customer Dispute (November 2018): In November 2018, a customer filed a complaint alleging $59,360 in damages. The customer alleged that in 2016, he believed that he was investing in a MassMutual product, which was later discovered to be a fraudulent investment, in which Mr. Francis misappropriated client funds. MML Investor Services, LLC settled the matter for $59,540.95.
• Customer Dispute (August 2017): In August 2017, a customer filed a complaint alleging $20,000 in damages. The customer alleged that in 2016, he believed that he was investing in a MassMutual product, which was later discovered to be an unapproved investment. MML Investor Services, LLC settled the matter for $20,370.
• Customer Dispute (August 2017): In August 2017, a customer filed a complaint alleging that in 2016 he believed that he was investing in a MassMutual product, which was later discovered to be an unapproved investment. MML Investor Services, LLC settled the matter for $44,321.
• Customer Dispute (May 2017): In May 2017, a customer filed a complaint alleging that in 2016 he believed that he was investing in a MassMutual product, which was later discovered to be an unapproved investment. MML Investor Services, LLC settled the matter for $243,652.

How to Recover Losses or Obtain a Free Consultation

If you have suffered financial losses investing with Mr. Francis or MML Investor Services, LLC, or suspect that Mr. Francis did not have your best interest in mind when recommending an investment, such as one of the GPB Capital notes, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.