Jeffrey Pederson is an attorney who handles investment
fraud and stockbroker and financial advisor negligence cases. He represents investors in such malpractice cases, usually required to be brought in front of FINRA (the Financial Industry Regulatory Authority) in New Mexico and nationwide*. If you have suffered losses as the result of inappropriate handling of your funds by a broker, financial advisor or other financial professional please submit your information in the boxes below or call toll-free 1-844-253-5858.
The following are a list of recent actions, listed in chronological order, concerning New Mexico financial professionals where consultations should be sought:
Billy P. Stanage, Jr. of Rio Rancho, New Mexico was barred from the securities industry. His employer terminated his employment for selling unapproved investments. The selling of unapproved investments is an action commonly referred to as “selling away.” Investors are led to believe that their investment firm has vetted an investment only to find that the financial advisor has sold the investment for a heightened commission or other inappropriate reason. Investors are entitled to recovery from those failing to supervise such financial advisors.
Robert Barnard of Las Cruces, New Mexico, on September 30, 2020, a resolution with regulators was announced in which Barnard was barred from association with any securities brokerage in all capacities. Barnard was most recently employed with Primerica and PFS Investments. Without admitting or denying the findings, Barnard consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA, the regulator overseeing brokerage firms, in connection with FINRA’s investigation into allegations referenced in Form U5s, forms filed by a brokerage firm identifying reasons for the broker’s employment ending. The findings stated that Barnard’s brokerage firm filed a Form U5 reporting that it had discharged him after the firm found evidence that Barnard had inappropriate personal financial dealings with clients. Subsequently, the firm amended his Form U5 disclosing an arbitration filed by an investor against the firm that alleged that as an employee of the firm, Barnard sold the investor “outside investments,” investments where the legitimacy was not verified by the firm, and borrowed money from her and her late husband.
Thomas Laws, Silver City, New Mexico, has refused to cooperate into investigations concerning his selling away investments. Investments are “sold away” when the investments are not approved by the broker’s firm. Law’s firm was HD Vest Investments. Selling away is an issue because failing to submit such an investment for review often is done to sell investors an investment that is extremely flimsy or fake. Many Ponzi scams start with a broker selling his investors investments that are not approved by the broker’s firm. Since Law has not cooperated, he has chosen to surrender his license rather than defend his actions.
Danielle Jean McAniff, broker from Albuquerque. An AWC, a regulatory settlement, was entered in which McAniff was fined $5,000 and suspended from association with any FINRA member, which is any stockbrokerage firm, in all capacities, for two months. Without admitting or denying the findings, McAniff consented to the sanctions and to the entry of findings that she engaged, and permitted her office administrator to engage, in a practice of having her customers sign blank and incomplete forms, or using photocopied customer signatures. The findings stated that McAniff or her office administrator then completed the forms and submitted them to her home office as original documents. The forms were used to open customer accounts, record customer financial information and authorize customer transactions.
This is, or can be, a very serious form of fraud. These documents indicate how an investor wants an account handled and gives authorization as to money transactions. The action gives the broker authorization to do things that benefit the broker and not the investor. Because the documents appear signed supervisors have very little way to stop activity that is not in the investor’s best interests since the forged document creates the appearance that the investor has consented.
Kevin Paul Hudak, of Albuquerque, New Mexico, formerly of Cetera Advisors and Foothill Securities, was barred from association with any FINRA member in any capacity over allegations that he falsified investor signatures. FINRA has stated in a press release that Hudak, without admitting or denying the findings, consented to the sanction and to the entry of findings that he submitted non-solicitation forms to his member firm that had non-authentic customer
signatures. Hudak’s firm required these non-solicitation forms concerning certain low-priced securities to process the transactions for his customers in these securities. Hudak is alleged to have falsified these non-solicitation forms by having customers sign blank forms, which he then photocopied and reused for future low-priced securities transactions. The findings of the FINRA investigation also allege that Hudak provided false and misleading testimony to FINRA by repeatedly denying that he had asked customers to sign blank non-solicitation forms, and that he copied customer signatures for use as if they were authentic
George Leon Winneberger (CRD #470045, Registered Principal, Santa Fe, New Mexico) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $7,500 and suspended from association with any FINRA member (stockbrokerage firm) in any capacity for 15 business days. Without admitting or denying the findings, Winneberger consented to the described sanctions. The findings stated that the customer, the investor of Mr. Winneberger, maintained several accounts with Winneberger’s firm, and she gave Winneberger oral authorization to exercise discretion in her accounts. Winneberger would periodically discuss the status of the accounts with the customer. However, the customer did not give Winneberger any written authorization to exercise discretion and the firm did not allow discretionary trading in customer accounts or accept the accounts as discretionary. Approximately 650 trades were placed in the customer’s accounts from their inception through a certain period, a substantial number of which Winneberger placed through the use of discretion. The findings also stated that Winneberger completed employee questionnaires, and in each of them, he answered that he had not handled any customer accounts on a discretionary basis; thereby, misleading the firm, as he was exercising discretion. The suspension was in effect from August 19, 2013, through September 9, 2013. http://www.finra.org/web/groups/industry/@ip/@enf/@da/documents/disciplinaryactions/p342525.pdf
If you have questions concerning losses caused by these or other New Mexico brokers, please call Jeffrey Pederson directly at 303-300-5022 for a free consultation.
Representation is for all areas of New Mexico including Albuquerque, Carlsbad, Farmington, Gallup, Santa Fe, Las Cruces, Las Vegas, Raton, Rio Rancho, and Roswell.
*Jeffrey Pederson is a licensed Colorado attorney. Colorado attorneys are allowed to represent New Mexico residents in arbitrations. NM Rule 16-505(F)(1). Almost all states allow licensed attorneys to represent parties to FINRA arbitrations within the state without pro hac vice admission. Some states, notably California and Florida, require pro hac vice admission.
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