Investigation of Larry Werbel, Summit Brokerage Services, Inc., Christopher Cervino, Sheik Khan, and Ameritas Investment Corp.
Have you lost money with financial advisor Larry Werbel of Chargin Falls, Ohio? We are investigating allegations made by the US Attorneys Office for the Southern District of New York. The US Attorney alleged that Larry Werbel, Christopher Cervino, and Sheik F. Khan of taking part of a scheme ran by Edward Durante. It was alleged that from 2009 to 2015, Durante acted in concert with Werbel, Cervino, and Khan to defraud investors through the sale of stock in VGTel, Inc. (VGTL).
It was alleged that they misrepresented the risks of VGTel, and they failed to inform investors that Durante was previously convicted of securities fraud in 2001. Larry Werbel, Christopher Cervino, and Khan were arrested January 6, 2016.
Larry Werbel faces six charges, including securities fraud, wire fraud, and investment advisory fraud. He was alleged to have received payoffs from Durante for promoting VGTel, which was essentially a shell company. Larry Werbel was a financial advisor and registered representative of Summit Brokerage Services, Inc. from March 2011 to April 2014 and June 2014 to November 2014. He worked at a branch office in Chargin Falls, Ohio. He also was affiliated with Concorde Investment Services from April 2015 to January 2016, and with LPL Financial from February 2009 to February 2011.
Werbel was previously suspended from the securities industry for two months in 2014 and fined $12,500 for soliciting low-priced securities to investors. Larry Werbel has two customer complaints on his record, alleging misrepresentations related to the sale of VGTel and Q Lotus Holdings, Inc. Werbel also was affiliated with Evolution Partners Wealth Management.
Christopher Cervino was arrested in Franklin Lakes, New Jersey, and he faces counts of securities fraud, wire fraud, and money laundering. He worked for Primary Capital from October 2014 to January 2016; with COR Clearing from August 2013 to October 2013; with Wilson-Davis & Co. from July 2012 to August 2013; with Delaney Equity Group from September 2011 to December 2011; and with GFI Securities from September 2010 to September 2010. He worked at branch offices in New York City.
Sheik F. Khan was arrested in Las Vegas and faces charges of securities fraud, wire fraud, and investment adviser fraud. She was a financial advisor with Ameritas Investment Corp. from 2002 to December 2013. She was suspended by FINRA in November 2015. She worked at a branch office in Murrieta, California.
Brokerage firms like Summit Brokerage Services, Ameritas Investment Corp. and COR Clearing have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Ohio, California, and New York. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, Stifel Nicolaus & Company, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Ameriprise Financial Services, Raymond James, ProEquities, Securities America, National Securities Corp., and many others.
Click to view: Werbel BrokerCheck 1.14.16
Click to view: Khan BrokerCheck 1.14.16
Click to view: Cervino BrokerCheck 1.14.16
HAVE YOU LOST MONEY WITH LARRY WERBEL, SHEIK KHAN, or CHRISTOPHER CERVINO?
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