Allegations Regarding David Cohen

In December 2025, David Cohen was fired by Cetera Investment Services in Yonkers, New York. Cohen allegedly was “transacting business while under suspension by the Firm and for failing to cooperate with the Firm’s internal review of allegations that client funds were paid directly to the representative, and the representative used the funds to support his business.” 

FINRA then opened its own investigation into Cohen.  He failed to cooperate with FINRA’s investigation, and as such, he was barred under FINRA Rule 8210.  Cohen has now faced two customer complaints alleging misappropriation of funds or fraud.

Background on David Cohen

David Cohen was licensed with Cetera Investment Services from June 2019 to December 2025.   He worked in a Yonkers, New York office. He also had several tax liens filed against him, including a $232,000 tax lien made in 2023.

Could Cetera Investment Services be Liable for Customer Losses?

FINRA standards provide that brokerage firms like Cetera Investment Services must reasonably supervise the activities of their financial advisors.   Firms that fail to do so could be responsible for investor losses. 

Israels & Neuman Helps Investors Recover Money in New York

We represent investors throughout the United States as well as New York, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud. If you were a client of David Cohen and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.

• View Cohen’s BrokerCheck Report
• View Cohen’s FINRA AWC

Contact Us for a Free Case Evaluation

Call us today at (720) 599-3505 or (206) 795-5798

Allegations Regarding Firing Mahmoud Elawadi

According to FINRA BrokerCheck, Wells Fargo fired Mood Elawadi regarding allegations that he “solicited and facilitated client investment in his outside business activity”.  Generally, advisors must disclose all outside businesses that they operate, and they must have permission from their brokerage firm for every investment product that they sell.

Mood Elawadi has been the subject of a customer complaint, alleging $1.5 million in losses.  The customer alleged that he “falsely induced their client to invest funds into a business owned by” Mr. Elawadi.

Background on Mahmoud Elawadi

Mahmoud Elawadi was licensed with Wells Fargo from February 2019 to December 2025 at an Orlando, Florida office.  Elawadi was also previously licensed with a handful of other firms since 2007.  He also ran two businesses called Mount Sinai Wealth Management and MMMH Trading.

Can Wells Fargo Be Responsible for Advisor Conduct?

FINRA Rule 3110 pertaining to supervision, requires securities brokerage firms like Wells Fargo to adequately supervise the activity of its advisors.  Wells Fargo could be responsible for investor losses if it failed to reasonably supervise him.

Israels & Neuman Helps Investors in Florida

We represent investors throughout the United States including Florida, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud.  Attorney David Neuman is licensed to practice law in Florida.  We have represented numerous investors in Florida in the past.  If you were a client of Mahmoud Elawadi and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.

• View Elawadi’s BrokerCheck Report

Contact Us for a Free Case Evaluation

Call us today at (720) 599-3505 or (206) 795-5798 or fill out our contact form to learn more about your rights. We have experience representing Florida investors and are ready to help you recover what you deserve.

The case centers on allegations that Brian Watson and Northstar raised tens of millions of dollars from hundreds of investors by misrepresenting how much of their own money they were personally investing in each deal, a concept commonly referred to as having “skin in the game.”

Brian Watson denies the SEC’s allegations and has testified emotionally at trial, arguing that he never intended to mislead investors and that the SEC’s case has destroyed his business.

Background: The SEC’s Enforcement Action

According to the SEC’s civil complaint, filed in August 2022, the agency alleges that between 2017 and 2019, Watson and Northstar raised approximately $49.5 million from at least 350 investors across 11 commercial real estate projects.

The SEC claims that offering documents, investor presentations, and marketing materials repeatedly told investors that Watson and Northstar would personally contribute 4% to 5% of total equity in each project — a representation the SEC says was material to investors’ decision-making.

In total, those alleged representations suggested Watson would invest roughly $2.8 million of his own capital across the projects. The SEC alleges that, in reality, only a small fraction of that amount was ever contributed.

Why “Skin in the Game” Matters in Private Placements

In private real estate offerings — especially those exempt from registration — investors often rely heavily on disclosures about the sponsor’s personal investment.

A meaningful personal equity contribution can signal:

• alignment of interests between sponsor and investors,
• confidence in the project’s economics, and
• reduced risk of reckless decision-making.

The SEC alleges that Watson’s claimed personal investment was used as a selling point, even though the contributions were not made as represented.

The Legal Claims

The SEC asserts three core federal securities law violations:

• Section 17(a) of the Securities Act of 1933
• Section 10(b) of the Securities Exchange Act of 1934
• SEC Rule 10b-5

Together, these provisions prohibit material misstatements or omissions in connection with the offer or sale of securities — including private placements.

Importantly, investor sophistication is not a defense to fraud under these statutes, a point that has already played out in evidentiary rulings at trial.

Inside the Denver, Colorado Jury Trial

Watson’s Defense

As reported by the Denver Post, at trial, Watson testified that he never intended to deceive investors and characterized the SEC’s case as an unfair attempt to “hang” him over a handful of deals. He described cooperating with the SEC’s investigation and expressed shock when the lawsuit was ultimately filed.

Watson emphasized:

• his desire to protect investor money,
• the collapse of his once-large firm following the SEC action,
• and the personal toll the litigation has taken on his life and business.

Northstar, which once employed approximately 40 people, now reportedly has only one remaining employee.

Conflicting Testimony from Former Employees

The trial has featured sharply conflicting testimony:

• Former senior executives, including Northstar’s CFO and CIO, testified that Watson was repeatedly reminded to make the promised personal investments and did not always do so.
• Other employees, including long-time staff members, testified that they believed Watson always invested and acted ethically with investor funds.

This divergence in testimony highlights a recurring issue in securities fraud cases: whether misrepresentations were intentional, negligent, or the result of internal breakdowns in compliance and accounting controls.

The Judge’s Ruling on Investor Sophistication

One of the trial’s key legal moments occurred when the court ruled that the wealth or sophistication of Northstar’s investors was irrelevant to the SEC’s claims.

The judge agreed with the SEC that:

“The purchasers’ sophistication is immaterial to the claims.”

This ruling reinforces a critical principle in securities law: even wealthy or experienced investors are entitled to truthful disclosures.

Potential Consequences if the SEC Prevails

If the SEC succeeds at trial, it is seeking:

• Permanent injunctions against future securities law violations
• Disgorgement of alleged ill-gotten gains plus interest
• Civil monetary penalties
• A possible officer-and-director bar preventing Watson from serving in leadership roles at other companies

These remedies are common in SEC enforcement actions involving private offerings.

Lessons for Real Estate and Private Placement Investors in Colorado

Regardless of the jury’s ultimate verdict, the case underscores several important investor takeaways:

1. Verify sponsor contributions — do not rely solely on marketing language
2. Demand documentation showing when and how sponsor capital is contributed
3. Understand exemptions — private offerings lack many protections of public markets
4. Ask who controls the money — and when sponsor funds actually enter the deal

Conclusion

The SEC’s case against Brian Watson and Northstar Commercial Partners illustrates how representations about sponsor participation can become the focal point of federal securities fraud litigation — even years after investments are made.

For investors in commercial real estate syndications and other private placements, the trial serves as a reminder that alignment of interests must be real, documented, and verifiable, not just promised.

Concerned You Were Misled in a Private Investment?

How Israels & Neuman Can Help You

If you invested in a private placement, real estate fund, or syndication and later discovered that key disclosures were inaccurate or misleading, you may have legal options.

Israels & Neuman, PLC represents investors nationwide in securities fraud and investment-related disputes, including matters involving private offerings and real estate investments.  Aaron Israels is licensed to practice law in Colorado and has offices in Denver and Fort Collins.  He offers a free phone consultation to aggrieved Colorado investors.

Frequently Asked Questions (FAQ) for Investors.

What does “skin in the game” mean in real estate investments?

“Skin in the game” refers to how much of their own money a sponsor invests alongside outside investors.

Is it illegal for a sponsor to invest less than promised?

It can be securities fraud if the discrepancy is material and investors were misled.

Does investor sophistication matter in SEC fraud cases?

We always argue that sophisticated investors are entitled to truthful disclosures, as provided for by law.  Courts tend to agree.

What laws apply to private real estate offerings?

Federal securities laws including the Securities Act of 1933 and Exchange Act of 1934, along with the Colorado Securities Act and Securities Rules.

What remedies can the SEC seek?

Injunctions, disgorgement, civil penalties, and officer-and-director bars.

What should investors do if they suspect misrepresentation?

They should consult an experienced securities fraud attorney promptly.  Israels & Neuman is a securities and arbitration law firm with highly specialized and experienced attorneys that can help you recover the money you deserve. 

Call Israels & Neuman today at 720-599-3505 for a Free Confidential Case Review

Did you invest in First Liberty Building & Loan with Timothy Nathaniel Darnell, also known as Nathaniel Darnell, of Bankers Life Securities? The law firm of Israels & Neuman is looking into allegations involving this advisor, who formerly was a representative with Bankers Life Securities and worked in an Atlanta, Georgia office.  Darnell was fired in September 2025 by both Bankers Life Securities and Bankers Life Advisory Services.  He primarily goes by his middle name, Nathaniel.

Allegations Regarding Nathaniel Darnell

FINRA’s BrokerCheck discloses that Timothy Nathaniel Darnell was fired by Bankers Life Securities for the following: “1. Failure to disclose outside business activities (OBA), 2. Participation in undisclosed and unapproved private securities transactions (PST), 3. Use of off-channel communications with clients and not following firm policies and procedures related to such.”  Under FINRA Rule 3280, financial advisors must get prior approval from their firm to sell any investment.

This termination was likely triggered by a customer complaint that was made in September 2025.  The customer alleged losses of $1,000,000 from investments in First Liberty Building & Loan.  The customer alleged that First Liberty Building & Loan was a PONZI Scheme run by Edwin Brant Frost IV.

Background on Timothy Nathaniel Darnell

Nathaniel Darnell was licensed with Bankers Life Securities from August 2016 to September 2025 at a Atlanta, Georgia office.   He also sold insurance through Bankers Life, and he was also affiliated with Keith Cochran, CPA.

Is Bankers Life Securities Responsible for Darnell’s Conduct?

FINRA Rule 3110 states that securities broker-dealers like Bankers Life Securities must adequately monitor the activity of its advisors.  Bankers Life Securities could be responsible for investor losses if it failed to reasonably supervise him.

Israels & Neuman Helps Investors in Georgia

Our specialized law firm represents investors throughout the United States including Georgia, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud.  If you were a client of Timothy Nathaniel Darnell and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.

• View Darnell’s BrokerCheck Report

Contact Israels & Neuman for a Free Case Evaluation

We always offer Free Consultations. If we take your case, we do so on a contingency fee basis—which means there are no attorney fees unless we recover money for you!

Call us today at (720) 599-3505 or (206) 795-5798 or fill out our contact form to learn more about your rights.

Jose Gamez also known as “Joe Gamez”, an advisor in San Antonio, Texas, was fired by Raymond James regarding allegations that he “used client funds for personal reasons”.  When individuals like Gamez are terminated by their brokerage firm for cause, the firm is required to file a form (called a Form U-5) with regulators that explains why the advisor was fired.  If you suffered losses, contact Israels & Neuman to see if you are eligible to file a claim.

Background on Jose Gamez

Jose Gamez was licensed with Raymond James from April 2017 to June 2025.  He had been in the securities industry since 2000.  Joe Gamez operates Security Service Investment Group and Security Service FCU in San Antonio, Texas.

Can Raymond James Be Liable for Gamez’s Conduct?

FINRA standards provide that brokerage firms like Raymond James must reasonably supervise the activities of their financial advisors.   Firms that fail to do so could be responsible for investor losses. 

We Help Investors in Texas

We represent investors throughout the United States as well as Texas, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud. If you were a client of Jose Gamez and believe your financial advisor acted improperly, you may be entitled to recover losses through FINRA arbitration.

• View Gamez’s BrokerCheck Report

Contact Us for a Free Case Evaluation

We always offer Free Consultations. If we take your case, we do so on a contingency fee basis—which means there are no attorney fees unless we recover money for you!

Call us today at (720) 599-3505 or (206) 795-5798 or fill out our contact form to learn more about your rights.

What Are the Allegations Against Lisa Boisselle?

The Arizona Corporation Commission filed a regulatory complaint against Boisselle and Wealthwise in August 2025.  Arizona alleged that Boisselle began offering investments in two cryptocurrencies called NovaTech and HyperFund, also known as HyperVerse beginning in 2021.  It was alleged that she sold nearly $1.4 million worth of investments in NovaTech and HyperFund to at least 16 clients.

Beginning in 2022, NovaTech has faced serious legal challenges, including from Russia, British Columbia, California, Wisconsin, Washington, New York, and Florida, alleging that NovaTech was essentially a fraud.  It was further alleged that Boisselle held some of her clients’ money in these cryptocurrencies in her own Coinbase account.

Background on Lisa Boisselle

Lisa Boisselle worked out of a Scottsdale, Arizona office, as well as Yakima and Kennewick, Washington offices, while affiliated with LPL Financial from January 2018 to February 2022.  Boisselle had been in the securities industry since 2011 and was previously affiliated with Waddell & Reed (which merged with LPL Financial). 

Can I Recover My Investment Losses?

Yes—investors may have the right to pursue claims through FINRA arbitration, a legal forum designed to help recover funds lost due to broker misconduct or unsuitable investment recommendations.

Lisa Boisselle may be individually liable for misrepresentation, unsuitable advice, or breach of fiduciary duty. However, LPL Financial may also bear responsibility if they failed to properly supervise Boisselle or ignored warning signs while she was affiliated with LPL Financial.

We Represent Investors in Arizona and Washington

At Israels & Neuman, we have helped thousands of investors nationwide recover money lost to financial advisor misconduct and represent investors throughout Washington and Arizona.  Attorney Aaron Israels is licensed to practice law in Arizona, and we have an office in Phoenix.  Attorney David Neuman is licensed to practice law in Washington, and we have offices in Seattle and Vancouver, Washington.  Our attorneys have extensive experience handling claims involving investment schemes.

Free Case Review — Speak to a Securities Fraud Attorney Today

If you invested with Lisa Boisselle or were sold investments like NovaTech or HyperFund, give us a call. We always offer Free Consultations. If we take your case, we do so on a contingency fee basis—which means there are no attorney fees unless we recover money for you!

(720) 599-3505 or (206) 795-5798

Irvine, California — In April 2025, a customer filed a FINRA arbitration claim against Western International Securities.  The customer alleged that advisor Christopher Polimeni “converted customer’s assets by transferring them to a foundation” and alleges $1.6 million in damages, according to FINRA’s BrokerCheck.   The complaint was still pending as of August 2025.  The securities and investment fraud law firm of Israels & Neuman is investigating whether others may have lost money with this advisor.

Background on Christopher Polimeni

Polimeni was a representative of Western International Securities from August 2017 to June 2025.  He is now affiliated with LPL Financial, since June 2025 and worked in an Irvine, California office. 

Can Western International Securities Be Held Liable?

Under FINRA rules and regulations, brokerage firms like Western International Securities have an obligation to reasonably supervise the conduct of its financial advisors.  Failures to adhere to these rules and regulations could lead to liability for investor losses.

We Help Investors Nationwide, Including in California

We represent investors throughout the United States as well as California, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud. If you were a client of Christopher Polimeni and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.

• View his BrokerCheck Report

Contact Us for a Free Case Evaluation

We always offer Free Consultations. If we take your case, we do so on a contingency fee basis—which means there are no attorney fees unless we recover money for you!

Call Israels & Neuman today at (720) 599-3505 or (206) 795-5798

In early June 2025, the Easterly ROCMuni High Income Municipal Bond Fund (ticker: RMHIX) suffered a dramatic collapse—its net asset value plunged nearly 50%, dropping to roughly $2.95 per share.  The dramatic decline in its price could largely be due to the fact that this bond fund had over 80% of its holdings in below investment grade bonds, often referred to as “junk bonds”, according to a March 2025 fact sheet about the Easterly ROCMuni High Income Bond Fund.   It has further been alleged that although the Easterly Fund was presented as a municipal bond fund mostly holding tax-exempt securities, which is simply not accurate.

A recent class action complaint alleged that the Fund had assets at artificially inflated prices that did not reasonably reflect the fair value of those assets.   As a result, the Fund’s holdings were materially overstated.  This could be a problem, and investors who suffered losses should contact the securities law firm of Israels & Neuman immediately, as time is of the essence.

The securities and investment fraud law firm of Israels & Neuman, PLC is looking into potential sales of this product by two broker-dealer firms—Osaic Wealth and Stifel Nicolaus & Co.   We are interested in discussing sales practices, concentrations and recommendations with investors.

Allegedly, an 84-year-old widow, guided by an Osaic financial advisor on Long Island, was advised to invest in the Easterly Fund in May—just days before it collapsed, causing her to lose approximately 35% of her savings.

RMHIX Investors: You Have Rights.

If you or someone you know were advised by Osaic Wealth, Stifel Nicolaus or any other brokerage firm, to invest in the Easterly ROCMuni High Income Municipal Bond Fund or RMHIX, and you’ve suffered losses as a result, you may have legal options. Investors have rights, and it’s important to explore them as soon as possible before statutes of limitation pass.

Contact Israels & Neuman for a Free Case Review

We always offer Free Consultations. If we take your case, we do so on a contingency fee basis—which means there are no attorney fees unless we recover money for you!

(720) 599-3505 or (206) 795-5798

Visit us at https://www.IsraelsNeuman.com