Allegations Regarding the Suspension

FINRA bought an administrative complaint against Stephen M. Franko and Thomas Scheiman (both of whom worked at Independence Capital Co. in Mount Vernon, Ohio) regarding their sales of GWG L Bonds.  GWG filed for bankruptcy in 2022, causing significant losses for investors.  Franko was alleged to have recommended GWG L Bonds to three investors, totaling $195,000.

FINRA alleged that these recommendations were not in the customers’ best interests.  To settle these allegations, Franko agreed to a three month suspension, a $5,000 fine, and disgorgement of $5,640, which equaled the commissions he earned on selling the GWG bonds.

Background on Stephen M. Franko

Stephen Franko has been a representative of Independence Capital Co. since 2000.  He has worked at Mount Vernon and Parma, Ohio offices. 

Can Independence Capital Co. Be Responsible for Investor Losses?

FINRA Rule 3110 requires securities brokerage firms like Independence Capital Co. to adequately supervise the activity of its advisors.  Independence Capital Co. could be responsible for investor losses if it failed to reasonably supervise him.

We Help Investors in Ohio

Israels & Neuman represents investors in Ohio, and nationwide, who have been victims of broker misconduct, unsuitable investment recommendations, and fraud.  If you were a client of Stephen Franko and believe he acted improperly, you may be entitled to recover losses through FINRA arbitration.

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

Contact Us for a Free Case Evaluation

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