BioChemics, Inc., William Marshall, and Ameriprise Financial Services
Have you lost money investing in BioChemics, Inc.? We are investigating allegations made by FINRA (the Financial Industry Regulatory Authority) regarding the sales of BioChemics, Inc. preferred stock by financial advisors with Ameriprise Financial Services. FINRA previously brought a regulatory action against John J. Kolinofsky, Jr., a supervisor and branch manager of one of Ameriprise’s branch offices in Plano, Texas. FINRA alleged that Kolinofsky failed to adequately supervise one of the advisors, “WM”, who sold $1.72 million of preferred shares of BioChemics, Inc. to his customers.
FINRA alleged that Kolinofsky also invested $10,000 himself in BioChemics. The complaint further alleges that at least nine Ameriprise customers and four Ameriprise representatives invested in BioChemics. However, FINRA alleges that Kolinofsky failed to properly supervise the sales of BioChemics investments (called private securities transactions), since such sales were not approved by Ameriprise. “WM” – which upon information and belief is advisor William W. Marshall, who works in the same Plano office as Kolinofsky – even held seminars at the Plano office after normal business hours to solicit investors to purchase BioChemics shares.
In February 2016, Marshall settled with FINRA over these allegations. FINRA alleged that Marshall sold over $1.72 million in BioChemics investments, without approval from Ameriprise. To settle these allegations, William Marshall agreed to pay a $10,000 fine and agreed to be suspended from the securities industry for 15 months.
In December 2012, the SEC (Securities and Exchange Commission) brought a complaint against BioChemics, alleging that it violated the federal securities anti-fraud provisions. In March 2015, a final order was entered, which permanently enjoined BioChemics from violating the federal securities anti-fraud provisions and ordered it to pay $17 million in disgorgement of ill-gotten gains and $750,000 in civil penalties. BioChemics investors are believed to have suffered massive losses in their investments.
John J. Kolinofksy and William W. Marshall are financial advisors and registered representatives of Ameriprise Financial Services from January 2011 to the present. They both work at Ameriprise’s office in Plano, Texas at 6860 N. Dallas Parkway, Suite 500. As part of FINRA’s investigation, Kolinofsky was suspended for one month from the securities industry, for three months in a supervisory capacity, and fined $20,000.
Brokerage firms like Ameriprise 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 throughout the Dallas area. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including Ameriprise Financial Services, LPL Financial, Merrill Lynch, Morgan Stanley, Smith Barney, UBS Financial Services, Oppenheimer, Charles Schwab, Wells Fargo Advisors, Raymond Dawn, ProEquities, Securities America, National Securities Corp., and many others.
Click to view: Marshall FINRA AWC 2.10.16
HAVE YOU LOST MONEY WITH BIOCHEMICS, INC., OR AMERIPRISE FINANCIAL?
Denver Office: (720) 599-3505
Seattle Office: (206) 795-5798