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WARNING! Impending Investigation: BIOCHEMICS, INC. and AMERIPRISE FINANCIAL SERVICES

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25
Sep

WARNING! Impending Investigation: BIOCHEMICS, INC. and AMERIPRISE FINANCIAL SERVICES

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WARNING!  Impending Investigation:  BIOCHEMICS, INC. and AMERIPRISE FINANCIAL SERVICES

BioChemics, Inc. 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 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 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.

 

If you lost money in BioChemics, Inc. or with Ameriprise Financial Services, please Contact Us at 720-599-3505 for a free evaluation of your case.

 

Click to view:  Kolinofsky FINRA AWC

Click to view:  Kolinofsky BrokerCheck 9.25.15

Click to view:  Marshall BrokerCheck 9.25.15

 

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman

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