Excessive trading, fees and commissions.

$5,000.00

Unsuitable recommendations and misrepresentation.

$250,000.00

$30,000.00

Initially this matter named both Hilltop Securities Inc. and Wedbush Securities Inc. The case against Hilltop Securities Inc. was subsequently withdrawn by the claimant.

CLAIMANT ALLEGES THAT FROM 2012 TO 2015 UNAUTHORIZED AND UNSUITABLE INVESTMENTS WERE MADE BY THE FINANCIAL ADVISOR.

$99,999.99

This matter was initially disclosed in items 7-11 in error. Wedbush entered into a settlement agreement on 11/5/2021 for 24,999.99. Hilltop Securities entered into a settlement agreement on 12/09/2021 for $75,000.00.

UNSUITABLE PURCHASE OF THE PUERTO RICO MUNICIPAL BONDS IN DECEMBER 2014. THE COMPLAINT INCLUDES CLAIM FOR BREACH OF FIDUCIARY DUTY, BREACH OF WRITTEN AND ORAL CONTRACT, CONSTRUCTIVE FRAUD, FRAUD BY MISREPRESENTATION AND OMISSION.

$50,000.00

$25,000.00

The claimant alleges that unauthorized and unsuitable investments were made by the financial advisor in June 2014.

$398,832.00

$75,000.00

Hilltop Securities Inc. received notice that Wedbush Securities Inc. filed an updated FINRA Form U-5 on 11/13/19 regarding this matter. A corresponding FINRA Form U-4 was filed on 11/14/19 to update this pending matter.

Unsuitable investments, breach of fiduciary duty, misrepresentations/omissions, negligence and violations of California securities laws.

$97,774.00

$75,000.00

Claimants allege employing firms failed to supervise representative, misrepresentation by omission with respect to the disclosure of representative's regulatory and disciplinary history, unsuitable recommendations, and financial abuse of an elder.

$375,000.00

$87,500.00

This matter was settled by both Hilltop Securities Inc. and Wedbush Securities Inc. for the amount listed above. Wedbush contributed $62,625.00 and Hilltop contributed $21,875.00.

Breach of Fiduciary Duty, Constructive Fraud, Fraud by Material Misrepresentations/Omissions, Breach of Written Contract, Elder Financial Abuse. The specific dates of the allegations are currently unknown.

$150,000.00

$73,900.00

Customer alleges poor recommendation with respect to the purchase of a swap rate linked certificate of deposit. Correspondence was subsequently received on June 9, 2017 with an additional suitability claim against Hilltop Securities Inc. specific to a hold recommendation alleged by the claimant.

$33,648.00

$25,000.00

A review of the customer's account activity revealed that no transactions had taken place since the account was opened. During a telephone discussion with the customer, it was determined that the activity to which the customer referenced took place at Wedbush Securities Inc. The customer was advised to address any concerns regarding that activity directly to Wedbush. Hilltop Securities Inc. considers this matter closed. Subsequent correspondence received on June 9, 2017 containing substantially similar allegations with the addition of a suitability claim specific to an alleged hold recommendation made while the account was at Hilltop Securities Inc. These matters were resolved through a settlement agreement between the claimant, Wedbush and Hilltop Securities Inc. whereby Wedbush and Hilltop jointly agreed to a $25,000.00 settlement amount.

customer alleges the purchase of ten Chino Hills CA 2.625% due 09/01/2024 bonds in October 2015 was unauthorized.

$10,000.00

$150.00

Upon review of the account activity in question, it was determined that the bond purchase had been executed in the wrong customer's account (trading error). The firm agreed to buy back the bonds and credit the customer $150.00.

WEDBUSH SECURITIES INC

Voluntary Resignation

REGISTERED REPRESENTATIVE RESIGNED AS A CUSTOMER COMPLAINT WAS FILED AGAINST HIM.

ON BEHALF OF THE CLIENT, CPA WITH WRITTEN AUTHORIZATION CLAIMS THE CLIENT'S INVESTMENTS WERE UNSUITABLE FOR THEIR AGE AND STATED INVESTMENT OBJECTIVES. AUGUST 2015 UPDATE: SETTLEMENT DEMAND LETTER RECEIVED BY CLIENT'S ATTORNEY LISTS THE FOLLOWING ALLEGATIONS: BREACH OF FIDUCIARY DUTY; UNSUITABLE RECOMMENDATIONS; CONSTRUCTIVE FRAUD, COMMON LAW FRAUD, AND FRAUD BY MATERIAL MISREPRESENTATIONS/OMISSIONS; UNJUST ENRICHMENT; AND FINANCIAL ELDER ABUSE.

$1,797,054.00

The Panel found Mr. Augusta and his prior Firm had engaged in improper conduct, subjected the Claimant to elder abuse and permitted unauthorized trading in the Claimant's account. The Panel awarded Mr. Augusta the sum of $110,000.00 in attorney's fees and costs. However, as a result of Mr. Augusta's improper conduct, the Panel subtracted the commissions he received, plus interest, in the amount of $50,172.00.

CLAIMANTS ALLEGE FRAUD, MISREPRESENTATION, AND BREACH OF FICUDIARY DUTY WITH NUMEROUS PURCHASES OF MUNICIPAL BOND ISSUES INCLUDING, AMONG OTHERS, DANFORTH HEALTH FACILITIES, PURCHASED FIRST IN DECEMBER 1996; TARRANT COUNTY (ST. JOSEPH), PURCHASED FIRST IN JUNE 1997; CITY OF MEXICO BEACH (SEMINOLE), PURCHASED FIRST IN DECEMBER 1998; COUNTY OF SHELBY TN (JACKSON AVENUE APTS), PURCHASED FIRST IN JULY 1999; BEECH GROVE ECONOMIC DEVELOPMENT REVENUE BONDS, PURCHASED FIRST IN OCTOBER 1997.

$3,300,000.00

THE UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF CALIFORNIA, ORDERED ON 8/7/2004 THAT MR. AUGUSTA, BE GRANTED A DISCHARGE FROM DEBTS AGAINST HIM. CLAIMS MADE BY THE [REDACTED] FAMILY WERE INCLUDED IN THE DISCHARGE ORDER.

ALLEGATIONS OF NEGLIGENCE, BREACH OF FIDUCIARY RESPONSIBILITY, FAILURE TO SUPERVISE AND FRAUD IN REGARD TO THE SOLICITATION OF HIGH YIELD BONDS BOTH CORPORATE AND MUNICIPAL WHICH HAVE DEFAULTED. MUNICIPAL BONDS INCLUDE HERITAGE (DANFORTH, TARRANT COUNTY, DESERT HOT SPRINGS AND CHICAGO HEALTH FACILITIES), BEECH GROVE ECO. DEVEL., TUOPELO, MS AND VARIOUS CORPORATE BONDS (SERVICE MERCHANDISE, BOSTON CHICKEN AND GLOBALSTAR TELECOMMUNICATIONS).

$229,256.00

THE UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF CALIFORNIA, ORDERED ON 8/7/2004 THAT MR. AUGUSTA, BE GRANTED A DISCHARGE FROM DEBTS AGAINST HIM. CLAIMS MADE BY NAMED CLAIMANTS WERE INCLUDED IN THE DISCHARGE ORDER.

ALLEGATIONS OF NEGLIGENT MISREPESENTATION, UNSUITABILITY, FRAUD DECEIT, OMMISSION OF FACT, BREACH OF FIDUCIARY DUTY IN REGARD TO THE SALE OF MUNICIPAL (HERITAGE, JACKSON COUNTY) AND CORPORATE BONDS (BOSTON CHICKEN AND SERVICE MERCHANDISE).

$514,845.00

THE UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF CALIFORNIA, ORDERED ON 8/7/2004 THAT MR. AUGUSTA, BE GRANTED A DISCHARGE FROM DEBTS AGAINST HIM. CLAIMS MADE BY NAMED CLAIMANTS WERE INCLUDED IN THE DISCHARGE ORDER.

MISREPRESENTATION OF UNRATED BONDS AS SAFE INVESTMENTS. FRAUD IN REGARD TO THE MISTATEMENT OF PRICE OF UNRATED BONDS ON THE MONTHLY STATEMENT. NEGLIGENCE IN REGARD TO RECOMMENDING HIGH YIELD BONDS WHICH WERE UNSUITABLE FOR ELDERLY CLIENTS RISK ADVERSE INDIVIDUALS.

$500,000.00

THE UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF CALIFORNIA, ORDERED ON 8/7/2004 THAT MR. AUGUSTA, BE GRANTED A DISCHARGE FROM DEBTS AGAINST HIM. CLAIMS MADE BY NAMED CLAIMANTS WERE INCLUDED IN THE DISCHARGE ORDER.

ALLEGATION OF MISREPRESENTATION, SUITABILITY AND ELDER ABUSE IN REGARD TO THE PURCHASE OF MUNICIPAL AND CORPORATE BONDS( HERITAGE, AMERICAN BANKNOTE,SERVICE MERCHANDISE,BOSTON CHICKEN, PIONEER FINANCE, GLOBALSTAR TELECOMUNICATIONS AND BRAZOS SPORTSWEAR)

$107,000.00

$4,000.00

THIS CUSTOMER COMPLAINT IS NO LONGER REPORTABLE. THE ATTORNEY FOR THE CLIENTS GROUPED THE COMPLAINTS TOGETHER TO CREATE A LARGER CLAIM. TWO OF THE CLIENTS INCLUEDED IN THE CLAIM DO NOT BELONG TO THIS BROKER. WE SETTLED WITH ONE OF THE CUSTOMERS WHO WAS THE CLIENT OF ANOTHER BROKER. IT SHOULD BE NOTED THAT THE SOME OF THE CUSTOMERS ARE NOT CLIENTS OF MR. AUGUSTA.

PURCHASE OF HERITAGE HEALTH CARE MUNICIPAL BONDS BETWEEN FEBRUARY OF 1997 AND JANUARY 1999,THAT DEFAULTED. CLIENT ALLEGES THAT THESE INVESTMENTS WERE UNSUITABLE .

$40,000.00

THIS CUSTOMER COMPLAINT IS NO LONGER REPORTABLE. CLIENT PURCHASED HERITAGE BONDS IN BOTH FAMILY TRUST AND IRA ACCOUNT. TOTAL PURCHASE IN BOTH ACCOUNTS IS APPROX $90,000, ONLY CLAIMING ON IRA.

CLIENT ALLEGES MISREPRESENTATION IN REGARD TO THE PURCHASE OF HERITAGE BONDS/MUNICIPAL BONDS WHICH HAVE DEFAULTED.

$168,400.00

ALLEGATION OF MISREPRESENTATION IN THE SALE OF HEALTH CARE MUNICIPAL BONDS WHICH HAVE DEFAULTED. CLIENT'S ALLEGED COMPENSATORY DAMAGES IS $300,0000 AND PUNITIVE IS APPROX. $200,000

ALLEGATIONS OF BEACH OF FIDUCIARY DUTY, CHURNING, MISREPRESENTATION,SUITABILITY AND OMMISSION OF FACTS REGARDING THE PURCHASES OF CORPORATE BONDS(AMERICAN BANKNOTE AND BOSTON CHICKEN) WHICH HAVE DEFAULTED AND GONE INTO CHAPTER 11 BANKRUPTCY. TRADES TOOK PLACE BETWEEN MARCH OF 1997 AND JUNE OF 1999

$312,000.00

THE UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF CALIFORNIA, ORDERED ON 8/7/2004 THAT MR. AUGUSTA, BE GRANTED A DISCHARGE FROM DEBTS AGAINST HIM. CLAIMS MADE BY THE [CUSTOMERS] WERE INCLUDED IN THE DISCHARGE ORDER.

ALLEGATIONS OF NEGLIGENCE,SUITABILITY, MISRESPRESENTATION,BREECH OF FIDUCIARY DUTY REGARDING THE PURCHASE OF MUNICIPAL BONDS (HERITAGE HEALTH CARE) WHICH HAVE DEFAULTED.

$230,771.70

CLIENT PURCHASED MUNICIPAL BONDS ON THE ISSUE WHICH HAVE DEFAULTED. THE UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF CALIFORNIA, ORDERED ON 8/7/2004 THAT MR. AUGUSTA, BE GRANTED A DISCHARGE FROM DEBTS AGAINST HIM. CLAIMS MADE BY THE [CUSTOMER] FAMILY WERE INCLUDED IN THE DISCHARGE ORDER.

CLIENT ALLEGED THAT BROKER MISLED THEM REGARDING THE RISK, AND THE AFFILIATION OF THE HERITAGE FACILITIES. THE CLIENT ALSO ALLEGES BREACH OF FIDUCIARY DUTY, SUITABILITY REGARDING THE SOLICITATION OF HERITAGE BONDS.

$377,000.00

$41,250.00

RESPONDENT IS LIABLE AND SHALL PAY TO CLAIMANT THE SUM OF $41,250.00 TOGETHER WITH PRE-JUDGMENT INTEREST

THE CLIENT ALLEGES MISREPRESENTATION BY BROKER REGARDING THE PURCHASE OF HERITAGE ISSUE MUNCIPAL BONDS WHICH HAD DEFAULTED AND FAILURE TO SUPERVISE AND POOR DUE DILIGENCE ON THE PART OF MILLER & SCHROEDER FINANCIAL.

$45,000.00

THE UNITED STATES BANKRUPTCY COURT, SOUTHERN DISTRICT OF CALIFORNIA, ORDERED ON 8/7/2004 THAT MR. AUGUSTA, BE GRANTED A DISCHARGE FROM DEBTS AGAINST HIM. CLAIMS MADE BY NAMED CLAIMANTS WERE INCLUDED IN THE DISCHARGE ORDER.

CLIENT PURCHASED HIGH YEILD MUNICIPAL AND CORPORATE BONDS FROM THE BROKER THAT THE CUSTOMER CLAIMED WERE UNSUITABLE FOR AN ELDERLY INDIVIDUAL, BASED ON AGE, TAX BRACKET, RISK TOLERANCE AND INVESTMENT OBJECTIVES. MUNICIPAL BONDS WERE PURCHASED ON THE ISSUE AND SUBSEQUENTLY DEFAULTED

$230,000.00

$833,125.00

$243,125 COMPENSATORY DAMAGES; $240,000 ATTORNEYS' FEES; $350,000 EXEMPLARY DAMAGES