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Tampa-Based IBD to Absorb Zombie Firm

16:38 21 March in In the News by rafferty

March 20, 2019 By Diana Britton, WealthManagement Calton & Associates has filed for an asset purchase of accounts that choose to come over from Capital Financial Services, which has some compliance baggage. Capital Financial Services, a small independent broker/dealer in Minot, N.D., will shut down its b/d operations, and its some 100 reps will be absorbed by Tampa, Fla.-based Calton & Associates, a midsize IBD that has done similar asset purchases in the past. President Dwayne Calton confirmed his firm has filed with regulators to pursue an asset purchase of customer accounts at CFS that choose to come over. He said they would like to keep the firm’s North Dakota back-office operations intact, depending on how many reps eventually switch. The deal is pending regulatory approval, but Calton is not acquiring the broker/dealer, which has had...

Financial Planning logo

Ladenburg not dependent on ex-chairman’s capital for growth, CEO says

16:01 02 October in In the News by rafferty

October 1, 2018 By Tobias Salinger, Financial Planning The SEC charges against Ladenburg Thalmann’s primary shareholder will not affect access to capital for its 4,300-advisor independent broker-dealer network, CEO Dick Lampen says. Phillip Frost retired from the Miami-based firm’s board on Sept. 20, two weeks after the SEC accused him of involvement with a $27 million pump-and-dump scheme. In addition to the network of five IBDs, Ladenburg’s subsidiaries also include its 139-year old investment bank, an asset management unit, an insurance brokerage and a trust division. The company’s various entities hold $250 million in cash with a book value above $390 million, Lampen noted in a statement. Ladenburg is “very pleased about how well-positioned our company is today for continued industry leadership,” he said, noting it also has $600 million “in permanent capital and long-term...

ThinkAdvisor logo

Frost Out as Ladenburg Chairman

19:09 22 September in In the News by rafferty

September 21, 2018 By Janet Levaux,  ThinkAdvisor He steps down in the wake of fraud charges at another firm he leads. Ladenburg Thalmann, which owns the Securities America and four other independent broker-dealers, says Dr. Phillip Frost has resigned as chairman. His replacement is President and CEO Richard Lampen. Earlier this month, regulators filed fraud charges against Frost, a billionaire investor who is chairman and CEO of Opko Health, and others. According to the SEC complaint: “In every scheme, [investor Barry] Honig, and some combination of [four other investors] and Frost, either explicitly or tacitly agreed to buy, hold or sell their shares in coordination with one another, knowing that a pump and dump was in the offing that would allow them all to profit handsomely.” But at least one IBD recruiter sees the fallout...