Vindication Recovery Services Paul Shechter THEIF Paul Shechter former stockbroker now working with ambulance chasers Mt. Sanai New York
Let me start out by saying that I'm an investor that dealt with a broker that had a relationship that went bad. This happened from 2008 to 2010. Paul Shechter called me saying he owns a company called Vindication Recovery Services. He said he has a tremendous amount of experience in dealing with people who have had problems with their broker in the past. The only experiece I think he has is that he himself lost people in the stock market. I say this because I found out recently that he was a former stockbroker. I found a website called FINRA.org and typed in his name. It shows his background. It showed that Paul had worked for about a dozen firms in about a ten year period. It also showed that he defrauded investors himself. I wish I knew this when he called me originally. That's why I'm posting this information. I guess now Pauls trying to "help investors".
Consequently, after speaking with Paul he had an attorney call me. The attorney was somewhat new practicing law. He practiced law for only a few years but sounded very good. The attorney said he wouldn't charge me any fees. Long story short the attorney lost my case and put liens on me so he could get paid. I didn't read the fine print. Unfortunately I just finished paying the liens off because I do alot of real estate and couldn't have it affect a loan I was applying for at the time. It cost me about about 10k. In hindsight I should of just licked my wounds and went on my way. Besides now that I think about it what kind of attorney what affiliate with someone like Paul. I guess just an ambulance chaser. Regardless, think of this if you plan on doing business with Paul......Where and how did Paul get my phone number and how did he know I had lost money in the stock market? Interesting.....
4 Updates & Rebuttals
CHRIS V
New York,PAUL SCHECTER
#5REBUTTAL Owner of company
Mon, November 03, 2014
PAUL SHECTER IS JUST A BROKER THAT CHURNED ACCOUNTS TO EVENTUALLY HE GOT THROWN OUT OF THE SECURITIES BUSINESS. HES WHAT YOU CALL A PIKER IN THE SECURITIES BUSINESS. HES THE LOWEST OF SCUM! HE HAS NO SKILL SET AT ALL BUT TO BOTTOM FEED OF OTHERS.
Anonymous
lansing,Michigan,
PAUL SHECHTER RECORD FROM REGULATING AGENCY FINRA
#5Consumer Comment
Fri, October 10, 2014
Below was copied directly from FINR.ORG, a government agency that regulates the business "Paul" was in. He no longer is allowed to be in that business. You may go to the website yourself and click broker check to see on your own. As you will see he worked for about 15 companies in about 13 years.
PAUL. SHECHTER
CRD# 2589423
This broker is not currently registered.
The following types of disclosures have been reported:
Type Count
Regulatory Event 2
Customer Dispute 5
This broker has passed:
• 0 Principal/Supervisory Exams
• 1 General Industry/Product Exam
• 1 State Securities Law Exam
OBSIDIAN FINANCIAL GROUP, LLC
CRD# 104255
HAPPAUGE,NY
06/2011 - 10/2011
ITRADEDIRECT.COM CORP
CRD# 18281
FARMINGVILLE, NY
06/2005 - 05/2010
GUNNALLEN FINANCIAL, INC
CRD# 17609
TAMPA, FL
03/2003 - 06/2005
Registration Dates Firm Name
06/2011 - 10/2011 OBSIDIAN FINANCIAL GROUP, LLC
06/2005-05/2010 ITRADEDIRECT.COM CORP
03/2003 - 06/2005 GUNNALLEN FINANCIAL, INC
01/2003- 04/2003 AMERICAN CAPITAL PARTNERS, LLC
07/2000 - 12/2002 MILESTONE FINANCIAL SERVICES, INC.
09/1998-08/2000 JOSEPHTHAL & CO., INC.
08/1997 -09/1998 SEABOARD SECURITIES, INC.
05/1997-08/1997 CONTINENTAL BROKER-DEALER CORP.
10/1996- 02/1997 WORTHINGTON CAPITAL GROUP, INC.
03/1996-10/1996 CONTINENTAL BROKER-DEALER CORP.
08/1995- 02/1996 STERLING FOSTER & COMPANY, INC.
05/1995-07/1995 VTR CAPITAL, INC.
04/1995 - 0511995 STERLING FOSTER & COMPANY, INC.
Employment Dates Employer Name
06/2011 – Present OBSIDIAN FINANCIAL GROUP
05/2010 - 05/2011 UNEMPLOYED
04/2010 - 04/2010 EKN FINANCIAL SERVICES, INC
06/2005 - 04/2010 ITRADEDIRECT.COM CORP
03/2003 - 06/2005 GUNNALLEN FINANCIAL
Disclosure 1 of 2
Reporting Source: Regulator
Regulatory Action Initiated FINRA
Bv:
Sanction(s) Sought: Other: N/A
Date Initiated: 09/26/2013
Docket/Case Number: 2009016159107
Employing firm when activity ITRADEDIRECT.COM
occurred which led to the
regulatory action:
Product Type: Equity Listed (Common & Preferred Stock)
Allegations:
FINRA RULE 2010, NASO RULES 2110, 2310. 3110(A) - PAUL SHECHTER COLD CALLED INDIVIDUALS TO SELL THEM STOCK. OPENED NEW ACCOUNTS IN THEIR NAMES AND PLACED ORDERS TO BUY STOCKS IN THEIR NAMES WITHOUT DISCUSSING FINANCIAL CONDITION. RISK TOLERANCE OR INVESTMENT OBJECTIVES AND WITHOUT THEIR AUTHORIZATION. SHECHTER MADE A TRADE IN ONE INDIVIDUAL'S ACCOUNT USING MARGIN WITHOUT AUTHORIZATION. SHECHTER MADE RECOMMENDATIONS TO THE CUSTOMERS WITHOUT OBTAINING ACCURATE INFORMATION NECESSARY TO MAKE SUITABILITY DETERMINATIONS AND CREATED FALSE NEW ACCOUNT DOCUMENTATION WHICH SET FORTH FALSE. INACCURATE AND/OR BASELESS INFORMATION REGARDING THE CUSTOMERS' INCOME. NET WORTH. INVESTMENT EXPERIENCE AND/OR RISK TOLERANCE.
SHECHTER CAUSED HIS MEMBER FIRM TO VIOLATE SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-(3}(17)(1)(A) BY CREATING AND MAINTAINING FALSE RECORDS OF THESE ITEMS. SHECHTER CAUSED INDIVIDUALS TO MAKE EXCESSIVE TRADES IN THEIR ACCOUNTS THAT RESULTED IN ANNUALIZED COST-TO-EQUITY RATIOS RANGING FROM APPROXIMATELY 57 PERCENT TO 235 PERCENT.
Current Status Final
Resolution: Decision & Order of Offer of Settlement
Does the order constitute a No final order based on violations of any laws or regulations that prohibit fraudulent. manipulative, or deceptive conduct?
Resolution Date: 04/28/2014
Sanctions Ordered: Civil and Administrative Penalty(ies)/Fine(s) Suspension
If the regulator Is the SEC, No CFTC, or an SRO, did the action result In a finding of a wlllful violation or failure to supervise?
Sanction Type: Suspension
Capacities Affected: ANY CAPACITY
Duration: TWO YEARS
Start Date: 05/05/2014
End Date: 05/04/2016
Monetary Related Sanction: Civil and Administrative Penalty(ies)/Fine(s)
Total Amount: $25,000.00
Portion Levied against $25,000.00
Individual:
Payment Plan: DEFERRED
Is Payment Plan Current:
Date Paid by Individual:
Was any portion of penalty No waived?
Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, SHECHTER CONSENTED TO THE SANCTIONS ANO TO THE ENTRY OF FINDINGS THAT HE PLACED PURCHASES IN THE NAMES OF A NUMBER OF CUSTOMERS THAT WERE UNAUTHORIZED. THE FINDINGS STATED THAT NONE OF THOSE CUSTOMERS AGREED TO PURCHASE SECURITIES. IN ADDITION, SHECHTER OPENED ACCOUNTS IN THE NAMES OF SOME CUSTOMERS WITHOUT THEIR AUTHORIZATION. NONE OF THOSE CUSTOMERS AGREED TO OPEN AN ACCOUNT WITH SHECHTER'S MEMBER FIRM. THE FINDINGS ALSO STATED THAT SHECHTER MADE TRADES IN ONE CUSTOMERS ACCOUNT WITHOUT AUTHORIZATION, ANO USED MARGIN ON ONE TRADE WITHOUT AUTHORIZATION. THE FINDINGS ALSO INCLUDED THAT SHECHTER MADE RECOMMENDATIONS TO CUSTOMERS WITHOUT OBTAINING ACCURATE INFORMATION NECESSARY TO MAKE SUITABILITY DETERMINATIONS. THE INFORMATION THAT HIS FIRM FAILED TO OBTAIN INCLUDED THE INVESTMENT OBJECTIVES, RISK TOLERANCE, FINANCIAL CONDITION, AND INVESTMENT EXPERIENCE OF THE CUSTOMERS. FINRA
FOUND THAT SHECHTER CREATED FALSE NEW ACCOUNT DOCUMENTATION, INCLUDING FALSIFIED NEW ACCOUNT INFORMATION SHEETS ANO NEW ACCOUNT APPLICATIONS FOR SOME CUSTOMERS. BY CREATING AND MAINTAINING FALSE RECORDS OF THOSE ITEMS, SHECHTER CAUSED HIS FIRM TO VIOLA TE SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-(3)(17)(1)(A). FINRA ALSO FOUND THAT SHECHTER ENGAGED IN EXCESSIVE TRADING IN THE ACCOUNTS OF SEVERAL CUSTOMERS. SHECHTER EXERCISED CONTROL OVER THOSE ACCOUNTS, AND CAUSED THEM TO MAKE EXTREMELY EXCESSIVE NUMBERS OF TRADES ANO INCUR VERY HIGH COSTS. EXCESSIVE TRADING IS INHERENTLY UNSUITABLE.
Disclosure 2 of 2
Reporting Source: Regulator
Regulatory Action Initiated ILLINOIS SECURITIES DEPARTMENT
Bv: Sanctlon(s) Sought: Prohibition
Restitution
Date Initiated: 12/07/2007
Docket/Case Number: 0700550
Employing firm when activity INTRADIRECT.COM CORP.
occurred which led to the regulatory action:
Product Type: Equity Listed (Common & Preferred Stock)
Allegations: THE DEPARTMENT RECEIVED A COMPLAINT FROM AN ILLINOIS INVESTOR WHO ALLEGED THAT HIS ITRADEDIRECT.COM SALESPERSON REPRESENTATIVE, PAUL SHECHTER, HAD NOT FOLLOWED CERTAIN INSTRUCTIONS REGARDING THE MANAGEMENT OF HIS INVESTMENT ACCOUNT. AFTER THE DEPARTMENT'S INVESTIGATION, PAUL SHECHTER BRIAN SANDERS (MR. SHECHTER'S SUPERVISOR), AND ITRADEDIRECT.COM (COLLECTIVEL Y, THE "RESPONDENTS") ENTERED INTO A CONSENT ORDER WITH THE DEPARTMENT WHEREIN THE RESPONENTS NEITHER ADMITTED NOR DENIED THE ALLEGATIONS OF FACT OR CONCLUSIONS OF LAW MADE THEREIN, BUT DID AGREE TO CERTAIN UNDERTAKINGS. THE DEPARTMENT ALLEGED THAT SEVERAL MONTHS INTO THE RELATIONSHIP BETWEEN INVESTOR AND RESPONDENTS INVESTOR HAD A SIZEABLE QUANTITY OF SECURITIES TRANSFERRED INTO HIS ITRADEDIRECT ACCOUNT. PRIOR TO THE TRANSFER INVESTOR AND MR SHECHTER HAD DISCUSSED A TENTATIVE PLAN ON POSSIBLY LIQUIDATING A PORTION OF THE STOCK TO BE REINVESTED ELSEWHERE IN THE MARKET. AROUND THE TIME OF THE STOCK TRANSFER INVESTOR HAD ALSO INSTRUCTED SHECHTER TO CEASE MARGIN TRADING. SOON AFTER THE STOCK TRANSFER ALL OF THE STOCK WAS LIQUIDATED AND THE PROCEEDS USED TO REINVEST THROUGH INVESTOR'S MARGIN ACCOUNT. THE DEPARTMENT ALLEGED THAT THIS CONDUCT CONSTITUTED A VIOLATION OF SECTION 12.F OF THE ILLINOIS SECURITIES LAW OF 1953M AND THAT MR. SANDERS AND ITRADEDIRECT, WHICH LED SUPERVISORY AUTHORITY OVER MR. SANDERS, HAD VIOLATED SECTION 8.E(1 )(E)(I) OF THE ACT FOR FAILING TO SUPERVISE MR. SHECHTER. RESPONDENTS AGREED TO CERTAIN UNDERTAKINGS INCLUDING PAYING THE INVESTOR RESTITUTION OF $150,000.00, RETAINING AN ADDITIONAL PRINCIPAL AS PART OF ITS COMPLIANCE AND SUPERVISORY TEAM, AND REVIEWING CERTAIN ACCOUNTS MANAGED BY MR. SHECHTER. THERE WERE NO FINED OR COSTS LEVELED AGAINST ANY OF THE RESPONDENTS.
Current Status: Final
Resolution: Consent
Does the order constitute a Yes final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct?
Resolution Date: 01/13/2010
Sanctions Ordered: Restitution
Monetary Related Sanction: Restitution
Total Amount: $150,000.00
Portion Levied against $0.00
Individual:
Payment Plan: MONTHLY FOR APPROXIMATELY 12 MONTHS
Is Payment Plan Current:
Date Paid by Individual:
Was any portion of penalty No
waived?
Amount Waived:
Regulator Statement:
NOTICE OF HEARING WAS ISSUED ON MAY 13, 2009. THE CONSENT ORDER WAS ISSUED JANUARY 13, 2010. CONTACT (312) 793-3164
Disclosure 1 of 2
Reporting Source: Broker
Employing firm when I-TRADEDIRECT.COM CORP
activities occurred which led to the complaint:
Allegations:
EXCESSIVE COMMISSIONS. CLIENT FELT THAT THE REP HAD CHARGED HIM MORE THAN THEY HAD PREVIOUSLY AGREED TO ON TRADES.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages $9,900.00
Date Complaint Received: 09/21 /2007
Complaint Pending? No
Status: Settled
Status Date: 09/26/2007
Settlement Amount: $9,900.00
Individual Contribution $7,425.00
Amount:
Disclosure 2 of 2
Reporting Source: Firm
Employing firm when MILESTONE FINANCIAL SERVICES. INC
activities occurred which led to the complaint:
Allegations:
ALLEGE NEGLIGENT HANDLING OF ACCOUNT DURING VOLATILE MARKET CONDITIONS AND UNAUTHORIZED TRADING Product Type: Equity - OTC
Alleged Damages: $233,794.00
Date Complaint Received: 03/03/2003
Complaint Pending? No
Status: Arbitration/Reparation
Status Date: 03/03/2003
Settlement Amount:
Individual Contribution
Amount:
Arbitration/Reparation Claim NASO DISPUTE RESOLUTION CASE NUMBER 03-00202
flied with and Docket/Case
No.:
Date Notice/Process Served: 03/03/2003
Arbitration Pending? No
Disposition: Settled
Disposition Date: 04/16/2004
Monetary Compensation $66,000.00
Amount:
Individual Contribution $39,600.00
Amount:
Disclosure 1 of 3
Reporting Source: Broker
Employing firm when ITRADEDIRECT.COM CORP.
activities occurred which led to the complaint:
Allegation s: CLIENT ALLEGES UNAUTHORIZED TRADING AND UNAUTHORIZED USE OF MARGIN.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $62,000.00
Is this an oral complaint? No
Is this a written complaint? Yes
Is this an arbitration/CFTC No
reparation or civil litigation?
Date Complaint Received: 05/27/2009
Complaint Pending? No
Status: Denied
Status Date: 06/01/2009
Disclosure 2 of 3
Reporting Source: Broker
Employing firm when ITRADEOIRECT .COM
activities occurred which led
to the complaint:
Allegations: UNAUTHORIZED TRADING DURING PERIOD 11/24 TO 12/04/2008
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $16,500.00
Date Complaint Received: 12/04/2008
Complaint pending? No
Status: Denied
Status Date: 12/11/2008
Disclosure 3 of 3
Reporting Source: Broker
Employing firm when ITRADEDIRECT.COM
activities occurred which led
to the complaint:
Allegations:
ULY 2007 TO SEPT 2008
CLIENT COMPLAINS OF LOSSES IN HIS ACCOUNT THAT HE ATTRIBUTES
TO LACK OF DISCLOSURE REGARDING MARGIN AND SHORT SALES.
Product Type: Equity Listed (Common & Preferred Stock)
Alleged Damages: $40,761.68
Date Complaint Received: 10/01/2008
Complaint Pending? No
Status: Denied
Status Date: 10/02/2008
joalto
deer park ,New York,
paul shecter
#5UPDATE EX-employee responds
Mon, July 28, 2014
http://brokercheck.finra.org/Support/ReportViewer.aspx?SearchGroup=Individual&FirmKey=-1&BrokerKey=2589423
Vindication Recovery Services Inc.
East Setauket,New York,
Michael McGregor From Michigan Was Never a VRS Client
#5REBUTTAL Owner of company
Mon, March 10, 2014
Vindication Recovery Services (VRS) has been in business since 2010 helping investors understand their rights and also helping those investors that became victims of stockbroker wrong doing by successfully recovering losses via mediation and arbitration proceedings. Upon researching the details of this complaint, VRS categorically denies all of the misrepresentations contained therein. For starters, VRS has never represented any individual named Michael McGregor, in fact we have never filed claims for anyone in Michigan. A quick public records search will verify this. Additionally, VRS has never filed or enforced a lien against a client without first obtaining a settlement or disposition on behalf of a client. Our entire business model is contingency based. We eliminate client risk by assuming all fees and costs up front and the client never pays anything unless we are successful. That is why we are very selective about our clientele and celebrate a 99% successful recovery rate. The assertion by anyone that they paid anything without a successful recovery is categorically untrue.
Paul Shechter is a partner at VRS, having previously spent over 15 years in the brokerage industry where he was witness to many broker abuses. After reaching his limit, Paul left the industry knowing he had to do something to give a voice to the investors. When you evaluate Paul’s lengthy and successful career, including the thousands of clients who took advantage of Paul’s market recommendations and who benefited greatly, it is easy to conclude that the assertions made in this report are the workings of a spiteful stockbroker who himself was exposed for his fraudulent behavior and held accountable by Mr. Shechter’s team. Using an alias, Michael McGregor fabricated the entire complaint to deliberately discredit VRS and their team.
Since establishing VRS, Mr. Shechter and his colleagues have worked with hundreds of investors to expose unscrupulous brokers and hold them accountable. Clearly this has created a financial and professional impact against those brokers who otherwise made a living for years by taking advantage of investors. Mr. Shechter and his associates have become the target of desperate brokers attempting to discredit him in order deflect their own conduct. The team at VRS will defend its reputation and stand by the results it has produced for its numerous clients.
Finally, VRS solicits customers no differently than any other business and uses public records to identify potential clients. Any assertions otherwise are simply unfounded. VRS prides itself for our impeccable record of service and have never once received a complaint from any of the actual clients that we have represented. We invite the person who wrote this inaccurate complaint to step forward and contact us directly. We look forward to confronting these accusations and clear our reputation of these falsehoods.