• Report: #1123260

Complaint Review: Vindication Recovery Services

  • Submitted: Thu, February 13, 2014
  • Updated: Fri, October 10, 2014

  • Reported By: Michael S. McGregor — Michigan
Vindication Recovery Services
27 Little Harbor Road Mt. Sinai, NY11766 Mt. Sanai, New York USA

Vindication Recovery Services Paul Shechter THEIF Paul Shechter former stockbroker now working with ambulance chasers Mt. Sanai New York

*REBUTTAL Owner of company: PAUL SCHECTER

*Consumer Comment: PAUL SHECHTER RECORD FROM REGULATING AGENCY FINRA

*UPDATE EX-employee responds: paul shecter

*REBUTTAL Owner of company: Michael McGregor From Michigan Was Never a VRS Client

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 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.....


This report was posted on Ripoff Report on 02/13/2014 06:41 AM and is a permanent record located here: http://www.ripoffreport.com/r/Vindication-Recovery-Services/Mt-Sanai-New-York-11766/Vindication-Recovery-Services-Paul-Shechter-THEIF-Paul-Shechter-former-stockbroker-now-wor-1123260. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 2Consumer 2Employee/Owner
Updates & Rebuttals

#1 REBUTTAL Owner of company

PAUL SCHECTER

AUTHOR: CHRIS V - ()

 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. 

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#2 Consumer Comment

PAUL SHECHTER RECORD FROM REGULATING AGENCY FINRA

AUTHOR: Anonymous - ()

 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

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#3 UPDATE EX-employee responds

paul shecter

AUTHOR: joalto - ()

http://brokercheck.finra.org/Support/ReportViewer.aspx?SearchGroup=Individual&FirmKey=-1&BrokerKey=2589423

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#4 REBUTTAL Owner of company

Michael McGregor From Michigan Was Never a VRS Client

AUTHOR: Vindication Recovery Services Inc. - ()

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.

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