Harrison Schumacher & Quantum Energy Named In SEC Action

August 27, 2015

The Securities and Exchange Commission (SEC) has alleged that Harrison Schumacher and his two Los Angeles companies, Quantum Energy LLC and Quaneco LLC, raised over $12.3 million from some 300 investors in connection with oil and gas offerings that were not registered. The complaint, which was filed in Los Angeles seeks an emergency asset freeze.

The SEC alleges that instead of using the funds for the stated purpose of exploration and development of oil and gas reserves, the money was used to pay Schumacher’s personal lavish living expenses.

Quantum’s former co-founder Paul Mysyk entered into a cooperation agreement with the SEC and reached a settlement on charges against him.

 

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

SEC Names West Palm Beach Man in Boiler Room Securities Fraud

August 20, 2015-West Palm Beach, FL

Moshe Yehuda Dunoff was charged by the Securities and Exchange Commission (SEC) with participating in a boiler room fraud that raised over $1.5 million from 58 investors in 14 countries. Victims were led to believe they were investing in the purchase and sale of discounted U.S. Securities.

The SEC alleges that from at least January 2009 through December 2010, Dunoff played a central role in a scheme in which individuals located in Southeast Asia made unsolicited telephone calls to prospective investors, claiming that they worked for a Chicago-based broker-dealer named Gruber and Green, Inc. and proposing a no-lose investment strategy. The SEC alleges that Gruber and Green was a non existent company and that investors lost their entire investment.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Iowa Regulators Name Austin Texas Residents In Oil & Gas Securities Fraud Action

August 28, 2015

Iowa Insurance Commissioner Nick Gerhart issued a cease and desist order to the following Austin, Texas residents:

  • Carson Energy, Inc.                           
  • Earl Carter Bills II    
  • Anthony Weber
  • Jerrold S. Rothouse    

The order alleges that Iowans have been defrauded out of more the $2.1 in connection with the sale of unregistered oil & gas investments. The Iowa Insurance Division assists Iowans who have been the victim of insurance or securities fraud.

The Statement of Charges filed in conjunction with the order alleges that Weber made a cold call telephone call to an Iowa citizen  and offered the chance to invest in an oil and gas project known as the Carson Energy Group Lucky #1 3D 2011. Following this were offers to invest in other oil and gas projects from Carson Energy, the Cardinal #1 3D 2011, the River Bend #1/ Hammock #1 3D 2012 and the 2011 S.W. Queensland, Austrailia Seismic Participation Joint Venture.

Damages of $2.1 million plus costs of over $14,000 are sought by theState of Iowa.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

San Antonio Man Admits Laundering $66 Million From Mexican Investor

August 26, 2015- San Antonio, Texas

The FBI reports that Armando Jesus Hernandez Leal, 53, of Shavano Park, Texas, pleaded guilty to federal money laundering charges in connection with a multimillion dollar investment scam.

Hernandez was arrested in March, 2015, accused of stealing $66 million from clients in Mexico and using the money to buy a mansion in Shavano Park, homes in Colorado and Cancun, planes and jewelry.

For more details, see San Antonio Express-News story.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Dennis Flood of Medina County Ohio Sentenced For Insurance Scam

August 26, 2015- Cleveland, Ohio

Cleveland.com reports that Dennis Flood, 64, of Brunswick, Ohio, pleaded guilty to engaging in a pattern of corrupt activity and aggravated theft for stealing  from 43, mostly elderly, people by selling them fake insurance and investments.

Flood’s victims, mostly from Ohio, but some of whom were from Western Pennsylvania, lost over $1.1 million. He was sentenced to eight years in prison.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

St. Tammany SALT Council to Hold “Money Smart for Older Adults Seminar” Sept. 9, 2015

August 27, 2015- Slidell, Louisiana

The St. Tammany SALT Council, the Council on Aging St. Tammany (COAST) and Gulf Coast Bank & Trust are holding a free seminar  on Financial Exploitation for seniors at the Slidell Senior Center on September 9, 2015, 12:30-2:30 pm.

The program, which was developed by the Consumer Financial Protection Bureau and the Federal Deposit Insurance Corporation, will help seniors understand various schemes used to exploit money and assets from seniors.

To pre-register for the Money Smart for Older Adults seminar, contact the COAST Center at 985-641-1852 or visit the website.

COAST Slidell Senior Center is located at 610 Cousin Street, Slidell, LA, 70458.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

E1 Asset Management Sanctioned by Securities Regulators for Supervisory Deficiencies

June 5 , 2015

E1 Asset Management , entered into a Letter of Acceptance, Waiver and Consent (AWC)  with the Financial Industry Regulatory Authority (FINRA) to resolve numerous allegations related to supervision, including allegations that the company:

  • failed to establish and maintain a reasonable supervisory system
  • failed to conduct reasonable reviews designed to detect and prevent churning in customer accounts
  • failed to implement suitability reviews in customer accounts
  • failed to enforce the firm’s Heightened Supervision Program.
  • entered into numerous settlement agreement with customers that contained an ambiguous confidentiality clause that could be interpreted by customers as prohibiting them from cooperating with securities regulators in violation of NASD and FINRA rules.

Ron Y. Itin and Ahsan R. Shaikh, both General Securities Principals of the company,  were also sanctioned in the AWC for their participation in the regulatory failures.

AWC  No. 2010025835701

E1 Asset Management was censured and fined $25,000.  Itin and Shaikh were suspended from acting in a supervisory capacity for one month each.

E1 Asset Management has been registered as an introducing broker-dealer since 9/2009. Its main office is in Jersey City with branch offices in New York City, Cortlandt Manor, New York, and Alexandria Virginia.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Former MML Investors Services Broker From Neptune Beach, FL, Arrested in Iowa for Forgery & Theft

July 1, 2015

The Financial Industry Regulatory Authority (FINRA) entered a default decision against Jeffrey Alan Stewart barring him from associating with any FINRA member in any capacity for converting customer funds, impersonating a customer and failing to respond to FINRA requests for information and testimony. Disciplinary Proceeding 2012035316101. 

According to the FINRA pleadings Stewart was registered with Valic Financial Advisors from July 2009-May 2011. In August 2011, Stewart became registered with MML Investor Services, LLC, where he remained until he was terminated in 12/2012 by MML Investor Services ” in connection with allegations concerning an unauthorized product replacement”.

FINRA found that after leaving Valic to join MML Investor Services, Stewart impersonated one of his clients and converted $54,000 from the customer’s account at Valic.

On August 24 2015, the Iowa City Press-CItizen reported that Jeffrey Alan Stewart, 52, of Neptune Beach, FL, was charged with the felonies of securities fraud ,  forgery and first degree theft. He posted a $30,000 bond in Johnson County Court according to the report.

If you suffered losses in an account handled by Stewart, call to discuss your legal options.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Former Cambridge Investment Research Broker Charged with Felony

August 19, 2015,

Francesco Puccio , entered into a Letter of Acceptance, Waiver and Consent (AWC)  with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he would not provide documents and information in connection with a FINRA investigation into allegations that he converted funds from a non-firm customer.

AWC  No. 2015046238101

Puccio was permanently barred from the securities industry. According to FINRA records, Puccio’s registration history includes the following:

  • Cambridge Investment Research                           1/2014-7/2015
  • Axa Advisors, LLC                                                             1/2011-1/2014
  • CCO Investment Services                                            8/2009-1/2011

FINRA records indicate that Puccio has been charged with second degree grand larceny in Wheatland Town Court, Monroe County, New York. If you suffered losses in an account handled by Puccio, call to speak with an experienced securities attorney to discuss your legal options.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

FSC Securities Broker Sanctioned for Outside Business Activities-Missoula, Montana

August19, 2015,

Barry George Hartman , entered into a Letter of Acceptance, Waiver and Consent (AWC)  with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he engaged in outside business activities without providing written notice to his member firm FSC Securities Corporation. In addition, according to the AWC, Hartman participated in private securities transactions without obtaining the required approval of FSC Securities.

AWC  No. 2015044671601

Hartman was permanently barred from the securities industry. According to FINRA records, Hartman  was registered with FSC Securities in Missoula, MT.,  from 2/2002-3/2015, and there are 8 pending and 2 final customer disputes disclosed on his FINRA record.

If you lost money as a result of an account handled by Hartman, you may be entitled to damages from his former employer.

Rex Securities Law , located in Boca Raton, FL, (and soon to be opening a second office in Bee Cave, just outside of Austin, TX) provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Current information for investors seeking information on recovery of investment losses due to the negligence or fraud of stockbrokers and brokerage firms. Nationwide representation.