Dawson James Securities Sanctioned by FINRA

In March 2014, the Financial Industry Regulatory Authority sanctioned Dawson James Securities, fining them $75,000 and requiring the firm to revise  their Written Supervisory Procedures (WSPs).

In FINRA Case # 2008012546802 , the industry regulator found numerous portions of the written supervisory procedures to be deficient  including the following areas:

  • Broker’s disclosure of potential conflicts of interests to clients
  • Brokers trading in opposite directions of solicited customer transactions
  • Unauthorized trading
  • Suitability
  • Excessive trading
  • Free riding
  • Concentrations of securities in client accounts
  • Wash sales
  • The firm failed to investigate numerous “red flags” relating to the activities of a broker

Dawson James Securities was formed in 2002 and is headquartered in Boca Raton, FL. They also have offices in New York City, Columbia, Maryland, Santa Clara, California, and Manasquan, New Jersey.

Rex Securities Law provides nationwide representation to investors 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

Montgomery County Maryland Announces Senior Citizen Fraud Task Force

Montgomery County Maryland announced the formation of a new public service unit in the State Attorney’s Office, “Crimes Against Seniors and Vulnerable Adults” which will target financial exploitation, physical abuse and neglect of anyone age  65 or older.

County officials anticipate having more seniors in Montgomery County in 2020 that school aged children.

See webpage for the new government unit on the Office of the State’s Attorney for Montgomery County, Maryland website for contact information.

Rex Securities Law provides nationwide representation to investors 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

Texas Regulators File Cease & Desist vs. James Bona/ Quixote Xploration

On October 20, 2014, John Morgan, Securities Commissioner of Texas signed an emergency cease and desist order against Quixote Xploration LLC, and its President and CEO James Patrick Bona. Quixote Xploration offices at 777 S. Post Oak Lane, Suite 1700, Houston, TX. Bona has an address at 315 Southeast 23rd Ave., Apt 1, Pompano Beach, FL.

According to the Order Quixote and Bona have been offering investments in oil and gas to the general public at www.quixotexploration.com and are also advertising on www.fundable.com and www.startups.co .

The Order alleges that Quixote was offering an interest in a prospect located in South Louisiana known as the Powell Prospect, however Quixote did not own an interest in the Power Prospect and it had not been registered for sale in Texas. In addition Bona has a criminal history, in March 2013, he was sentenced to 98 months in Florida State Prison for securities fraud and grand theft and ordered to pay restitution of over $600,000. State of Florida v James Patrick Bona, Case #08-2154CF10A. In 2004, he  was sentenced by a Broward County, FL, court to 3 years probation for dealing in stolen property. In 2000, he was sentenced to 33 months in Florida State Prison and 12 years probation for grand theft in the second degree.

Bona and Quixote are ordered to cease and desist offering unregistered securities for sale in Texas and from engaging in any fraud in connection the offer for sale of any security in Texas.

Rex Securities Law provides nationwide representation to investors 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

Man Sentenced to 5 Years For Stealing Life Savings From Wichita Falls Couple

Dallas, TX- On October 20, 2014, U.S. Attorney Sarah Saldana of the Northern District of Texas announced that Paul Eugene Prewitt, 44, was sentenced by U S District Judge Reed C. O’Connor to 60 months, the statutory minimum sentence and ordered to pay nearly $250,000 restitution for defrauding a Wichita Falls couple out of their life savings.

Prewitt used a series of fraudulent, false and fictitious investment opportunities to defraud an elderly couple out of their retirement savings. Touting a purported condominium project in Utah, Prewitt convinced the couple to send all of their retirement savings to him. He used the money for personal expenses and none was invested.

If it sounds too good to be true, it generally is. Don’t fall victim to exaggerated and unrealistic promises, especially from promoters who are not registered securities brokers.

Rex Securities Law provides nationwide representation to investors 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

Agencies Clarify Privacy Provisions of Gramm- Leach-Bliley Act When Reporting Suspected Financial Abuse of Seniors

In September 2014, eight federal agencies (Federal Reserve, Commodity Futures Trading Commission, Consumer Financial Protection Bureau, FDIC, FTC, National Credit Union Admin, Office of the Comptroller and the SEC) issued guidance to financial institutions to clarify applicability of the Gramm-Leach-Bliley Act to reporting suspected financial exploitation of the elderly.

The ACT contains several exemptions allowing the reporting of suspected financial exploitation of seniors and elderly, either at the request of a local, state or federal agency or upon the initiative of the financial institution.

Rex Securities Law provides nationwide representation to investors 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

Free Elder Abuse Seminars Set in Greensboro, North Carolina

Oct. 21, 2014-Greensboro, North Carolina

Elder abuse seminars sponsored by the Triad Retirement LIving Association, the Greensboro Bar and other associations are set for later this week.

Thurs. Oct 23, 2014-Smith Senior Center-for seniors and general public. Free brunch.

Friday Oct. 24, 2014-UNCG Elliot University Center-For professionals. Free breakfast.

Follow this link to the WFMY News link for contact information for these free seminars on how to spot and avoid physical and financial abuse of seniors. Sign up on-line for free by e-mailing: communityrelations@greensboro-nc.gov or by calling 336-373-2723.

Rex Securities Law provides nationwide representation to investors 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

Texas Investor Sam Wyly Loses SEC Fraud Case–Files for Bankruptcy

Oct. 20, 2014- News service Reuters reports that Sam Wyly, 80,  has filed for Chapter 11 bankruptcy in Dallas alleging that he does not have the $300 million the Securities & Exchange Commission seeks for his participation in an offshore scheme.

In a Federal case in New York last month a jury found Wyly and the estate of his late brother Charles  liable for on charges that they had a complex system of trusts in the Isle of Man which netted them over half a billion in untaxed profit. Their companies included Sterling Software, Michaels Stores, Sterling Commerce and Scottish Annuity & Life Holdings, now call Scottish Re Group Ltd. 

Rex Securities Law provides nationwide representation to investors 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

Claus C. Foerster Sanctioned by South Carolina Securities Regulators

October 17, 2014-The Securities Commissioner of South Carolina, Alan Wilson, entered a consent order barring Claus Christop Foerster from participating in any aspect of the securities industry in or from the State of South Carolina. In addition Foerster was assessed an administrative fine of $120,000.

In June 2014, FINRA entered a permanent bar from the securities industry against Foerster to resolve allegations that while employed at Citigroup Global Markets, Morgan Keegan & Company and Raymond James & Associates, Foerster converted about $3 million in customer funds to his personal use.

Rex Securities Law provides nationwide representation to investors 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

FINRA Releases Study Highlighting Financial Vulnerability of American Renters

FINRA is the Financial Industry Regulatory Authority and is the agency that licenses and regulates stock brokers and the broker-dealer firms they work for. Recently the FINRA Investor Education Foundation released a new study American Renters and Financial Fragility, highlighting the vulnerability of renters.

The study, which can be accessed at the link above, found that nearly a quarter of those who rent, rather than own, their home said they have difficulty covering their monthly bills and 58% said that they probably or definitely could not come up with $2,000 in 30 days in the event of an unexpected expense. This compares to 29% of the homeowners responding to the same question.

Rex Securities Law provides nationwide representation to investors 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

FBI Cracks Down on Belize Based Offshore Asset Protection Securities Fraud Scheme

In September 2014, FBI unsealed an indictment against the operators of a $500 million fraudulent scheme designed to enable U.S. citizens to evade and circumvent U.S. securities and tax laws. Investigation of off shore tax evasion and money laundering have been on the top of the list for IRS Criminal investigators in recent years.

The individuals named in the indictment are:

  • Robert Bandfield, US citizen
  • Andrew Godfrey, citizen of Belize
  • Kelvin Leach, citizen of Bahamas
  • Rohn Knowles, citizen of Bahamas
  • Brian De Wit, citizen of Canada
  • Cem Can, citizen of Canada

Corporate defendants named are:

  • IPC Management Services
  • IPC Corporate Services
  • Titan International Securities
  • Legacy Global Markets
  • Unicorn International Securities

The charges include conspiracy to commit securities fraud, tax fraud and money laundering. Shell companies were created in Belize and Nevis, West Indies designed to conceal ownership in the stock of public US companies. According to the indictment, this enabled the fraudsters to manipulate the stock of Cannabis.Rx (CANA). Between March 27, 2014 and April 16, 2014, CANA plummeted from nearly $14 a share to fifty cents.

If you suffered losses on CANA that you purchased on the recommendation of your stock broker, you may be able to recover damages. Contact us for more information.

Rex Securities Law provides nationwide representation to investors 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.