Texas Securities Commisioner Shuts Down Unregistered Sale of Oil & Gas Royalties

March 25, 2015-Austin, TX

John Morgan, Securities Commissioner for the State of Texas, entered an Emergency Cease and Desist Order against Lonestar Mineral Assets or Dallas and Colleyville, TX, and its owner Kenneth W. McKay of Dallas/Ft. Worth, TX.

The Order alleges that Lonestar and McKay have been  offering investments in mineral royalty rights in Texas though a publicly accessible website to non accredited investors. In addition the investments they are offering have not been registered. McKay and Lonestar are charged with failing to disclose prior securities problems involving McKay:

  • In 1997, McKay consented to a final judgement with the SEC in which he was found liable for  disgorgement of over $1 million and enjoined from selling securities in the form of interests in oil, gas or other minerals without filing a registration statement with the SEC. SEC v. Offshore Financial Corp., Kenneth McKay, et al.
  • In 1998 McKay was found guilty of securities fraud, sentenced to serve 12 months and a day in prison and to pay restitution of $7.6 million. As of April 2012, the outstanding balance of restitution was over $12 million.  United States v. William D. Brosseau and Kenneth McKay. 
  • From April 2004-June 2012 the United States filed several applications for writs of garnishment or execution seizing a motorcycle and a truck from McKay as well as freezing one of his bank accounts.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors in Texas and 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

Losses on CNL Lifestyle Properties REIT May Be Recoverable

March 12, 2015

In recent SEC filings, CNL Lifestyle Properties, Inc. reported an estimated value of $5.20 per share. The value of CNL LIfestyle Properties has dropped nearly 25% since 2013 when it had an estimated value of $6.85. It was originally offered at $10 per share.

Investors should be aware that estimated value does not translate to fair market value, ie; the actual amount of cash an investor can receive upon liquidation.

Since this investment is not traded on any public market, should cash be needed now  the only avenue for liquidation is  one of the  private secondary markets such as CTT Auctions  , the  Partnership Marketing Company , or other similar companies which can be found by Googling “secondary market REIT”.

CNL Lifestyle owns properties in ski resorts and senior housing. ABC News recently reported that the company may be selling 16 ski resorts in New England and the Rockies.

Financial advisors have a duty to make only suitable recommendations to investors. Many investors were sold non publicly traded real estate investment trusts like CNL Lifestyle Properties with the promise of steady, dependable distributions of income and with the expectation that the investment would ‘mature’ , much like a bond. If you believe you were a victim of misrepresentation, contact us to learn more about your legal rights.

Rex Securities Law , located in Boca Raton, FL, 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

Dallas Based Worth Financial Group Sanctioned by Securities Regulator

January 9, 2015

Worth Financial Group  entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  it failed to establish adequate supervisory systems and written supervisory procedures to supervise sales of life settlement investments by the firm’s registered representatives and non-associated individuals for whom the firm received override commissions.

FINRA alleged that from July 2008 to April 2011 Worth sold fractional interests in life settlements issued by Life Partners, Inc., and collected override commissions on those sales.

Worth Financial Group was censured and fined $10,000.

FINRA Case # 2011025625101

Worth Financial Group has been registered with FINRA since 1983 and is headquartered in Dallas, Texas.

Rex Securities Law , located in Boca Raton, FL, 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

Buckman, Buckman & Reid Sanctioned by Securities Regulator

January 26, 2015-

Buckman, Buckman & Reid and John Buckman, its chairman and CEO ,  entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  between April 2010 and July the firm participated in the unlawful distribution of shares  of two issuers whose securities were not registered and were not subject to an applicable exemption.

FINRA also alleged various other compliance and supervisory failures in connection with the sale of unregistered shares of Tactical Air Defense Services, Inc.  ( TADF) and Fresh Harvest Products, Inc. (FRHV) .

Buckman, Buckman & Reid was censured and fined $200,000. John Buckman was suspended in a principal capacity for a month and fined $25,000.

FINRA Case # 2011029206503

Buckman, Buckman & Reid has been registered with FINRA since 1989. Its home office is in Shrewsbury, New Jersey, and it has a branch office in Boca Raton, FL.

Rex Securities Law , located in Boca Raton, FL, 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

New Jersey Stockbroker/Professional Poker Player Indicted

March 24, 2015-Trenton, New Jersey

NJ.Com reports that Evan Kochav, 33, of Jersey City has been indicted and charged with stealing over $561K from clients of his investment firm and then spending the money on poker and personal expenses.

Kochav, a reputed professional poker player, is alleged to have used his Red Bank-based firm , White Cedar Group, as a front for his scheme.

According to FINRA records, Kochav was permanently barred in August 2013 when he failed to respond to requests for information regarding his control of his customer’s brokerage account checkbook and his termination from his member firm.

FINRA records indicate Kochav was previously registered as follows:

  • World Equity Group                     10/2012-6/2013
  • Newbridge Securities                     9/2009-10/2012
  • J.P. Turner & Co.                                3/2007-8/2009
  • Reuven Enterprises Sec                 12/2006-3/2007
  • Kovack Securities                              7/2004-1/2005

Rex Securities Law , located in Boca Raton, FL, 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

South Carolina Regulators Revoke Registration of Broker William B. Guido

March 11, 2015-Mount Pleasant, South Carolina

The Securities Commissioner of South Carolina revoked, by default, the registration of William Benton Guido permanently barring him from engaging in the securities business in the State of South Carolina.

FINRA records indicate that Guido, who is not currently registered, was previously registered as follows:

  • LPL Financial                       3/2014-12/2014
  • FSC Securities                  12/20131-3/2014
  • Wells Fargo Advisors     2/2009-12/2013

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  in South Carolina and 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

Merrill Fined $2.5 Million by Massachusetts Securities Regulator William Galvin

March 23, 2015

The Wall Street Journal reports that Merrill Lynch was ordered to pay $2.5 million to to Massachusetts Securities Regulators to resolve claims that it gave  internal presentations in Boston in 2013 that violated its own compliance policies.

According to the WSJ, the presentations, which were not first reviewed by Merrill compliance,  included training on ways for advisers to double production by transferring existing customer assets from commission-based brokerage accounts to fiduciary based alternatives.

Rex Securities Law , located in Boca Raton, FL, 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

Recent Orders Entered by Securities Commissioner of South Carolina

March 3, 2015

The Securities Commissioner of South Carolina recently issued the following Cease and Desist Orders.

Follow links to view orders:

In the Matter of William Gwinn and Creative Exteriors

In the Matter of Cannon Operating Company, LLC and John Griffin

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors in South Carolina and 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

Fifth Third Securities Broker Barred from Industry by Regulator

March 20, 2015-Cincinnati, OH

Matthew Roger Quinn   entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  he failed to provide on-the-record testimony pursuant to FINRA rules in response to an investigation that Quinn withdrew funds from the accounts of three elderly bank customers, ages 76, 86 and 89.

Quinn was barred from the securities industry.

FINRA Case # 20130388350

According to FINRA records, Quinn was registered with Fifth Third Securities from 5/2013-11/2013, when he was discharged .Prior to that he was registered with LPL Financial LLC. 

Rex Securities Law , located in Boca Raton, FL, 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

Mercator Associates and Principals Named in FINRA Complaint

March 20, 2015-Boston, Massachusetts

FINRA Department of Enforcement filed a disciplinary proceeding against Mercator Associates, Fabrizio D. Lentini, its president and chief compliance officer, and Gurterath Manni Singh Buttar, its financial and operations principal alleging that from January 2010-January 2012 they committed violations in connection with accounts with a Sri Lankan broker-dealer and a Sri Lankan bank.

The complaint alleges various causes of action including failute to implement and enforce anti-money laundering procedures and inaccurate FOCUS filings.

Mercator Associates is a FINRA member firm with its principal place of business in Toronto, Ontario, Canada. Since December 2009, Lentini and Buttar have each owned 50% of Mercator.

Rex Securities Law , located in Boca Raton, FL, 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.