Corpus Christi Broker William C. Mays Indicted for Securities Fraud

In September 2013,  a grand jury in Nueces County, Texas, indicted William Charlton Mays, a former investment adviser in Corpus Christi, Texas, on charges of securities fraud, money laundering, theft and securing the execution of a document by deception. The indictment alleges that Mays made ironclad guarantees to clients to induce them to invest in a purported gold, silver and commodities trading operation. The investments, which were sold in 2011 and 2012, were in the form of promissory notes and investment contracts.
To read the indictment, follow this link.
According to the FINRA Broker Check site, Mays was a registered representative for several FINRA broker dealers, as follows:
  • SWS Financial Services 01/2011-11/2011
  • Summit Brokerage Services, Inc.  04/2009-12/2010
  • LPL Financial Corporation 09/2004-04/2009
  • Frost Brokerage Services  11/2000-10/2004
  • AXA Advisors  11/1998-11/2000
If you had an account with Mays and suffered losses, you may be able to recover all or a part of those losses through FINRA arbitration.

 

Rex Securities Law , with offices in Boca Raton, FL,  and  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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Capstone Asset Planning Fined Over Church Bond Fund

 

Capstone Asset Planning Company, (“Capstone”)  a broker dealer headquartered in Houston, TX, with 22 registered agents, was fined $20,000 and censured by FINRA in August 2013, for distributing misleading and incomplete information related to its Capstone Church Capital Fund (XCBFX).
Capstone entered into a letter of Acceptance, Waiver and Consent FINRA without admitting or denying the findings. FINRA findings include:
  • Capstone served as principal underwriter and distributor of share of the Capstone Church Capital Fund
  • The Fund’s holdings were 87% church mortgage bonds and 13% church mortgage loans.
  • From 2009-2012, the Fund’s net assets declined significantly as a result in the decrease i value of the assets adn the large number of repurchases requested by investors.
  • The Fund stopped accepting sales in January 2013
  • Capstone distributed communications that failed to account for the declining performance of the Fund
  • The Fund’s website compared church bonds and loans to corporate bonds without disclosing the material difference between the investments.
  • The Fund’s net assets were over $57 million in September 2009 and declined to less than $33 million by September 2012.
  • In 2010 the Fund experienced difficulty obtaining cash to satisfy quarterly repurchase requests.
To view the Letter of Acceptance Waiver and Consent in its entirety, see this.
According to the Fund’s 2012 annual report, which can be accessed here, the Fund owned loans or bonds in a large number of churches located in 23 different states, including the following:
  • East Memorial Baptist Church
  • First Southern Baptist Church of Lake Havasu
  • First Baptist Church of Clovis
  • Revival Pentecostal Tabernacle of San Diego
  • Sonrise Baptist Church of Clovis
  • Lifepoint Community Church of Tampa Bay
  • Victory Baptist Church of Loganville
  • First Baptist Church of Melrose Park
  • Living Way Apostolic Church
  • The Cathedral of Life Christian Assembly
Brokers have a duty to perform due diligence on the investments they recommend. Furthermore brokers have a duty to make recommendations to investors that are suitable for their risk tolerance, taking into account age, health, net worth and level of financial expertise.

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

Wells Fargo Broker James Arnold Busch Barred For Theft From Elderly Women

 

On October 11,2013, a Letter of Acceptance Waiver and Consent was finalized between FINRA and James Arnold Busch, a broker with Wells Fargo Advisors since 2000, barring him from the securities industry. The AWC, which can be viewed here, alleged the following:
  • Busch worked in various branch offices of the securities division of Wells Fargo that were located in banks operated by Wells Fargo
  • From 2006-2013, he misappropriated approximately $1.3 million from at least eight of his Wells Fargo brokerage customers
  • Busch requested payments from the victims bank accounts to pay his personal credit cards
  • Busch liquidated securities in victims’ accounts in order to generate cash which was then transferred from the brokerage account of the victim to the bank account in order to fund his credit card payments
If you have questions about the way your brokerage account is being handled, if you are concerned about losses in your account that you feel are the result of bad advice from your broker or think you may be the victim of securities fraud, call for a no charge consultation with an experienced securities attorney to discuss 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

Metlife Securities Broker Aaron Kazinec Barred by FINRA-Theft of Customer Funds

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

 
October 2013

 Aaron Nash Kazinec (CRD #2371296, Registered Representative, Weston, Florida) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Kazinec consented to the described sanction and to the entry of findings that he offered various non-securities fixed annuity investments to insurance customers. The findings stated that Kazinec told the customers to write checks, in varying amounts, and leave the payee field blank and/or to make the checks payable to cash. The customers complied, believing that Kazinec would use the funds for investments he had offered to them away from his brokerdealer. Kazinec took the checks from the customers and deposited them into his own bank account. Kazinec never invested the funds for the customers, instead using the funds for himself without the customers’ permission or knowledge. Kazinec misappropriated a total of $745,250. The findings also stated that Kazinec failed to timely update his Form U4 to reflect the existence of a federal tax lien. ( FINRA Case #2012035005801)

According to FINRA records, Kazinec was registered as follows:

Metlife Securities  03/2007-12/2012

Metroplitan Life Ins. 03/2007-07/2007

MML Investors Services 04/1998-03/2007

If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.

Rex Securities Law , with offices in Boca Raton, FL,  and  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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Brion P. Harris Fined/Suspended for Backdating REIT Subscription Agreements

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

 
October 2013

 Brion Patrick Harris (CRD #3199095, Registered Representative, Annapolis, Maryland) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for one month. Without admitting or denying the findings, Harris consented to the described sanctions and to the entry of findings that he submitted customer subscription documents to his member firm that contained backdated signatures. The findings stated that the subscription documents were submitted on behalf of Harris’ customers and were for investments totaling $328,000 in the common stock of a real estate investment trust (REIT). Harris’ understanding was that the REIT would accept new investors until a certain date so long as the subscription agreement was dated no later than an earlier date. Harris informed the prospective investors that their subscription documents needed to be dated on or before the earlier date if they wanted to invest in the REIT. Consequently, the customers and Harris backdated their respective signatures on several subscription documents. Harris did not inform his firm that the subscription documents contained backdated signatures. The firm, however, noted certain dating anomalies in the subscription packages and rejected each of the transactions.

The suspension is in effect from September 16, 2013, through October 15, 2013. ( FINRACase #2012033574501)

According to FINRA records Harris is currently registered with Summit Brokerage Services. He was registered with Cambridge Investment Research, Inc 10/2012-09/2013. Prior to that he was registered with Lincoln Financial Securities Corporation. 

If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss 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