RCS Capital Corp.-Becomes Second Largest Independent Financial Advisor Network

By Robert H. Rex, Esq.

In January 2014, RCS Capital Corp. announced the acquisition of Cetera Financial Group, a large independent broker-dealer headquartered in El Segundo California, for $1.15 billion in cash. RCS is headed up by Nicholas Schorsch who has been on an acquisition binge for the past year announcing the following acquisitions: 

  • Hatteras Funds Group, October 2013
  • Investors Capital Holdings, October 2013
  • Summit Financial Services, November 2013
  • Cetera Financial Group, January 2014
  • J.P. Turner &  Co., January 2014
These acquisitions, when complete will move RCS into the second place spot in independent brokerage firms, behind leader LPL Financial

Rex Securities Law represents individuals seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about your investment account, contact us to speak with an experienced securities attorney.

Nationwide representation.


561 391 1900

Investigation of James A. Hall-Former Brookstone Securities Broker

By Robert H. Rex, Esq. 

 
We are investigating James Allen Hall, a former broker with Brookstone Securities, Inc. on behalf of a client whose annual 401K contributions were not properly deposited. In September 2013, Hall was permanently barred from the industry by the Financial Industry Regularoty Authority (FINRA).
 
Hall worked from Brookstone Securities in the Orlando, FL, area from December 2006 until February 2012. 
 
Hall also was believed to have affiliations with ExpertPlan, a provider of retirement plan services and MG Trust Company, a third party administrator. 
 
If you have information regarding Mr. Hall we would appreciate hearing from you. If Mr. Hall handled your retirement plan and you have experienced issues with your account, contact us at 561 391 1900 to discuss your legal rights.
 
Nationwide representation.
 
 
561 391 1900

Former New England Securities Broker Timothy Coyle Fined & Suspended by FINRA

By Robert H. Rex, Esq. 

 
In January 2014, FINRA announced that Timothy John Coyle of Palm Harbor, Florida, was fined $5,000 and suspended for six months based upon findings that he forged signatures on documents and also forged a customer’s initials next to amendments to a variable annuity application. The findings stated that the customer signatures and initials Coyle forged were done without the customer’s knowledge or consent. 
 
The suspension if from December 2, 2013-June 1 2014. 
 
According to FINRA records, Coyle most recently was registered with New England Securities from 7/2008-2/2012. 
 
If you have questions about the way your brokerage account has been handled call 561 391 1900 to speak with an experienced securities attorney or click the “Contact Us” button above and tell us a little bit about your situation and we will be in touch.
 
Nationwide representation
 
 
561 391 1900

Former NSM Securities Broker Irving Burstein Suspended by FINRA

By Robert H. Rex, Esq. 

In January 2014, FINRA announced that Boynton Beach, FL, broker Irving Marvin Burstein was suspended for one year and required to cooperate with regulators in any further investigation and hearing related to his member firm. 

Burstein was his firm’s CCO, whose duties included reviewing customer accounts to detect and monitor for unsuitable transactions, excessive trading activity, unauthorized trading, excessive losses, wholesale recommendations, excessive securities concentrations and large or routine debit balances. 

FINRA findings stated that he failed to review customer accounts for any of these things, confining his activities to reviewing the trade blotter and order tickets and listening to brokers make cold calls.His review of customer accounts was limited to a quarterly review of accounts selected on a random basis. During this time some customer accounts were being excessively traded and many firm customers sustained significant losses. 

According to FINRA records, Burstein was registered as follows:

R.M. Stark & Co. 10/2013-12/2013
Legend Securities 9/2012-9/2013
NSM Securities 9/2005-10/2011

If you have losses in your brokerage account and wish to discuss your legal rights call 561 391 1900 to speak with an experienced securities attorney or client the “Contact Us” button at the top of the page and tell us about your problem. We will get back in touch with you. 

Nationwide representation.


561 391 1900

Investment News Announces Largest Texas Registered Investment Advisers

By Robert H. Rex, Esq. 

Investment News recently announced the largest Registered Investment Advisers (RIA) in the State of Texas. Here are the top twenty. Follow this link to the RIA Data Center and search for Texas RIA’s.
 

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

Rank Business Name Avg. account AUM Discretionary AUM Non-discretionary AUM Total AUM
1 Robertson, Griege & Thoele, Financial Advisors $773,492 $1,970,000,000 $236,000,000 $2,206,000,000
2 Century Management $1,040,701 $1,966,925,000 $0 $1,966,925,000
3 Paul Comstock Partners $12,572,414 $0 $1,885,862,120 $1,885,862,120
4 South Texas Money Management, $862,255 $1,787,157,020 $77,900,117 $1,865,057,137
5 Retirement Advisors of America $497,419 $1,545,709,248 $61,947,991 $1,607,657,239
6 Paratus Financial Inc. $812,683 $74,510,000 $1,103,880,000 $1,178,390,000
7 Cain, Watters & Associates $234,766 $1,166,785,842 $1,166,785,842
8 Patriot Wealth Management Inc. $725,752 $1,013,221,051 $85,568,210 $1,098,789,261
9 True North Advisors $407,893 $869,302,678 $183,468,866 $1,052,771,544
10 Frontier Investment Management Co. $556,359 $999,220,660 $0 $999,220,660
11 Lee Financial Corp. $749,885 $856,409,570 $112,441,238 $968,850,808
12 Durbin Bennett Peterson Private Wealth Management $1,058,929 $835,162,393 $21,511,509 $856,673,902
13 Howard Financial Services $2,212,654 $473,730,071 $269,721,632 $743,451,703
14 Tanglewood Wealth Management Inc. $876,182 $717,592,760 $0 $717,592,760
15 The Financial Advisory Group Inc. $446,402 $560,234,452 $0 $560,234,452
16 SFMG Wealth Advisors $298,264 $553,110,933 $1,362,570 $554,473,503
17 Beaird Harris Wealth Management Inc. $2,163,628 $525,761,724 $0 $525,761,724
18 Galapagos Partners $14,906,257 $134,789,394 $386,929,600 $521,718,994
19 Warwick Partners $873,648 $0 $504,095,000 $504,095,000
20 Austin Asset $389,611 $490,131,000 $0 $490,131,000

Texas State Securities Board Revokes License of Lloyd J. Chappell

By Robert H. Rex, Esq.

On January 13, 2014, the Texas State Securities Board (TSSB) revoked the securities license of Lloyd J. Chappell. According to official records of the Financial Industry Regulatory Authority (FINRA), Chappell operated various businesses in the Dallas area, including:
  • Texas Financial Associates Insurance Agency Garland, Texas
  • Texas Financial Associates Garland, Texas
  • Guardian Life Ins Co Dallas, Texas
  • The Financial Process Group Austin, Texas
FINRA records indicate that Chappell was discharged by BFT Financial Group, LLC, on December 3, 2013, for contacting an investment company and pretending to be several customers to gain account information.
Chappell’s registration history per FINRA includes:
  • BFT Financial Group 8/2013-12/2013
  • Park Avenue Securities  1/2000-4/2013
According to FINRA’s allegations Chappell pretended to be several shareholders that were clients of Chappell’s previous firm in order to obtain information related to these shareholder’s accounts. In support of these efforts, Chappell impersonated these shareholders by altering his voice. When contacted by the TSSB about these impersonations, Chappell repeated denied doing so.

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

Stockbroker Fired & Brokerage Firm is Calling You?

By Robert H. Rex, Esq.

On occasion stockbrokers are fired by the brokerage firm where they work and have handled your account for many years. 

 The reason for termination can be mundane. Perhaps it was motivated by business conditions, ie; lack of production by the broker or a cutback in staffing to adapt to the needs of  the current business climate. 

 The termination can also be motivated for reasons which should be of greater concern for the investor/customer. Terminations are often
the result of negligent behavior or wrongdoing on the part of the broker that has resulted in regulatory sanctions by  the SEC, state securities regulators,  and/or FINRA. These s
anctions can range from fines to suspension and if the wrongdoing is severe enough, a permanent bar from the industry. Customer complaints and arbitrations over investment losses can also lead to the termination of a stockbroker.

In either case it can be expected that the brokerage firm will make contact with all of the existing customers of the terminated broker in an attempt to keep those customers from leaving for another firm. If the termination is due to the
broker not doing enough business or a cutback in staffing and you still have confidence in the firm and the new broker they are proposing to handle your account, then you need read no further. 

Has the Broker Been Sanctioned by Regulators?

If however the termination is the result of regulatory sanctions, customer disputes or arbitrations, you need to strongly consider whether it is in your best interest to remain with that firm or whether your financial security is
better served by transferring your account to another firm. 

It is not uncommon for firms to make promises they may not be able to keep when trying to convince you from transferring your account after they have fired your broker. They cannot guarantee the future nor predict with certainty that an account with losses will ever recover.

For example, if you have a portfolio that contains real estate investment trusts, private placements or other alternative investments that have declined in value, you should consider what kind of job the firm was doing in the first place that permitted the terminated broker  to make these unsuitable
investments with your nest egg. 

How can you be assured they will do a better job in the future? 

Can you afford to take the risk they will do a better job in the future?

Generally the only way to recover investment losses is to file a FINRA arbitration. We know that making the decision to file an arbitration against the firm that has been your trusted advisor for years is a difficult step to take.The relationship with a financial advisor is a very personal one and making the
decision to pursue recovery of damages is not an easy one, but adjusting one’s lifestyle to accommodate a loss of capital for the negligence of the brokerage firm is not an easy thing to do either. 

If you have questions about losses in your brokerage account, call to speak with an experienced securities attorney or follow the “Contact Us” link at the top of the page and send us an email with details about your situation and we will be in touch. 

Nationwide representation.

Rex Securities Law

561 391 1900