David Duhn-Former Crown Capital Broker- Investigation

 

Rex Securities Law is investigating former registered representative David A. Duhn of Staples, Minnesota, on behalf of a retired Minnesota investor who was sold a very large concentration of Wells REIT II (now known as Columbia Property Trust).

Wells REIT II is a non publicly traded real estate trust that was initially sold for $10 per share. Our client was not advised that the investment was illiquid. In October 2013 in an initial public offering shares of Wells REIT II were  converted to Columbia Property Trust in a reverse four-to-one split. Investors in Wells REIT II have suffered losses of up to 40% of the original purchase price.
FINRA records indicate that Duhn was registered with Crown Capital Securities from 10/2003-12/2010. As of March 2014, Duhn is not currently registered with any FINRA broker dealer.
Non publicly traded REITs were sold to investors with the promise of regular and dependable distributions and with representations that the principal value of the investment was protected.
If you have information related to this investigation, we would appreciate hearing from you. If you suffered losses as a result of investing David Duhn, 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

Sagepoint Financial Broker Keith Pasternak Suspended by FINRA

By Robert H. Rex, Esq.

 
Keith M. Pasternak, a broker in the Brick, New Jersey office of Sage Financial, Inc. was suspended by FINRA for 12 months beginning 1/6/2014 and ordered to pay restitution to a customer of the firm. 
 
Pasternak told the customer he was a victim of identity theft and asked the customer to loan him money so he could straighten out his finances.  The customer loaned him $9,000 and Pasternak did not advise nor seek permission of the firm to make the loan. 
 
Pasternak did not repay the loan and failed to timely respond to FINRA’s request for information resulting in the stated sanctions. 
 
If you have questions about the way your brokerage account has been handled, call to speak with an experienced securities attorney. 
 
Nationwide representation
 
 
561 391 1900

Investment News Announces Most Profitable Independent Broker Dealers

By Robert H. Rex 

The Investment News recently (March 2014) announced the most profitable independent broker-dealers, ranked by Pre-Tax Earnings. See this for complete list. 


Independent
Broker Dealer
PreTax Earnings
1 LPL Financial LLC $385,900,000
2 Cambridge Investment Research Inc. $25,287,365
3 AXA Advisors LLC $22,600,000
4 CUNA Brokerage Services Inc. $9,244,000
5 Princor Financial Services Corp. $6,461,785
6 Investacorp Inc. $4,415,574
7 Summit Brokerage Services, Inc. $3,500,000
8 Allstate Financial Services LLC $2,674,035
9 The O.N. Equity Sales Co. $2,349,581
10 VSR Financial Services Inc. $2,338,051
11 Signator Investors Inc. $2,310,447
12 Kovack Securities Inc. $2,280,475
13 Prospera Financial Services Inc. $1,963,764
14 M Holdings Securities Inc. (M Securities) $1,900,000
15 Cadaret Grant & Co. Inc. $1,800,000
16 SWS Financial Services $1,738,576
17 American Portfolios Financial Services Inc. $1,578,496
18 Financial Telesis Inc. $1,500,000
19 Ameritas Investment Corp. $1,418,490
20 United Planners Financial Services $1,257,723
21 Berthel Fisher & Co. Financial Services Inc. $1,184,429
22 National Securities Corp. $1,184,000
23 LaSalle St. Securities LLC $1,133,986
24 The Strategic Financial Alliance Inc. $1,067,097
25 Ausdal Financial Partners $891,000

If you have questions about the way your brokerage account is being handled, call to speak with an experienced securities attorney to discuss your legal rights. 
Nationwide consultation.
561 391 1900

Investment News Announces Most Profitable Independent Broker Dealers

By Robert H. Rex 

The Investment News recently (March 2014) announced the most profitable independent broker-dealers, ranked by Pre-Tax Earnings. See this for complete list. 


Independent
Broker Dealer
PreTax Earnings
1 LPL Financial LLC $385,900,000
2 Cambridge Investment Research Inc. $25,287,365
3 AXA Advisors LLC $22,600,000
4 CUNA Brokerage Services Inc. $9,244,000
5 Princor Financial Services Corp. $6,461,785
6 Investacorp Inc. $4,415,574
7 Summit Brokerage Services, Inc. $3,500,000
8 Allstate Financial Services LLC $2,674,035
9 The O.N. Equity Sales Co. $2,349,581
10 VSR Financial Services Inc. $2,338,051
11 Signator Investors Inc. $2,310,447
12 Kovack Securities Inc. $2,280,475
13 Prospera Financial Services Inc. $1,963,764
14 M Holdings Securities Inc. (M Securities) $1,900,000
15 Cadaret Grant & Co. Inc. $1,800,000
16 SWS Financial Services $1,738,576
17 American Portfolios Financial Services Inc. $1,578,496
18 Financial Telesis Inc. $1,500,000
19 Ameritas Investment Corp. $1,418,490
20 United Planners Financial Services $1,257,723
21 Berthel Fisher & Co. Financial Services Inc. $1,184,429
22 National Securities Corp. $1,184,000
23 LaSalle St. Securities LLC $1,133,986
24 The Strategic Financial Alliance Inc. $1,067,097
25 Ausdal Financial Partners $891,000

If you have questions about the way your brokerage account is being handled, call to speak with an experienced securities attorney to discuss your legal rights. 
Nationwide consultation.
561 391 1900

Securities America Fined by FINRA for Misleading Statements

By Robert H. Rex, Esq.


In March 2014, the Financial Industry Regulatory Authority (FINRA) sanctioned and fined Securities America $625,000 for failing to supervise use of their consolidated reporting systems which resulted in statements being sent to customers that contained inaccurate valuations and for failing to retain consolidated reports in accordance with securities laws. 
The consolidated reporting system combined information regarding customer’s holdings and included assets held both at the firm as well as away from the firm. The system allowed brokers to enter values for assets held away from the firm. 

It is common for many firms to exclude from monthly statements, values or alternative assets like REITs, oil and gas partnerships, hedge funds and business development companies. 

FINRA Executive VP and Chief of Enforcement  Brad Bennett said “Firms must ensure that consolidated reports send to customers are clear, accurate and not misleading. Absent proper supervision, consolidated reports can be used by unscrupulous representatives to conceal fraud and theft”.

For more than two years, according to FINRAs news release, Securities America failed to supervise hundreds of brokers, some of whom were creating and sending false and inaccurate consolidated reports to customers. Many contained inflated values for investments, some of which were in default or receivership. 

If you have questions about your account with Securities America, call to speak with an experienced securities attorney to explore your legal rights. 

Nationwide representation.


561 391 1900

Triad Advisors Fined $650,000 by FINRA-Inaccurate Statements

By Robert H. Rex, Esq.


In March 2014, the Financial Industry Regulatory Authority (FINRA) sanctioned and fined Triad Advisors $650,000 for failing to supervise use of their consolidated reporting systems which resulted in statements being sent to customers that contained inaccurate valuations and for failing to retain consolidated reports in accordance with securities laws. 

Triad was also ordered to pay $375,000 in restitution to customers. 

The consolidated reporting system combined information regarding customer’s holdings and included assets held both at the firm as well as away from the firm. The system allowed brokers to enter values for assets held away from the firm. 

It is common for many firms to exclude from monthly statements, values or alternative assets like REITs, oil and gas partnerships, hedge funds and business development companies. 

FINRA Executive VP and Chief of Enforcement  Brad Bennett said “Firms must ensure that consolidated reports send to customers are clear, accurate and not misleading. Absent proper supervision, consolidated reports can be used by unscrupulous representatives to conceal fraud and theft”.

For more than two years, according to FINRAs news release, Triad failed to supervise hundreds of brokers, some of whom were creating and sending false and inaccurate consolidated reports to customers. Many contained inflated values for investments and some reflected fictitious promissory notes and investments. 

If you have questions about your account with Triad Advisors, call to speak with an experienced securities attorney to explore your legal rights. 

Nationwide representation.


561 391 1900

Delray Beach Broker David E. Macias Suspended/Fined by FINRA

By Robert H. Rex, Esq. 


In December 2013, the Financial Industry Regulatory Authority (FINRA) suspended Delray Beach, FL, broker David E. Macias for three months and fined him $15,000 to resolve allegations that he placed trades in an outside securities account and failed to notify his firm. FINRA also alleged that Macias exercised discretionary power in a customer account and placed discretionary trades in the customer’s account without written authorization and without his firm’s written approval. 

Macias utilized text messaging and a non firm, personal email account to communicate with a customer and conduct securities business. Use of these methods of communication was not approved by his firm and violative of firm policy. 

The suspension is in effect from December 16. 2013- March 15, 2014. 

According to FINRA records Macias was registered with R.M. Stark & Co. from 11/2009-10/2012. As of March 2014, FINRA records indicate that he is not currently registered with FINRA. 

If you have questions about the way your brokerage account is being handled, contact us to discuss your legal rights. No charge for initial consultation. 

Nationwide representation.


561 391 1900