SEC Charges West Palm Beach Hedge Fund With Fraud

By Robert H. Rex, Esq.

On June 23, 2014, the Securities and Exchange Commission (SEC) charged West Palm Beach, FL, hedge fund Weston Capital Asset Management LLC and founder Albert Hallac with fraudulently shifting investor money from one investment to another. Hallac, his son Jeffrey Hallac, and Keith Wellner, general counsel for the company,  kept some of the transferred investor money. 
 
The SEC suit alleges that more than $17 million was drained from the fund and transferred to another company Swartz IP Services Group Inc. This transaction was contrary to the hedge fund’s stated strategy and was not disclosed to investors who continued to receive statements that falsely hid the unauthorized transaction. 
 
“Investment advisers owe their clients a fiduciary duty of utmost good faith and full disclosure about what they’re doing with their money, ‘ according to Eric I. Bustillo, director of SEC’s Miami Regional Office. 
 
Wellner and Jeffrey Hallac agreed to pay $120,000 each disgorgement. The monetary sanctions against Weston Capital and Albert Hallac have not yet been determined. 
 
If you have questions about losses in your brokerage account, call to discuss your legal rights with an experienced securities attorney. No charge for initial consultation and cases are handled on a contingent fee basis. 
 
Nationwide representation.
 
 
561 391 1900

Investor’s Capital Broker Patricia Miller Arrested for Wire Fraud

 

Hummelstown, PennsylvaniaPatricia S. Miller was terminated by Investor’s Capital Corp in May 2014, for misappropriation of funds, borrowing money from customers, fraudulent investment activity and creating false documents, according to FINRA records.
In early June 2014, when the FBI went by her office to investigate a second complaint from one of her customers, they found her slumped over her desk following an apparent suicide attempt. She was arrested for wire fraud.
It appears that Miller has been operating a ponzi scheme for some time using various entities, including KS Investment and KS Investment Partnership as well as some investment clubs.
If you had an account with Miller, call for a no charge consultation to discuss your legal rights with an experienced securities attorney.

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

Waddell & Reed Broker Duncan DeWahl Fined/Suspended–Forging Customer Signatures

Duncan Comrie DeWahl, a former broker with Waddell & Reed in Maitland, Florida, was fied $5,000 and suspended for six months by FINRA findings that he improperly signed at least six customer’s signatures on suitability update forms and submitted them to his member firm. The findings state that with respect to five of the customers, DeWahl signed the customer’s signatures without their knowledge, authorization or consent in violation of the written supervisory procedures of the firm.

FINRA records indicate that DeWahl was terminated in April 2014 by Waddell & Reed for these violations.
If you have questions about an account handled by Duncan DeWahl, contact us to discuss how to recover investment losses through FINRA arbitration.

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

Former Morgan Stanley Broker Barred by FINRA-Theft from Customer

By Robert H. Rex, Esq.

 Christopher Somes Babcock of Wayne & West Conshohocken, Pennsylvania 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, Babcock consented to the sanction and to the entry of findings that he received approximately $160,000 from customers of his member firms, after he had instructed the customers to wire monies from their firm accounts to their personal bank accounts and to then either wire money to him or write a check payable to him. The findings stated that the money was given to Babcock with the intent that it be used for investment purposes. However, after receiving the funds, Babcock failed to invest the funds as the customers expected. Instead, Babcock converted the funds to his own use and benefit. In some instances, Babcock would deposit the funds in his personal brokerage account or a third party’s personal brokerage account.

The findings also stated that Babcock mailed written account summaries to a customer without either of his firms’ knowledge and review. The firms were thereby prevented from fulfilling supervisory obligations regarding non-electronic business correspondence and from preserving the correspondence in conformance with recordkeeping rules. At least two of the statements forwarded to the customer falsely inflated the value of the customer’s portfolio. ( FINRA Case #2011027329601)

According to FINRA records, Babcock was previously registered as follows:

  • Morgan Stanley Smith Barney 6/2009-2/2011
  • Citigroup Global Markets 12/2007-6/2009
If you have questions about an account handled by Babcock, call to discuss your legal rights with an experienced securities attorney.

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

FINRA Fines Stifel, Nicolaus & Co. $30,000

 

In June 2014, the Financial Industry Regulatory Authority (FINRA) fined Stifel, Nicolaus & Company $30,000 and ordered the company to pay resitution to customers of over $16,000. In addition the company is required to revise its written supervisory procedures to resolve FINRA findings that they sold bonds to customers at unfair prices.
If you have suffered losses due to the fraud or negligence of a stock broker or brokerage firm, you may be able to recover those losses through FINRA arbitration.

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

J.P. Turner Fined $65,000 by FINRA

 

J.P. Turner & Company was fined $65,000 by the Financial Industry Regulatory Authority (FINRA) in May 2014 and the firm consented to the entry of findings that it failed to establish and enforce written supervisory procedures designed to achieve compliance with applicable securities laws and regulations, including laws and regulations prohibiting insider trading and NASD Rule 3050, requiring that registered representatives have duplicate statements for personal brokerage accounts sent to their employer member firms. FINRA Case# 2011025756301.

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

Howe Barnes Hoefer & Arnett Fined by FINRA Over Municipal Bond Sales

The Financial Industry Regulatory Authority (FINRA) fined Chicago based Howe Barnes Hoefer & Arnett $200,000 to resolve findings that the firm sold zero-coupon municipal bonds, US Treasuries and STRIPS to customers at prices that exceeded the firm’s markup guidelines for these securities.

The firm had previously made restitution payments to customers of over $64,000. FINRA found that Howe Barnes did not properly supervise it brokers in connection with these sales.
Howe Barnes Hoefer & Arnett was acquired by Raymond James Financial in 2011.

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