Parks Brown, Jr.-Former VSR Financial Services Broker-Update on Investigation

December 2016- Marietta, Georgia

We continue our investigation of former VSR Financial Services broker Parks H. Brown, Jr. who operated  IM Portfolios, Inc.  in Marietta, Georgia,. Our client is of an elderly widow who alleges that Parks Brown recommended the purchase of numerous unsuitable investments resulting in significant losses to her retirement nest egg.

The investments include the following securities:

  • Exco Resources
  • Linn Energy
  • Rock Creek Pharma Inc.
  • Star Scientific, Inc. 

According to FINRA records Brown was registered with VSR Financial Services from 10/2005 until 7/2016.  As of December 5, 2016, Parks Brown is not currently registered with any brokerage firm.

Parks Brown was named in a FINRA arbitration in 2014 (#14-1744) by a VSR Financial Services customer who alleged unsuitable investments, churning, unauthorized trades and breach of fiduciary duty. That case was settled in 9/2015 for $71,500.

In 2001, Parks Brown, who at the time was working for A.G. Edwards,  was named in another arbitration ( NASD 01-1817) by a customer alleging unauthorized transactions, churning excessive concentration and violations of securities laws. A FINRA arbitration panel awarded  $229,839 to the customer.

VSR Financial’s Recent Regulatory Woes

NOVEMBER 2016-FINRA Censured and fined VSR Financial $400,000, required VSR pay restitution of $4.5 million and required that the firm conduct undertakings for supervisory failures related to the sale of annuity products.

MAY 2013- VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments. In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. It may also include art, wine, antiques, coins or stamps. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

If you have information you think may be helpful to our investigation, we would like to hear from you. If you have losses in an account handled by Parks Brown or losses in a VSR Financial Services account handled by another VSR broker , contact us to discuss how you may be able to recover damages for those losses.

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

Rick Davidson-Former Morgan Stanley Broker-Discloses $1M Customer Dispute

October 2016-New York

The FINRA records of  Rick A. Davidson,  a  stockbroker who is currently employed by  Jefferies LLC  disclose 3 prior customer disputes that that are final , one pending customer dispute and a separation from employment after allegations.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In July 2012, a customer of Davidson’s prior employer Morgan Stanley Smith Barney was paid a settlement of $101,787 to resolve allegations that Davidson engaged in unauthorized transactions beginning in 2010.

In currently pending FINRA arbitration #16-02283, a customer of Davidson while he was employed by Morgan Stanley Smith Barney alleges damages of $1,000,000 for unsuitable recommendations from January 2013-March 2016.

Davidson’s employment with Morgan Stanley was terminated in May 2016 when he voluntarily resigned. Morgan Stanley makes the following allegation in connection with the termination: “Allegations relating to registered representative’s exercise of discretion in clients’ accounts as well as receipt of a loan from a Morgan Stanley employee.”

Davidson was employed by Morgan Stanley from 6/2009-6/2016. He has been employed by Jefferies LLC since 5/2016, according to FINRA records.

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

Daniel Cabrera-BBVA Securities-Discloses Settlement Over Annuity Sales

September 2016-Helotes, Texas

The FINRA records of  Daniel A. Cabrera,  a  stockbroker who is currently employed by  BBVA Securities  disclose a prior customer dispute that was settled.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Cabrera discloses that in February 2016, a customer dispute was settled for $44,676. The customer alleged that they were misled as to the type of investment purchased in connection with the purchase of 4 variable annuity contracts in July 2015.

Cabrera has been employed by BBVA Securities since 5/2013. Prior to that he was employed by Compass Bank.

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

Gregory Bauer-Former H. Beck Broker-Barred from Securities Industry for Theft

October 2016-Moon Township, PA

The FINRA records of  Gregory R. Bauer,  a  former stockbroker who most recently was  employed by  H. Beck, Inc.  disclose a final regulatory event and a termination from employment.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In recently resolved FINRA Case 2016051501801, Bauer was permanently barred from the securities industry to resolve allegations that he forged the signatures of firm customers, caused the unauthorized sale of securities, intercepted checks in the mail, deposited the checks in his own bank account, and used the funds for his personal expenses without permission. The findings state that Bauer took more than $400,000 from the customers.

In September 2016 Bauer was discharged by H. Beck, Inc. who made the following allegation on Bauer’s FINRA record: “Misappropriated funds of two client accounts at his prior broker dealer Waddell & Reed.”

Bauer was employed by H. Beck, Inc. from 10/2013-9/2016. Prior to that he was employed by Waddell & Reed from 10/2004-10/2013.

If you have losses in an account handled by Gregory R. Bauer, contact us to discuss how you may be able to recover damages for those losses.

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

Ian C. Kass-Former WIlson-Davis Stockbroker- Charged with Securities Fraud

October 2016-Ft. Lauderdale, Florida/ Salt Lake City, UT

The FINRA records of  Ian C. Kass,  a  former stockbroker who  was last employed by  Wilson-Davis & Co.   disclose a pending regulatory event, a pending investigation and a recent employment separation after allegations. In September 2016, the U.S. Attorney’s Office for the Southern District of Florida reported that Kass, 45, of Ft. Lauderdale had been charged with one count of conspiracy to commit securities fraud in connection with a scheme to fraudulently register shell companies with the SEC, issue shares in the companies with were secretly owned by the other conspirators and sell the shares to the public at a profit.

Sheldon R. Rose, 77, of Sarasota was also charged with conspiracy to commit securities fraud. The other co-conpirators who previously pled guilty for their role in the fraud are:

  • Daniel McKelvey, 49, Foster City, CA
  • Jeffrey L. Lamson, 51, El Dorado Hills, CA
  • Steven Sanders, 73, Lake Worth, FL
  • Alvin S. Mirman, 78, Sarasota, FL

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In July 2016, Kass was discharged by Wilson-Davis & Co. who made the following allegations on Kass’s FINRA record in connection with the discharge:” With the assistance of outside counsel, reviewed documents, public filings, representative’s performance and compliance history, interviewed representative and concluded to terminate representative based on the pending government investigations.”

Kass was employed by Wilson-Davis & Co. from 7/2012-7/2016. Prior to that he was employed by Delaney Equity Group 7/2011-7/2011 and before that Gordon & Co. 6/2011-6/2011.

 

If you have losses in an account handled by Ian C. Kass , contact us to discuss how you may be able to recover damages for those losses.

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

NEXT Financial Group Settles Tenant in Common Case

October 2016

Next Financial Group, Inc. , a stock brokerage firm headquartered in Houston, Texas, recently settled a claim brought by a customer alleging damages of $4,000,000 for breach of fiduciary duty, common law fraud and negligent supervision in relation to recommendations that an investor purchase tenant in common (TIC) private placement investments. Tokena Corporation v NEXT Financial Group, FINRA Case 15-0762. 

In May 2016 that matter was settled for an undisclosed amount. Following the settlement, Charles Kulch a stock broker who has been registered with NEXT Financial since 10/2006, requested that the FINRA arbitration panel expunge his FINRA record of any reference to the customer dispute. The arbitration panel denied Kulch’s request for expungement.

According to his FINRA record, Charles Kulch of Nashua, New Hampshire, discloses 5 prior customer disputes and 4 prior regulatory events.  His prior customer disputes include a matter recently settled in May 2016 for $120,000. In that case a customer of Kulch’s prior employer Investors Capital Corp. alleged damages for poor performance in a real estate security.

If you have questions about losses in an account handled by Charles Kulch, call to discuss your options.

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

Old Security Financial Group of Spring, Texas, Fined $100,000 by Securities Regulators

October 2016- Spring, Texas

The Texas State Securities Board (TSSB) sanctioned  Old Security Financial Group, Inc. of Spring, Texas,  fining the company $100,000 for selling unregistered investments in a mortgage note program that was supposedly backed by commercial real estate. The subject investments were First Position Commercial Note Program issued by the Woodbridge Mortgage Investment Fund 3 LLC, which lists offices in California and Florida.

 

The fine was also assessed against owner and president Donald A. MacKenzie and vice president Robert S. Davis, Jr. , both of Pflugerville, Texas. The TSSB ordered that they cease selling interests in the note program until it is properly registered in Texas or sold from an exemption from registration.

According to the TSSB order, neither MacKenzie, Davis, nor Old Security Financial Group was registered to sell securities in Texas.

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