Category Archives: Fraud

Cesar Rodriguez-Former Avenir Financial Group Broker- Discloses Customer Disputes & Termination- Wheaton, IL

August 2017, Wheaton, IL

According to publicly available records  Cesar Omar Rodriguez (CRD#4451732) , a former stockbroker who was previously registered with Avenir Financial Group, disclose a regulatory event , three prior customer disputes , two terminations from employment and an outstanding judgment lien.

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 April of 2015  Rodriquez  was permanently barred from the securities industry by FINRA to resolve allegations that “he defrauded investors by knowingly misrepresenting the true use of investors’ proceeds and improperly misusing investors’ funds for personal expenses unrelated to the operation of his member firm’s branch office…..”

In October of 2015, an  Avenir Financial Group  customer filed a complaint alleging unauthorized trading, breach of fiduciary duty, churning, manipulation, misrepresentation, suitability, negligence, indemnification, recovery of commissions, theft, swindling, and forgery.  Claimant alleged that Rodriguez purchased shares in his account and traded on his margin without permission.  Claimant further alleged that Rodriguez falsified account documents.   In FINRA case 15-02744 the Claimant was awarded the sum of $133,989.04 in compensatory damages, plus interest.   He was also awarded the sum of $22,500 in punitive damages, plus interest.

In April of 2015,  Rodriguez was discharged from Avenir Financial Group .

In November of 2008, Rodriguez was discharged from Charles Morgan Securities, Inc. who alleged that he violated the rules of the industry standards of conduct.

 Rodriguez was with Avenir Financial Group from July of 2013 until he was barred by FINRA in April of  2015.  His prior employment includes American Trust Investment Services, National Securities Corp. and Chicago Investment Group.   Rodriguez also discloses an affiliation with Bull Run Capital Holdings LLC.

If you have questions about an account handled by Cesar O. Rodriguez, contact us 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.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Additional Individuals Indicted In Chimera Energy Corp. Fraud-Houston, Texas

Houston, Texas – July 2017

According to a press release from the US Attorney’s Office for the Southern District of Texas, a second superseding indictment has been issued by a  federal grand jury naming additional individuals and companies related to the Chimera Energy Corp. pump and dump fraud. Losses due to the fraud may exceed $25 million.

The following individuals were  named in September 15, 2016 indictment for a securities fraud scheme involving the stock of Chimera Energy Corp:

  • Andrew Ian Farmer, 38 , Houston, TX
  • Thomas Galen Massey, 46, Houston, TX

In a superseding indictment April 26,2017, a federal grand jury charged five additional individuals for their roles in the Chimera Energy fraud:

  • Eddie Douglas Austin, Jr. , 66, Houston, TX
  • Carolyn Price Austin, 62, Houston, TX
  • Charles Earl Grob, Jr. 37, Houston, TX
  • John David Brotherton, 57, League City, TX
  • Scott Russell Sieck, 58, Winter Park, FL

On July 20, 2017, a grand jury returned a second superseding indictment against Farmer, Eddie and Carolyn Austin, Brotherton, Sieck and Grob for roles in a broader securities fraud conspiracy involving at least 12 other companies from 2011 to 2017.

The release indicates that Massey pleaded guilty to his role on April 18,2017, and is set for sentencing in June 2018.

Pump and Dump Scheme

In a pump and dump scheme, the fraudsters engage in fraudulent trading practices in a company’s stock by publishing false and misleading information about the company with the intention of inflating the price of the stock. Once the stock rises as a result of this fake information, the fraudsters dump their stock on the market to the investors who have been misled by the false information.

Victims who may have been advised by a registered stockbroker to invest in any of these companies may be able to recover damages through FINRA arbitration. Call to learn about 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

SEC Charges 13 with Fraud Boiler Room Scam Targeting Senior Citizens-Long Island

July 2017

Thirteen individuals from two Long Island-based boiler rooms were charged with securities fraud by the Securities and Exchange Commission who alleges that they made hundreds of thousands of cold calls, many of which targeted senior citizens.

The SEC press release makes quite a few shocking allegations and demonstrates just how far the unscrupulous will go to take advantage of the general public, for example:

  • It is estimated that over $10 million was scammed from innocent and unknowing victims.
  • A boiler room salesman allegedly claimed that Walt Disney Co. was buying into a company that would cause the penny stock he was touting to soar.
  • Victims were harassed and intimidated by sale personnel…One allegedly told a victim “Do you have any rope at home? If so tie a know and hang yourself or get a gun and blow your head off”.
  • The telemarketers would instruct victims to place trades and a specific price and number of shares and then the scammers would place opposing sell orders to dump their own shares.

Scott W. Friestad, Associate Director of the SEC’s Enforcement Division, added, “The defendants allegedly used boiler rooms and high-pressure sales tactics to swindle seniors into investing their life savings in microcap securities they were secretly manipulating for their own profit.  But, through a combination of technology and innovative investigative approaches, we were able to unravel the alleged scheme and prevent further investor harm.”

Defendants named in the SEC complaint are:

  • POWERTRADERSPRESS.COM, INC.
  • ELITE STOCK RESEARCH, INC.
  • ERIK MATZ
  • RONALD HARDY
  • ANTHONY VASSALLO
  • STEPHANIE LEE
  • JEFFREY CHARTIER
  • LAWRENCE D. ISEN
  • ROBERT GLECKMAN,\
  • MICHAEL WATTS
  • BRIAN HEEPKE
  • DENNIS J. VERDEROSA
  • EMIN COHEN
  • SERGIO RAMIREZ
  • ASHLEY ANTOS

If you were recommended to deal with any of these individuals by a registered stock broker, you may be able to recover damages from that broker’s employer. Call for details.

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

Wesley M. Woodyard Sentenced to 87 Months For Fraud-Dallas, Texas

July 2017- Dallas, Texas

According to the Department of Justice , Wesley Michael Woodyard, 66, was sentenced to 87 months in federal prison for his role in a scheme to defraud Ace European Insurance Company (ACE) of London, England, of over $4.6 million from 2002-2013.

Woodyard owned and operated Ringler Associates of North Texas and used that entity to defraud ACE who believed that he was actually purchasing legitimate annuity contracts.

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

Judy K Morehead-Former Navarre Beach Chamber CEO-Charged With Securities Fraud-Navarre Beach, AL

June 2017-Navarre Beach, Alabama

The Alabama Securities Commission announced that Judy Kay Morehead of Henry County, Alabama, turned herself in to the Henry County Jail upon an arrest warrant charging her with Conspiracy to Commit Securities Fraud, Sale of Securities by an Unregistered Agent, Fraud in Connection with the Sale of Securities and other offenses. Morehead was released on $40,000 bond.

Follow this link to see Alabama Securities Commission press release. 

Judy Morehead resigned Thursday from her position as Navarre Beach Chamber of Commerce president and CEO. She allegedly took money from investors and spent it on personal debts and expenses.

Morehead’s husband Stanley and son Benjamin were also arrested for securities fraud.

According to FINRA records, Judy Kay Morehead  (CRD# 2254549) was previously a licensed securities broker who employment includes Ameriprise Financial Services, LPL Financial and Edward Jones. She was last registered as a broker in 6/2012.

If you have questions about an account handled by Morehead, call to learn about your legal 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

Gregg Templeton – Former Oppenheimer & Co. Broker – Discloses $6.75M Customer Dispute – NYC

JUNE 2017- New York, NY

According to publicly available records Gregg D. Templeton (CRD#2412775) ,  a  former stockbroker who was previously registered with Oppenheimer & Co., discloses a prior regulatory event, a currently pending customer dispute, 6 prior customer disputes 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 4/2017, Templeton was permanently barred from the securities industry by FINRA to resolve allegations that he failed to provide documents and information requested by FINRA in the course of an investigation into allegations that he misused customer funds and committed other sales practice violations.

In 7/2016, a customer of Oppenheimer & Co. alleged unauthorized trading and sought damages of $61,475.  The case was settled for $62,475.

In FINRA case #16-00111  a customer of  Oppenheimer sought damages of $220,000 for unsuitable investments, fraud, breach of fiduciary duty and negligent supervision.   The case settled for $562,500.

In currently pending FINRA case 16-02363  a customer of Oppenheimer & Co. alleges fraud and breach of contract and seeks damages of $6,750,000.

Templeton was employed by Oppenheimer & Co. from 1/2007 to 8/2015.   Since that time he was employed briefly by FSC Securities Corporation and Aegis Capital Corp .

If you have questions about an account in an account handled by Gregg D. Templeton contact us to discuss your legal 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

Mark David Martino-Former Axiom Capital Management Broker-Discloses Customer Dispute-New York

June 2017- New York

According to publicly available records Mark David Martino  (CRD#1010228) ,  a  stockbroker who currently is employed by Ascendant Alternative Strategies  discloses a prior regulatory event, a pending customer dispute, 3 prior customer disputes 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 2003, without admitting or denying the allegations, Martino agreed to a $15,000 fine and 60 days supervisory suspension to resolve allegations that he failed to adequately supervise registered representatives related to the issuance of 4 research reports.

In pending FINRA arbitration 17-1008, a customer of Axiom Capital Management seeks damages of $305,191 and alleges that Axiom and Martino committed fraud, breach of fiduciary duty and made material misrepresentations in connection with the sale of private placement investments.

Martino was discharged from Shearson Lehman Hutton in 1988.

If you have questions about an account handled by Mark David Martino , contact us 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