Category Archives: Lack of Due Diligence

Couple Awarded $550,000 For Losses on Breitburn Energy Investments-St. Louis

September 2017-St. Louis, MO

A FINRA arbitration panel ordered J.J.B. Hilliard, W.L. Lyons to pay a couple $450,000 in compensatory damages, $100,000 in punitive damages and costs of over $18,000. The couple alleged that the firm and broker sold all of their blue chip stocks and invested all of the funds in a highly speculative oil and gas company, Breitburn Energy Partners Limited.

The couple contended that the lack of diversification exposed them to massive risk which was contrary to their conservative investment objectives and risk tolerance. Benitone, et al vs. J.J.B. Hilliard, W.L. Lyons, LLC, FINRA Case 16-01819. 

Stockbrokers have a duty to make recommendations that are suitable in light of your age, health and level of financial sophistication. Brokers are required to make recommendations that comply with your stated investment objectives and risk tolerance.

Many investors have suffered significant losses in oil and gas and other energy related investments over recent years. If you have questions about losses on energy investments, call for a no charge consultation.

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.

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Richard W. Martin-Former G.F. Investments Services Broker-Discloses Issues Over Sale of ETFs

July 2017-Malaysia

The FINRA records of  Richard William Lunn Martin ,  a  former stockbroker who was last  employed by  G.F. Investment Services, disclose a  prior regulatory matter, 15 customer disputes, a current investigation and 2 terminations 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 April 2017, Martin was permanently barred by FINRA to resolve allegations that he solicited, purchased and recommended that his customers hold non-traditional exchange traded funds (ETFs) in their accounts for lengthy periods of time, despite the enormous risks of holding non-traditional ETFs for more than one trading period.

Martin discloses numerous settlements to customers who invested in ETFs, including the following:

In FINRA case #15-2500 a customer of G.F. Investment Services  sought damages of $450,000 for unsuitable recommendations to invest in ETFs. That case was settled for $290,000 in May 2016.

In FINRA case #14-3679 a customer of G.F. Investment Services  sought damages of $2,000,000 for unsuitable recommendations to invest in ETFs. That case was settled for $500,000 in December 2014.

IN 7/2009 Martin was ‘permitted to resign’ from Latam Investments who made the following allegation on his FINRA record: “A painting belonging to the CEO of the firm was discovered missing. Upon review of the video recording from the office monitoring system the firm positively identified Mr. Martin removing the painting from the CEO’s office early in the morning and then exiting the main door with the painting”. 

In July 2015, Martin was ‘permitted to resign’ from G.F. Investment Services who made the following allegation; “FINRA Case 20150445876 opened 3/25/2015. Wells Letter received by Mr. Martin 7-7-2015”

Martin’s prior employers include:

  • G.F. Investment Services
  • Global Strategic Investments
  • Latam Investments
  • Morgan Stanley Dean Witter

If you have losses in an account handled by Richard William Lunn Martin, 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

Damian Bell -Prior WFG Investments, Inc. Broker-Discloses Customer Disputes-Daphne, AL

September  2017 – Daphne, AL

According to publicly available records Damian M. Bell  (CRD#2348521) ,  a  stockbroker who was previously employed by WFG (Williams Financial Group) Investments, Inc.  disclose 2 pending and 5 prior customer disputes.

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 2017, a customer of  WFG Investments, Inc. filed a  dispute alleging unsuitable recommendations in mutual funds.   That complaint was settled for $4,950.

In March of 2016,  a customer of  WFG Investments, Inc. filed FINRA arbitration 16-0346 alleging failure to conduct a reasonable investigation into an investment in a private placement, Servergy , misrepresentation, unsuitable recommendations and breach of fiduciary duty.   That dispute was settled for $250,000.

In August 2002 a customer of Merrill Lynch, Pierce, Fenner & Smith, Inc.  filed NASD arbitration 6-4415 alleging unsuitable recommendations and failure to disclose fees.   That case settled for $40,000.

In March of 2017, a customer of  WFG Investments, Inc.  , filed FINRA arbitration #17-00822  seeking damages of $505,000 and alleging failure to conduct reasonable due diligence, material misrepresentations and failed to disclose material facts in connection with an investment in a private placement.   This case is currently pending.

In November of 2016, another customer of WFG Investments, Inc. , filed FINRA arbitration #16-03305 seeking damages of $1,100,000 alleging failure to conduct due diligence, material misrepresentations and failure to disclose material facts.  This case is currently pending.

Damian Bell was employed by   WFG Investments from April of 2010 until May of 2017. He has been employed by International Assets Advisory since 6/2017.

If you have questions about an account handled by Damian Bell, 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

James Neal Turner-Former WFG Investments Broker-Discloses Customer Dispute-Plano, TX

June 2017- Plano, Texas

According to publicly available records James N. Turner (CRD#2068968) ,  a  stockbroker who currently is employed by First Command Financial Planning  discloses a pending customer dispute, 2 prior customer disputes and a currently 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 FINRA arbitration 16-03688, a customer of WFG Investments and Jefferies LLC seeks damages of $75,000 and alleges misrepresentation within offering documents, failure to conduct due diligence and failure to execute due care in the sale of unsuitable investments.

Turner discloses a tax lien in favor of the Internal Revenue Service in the amount of $58,525, filed at Collin County, TX  Federal Court.

Turner’s prior employment includes Merrill Lynch, IMS Securities and WFG Investments.

If you have questions about an account handled by James Neal Turner , 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

Daniel R. Saur-Kalos Capital Broker-Discloses Customer Disputes Over Viatical Settlements-Dallas, TX

May 2017-Dallas, TX

The FINRA records of  Daniel R. Saur  ,  a  stockbroker who is currently  employed by  Kalos Capital  disclose  a pending customer dispute and a  a prior final customer dispute.

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 FINRA Case 15-2389, a customer of Kalos Capital and D.R. Saur Financial alleged damages of $100,000 resulting from an investment in a viatical settlement That case was settled in 3/2017 for $87,195.

In currently pending FINRA Case 17-0046 a customer of Kalos Capital seeks damages of $500,000 and alleges inadequate due diligence, unsuitable recommendations and failure to supervise the broker in connection with the purchase of oil & gas, real estate securities and a viatical settlement.

Daniel R. Saur has been employed by Kalos Capital since 4/2009.

If you have questions about an account  handled by Daniel R. Saur  call for a no charge consultation.

Viatical Settlement

A viatical settlement is a contract whereby a person diagnosed with a terminal illness sells their life insurance policy for less than its face value in order to obtain a portion of the proceeds while still alive. The buyer (investor) obtains the full value of the policy upon the death of the insured.

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

Leslie R. Rosenblatt of Texas Financial Resources Discloses Customer Dispute/Termination of Employment-Plano, TX

April 2017-Plano, TX

The FINRA records of  Leslie R. Rosenblatt ,  a  stockbroker who is currently registered with SCF Securities disclose a pending customer dispute 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 currently pending FINRA arbitration 16-03688 a customer of WFG Investments is seeking damages of $75,000 and alleges misrepresentation contained in the offering documents, failure to conduct reasonable due diligence and failure to execute care against WFG Investments and Jefferies LLC.

Rosenblatt made the following statement on his FINRA record in connection with this pending claim: “As an advisor of WFG Investments, Inc. the information that was furnished to me was thought to be accurate and clearly stated. I am very disappointed that WFG may have had incorrect information in their offering documents.”

Rosenblatt has been employed by SCF Securities since 6/2015. Prior to that he was employed by WFG Investments and before that MML Investor Services.   Rosenblatt discloses a business affiliation with Texas Financial Resources and  Wealth Concepts. 

In 4/2014 Rosenblatt was discharged by WFG Investments who made the following allegation on his FINRA record: “The firm has reasonably determined that Mr. Rosenblatt facilitated private securities transactions without prior approval. The firm identified instances where Mr. Rosenblatt signed wire transfer request forms and failed to identify or report what was later determined to be replicated, pre-signed forms. “

If you have losses in an account in an account handled by Leslie R. Rosenblatt , you may be able to recover damages through FINRA arbitration.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures.  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.

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

Walter Parker-Titan Securities Broker-Discloses Customer Disputes Over UDF Investments-Rowlett, Texas

Rowlett, Texas

UPDATE JULY 2017Walter Parker discloses that FINRA arbitration 16-2349, discussed below, was settled in June 2017 for $70,000.

A complaint was filed by a customer of Titan Securities in connection with an investment in a real estate investment trust (REIT) alleging that the product was unsuitable and that the client did not understand that the product was illiquid. That case was settled in June 2017 for $37,119.

ORIGINAL POST-April 2017

The FINRA records of  Walter W. Parker ,  a  broker with  Titan Securities  disclose 2 pending customer disputes and 2 prior final customer disputes.

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 pending FINRA Case 16-2349 a customer of Titan Securities alleges that they were sold UDF (United Development Funding) which was unsuitable for the customer and he did not understand the risks and did not understand that UDF was illiquid. No amount of damages is stated in the claim.

In pending FINRA Case 15-2351 a customer of Titan Securities alleges damages of $211,975 related to an investment in a viatical settlement which the customer alleges is unsuitable and that it was misrepresented.

In a previous case, FINRA #16-1929, a customer of Titan Securities alleged damages of $50,000 related to an investment in UDF (United Development Funding) which the client states was unsuitable and that he did not comprehend the risks or the fact the investment was illiquid.  That case was recently settled for $16,500.

Walter Parker has been employed by Titan Securities since 8/2006. Parker discloses a business relationship with InsuranceMakesMe Sick.com and InvestingMakesMeSick.com in Rowlett, TX.

Titan Securities is headquartered in Dallas, Texas, and has been a FINRA member since 2004. They have about 13 brokers located in 7 branch offices in:

  • Arlington, TX
  • Abilene, TX
  • Overland Park, KS
  • Dallas, TX
  • Rowlett, TX
  • Henrico, VA
  • Kingston, OK

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

United Development Funding’s Office Raided by the FBI-for more information on recent problems for UDF, follow this link.

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