Category Archives: Lack of Due Diligence

Scott Sibley-Former Raymond James Broker-Discloses Multiple Customer Disputes Alleging Abuse of the Elderly-Boca Raton, FL

March 2017-Boca Raton, FL

According to publicly available records Scott Allen Sibley  , (CRD# 1523981) ,  a   former stockbroker who last worked for Moors & Cabot,  discloses 2 prior regulatory events, 2 pending customer disputes, 15 prior final customer disputes, a regulatory investigation, a termination 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 the most recent regulatory matter in 2015,  Sibley was fined $15,000 and suspended for 15 days to resolve allegations by the Florida Office of Financial Regulation that  he made unauthorized trades in a client account.

In January 2017, FINRA commenced an investigation to determine if Sibley willfully failed to disclose material information on FINRA disclosure forms.

The prior final customer disputes include:

  • FINRA arbitration 15-0881 in which a Raymond James customer alleged exploitation of a vulnerable adult, exploitation of a disabled adult and other claims. That case was settled for $325,000.

In pending FINRA arbitration 17-0066, a Raymond James customer alleges damages of $300,000 for negligence, fraud and violations of the Florida Investor’s Protection Act.

In pending FINRA arbitration 16-01493, a Raymond James customer alleges damages of $675,000 for negligence, fraud, unsuitable recommendations, exploitation of the elderly and other claims.

Sibley was discharged by Raymond James in 2/2015 after the firm received multiple customer complaints alleging unauthorized trading.

Sibley was employed by Moors & Cabot from 3/2015-2/2017 and by Raymond James 11/2007-3/2015.

If you have losses in an  investment account handled by Scott Sibley  , you may be entitled to recover damages. 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

James Regier-VSR Financial Broker-Discloses Customer Complaints Over Alternative Investments

October 2016-Topeka, KS

The FINRA records of  James V. Regier,  a  stockbroker who is currently  employed by  VSR Financial Services & Summit Brokerage Services disclose 2 pending customer disputes and a prior customer dispute that is final.

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.

Regier, who operates ETA Financial Services in Topeka, Kansas discloses that  a complaint filed by a VSR Financial Services customer alleged that an investment in real estate securities was not suitable for her. That case was settled for $104,191 in July 2012.

In one of the pending matters filed in July 2016, a customer of VSR Financial alleges damages of $78,642 as a result of an unsuitable investment in United Development Funding IV (UDF).

In April 2016, a customer of VSR FInancial alleged that from April 2015-March 2016, unsuitable investments were made in the account by Regier. No damages are specified.

Regier has been registered with VSR Financial Services since 8/2002 and registered with Summit Brokerage Services since 9/2002. VSR is in the process of winding down operations and transferring many of the brokers and customer accounts to Summit Brokerage Services.

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 similar to United Development Funding. 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 losses in an account in an account handled by James V. Regier or another broker who was employed by VSR Financial Services , 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

Charles C. Shafe-Transam Securities Broker-Discloses Customer Disputes Over Alternative Investments

Altamonte Springs, Florida

The FINRA records of  Charles C. Shafe,  a  stock broker who currently is employed by Transam Securities disclose 4 prior final customer disputes and a prior regulatory event.

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.

The prior customer disputes include:

  • FINRA Case #12-2719 in which a customer of Transam Securities alleged damages of $400,000 and further alleged that Shafe recommended unsuitable investments resulting in the client potentially losing a significant portion of her retirement assets. The client also alleged that Shafe and Transam Securities conducted inadequate due diligence on the various investments and did not provide proper diversification for her interests.  The subject investments included direct investments, limited partnerships, equipment leasing , real estate (REITs) and oil and gas investments. That case was settled for a total of $150,000. Shafe contributed $40,856 personally toward that settlement.
  • FINRA Case #12-02851 in which a customer of Transam Securities alleged damages of $600,000 an further alleged that Shafe recommended unsuitable investments resulting in client potentially losing a significant portion of client’s assets. The subject investments included direct investments, limited partnerships, and oil and gas investments. That case was settled for $125,000 of which $37,500 was paid personally by Shafe.

Shafe has been registered with  Transam Securities  since 1/1991. Shafe was also registered with Maitland Securities from 10/2004-6/2013 and with The Shafe Group, Inc. from 9/1993-the present.

Alternative investments include non publicly traded real estate investment trusts (REITS) , equipment leasing, oil and gas investments, 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 losses in an account handled by Charles Shafe, call to learn how you may be able to recover damages 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

Delbert W. Carnes-Woodbury Financial Broker-Discloses Settlement with Customers & Outstanding Judgment

August 2016- Colorado Springs, CO

The FINRA records of Delbert W. Carnes ,  a  stock broker who is currently  employed by Woodbury Financial Services  disclose 5 prior customer disputes and a currently outstanding judgment.

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.

 

The prior finalized customer disputes include:

  • FINRA Case 14-02979 in which a customer of Carnes‘ prior employer, Parkland Securities (formerly Sammons Securities) alleged damages of $125,000 for inappropriate and misleading advice which resulted in an over concentration in unsuitable illiquid investments. That case was settled for $45,000.
  • FINRA Case 12-02470  in which a customer of Carnes‘ prior employer,  Sammons Securities alleged damages of $223,000 for misrepresentation, omission of facts, negligence and breach of fiduciary duty and failure to conduct adequate due diligence.That case was settled for $84,000.
  • FINRA Case 12-02220  in which a customer of Carnes‘ prior employer,  Sammons Securities,  alleged damages of $406,139 for misrepresentation, omission of facts, negligence and breach of fiduciary duty .That case was settled for $245,500.

Carnes discloses a currently outstanding lien in the amount of $132,993 in favor of First Citizens Bank & Trust, filed in District Court of Douglas County.

Carnes has been employed by  Woodbury Financial Services  since 7/2009.

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

Wayne Kirk-Reef Securities Broker-Richardson,TX-Discloses Customer Dispute

Richardson, Texas

According to FINRA records,  Harris Wayne Kirk  a stockbroker who works for Reef Securities,  discloses  a recently filed 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 the currently pending matter, a customer alleges damages of $250,000 failure to conduct due diligence, failure to supervise and failure to adequately disclose risks of investments in connection limited partnership investments. FINRA Case # 16-307.

Kirk, who previously worked for Chestnut Exploration Partners, now known as Texas E&P Partners,  also discloses 3 prior customer disputes, a regulatory investigation that is final, and a termination from securities employment . See this for more details.

If you have questions about an account handled  Harris Wayne Kirk, 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

David Newman-Former First Western Securities Broker-Fined by Securities Regulator

Hurst, Texas- April 2016

David P. Newman who formerly was a stockbroker with First Western Securities  (4/2008-1/2016) in Hurst, Texas,  entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that between fall 2012 and spring of 2015 he participated in undisclosed securities transactions by introducing a married couple and two other individuals to an outside investment.

FINRA alleged that nearly $900,000 was invested by Newman on behalf of the individuals for which he received a 10% commission. His actions violated various NASD and FINRA Rules requiring notice to his member firm and the requirement that recommendations for investments be suitable for the customer.

An insurance agent from Wichita Falls, Texas, Bobby Collins was selling notes to investors and the money raised purportedly was to be used for various business purposes. Collins was charged by the SEC with operating a fraud targeting elderly investors in November 2015, since he did not use the money raised for valid business purposes.

FINRA alleged that Newman did not perform adequate due diligence on the proposed investment and did not adequately investigate  Collin’s background prior to making the recommendation that his customers invest in Collin’s scheme.

Newman was fined $15,000, suspended for 15 months and required to disgorge the commissions of $89,500 he earned.

AWC 2015046649901

Newman’s FINRA record discloses 4 pending Internal Revenue Service liens ranging in amount from $594 to $999,0000.

If you have losses in an account handled by David Newman you may be able to recover damages 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

How to Recover Damages for Losses on Oil and Gas Investments Purchased from PTX Securities

Investors suffering losses on oil and gas investments purchased from PTX Securities of Plano, Texas, may be able to recover damages through FINRA arbitration.

PTX Securities (fka Balanced FInancial Securities) was sanctioned by FINRA in April 2016 for failure to perform adequate due diligence in connection with the sale of two private placement oil and gas offerings. See this for details on the sanction.

Call for a no charge consultation 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