Category Archives: Finance 500

William H. Watson III-Prior Freedom Investors Broker- Discloses Regulatory events, Customer Disputes-Federal Tax Liens-Orange County, CA

August 2017 -Orange County, CA

According to publicly available records William Henry Watson III (CRD#1016938) , a  stockbroker who was previously registered with Freedom Investors Corp, disclose  two regulatory events , seven customer disputes and four federal tax liens.

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 2016  Watson  consented to sanctions of a 10 day suspension and a $5,000 fine from the securities industry by FINRA to resolve allegations that “Watson participated in securities offerings with four different issuers in which he used, or permitted issuers to use marketing materials that were not fair and balanced, as they failed to discuss each of the issuers’ poor financial performance and made misleading, unwarranted or unsupported statements.”    

In 1/2017, a Finance 500, Inc. customer filed a complaint alleging inappropriate investments in limited partnerships and direct investments and sought damages of $800,000.   That case was settled for $161,653.

In pending FINRA Case 16-3674 , a Finance 500, Inc.  customer alleges  misrepresentation, breach of fiduciary duty, failure to supervise, Texas Securities fraud, negligence and breach of contract in connection with investments in limited partnerships and is seeking damages of $102,500.

There are four Internal Revue Service tax liens disclosed by Watson , filed in Orange County, CA from 2005 to 2014, and  totaling more than $600,000.

Watson was with Freedom Investors from 8/2014-12/2015 and  with Finance 500, Inc. from 2/ 2011 until 7/2014 .  Prior to that he was with Choice Investments of Austin, Texas.

If you have questions about an account handled by William Henry Watson III,  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

Geoffrey Schiffrin, Finance 500 Broker Sanctioned for Penny Stock Sales

December 28, 2015- Delray Beach, Florida

Geoffrey Schiffrin entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while associated with Finance 500, Inc. as registered principal for their Florida branch office, Schiffrin failed to detect and investigate numerous red flags indicative of potentially suspicious activity related to the retail trading activity of the branch’s customers including his own.

According to FINRA, Schiffrin opened trading accounts for individuals he knew had engaged in suspicious and manipulative trading of a penny stock and assisted those customers in depositing additional shares of that same penny stock to liquidate. Schiffrin, at no time, conducted additional due diligence to assess the legitimacy of the transactions or escalated the matter to the firm’s AML officer. From at least 2010, Schiffrin failed to fulfill his responsibilities under the firm’s anti money laundering procedures.

AWC No.  20130368378-04

Schiffrin was fined $10,000 and suspended from association with any FINRA member in any capacity for six months followed by suspension from any FINRA member in a principal capacity for a  year.

According to FINRA records Schiffrin was registered with Finance 500 in Delray Beach, Florida, from 1/2006-1/2013. He was registered with GVC Capital in Boca Raton, FL, from 8/2013-12/2013.

Finance 500 is headquartered in Irvine, CA. They have been a FINRA registered broker dealer since 1982 and have about 29 registered individuals in five branch offices.

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

Finance 500 Broker Sanctioned for Penny Stock Violations-Delray Beach, FL

January 11, 2016

Robert E. Richards entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while associated with Finance 500, Inc. as supervisor for their Florida branch office, Richards aided and abetted the price manipulation of two penny stocks, Dolphin Digital Stock (DPDM) and Fibrocell Science (FCSC).

According to FINRA, the Florida branch focused almost exclusively on trading penny stocks as a market maker for both the Firm’s proprietary trading accounts and for its retail customers. By focusing on penny stock trading, the Florida branch dealt in a segment of the market susceptible to fraudulent activity.

In 2012, Richards learned that one of his  customers was arrested for manipulating the market for a penny stock company. That customer pled guilty, served time and had a penny stock bar placed on him by the SEC, however Richards opened an account for that customer’s wife that was used to deposit and liquidate shares of a penny stock, according to FINRA.

AWC No.  20130368378-03

RIchards was fined $25,000 and suspended from association with any FINRA member in any capacity for two years. According to FINRA records Richards was registered with Finance 500 in Delray Beach, Florida, from 2/2005-7/2014.

Finance 500 is headquartered in Irvine, CA. They have been a FINRA registered broker dealer since 1982 and have about 29 registered individuals in five branch offices.

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

Finance 500 Broker Sanctioned by Securities Regulators for Failure to Supervise Florida Office

December 29 , 2015

Paul J. Savage entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that while associated with Finance 500, Inc. as head of the office of supervisory jurisdiction supervisor for the Florida branch office, he failed to carry out his duties in each of the supervisory roles he held with the firm.

Finance 500 filed a Uniform Termination Notice permitting Savage to resign in October 2014, stating the to be “in connection with branch supervision, supervision of Firm trading activities and account due diligence.”

According to FINRA, the Florida branch focused almost exclusively on trading penny stocks as a market maker for both the Firm’s proprietary trading accounts and for its retail customers. By focusing on penny stock trading, the Florida branch dealt in a segment ofthe market susceptible to fraudulent activity. Despite the risks, Savage did not mitigate the risks associated with this business model.

AWC No.  2013036837802

Savage was fined $10,000 and suspended from association with any FINRA member in any capacity for six months.

Finance 500 is headquartered in Irvine, CA. They have been a FINRA registered broker dealer since 1982 and have about 29 registered individuals in five branch offices.

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