Category Archives: LEK Securities

Lek Securities Named in Market Manipulation Regulatory Action

UPDATE JUNE 2017-FINRA records disclose that Lek Securities has 20 currently pending regulatory events and 7 prior regulatory events.

March 27, 2017

Lek Securities and its CEO Samuel F. Lek have been targeted in disciplinary proceedings filed by the Financial Industry Regulatory Authority (FINRA) , the New York Stock Exchange (NYSE) and a number of other exchanges. The complaints allege that Lek and his company were involved in manipulative trading in a customer account known as ‘Avalon” impacting both equities and options markets.

According to the FINRA press release, which can be accessed here, Avalon’s manipulative trading involved practices known as ‘layering‘ and ‘spoofing‘ which entails one or more traders moving the price of a security by placing bogus orders and then modifying or cancelling them so that they never become actual trades. Once there is an appearance of interest in the stock, the trader can buy or sell it on the other side at a better price.

The firm is also charged with violating the know your customer rules, failure to properly preserve electronic communications, maintenance of CRD information, supervision of outside business activities and other violations.

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

Samuel F. Lek of Lek Securities Discloses 6 Pending Regulatory Investigations

August  2016-New York

The FINRA records of Samuel F. Lek ,  a  stock broker who is currently  employed  by Lek Securities Corporation  , disclose 6 pending FINRA investigations.

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 six pending FINRA investigations include:

  • FINRA 5/9/2016 Investigation

    FINRA Legal has made a determination to recommend that formal disciplinary action be brought against Mr. Lek for the following: 1) Causing Lek Securities to fail to establish, document, and maintain a system of risk management controls and supervisory procedures, including written supervisory procedures, reasonably designed to manage regulatory compliance risks associated with providing direct market access to customers. 2} Aiding and abetting manipulative trading activity by Lek Securities customers, including but not necessarily limited to Avalon FA Ltd., in contravention of Section l0{b} of the Securities Exchange Act of 1934 and other securities laws.

  • Lek has been employed by Lek Securities since 12/1993.

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

Sergey Pustelnik-LEK Securities Broker-Barred from Industry

December 3, 2015

The New Jersey Bureau of Securities revoked the securities license of Sergey Pustelnik due to the fact that FINRA had previously barred Pustelnik from the securities industry. See below.

January 21, 2015-

Sergey Pustelnik  entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that in connection with an investigation conducted by the Market Manipulation Investigations Section of FINRA’s Department of Market Regulation into suspicious trading activities Pustelnik to produce certain emails in his possession, custody and control. Specifically, according to thee AWC, Pustelnik refused to produce a copy of a .pst file containing emails in a Gmail account he used for business and personal purposes.

According to FINRA records, Sergey Pustelnik, was registered with LEK Securities Corporation from 3/2011-1/2015. Prior to that he was registered with Genesis Securities. 

Case # 20110297130-03

If you have questions about an account handled by Sergey Pustelnik, call to speak with an experienced securities attorney.

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