Category Archives: Pacific West Securities

Brian Brunhaver Investigation Update-Former LPL Broker With Numerous Customer Complaints

April 1, 2016

In 2013 Brian Brunhaver, a former stock broker with LPL Financial, was sanctioned the Washington State Securities regulators for the sale of non publicly traded real estate investment trusts (REITs). His wife Stacey Brunhaver and his investment advisory firm Brunhaver Financial Services were also named in regulatory sanction which assessed a fine of $60,000. See this for more details. 

FINRA records report that in June 2014 Brunhaver was permanently barred from the securities industry for various regulatory violations, including making false statements in connection with the sale of a REIT that had significant risks. FINRA Case 2011026852001.

Brian Brunhaver has been named in 8 customer disputes that have been settled, including:

  • FINRA Case 13-01742- customer alleged sale of REITs were unsuitable. Case was settled for $637,100.
  • FINRA Case 13-1302-customer alleged investments in REITs were unsuitable. Case settled for $256,600.
  • FINRA Case 13-0195-customer alleged investments and mutual funds between 1990-2011 were unsuitable. Case settled for $747,900.

Brian Brunhaver is named in two customer disputes that are currently pending, including:

  • Washington Attorney General’s Office Complaint-customer alleges that signatures were forged on a $50,000 investment and was made for more that he and his wife had authorized.

Brian Brunhaver was employed by LPL Financial from 5/1995-6/2011 when he was terminated for cause for violation of LPL Financial policies and procedures. He was next employed by Pacific West Securities from 8/2011-12/2011.

If you have suffered losses in an account handled by Brian H. Brunhaver, call to discuss your options 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

Securities Regulator Awards $2.1 million For Sale of Tenant in Common Investments (TICs)

A FINRA arbitration panel found that TIC investments were unsuitable and ordered Pacific West Securities to pay $2.1 million in damages to a couple that had been clients.

TICs are real estate securities also known as tenant-in-common exchanges and have been very popular over recent years.

Unfortunately the investor may see little or none of the money since Pacific West’s CEO announced that the firm would be forced to close down. This danger, entrusting your nest egg to a firm that may have limited resources, is one we have warned investors about in the past. See this link (bottom of page “A Word to the Wise…”) for more on the dangers of dealing with a thinly capitalized broker-dealer.

The arbitration panel found that the TICs were not suitable for the couple “given their age, financial condition, cash flow needs, risk tolerance, over concentration in real estate and for other reasons”. The panel also awarded $200,000 in attorney fees and interest and was particularly concerned about the lack of a suitability analysis, saying in their order:

“Among other evidence of a violation of a standard of care under the Securities Act of Washington was the disavowal by [Pacific West and its broker, William Swayne II] of any obligation to conduct a suitability analysis for the sale of TICs in the circumstances of a Section 1031 — like-kind-assets exchange for tax deferral purposes,” according to the award. The arbitrators “determined that the sale of these securities to (the couple) violated the duty of reasonable care.”

Broker dealers that sold TIC investments include:

Alternative Wealth Strategies
American Wealth Management
Berthel Fisher & Co
Cambridge Investment Research
CapWest Securities Inc.
DBSI Securities
DeWaay Financial Network, Inc.
Equity Services Inc.
FINTEGRA LLC
F.A. Repple & Co.
Grubb & Ellis
INVEST Financial Corp.
Investment Security Corporation
Investors Capital
J.P. Turner Co. LLC
LaSalle St. Securities
KMS Financial Services, Inc.
LPL Financial
MCL Financial Group Inc.
Meridian Capital Partners
Next Financial Group
NPV/Direct Invest
Omni Brokerage Inc.
Orchid Securities
Pacific West Securities
QA3 Financial Corp.
Quest Securities
Questar Capital Corp.
Regent Financial Group
Sanders Morris Harris
Sagepoint Financial
Securities Network LLC
Sigma Financial
U. S. Advisors LLC
U. S. Commercial
WFP Securities

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

Rex Investigates Tenant in Common, TIC, 1031 Exchange Real Estate Investment Losses

Have you or your loved ones suffered losses as a result of purchasing Tenant in Common Real Estate Investments? We are investigating schemes involving the sale of private investments in real estate (office buildings, shopping centers, etc) in investments knows as TIC’s, 1031 exchanges or Tenant in Common real estate investment schemes.

Brokerage firms nationwide sold these investments to unsuspecting
investors, many who are retirees on fixed income who can ill afford to lose capital. Oftentimes the selling firm did little or no due
dilligence to determine the safety of the investment or the suitablity
of the investment for the particular investor involved.

The brokers generally highlighted selling points like the guaranteed
annual income distributions (often 7% or more), but failed to discuss
the risks associated with this type of investment. Since TIC investments are private investments, not traded on any securities market, they can not be readily sold, making them virtually illiquid. This can be  critical for those needing liquidity for living and health expenses.

In February 2012 LPL Financial was hit with a $1.4 million arbitration award for an elderly couple who was sold tenant in common real estate investments. DBSI Inc., one of the largest sellers of TICs declared bankruptcy in 2008, however the broker dealers that sold those deals remain liable for selling these products.

Brokerage firms that sold TIC investments include the following:

Alternative Wealth Strategies
American Wealth Management
Berthel Fisher & Co

Cambridge Investment Research
CapWest Securities Inc.
DBSI Securities
DeWaay Financial Network, Inc.
Equity Services Inc.
FINTEGRA LLC
F.A. Repple & Co.

Grubb & Ellis
INVEST Financial Corp.
Investment Security Corporation
Investors Capital
J.P. Turner Co. LLC
LaSalle St. Securities

KMS Financial Services, Inc.
LPL Financial
MCL Financial Group Inc.
Meridian Capital Partners
Next Financial Group
NPV/Direct Invest
Omni Brokerage Inc.
Orchid Securities
Pacific West Securities

QA3 Financial Corp.
Quest Securities
Questar Capital Corp.
Regent Financial Group
Sanders Morris Harris
Sagepoint Financial

Securities Network LLC
Sigma Financial
U. S. Advisors LLC
U. S. Commercial
WFP Securities
Workman Securities

Rex Securities Law , located in Boca Raton, FL, 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

561 391 1900