Category Archives: Reef Securities Inc.

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

Wayne Kirk/Reef Securities Investigation–Update

February 11, 2016- Richardson, Texas 

Rex Securities Law is investigating Harris Wayne Kirk ,  a stock broker currently registered with  Reef Securities, Inc.

Kirk’s FINRA record indicates that he has been named in 3 customer disputes.  A FINRA arbitration filed  filed by a customer was recently settled for $25,000.  That arbitration sought damages of over $61,000 on oil and gas investments that were made while Kirk was employed by Reef Securities. The investor made the following allegations in that arbitration:

  • failure to supervise
  • failure to conduct independent due diligence
  • failure to adequately disclose risks of investment
  • breach of contract

Kirk was registered with Reef Securities from 2/1998-9/2013 , was discharged (see below)  from Reef Securities in 2013 and next joined Chestnut Exploration Partners (now known as Texas E&P Partners) in 3/2014 where he worked until 2/2015. In 10/2015 Kirk rejoined Reef Securities.

Reef Securities made the following  the following allegations related  to his discharge in 9/2013:

“Actions inconsistent with corporate policy and management. Mr. Kirk provided inaccurate information regarding his outside business activities. “

According to FINRA, the products related to Kirk’s discharge from Reef Securities were oil and gas investments.

FINRA records report that as of on 10/23/2014 Kirk appeared to provide testimony in connection with a FINRA investigation to determine whether violations of the Federal securities laws or FINRA, NASD, NYSE or MSRB rules have occurred. That investigation is currently pending.

Reef Securities, Inc. has been registered with FINRA since 1993 and has about 15 financial advisors operating from their office in Richardson, Texas.

Reef Securities, along with various other broker dealers, has sold to investors numerous oil and gas investments sponsored by the Reef Oil and Gas Companies, including the following:

  • Reef 2015 Oil & Gas Opportunity Fund
  • Reef 2015 Income Fund
  • Reef Bakken Bear Cat Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2010 Drilling Fund
  • Reef 2009 Drilling Fund
  • Reef 2007-2009 Drilling Program
  • Reef Oil & Gas Drilling & Income Fund
  • Reef Oil & Gas Income & Development Fund III
  • Reef Oil & Gas Income & Development Fund IV

Texas E&P Partners (formerly Chestnut Exploration Partners and formerly Chestnut Energy Partners) was formed in 2002 and is registered in 50 states and territories. In July 2015, FINRA filed Disciplinary Proceeding #2014040501801 against the company and its CEO Mark A. Plummer alleging material misrepresentations and omissions in connection with the sale of a private placement oil and gas offering in the Chestnut 2007 4×4 Joint Venture. That matter, which is currently pending,  seeks sanctions, disgorgement of ill gotten gains and other relief.

If you have losses in an account handled by Wayne Kirk you may be entitled to recover damages from his employer. Call 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

Reef Securities Broker Harris W. Kirk Investigation

SEE THIS FOR February 2016 Update.

November 25, 2015- Richardson, Texas 

Rex Securities Law is investigating Harris Wayne Kirk ,  a stock broker who on October 1, 2015,  rejoined  Reef Securities, Inc. According to FINRA records, Kirk was previously registered with Reef Securities from 2/1998 – 9/2013.

On Kirk’s official FINRA record, Reef Securities makes the following allegations related  to his discharge from Reef Securities in 9/2013:

“Actions inconsistent with corporate policy and management. Mr. Kirk provided inaccurate information regarding his outside business activities. “

According to FINRA the products related to the discharge were oil and gas investments.

Kirk’s FINRA record indicates that he has been named in 3 customer disputes. The most recent,  a FINRA arbitration filed  in 2015,  seeks damages of over $61,000 on oil and gas investments that were made while Kirk was employed by Reef Securities. The investor makes the following allegations in the  currently pending arbitration:

  • failure to supervise
  • failure to conduct independent due diligence
  • failure to adequately disclose risks of investment
  • breach of contract

Following his discharge from Reef Securities in 9/2013, Kirk was registered with Chestnut Exploration Partners, also located in Richardson, TX. According to FINRA, Kirk left Chestnut Exploration Partners in 2/ 2015.

Reef Securities, Inc. has been registered with FINRA since 1993 and has about 15 financial advisors operating from their office in Richardson, Texas.

Reef Securities, along with various other broker dealers, has sold to investors numerous oil and gas investments sponsored by the Reef Oil and Gas Companies, including the following:

  • Reef 2015 Oil & Gas Opportunity Fund
  • Reef 2015 Income Fund
  • Reef Bakken Bear Cat Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2010 Drilling Fund
  • Reef 2009 Drilling Fund
  • Reef 2007-2009 Drilling Program
  • Reef Oil & Gas Drilling & Income Fund
  • Reef Oil & Gas Income & Development Fund III
  • Reef Oil & Gas Income & Development Fund IV

If you have losses in an account handled by Harris Kirk you may be entitled to recover damages from his former employer. Call 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

 

Garland Wayne Benton, Former Reef Securities Broker- Investigation

November 25, 2015- Richardson, Texas 

Rex Securities Law is investigating Garland Wayne Benton, Jr.  who was  a stock broker with Reef Securities, Inc.  from June 2002 until April 2015  when he was terminated from Reef Securities, Inc. , who permitted him to resign.

On his official FINRA record, Reef Securities makes the following allegations related  to Benton’s termination:

SUSPENDED WITHOUT PAY EFFECTIVE MARCH 25, 2015 FOR FAILURE TO FOLLOW FIRM POLICIES AND PROCEDURES AND ALLEGATIONS OF SELLING AWAY – PRIVATE SECURITIES TRANSACTION FROM 2008.

RESIGNED ON APRIL 2, 2015 DURING ONGOING COMPANY INVESTIGATION. NO EVIDENCE WAS PROVIDED TO PROVE MR. BENTON’S PERSONAL EMAIL ADDRESS WAS HACKED. THUS THE FIRM CONCLUDED THAT MR. BENTON SOLD AWAY TO MR. PAUL. MR. BENTON POSSIBLY VIOLATED FIRM POLICY AND FINRA RULES. 3270 – OUTSIDE BUSINESS, 3040 – PRIVATE SECURITIES TRANSACTIONS, 2010-STANDARDS OF COMMERCIAL HONOR AND TRADE

Benton’s FINRA record indicates that he has been named in 3 customer complaints. The most recent, a FINRA arbitration filed by a California investor in 2014 seeks damages of nearly $1 million on oil and gas investments. The aggrieved investor makes the following allegations in the action that is currently pending:

  • failure to supervise
  • failure to conduct adequate due diligence
  • failure to adequately disclose risk
  • solicitation violations
  • breach of contract

Reef Securities, Inc. has been registered with FINRA since 1993 and has about 15 financial advisors operating from their office in Richardson, Texas. 

Reef Securities, along with various other broker dealers, has sold to investors numerous oil and gas investments sponsored by the Reef Oil and Gas Companies, including the following:

  • Reef 2015 Oil & Gas Opportunity Fund
  • Reef 2015 Income Fund
  • Reef Bakken Bear Cat Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2010 Drilling Fund
  • Reef 2009 Drilling Fund
  • Reef 2007-2009 Drilling Program
  • Reef Oil & Gas Drilling & Income Fund
  • Reef Oil & Gas Income & Development Fund III
  • Reef Oil & Gas Income & Development Fund IV

If you have losses in an account handled by Wayne Benton you may be entitled to recover damages from his former employer. Call 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

Update on Recovery of Reef Oil & Gas Investment Losses

Reef Oil and Gas of Richardson, Texas, has been sponsoring energy related investments for many years.   These investments are marketed by many different brokerage firms nationwide.

Investors who have suffered losses  on any of the offerings sponsored by the Reef Oil and Gas Companies  may be able to recover damages from the brokerage firm who sold the investment.

Brokers have a duty to make suitable recommendations to investors.  Brokers are also required to perform an independent due diligence investigation of the proposed investment before making a recommendation. The investigation is intended to help determine not only if the investment is suitable taking into account the investor’s age, health and level of financial sophistication, but also to determine if the proposed investment is being fully and truthfully represented by the sponsor.

Here is a partial list of recent Reef offerings:

  • Reef 2015 Oil & Gas Opportunity Fund
  • Reef 2015 Income Fund
  • Reef Bakken Bear Cat Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2010 Drilling Fund
  • Reef 2009 Drilling Fund
  • Reef 2007-2009 Drilling Program
  • Reef Oil & Gas Drilling & Income Fund
  • Reef Oil & Gas Income & Development Fund III
  • Reef Oil & Gas Income & Development Fund IV

If you have suffered losses on any of the Reef Oil and Gas offerings, contact us to learn about your options for recovery.

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

 

Robert Hinz-Former VSR Financial Services Broker-Discloses Customer Disputes

UPDATE DECEMBER 2016FINRA records indicate that Robert M. Hinz, Jr. left VSR Financial Services in July 2016 and is not currently registered with any FINRA broker dealer.

ORIGINAL POST – Seatlle, WA,–November 10, 2015   Rex Securities Law is investigating stock broker Robert M. Hinz, Jr. who has been  employed by VSR Financial Services, Inc. in Seattle, Washington since 1994.  According to FINRA records, Hinz has been named in 7 customer disputes according to his FINRA record which can be accessed here. 

Several of the customer complaints allege misrepresentation in connection with the sale of private placements, including the Reef Oil & Gas Income Funds.

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. 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 handled by Robert M. Hinz , call to learn how you may be entitled to collect damages from his former employing firm.

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

Oil & Gas Private Placement Investments A Bad Bet Per Reuters

November 11, 2014-  A recent article by Emily Flitter of Reuters warns retirees to take a very hard look at oil and gas offerings before risking any of the family nest egg.

Atlas Resources, LLC is one of the investments analyzed by Reuters. The economics of the deal suggest that the heavy upfront burden of fees and payments to related entities may make it difficult for investors to achieve any meaningful returns. Here is how Reuter’s dissects the deal:

  • Atlas Resources, LLC hopes to raise $300 million before the end of 2014 and will put in $145 million of its own capital to fund Atlas Resources Series 34-2014 LP
  • Up to $45 million will be paid to an affiliate, Anthem Securities to cover commissions to selling agents
  • Up to $39 million will be used to buy leases from another Atlas affiliate
  • Atlas-affiliated suppliers may also get part of $53 million set aside for drilling equipment
  • $8 million of Atlas’ purported investment is not an investment  but rather a 15% markup on estimated equipment costs.

Reuters estimates that Atlas’s $145 million investment exposure is reduced by at least 40% after considering payments to affiliates and markups. Atlas is entitled to 33% of any revenue produced. Historically over half of the 43 private placements issued by Atlas over the past 3 years have either just barely broken even or lost money for investors. In 29 of the deals, Atlas did better than the investors.

Reuters also looked at Reef Oil & Gas Partners of Richardson, Texas, and found that of 34 deals since 1996, only 12 have paid more cash to investors than they contributed. In 31 smaller deals issued between 1996 and 2010 of the $146 million raised from investors only $55 million was returned.

Atlas warns in its offering memorandum “These securities are speculative and involve a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment.” However many investors are told to disregard those warnings by the selling brokers, who minimizes the risk to gain the sale.

Tax benefits are often touted as a reason to invest in these deals even though the bulk of retirees generally pay tax at a very low rate.

Discovery Resources & Development LLC of Frisco, Texas and Black Diamond Energy Inc of Buffalo, Wyoming also sold oil and gas private placements over the recent years.

If you invested in oil and gas private placements and believe that the nature of the risk was minimized or misrepresented, you may be able to recover damages. Contact us to learn more.

Rex Securities Law provides nationwide representation to investors 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