Category Archives: Resource Horizons Group

FINRA Says Brokerage Firms Are Not Required to Insure Investor Losses

The Financial Industry Regulatory Authority (FINRA), the industry group that regulates stockbrokers and brokerage firms, announced that it will not force firms to carry insurance to pay awards to customers who have lost money due to negligence or fraud.

FINRA has been studying this issue for the past year and came to the conclusion that it cannot impose this requirement on brokerage firms, many of which have net capital of less than $100,000. In September 2014, damaged investors won a nearly $4 million judgment against Resource Horizon Group for improper supervision of a broker who was running a Ponzi scheme on the side.  Since their net capital is less than $600,000, they are presently considering bankruptcy, according to their lawyer.

Many investors are confused thinking that the FDIC and SIPC logos they see ensure that if they have a problem with their brokerage account, funds will be there to compensate them. The reality is that if an investor has an account with one of the many small, undercapitalized brokerage firms (there are over 5,000 broker dealers) there may be no pocket from which to recover should the nest egg be lost due to fraud or negligence.

According to FINRA brokerage firms have failed to pay over $100 million in customer awards in 2011 and 2012.

To research the history of a stockbroker on the FINRA BrokerCheck website or to learn how to determine the net capital of your brokerage firm on the SEC Edgar website, see our informational page on those topics.

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

Resource Horizons Group Broker Robert Gist Barred by FINRA

Atlanta, Georgia

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

AUGUST 2013

Robert Gist (CRD#716088, Registered Representative, Atlanta, Georgia-not currently registered with FINRA, previously registered with Resource Horizons Group, LLC) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Gist consented to the described sanction and to the entry of findings that he misappropriated several million dollars from his customers.

The findings stated that in order to carry out the scheme, Gist misrepresented to these customers that he would invest their money in securities positions. Instead, Gist invested the customers’ funds in a company hecofounded. In furtherance of the scheme, Gist created and sent accountstatements with wholly fictitious securities positions to his customersevery six months. The findings also stated that Gist perpetuated the scheme by selling units of the company he owned, or used other investors’ funds, in order to make periodic payments to his customers.

By virtue of his conduct, Gist willfully violated Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 thereunder, FINRA Rules 2010, 2020 and 2150(a), and NASD Rules 2110, 2120 and 3110(a). (FINRA Case #2013036772901)

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

Former Resource Horizons Group Broker Robert Gist Barred From Industry

On June 11, 2013, the Securities & Exchange Commission (SEC) entered a consent order against former Resource Horizons Group broker Robert A. Gist (AKA Bob Gist) enjoining him from future violations of the securities law and permanently barring him from the financial industry. FINRA had filed an action alleging that Gist had misappropriated several million dollars from his brokerage firm customers by misrepresenting that the funds would be invested in securities.

Instead, FINRA alleged, Gist invested the money in a company he founded and perpetrated a fraud by creating and sending out fictitious account statements.

If you have questions about the way your brokerage account has been handled call us for a no charge consultation to discuss your legal rights.

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