Category Archives: SWS Financial Services

Lucas Lichtman-Former Caldwell International Securities Broker-Sued by Securities Regulator

Englewood Cliffs, New Jersey

According to FINRA records,  Lucas D. Lichtman  a stockbroker who was formerly employed by Caldwell International Securities, discloses  a pending regulatory investigation .

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 FINRA Case 2014039091903, FINRA alleges that Lucas Lichtman and other representatives of his firm made unsuitable recommendations of an active trading investment strategy to their customers and that the firm is liable for the unsuitable recommendations of that strategy under the doctrine of respondeat superior.

The complaint alleges that Lichtman made recommendations despite the fact he and the other representatives failed to understand the risks of the investment strategy or the impact of the staggering commissions and fees generated would have on the customer accounts. This matter is currently pending.

Lichtman was employed by Caldwell International Securities from 4/2011-5/2016. Prior to that he was registered with SWS Financial Services and before that, World Equity Group. 

If you have questions about an account handled  by Lucas Lichtman or questions about your account at Caldwell International Securities, 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

Richard Lim-Former Caldwell International Securities Broker-Named in Regulatory Complaint-Englewood Cliffs, NJ

Englewood Cliffs, New Jersey

According to FINRA records,  Richard Lim  a stockbroker who was formerly employed by Caldwell International Securities, discloses  a pending regulatory investigation and 3 presently outstanding judgement/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 FINRA Case 2014039091903, FINRA alleges that Lim and other representatives of his firm made unsuitable recommendations of an active trading investment strategy to their customers and that the firm is liable for the unsuitable recommendations of that strategy under the doctrine of respondeat superior.

The complaint alleges that Lim made recommendations despite the fact he and the other representatives failed to understand the risks of the investment strategy or the impact of the staggering commissions and fees generated would have on the customer accounts. The complaint further alleges that Lim willfully failed to timely update FINRA records to disclose judgments against him. This matter is currently pending.

Lim was employed by Caldwell International Securities from 4/2011-5/2016. Prior to that he was registered with SWS Financial Services and before that, World Equity Group. 

If you have questions about an account handled  by Richard Lim or questions about your account at Caldwell International Securities, 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

SWS Financial Services Named In Complaint by Securities Regulators Over Variable Annuity Sales

September 29, 2014- Dallas, Texas

The Financial Industry Regulatory Authority (FINRA) filed a complaint against SWS Financial Services alleging that from September 2009 to May 2011 it had inadequate supervisory systems to supervise its variable annuity business.

SWS Financial Services (SWS) was formed in 1986, is headquartered in Dallas, TX, and has 313 registered representatives operating from 189 offices.

Allegations made by FINRA in the complaint include:

  • SWS derived 16%-20% of its total revenues from the offer and sale of variable annuities to customers
  • over 70% of non-OSJ applications for variable annuities were submitted without having been reviewed by an SWS securities principal
  • suitability reviews of variable annuity transactions were inadequate

If you have losses on a variable annuity purchased from SWS Financial Services, you may be able to recover damages. Contact us for more information.

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

SWS Financial Services Hit with Suit by Regulators Over Improper Variable Annuity Sales

On September 29, 2014, the Department of Enforcement of The Financial Industry Regulatory Authority (FINRA) filed a complaint against SWS Financial Services, Inc. alleging that from September 2009 to May 2011, SWS had inadequate supervisory systems and written supervisory procedures to supervise sales of variable annuities (VAs).

SWS Financial, headquartered in Dallas, TX,  has been a FINRA member since 1986 and has about 189 branch offices employing 313 brokers.

FINRA alleges that SWS Financial Services, Inc. did not perform adequate reviews of applications for variable annuities and failed to monitor whether annuities were inappropriately exchanged. FINRA also alleges that VAs were sold to customers without a reasonable basis to believe that the investment was suitable.

The sale of variable annuities can be quite profitable for broker dealers and FINRA states that up to 20% of the total revenues of SWS Financial was attributable to the sale of variable annuities for the time frame involved.

According to the SEC:  “A variable annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. You can choose to invest your purchase payments in a range of investment options, which are typically mutual funds. The value of your account in a variable annuity will vary, depending on the performance of the investment options you have chosen.”

While variable annuities can be appropriate investments, we often see cases where they are inappropriate if too much of an investor’s liquid net worth is tied up. In addition, there are generally hefty surrender fees if an investor needs or decides to liquidate the annuity, a fact not always understood by investors.

If you or one of your loved ones has questions about an annuity investment you made with SWS Financial, call to discuss your legal 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

William C. Mays Sentenced to 20 Years for Securities Fraud and Theft

William Charlton Mays, IV, a former investment adviser in Corpus Christi, Texas, was convicted of securities fraud and theft and sentenced to 20 years in state prison, according to a a September 19, 2014 press release from the Texas State Securities Board. 

His sentencing in the 214th State District Court of Nueces County includes 20 years for the fraud and 10 years for theft and will run concurrently.

Mays raised $225,000 selling investments in gold, silver and commodities trading and promised that the investments would earn 6-18% annual returns. Most of the money was spent on personal expenses with occasional payments to investors to perpetuate the Ponzi scheme. Follow this to read the indictment. 

Mays had worked as a FINRA registered stockbroker as was previously registered as follows:

  • SWS Financial Services 01/2011-11/2011
  • Summit Brokerage Services, Inc.  04/2009-12/2010
  • LPL Financial Corporation 09/2004-04/2009
  • Frost Brokerage Services  11/2000-10/2004
  • AXA Advisors  11/1998-11/2000

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

Investment News Announces Most Profitable Independent Broker Dealers

By Robert H. Rex 

The Investment News recently (March 2014) announced the most profitable independent broker-dealers, ranked by Pre-Tax Earnings. See this for complete list. 


Independent
Broker Dealer
PreTax Earnings
1 LPL Financial LLC $385,900,000
2 Cambridge Investment Research Inc. $25,287,365
3 AXA Advisors LLC $22,600,000
4 CUNA Brokerage Services Inc. $9,244,000
5 Princor Financial Services Corp. $6,461,785
6 Investacorp Inc. $4,415,574
7 Summit Brokerage Services, Inc. $3,500,000
8 Allstate Financial Services LLC $2,674,035
9 The O.N. Equity Sales Co. $2,349,581
10 VSR Financial Services Inc. $2,338,051
11 Signator Investors Inc. $2,310,447
12 Kovack Securities Inc. $2,280,475
13 Prospera Financial Services Inc. $1,963,764
14 M Holdings Securities Inc. (M Securities) $1,900,000
15 Cadaret Grant & Co. Inc. $1,800,000
16 SWS Financial Services $1,738,576
17 American Portfolios Financial Services Inc. $1,578,496
18 Financial Telesis Inc. $1,500,000
19 Ameritas Investment Corp. $1,418,490
20 United Planners Financial Services $1,257,723
21 Berthel Fisher & Co. Financial Services Inc. $1,184,429
22 National Securities Corp. $1,184,000
23 LaSalle St. Securities LLC $1,133,986
24 The Strategic Financial Alliance Inc. $1,067,097
25 Ausdal Financial Partners $891,000

If you have questions about the way your brokerage account is being handled, call to speak with an experienced securities attorney to discuss your legal rights. 
Nationwide consultation.
561 391 1900

Investment News Announces Most Profitable Independent Broker Dealers

By Robert H. Rex 

The Investment News recently (March 2014) announced the most profitable independent broker-dealers, ranked by Pre-Tax Earnings. See this for complete list. 


Independent
Broker Dealer
PreTax Earnings
1 LPL Financial LLC $385,900,000
2 Cambridge Investment Research Inc. $25,287,365
3 AXA Advisors LLC $22,600,000
4 CUNA Brokerage Services Inc. $9,244,000
5 Princor Financial Services Corp. $6,461,785
6 Investacorp Inc. $4,415,574
7 Summit Brokerage Services, Inc. $3,500,000
8 Allstate Financial Services LLC $2,674,035
9 The O.N. Equity Sales Co. $2,349,581
10 VSR Financial Services Inc. $2,338,051
11 Signator Investors Inc. $2,310,447
12 Kovack Securities Inc. $2,280,475
13 Prospera Financial Services Inc. $1,963,764
14 M Holdings Securities Inc. (M Securities) $1,900,000
15 Cadaret Grant & Co. Inc. $1,800,000
16 SWS Financial Services $1,738,576
17 American Portfolios Financial Services Inc. $1,578,496
18 Financial Telesis Inc. $1,500,000
19 Ameritas Investment Corp. $1,418,490
20 United Planners Financial Services $1,257,723
21 Berthel Fisher & Co. Financial Services Inc. $1,184,429
22 National Securities Corp. $1,184,000
23 LaSalle St. Securities LLC $1,133,986
24 The Strategic Financial Alliance Inc. $1,067,097
25 Ausdal Financial Partners $891,000

If you have questions about the way your brokerage account is being handled, call to speak with an experienced securities attorney to discuss your legal rights. 
Nationwide consultation.
561 391 1900