Category Archives: Illinois Securities Department

Daniel J. Haugh-PTI Securities & Futures Broker-Discloses $2.5 Million Customer Arbitration & Regulatory Sanction-Chicago, IL

June 2017-Chicago

According to publicly available records Daniel John Haugh  (CRD#2162854) ,  a  stockbroker who currently is the chief compliance officer of  PTI Securities & Futures , disclose a recent regulatory event and a 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 April 2017 Haugh was censured and fined $2,500 by Illinois securities regulators for failing to verify information to determine if emails that he received requesting the transfer of funds were being sent by his client. The account involved was an IRA account which belonged to a Texas resident. A phony SPAM email purportedly from the account holder resulted in the transfer of about $45,000 by PTI Securities  to an individual in Louisiana. Another phony email a month later resulted in PTI Securities transferring another $45,000 to an individual in Alabama.

In May 2017 a customer of PTI Securities & Futures filed FINRA Case 17-01171 seeking $2.5 million in damages alleging that their account, which contained derivatives, equities and options, was mismanaged from 2008-2016. That matter is currently pending.

If you have questions about an account handled by Daniel J. Haugh, call to learn about your options.

TEXAS REGULATORS SANCTION PTI SECURITIES FOR BEING FOOLED BY SPAM EMAIL

In June 2017 PTI Securities & Futures was sanctioned by the Texas State Securities Board (TSSB) for supervisory failures that led to these bogus transfers which were initiated by SPAM emails. See this for more details. 

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

PTI Securities & Futures Sanctioned by Texas Regulators for Transferring Client Funds Based on Spam Emails-Austin, TX

June 2017 -Austin, TX

The Texas State Securities Board entered a disciplinary order against Chicago-based PTI Securities & Futures for transferring nearly $100,000 from a 75 year old Texan’s IRA to unknown individuals based on the authority contained spam emails. Link to TSSB Disciplinary Order. 

 

According to the TSSB Order, PTI Securities missed numerous red flags along the way:

  • One of the emails requesting the transfer contained the term “SPAM” in the subject line.
  • The signatures on the forms requesting the transfers did not match the signature on the client’s account application
  • The distribution requests had an incorrect social security number and birth date for the client. The client was born in 1934 and the birthdate on the form was 1969.
  • The client had never previously made wire transfers to either of the individuals on the transfer forms
  • PTI Securities’ CCO did not speak to the client prior to processing the wire transfers.

PTI Securities & Futures made a full repayment of the $91,560 which was wrongly transferred and now prohibits transfers from client accounts to accounts that are not owned by the client.

TSSB reprimanded PTI Securities & Futures and fined the firm $5,000.

In April 2017 Illinois regulators, who had been investigating the matter, assessed PTI Securities & Futures a fine of $2,500.

 

If you have losses  in an account handled at PTI Securities & Futures contact us 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

Christopher Veale Investigation-Numerous Customer Complaint & Regulatory Issues

FINRA records report that Christopher F. Veale , of New York,  who is not currently registered, is currently  named in a customer dispute:

  • FINRA Case 15-00373-customer alleges breach of fiduciary duty by Veale while he was employed with Brookville Capital Partners and seeks damages of $44,733. Settlements paid to customers have ranged from $35,000-$90,000. See his FINRA record for details. 

 

Prior Customer Complaints: Veale has been named in 10 customer disputes that have been resolved. Allegations against Veale include excess commissions charged, unsuitable investments, breach of fiduciary duty, excessive trading (churning) , unauthorized trading

Judgments/Liens vs. Veale: FINRA records report the following outstanding judgements/liens vs. Veale. According to FINRA “This type of disclosure event involves an unsatisfied and outstanding judgments or liens against the broker”:

  • Federal Tax Lien                                                  $503,008
  • State of NY -Nassau County                       $27,979
  • State Tax Warrant-Queens County        $189,187
  • American Express Centurion Bank         $201,562
  • State Tax Warrant-New York                      $184,257
  • Federal Tax Lien                                                  $143,672

Pending Regulatory Investigations vs Veale: 

  • State of Rhode Island– filed 1/15/2014- Notice of Intent to Revoke License, impose civil penalty, impose sanctions and opportunity for hearing. Alleges that Veale, while employed by Brookville Capital Partners churned the account of a senior investor.
  • Commonwealth of Massachusetts-filed 1/15/2014-Administrative Complaint and notice of adjudicatory proceeding regarding churning the account of a senior investor.

Prior Regulatory Actions vs. Veale:

  • FINRA-8/18/2015– Suspended for 12 months and fined $5,000. Veale consented to sanctions and entry of findings that he failed to timely produce documents and information requested by FINRA in connection with an investigation and that he failed to report liens against him totaling approximately $730,000.
  • Illinois-11/21/2005-Veale’s application for registration as a salesperson in Illinois withdrawn.
  • NASD-12/22/2004-Veale consented to sanctions suspending him , a fine and payment of restitution of $36,696 to a customer.

Veale’s Prior Registration History, includes the following:

  • Legend Securities                    5/2013-2/2015
  • John Thomas Financial         4/2013-5/2013  (expelled by FINRA 10/2013)
  • Meyers Associates                   11/2012-3/2013
  • Blackwall Capital Markets   6/2012-11/2012
  • Brookville Capital Mkts          1/2009-6/2012 (expelled by FINRA 6/2015)

If you have losses in an account handled by Christopher F. Veale, you may be able to collect damages from his employing firm. Call to speak with an experienced securities attorney 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

PTI Securities & Futures LP Facing Sanctions by Texas State Securities Board

February 8, 2016- Austin , Texas

The Texas State Securities Board (TSSB) has filed a Notice of Hearing to determine whether PTI Securities & Futures, L.P. should by reprimanded and fined $80,000 for improperly wiring more than half of a 75 year old Texas client’s retirement account to unknown parties.

According to the Notice of Hearing, in 2015 PTI Securities & Futures LP sent two payments, totaling over $91,000, to someone who requested the distributions using the client’s email address. The TSSB alleges that the distribution request forms list an incorrect social security number and date of birth for the client (the client was born in 1934 and the form listed 1969)  and included a signature that does not match the client’s authentic signature.

The two distributions which were sent to a person in Alabama, accounted for over 60% of the client’s balance in the retirement account. When a third distribution request was made that would have nearly wiped out the account, the bank holding the funds rejected the request leading to the discovery of the fraud.

The TSSB contends that PTI Securities failed to follow its own written procedures which could have prevented the fraud.

PTI Securities & Futures L.P.  has been a FINRA member since 1992. Their main office is located in Chicago, IL.  There is currently a regulatory matter pending in the State of Illinois on what appears to be this same matter.  Illinois proceeding #1500161.

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

LPL Financial Agrees to Pay $541,000 For Churning Variable Annuities

On October 14, 2014, WIlliam Galvin, secretary of state of Massachusetts announced that LPL Financial had agreed to reimburse nearly $550,000 to investors to resolve claim that they had allowed brokers to engage in “annuity switching”.

Annuity switching occurs when a broker has an investor sell one annuity to purchase another with no justifiable basis therefor.

Just a couple of months ago, in June 2014, Illinois regulators ordered LPL Financial to pay a $2 million fine and $820,000 in restitution for failing to maintain accurate books and records related to variable annuity exchanges, also known as 1035 exchanges.

Earlier in the year, in March FINRA fined LPL Financial $950,000 for supervisory issues related to the sale of alternative investment products, REITs, oil and gas partnerships, hedge funds and other illiquid investments.

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