Category Archives: New Hampshire Bureau of Securities Regulation

Robert Estevez, Former Investors Capital Corp Broker-Discloses Regulatory Matters

March 2017- New York

According to publicly available records Robert Estevez , (CRD# 3161419) ,  a  stockbroker who previously worked for Investors Capital Corp and who is currently employed by Joseph Gunnar & Co.  disclose a pending regulatory investigation, 2 prior finalized regulatory matters, 5 final customer disputes and 3 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 the currently pending regulatory matter, Michigan securities regulators seek to deny Estevez’s registration in that state because, according to their allegations: “Estevez…is the subject of a Cease and Desist Order issued by the State of New Hampshire, and Applicant’s liabilities exceed his assets and the Administrator has made a finding of insolvency as to Applicant…”

In a prior regulatory matter while he was employed by Investors Capital Corp., the State of New Hampshire fined Estevez $50,000 and alleged that ” The State found that individuals in the branch where Mr. Estevez was located made telemarketing calls into the state of New Hampshire to persons on the National Do Not Call List. The State found that Mr. Estevez may have initiated some of these calls”. 9/2014- Com-2013-00002-00004. 

Public records disclose that Estevez has three outstanding IRS liens of $56,135 , $15,646 and $59,897.

Estevez has been registered with Joseph Gunnar & Co.  since 9/2016. He was registered with Investors Capital Corp. from 12/2008-9/2016.

Investors Capital Corp., a part of the Cetera Group, wound down operations during 2016. Many of the brokers were transferred to Summit Brokerage Services.

INVESTORS CAPITAL CORP. SUBJECT OF 21 REGULATORY MATTERS–CEASES OPERATIONS FALL 2016

Investors Capital Corp. withdrew its registration with FINRA in fall 2016. Investors Capital has been named in 21 regulatory matters and a number of customer arbitrations. For more information on Investors Capital Corp, follow this link. 

If you have questions about an account in an account handled by Robert Estevez, 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: 877-224-3199Florida-561 391 1900 

Texas-512-329-2870

Investors Capital Corp. Discloses 21 Regulatory Issues-Withdraws FINRA Registration

UPDATE FEBRUARY 2017-As of 11/18/2016 Investors Capital Corp is no longer registered with FINRA or a national securities exchange. In October 2016, Investors Capital was censured, fined $250,000 and required to pay restitution to customers in connection with the short term trading of unit investment trusts (UITS) and Steepener Notes.

ORIGINAL POST JUNE 2016According to FINRA records,  stock brokerage firm Investors Capital Corp.  discloses 19 regulatory events that are final and 14 final arbitrations. According to recent press, there are plans to shut down the company in the coming months.

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.

Investors Capital Corp. is an independent full-service broker-dealer and has been a FINRA member since 1992. They are headquartered in Lynnfield, Massachusetts and employ over 500 brokers in over 300 offices nationwide.

During 2013-2014, RCS Capital Corp. (RCAP) acquired Investors Capital Corp. along with a number of other independent broker-dealers, including Cetera Financial Group. In early 2016 RCAP filed for bankruptcy and in spring 2016, Cetera announced that as part of its restructuring they would be merging Investors Capital and VSR Financial Services, known for its sales of alternative investments, into its Summit Brokerage Services unit.

Investors Capital Corps.’s recent regulatory events include:

  • 8/2014-New Hampshire regulators assessed a fine of $125,000 and required rescission of unsuitable sales of non-traded REITs. Regulators alleged that Investors Capital made telemarketing calls to residents in violation of FINRA telemarketing rules and sold unsuitable non-traded REITs.
  • 3/2014-FINRA alleged that the firm failed to have a proper process in place to ensure that prospectuses were delivered to purchasers of exchange traded funds (ETFs) and that the firm did not engage in training brokers about the features and risks of ETFs. A fine of $100,000 was assessed.

If you have questions about an account at  Investors Capital Corp., 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 Higgins of Stratham New Hampshire Sentenced for Securities Fraud

August 10, 2015-New Hampshire

Richard M. Higgins, of Stratham, New Hampshire was sentenced in Merrimack County Superior Court to serve 5 to 14 years after pleading guilty to one felony count of engaging in a course of conduct involving a scheme to defraud in connection with the purchase and sale of securities and one felony count of operating a fraud in connection with acting as an investment advisor. Higgins was also ordered to pay over $624,000 in restitution to victims.

Higgins led investors to believe their funds would be placed in a brokerage account in the name of a limited partnership but were actually put into an account in the name of Higgins Capital Management which Higgins operated as his personal account.

Link to New Hampshire Department of Justice news release.

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

Edward D. Jones & Co. – Rex Securities Law Investigates Recent Regulatory Issues

February 15, 2015

Edward D. Jones & Co. has been a FINRA member since 1939. Their main office is in St. Louis, Missouri, and they have over 11,000 branch offices nationwide employing over 16,000 brokers. Edward Jones FINRA regulatory history , which can be accessed here, indicates that they have disclosed 61 regulatory events that have been finalized, 2 civil events and 158 arbitrations.

Most recently, in January 2015, Edward D. Jones & Co.   entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that they failed to supervise the certification of customer signatures on certain documents that required firm employees to attest that the customers had signed the documents in their presence.

FINRA alleged that from 2002-July 2013, firm employees falsely certified customer signatures on certain documents.

Edward D. Jones & Co.  was censured  and fined $60,000.

FINRA Case # 2012032011102

Some of Edward D. Jones & Co.’s  most recent regulatory matters:

  • October 2014-Censured and fined $100,000 for inadequate anti-money laundering (AML)  procedures.
  • July 2014-Censured, fined and disgorgement of $21,100 for failure to failure to obtain fair and reasonable pricing in sales/purchase of municipal securities
  • February 2014- $750,000 fine paid to New Hampshire securities regulators to resolve allegations that they violated telephone solicitation rules.
  • January 2014- Censured and fined $200,000 to resolve FINRA allegations that they failed to train and educate brokers regarding exchange traded funds  (ETFs) and allowed the sale of exchange traded funds without performing adequate due diligence.

See Edward D. Jones & Co. complete regulatory history on the FINRA brokercheck site.

If you have losses in an account at Edward D. Jones & Co. , contact us 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

New Hampshire Adds Legislation to Protect Elderly

In January 2015, House Bill 1555, sponsored by Mark Connolly in partnership with the Merrimack County Coordinated Response Team, goes into effect providing new protections for elderly citizens of New Hampshire.

Some of the highlights of the bill:

  • it is a crime for fiduciaries who, for their own profit or advantage, deprive or take real or personal property of an elderly, disabled or impaired adult for the benefit of someone other than the adult.
  • there are criminal penalties for  offenders who know or reasonably should have known that the victim is an elderly, disabled or impaired adult.
  • there is broadened  protection against financial exploitation beyond “incapacitated” adults.

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

David F. Brochu and Kleossum, Inc. -New Hampshire Securities Bureau Files Action to Suspend Licenses

September 4, 2014

The New Hampshire Bureau of Securities Regulation issued an order of suspension, show cause and cease and desist against Kleossum, Inc. and David F. Brochu of Conway, New Hampshire.

The order alleges that between September 2011 and April 2013, Brochu, who is a licensed investment advisor with Kleossum sold interests in Brochu  Family Farms, LLC, Sustainable Forest Fuels Wood, LLC and KT1,LLC, and failed to disclose material conflicts of interest. It further alleges that Brochu and Kleossum continued to solicit investment funds with inaccurate business projections and with no place of business following his arrest in February 2014 and the closing o f Kleossum in March 2014.

Brochu and Kleossum may request a hearing within 30 days of receipt of the Order.

According to FINRA records, Brochu was formerly a licensed broker with Strategic Point Securities, LLC , Providence, Rhode Island.

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

New Hampshire Securities Bureau Files Fraud Action vs. Richard Higgins

September 4, 2014–Concord, New Hampshire

UPDATE AUGUST 10, 2015Richard Higgins Sentenced to up to 7 years. Link to New Hampshire Department of Justice news release. 

The New Hampshire Bureau of Securities Regulation filed an action against Richard M. Higgins of Stratham, for securities fraud and acting as an unlicensed investment adviser and broker.

According to the release, it is alleged that HIggins raised about $1 million from 2/2007-5/2014 from nine investors under the pretense that they would be partners in HIggins Equity Partners, LLP. , but the funds were actually deposited in Higgins personal accounts. Higgins is alleged to have sent fraudulent statements to hide his scheme in which he collected over $420,000 in fees and returned $140,000 to investors.

The investments Higgins did make were high risk inverse and leveraged exchange traded funds not suitable for conservative retired investors.

The Bureau seeks restitution and a permanent bar from the securities business in New Hampshire.

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