Category Archives: Ohio Division of Securities

Ohio Division of Securities Issues 2015 Third Quarter Bulletin-Civil & Criminal Securities Actions

July 6, 2015- Columbus, Ohio

The Ohio Division of Securities publishes a Securities Bulletin quarterly summarizing recent changes to securities rules and laws in the State of Ohio, reporting on administrative actions and criminal securities matters. The 2015 3rd quarter bulletin can be accessed here.

Recent Administrative Actions: 

  • Eric T. House, CRD No. 1984306-Division found that House engaged in fraudulent, manipulative or deceptive practices in connection with the sale of investment contracts issued by French Manor Properties through Brenda Ashcraft. A Cease and Desist Order was entered.
  • Edward I. Campbell and Rosewood Consulting– A Notice of Intent to Issue Cease and Desist was entered alleging that Campbell solicited and sold Chinese Reorganization Gold Loan Bonds to two Ohio investors without proper licensure and registration.

Upcoming Criminal Trials

  • State v Bernard Minneyfield-Franklin County
  • State v Steven P. Moore-Delaware County
  • U.S. v Geoffrey Nehrenz-U.S. District Court, N. Ohio

Criminal Cases

  • U.S. V Brenda Ashcraft– Case 1:13-CR-00093- Ashcraft pleaded guilty to wire fraud, securities fraud, money laundering and obstruction of justice in connection with the sale of investment contracts, REITs issued by French Manor Properties.
  • State of Ohio v Peter A. Beck– Beck was convicted of 13 criminal counts, including theft, securities violations and perjury on allegations of defrauding investors through Christopher Technologies.
  • State of Ohio v Peter Wilson– Wilson pleaded guilty to securities fraud and theft in connection with misrepresentations Wilson made to investors who believed their money would be invested in a liquor company.

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

Jason Cox, Edward Jones Broker, Charged with Theft From Disabled Lady

December 23, 2014- Columbus Ohio

The Columbus Dispatch reports that Jason W. Cox, 39, has been charged in a federal criminal complaint for making $160,000 in withdrawals from the account of a developmentally impaired woman and depositing the funds into his personal account.

He was arrested December 11, 2014, and placed on electronic monitoring, according to the article. Prosecutors have 30 days to present evidence to a federal grand jury that could result in an indictment.

According to FINRA records, Cox worked for Edward Jones from 6/2010-4/2014, when he was discharged when he entered into an unapproved lending arrangement with a client.

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

Dennis Flood of Brunswick Ohio Indicted by Cuyahoga Grand Jury

December 2, 2014-Cleveland, Ohio

UPDATE AUGUST 27, 2015-Dennis Flood sentenced to eight years.

WKYC, Channel 3, reports that Dennis Flood, 64, of Brunswick has been indicted by a Cuyahoga County Grand Jury on three felony counts of theft. According to the report Flood, stole about $180,000 from a Cuyahoga County man and his daughter by selling them fictitious investments certificates through his company D.L. Flood Agency. 

The Ohio Attorney General’s Bureau of Criminal Investigation has identified over 12 more victims in Ohio and Pennsylvania. Flood remains in custody. Victims are asked to contact the Ohio Attorney General’s Office at 800-282-0515.

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

Ohio Talk Show Host Robert Mcmanus Pleads Guilty to Securities Fraud

December 2, 2014- West Chester, Ohio

WCPO Channel 9, Cincinnati reports that former 700WLW radio talk show host of “Safe Money America”, Robert Mcmanus, pleaded guilty to one count of the sale of unregistered securities and one count of sale of securities without a license, both second degree felonies.

McManus sold promissory notes issued by North Shore Energy, LLC, an oil and gas drilling company located in Austin, Texas, raising over $2 million from 18 victims. He faces possible prison time of 16 years, a fine of $30,000 and has agreed to pay restitution of $2.2 million.

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

Ohio Securities Regulators Warn Investors to Be Wary of Church Related Investment Scams

The Division of Securities of the Ohio Department of Commerce has published an alert for investors – Affinity Fraud: Preying on the Faithful can be accessed here.

Affinity fraud “refers to investment scams that prey upon members of identifiable groups, including religious, elderly, ethnic and professional..” according to the publication which offers the following tips:

  • Be wary of investments that seem closely tied to a particular religious belief.
  • Be cautious if the promoter of an investment opportunity tries to capitalize on connections or a leadership position within a religious group.
  • Be on your guard for a new member of your church who springs up out of no where with a ‘surefire’ investment scheme
  • Ignore claims that religious-based investments are unregulated.
  • Check out the promoter and the investment opportunity.
  • Don’t give a break to the swindler who hides behind religion.

Rex Securities Law , located in Boca Raton, FL, provides representation to  Ohio investors  and 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

SEC Issues Investor Bulletin:How to Check Out Your Financial Professional

The Securities & Exchange Commission’s  (SEC) Office of Investor Education and Advocacy issues alerts and bulletins from time to time designed to offer resources to address problems investors may face. Here is a link to that site.

In a recent bulletin, they provide resources to assist investors in checking out a financial professional’s background.  The SEC notes that “Even if a close friend or family member recommends a financial professional, you should still check out that person for signs of potential problems.”

Current information, such as where the broker is presently working, whether he/she has ever been suspended/sanctioned and qualifications can be reviewed in a number of places, including:

See this for our discussion on how to protect yourself and your loved ones when choosing a broker or brokerage firm.

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

Ohio Securities Regulators Suspend Eric M. Douglas

On April 29th, 2013, the Ohio Division of Securities entered a final order suspending the Investment Representative and Securities Salesperson License of Eric M. Douglas. The suspension is for 90 days from the date of the Order, which is subject to appeal.

This action is a result of a Notice of Hearing that was filed in 2012 related to the sale of stock by Douglas in Maumee Authority Stamping while he was working for Sandru Financial Group in 2008. The Findings of Fact approved and adopted in the Order include findings that:

  • Douglas admitted that all due diligence on the Maumee Authority Stamping investment was being done by LPL Financial’s compliance department, not him personally, and that he never saw the results of their research and had no independent basis on which to assess the suitability of the investment.
  • Witnesses testified that Douglas told them the Maumee investment was beneficial, a very good investment that was going to take off like crazy and that investors would make so much money they would not have time to spend it.

The Ohio regulators found that Douglas engaged in manipulative and deceptive acts when he recommended the Maumee investment to investors without performing or having access to proper due diligence on the terms of the deal. They further found that as a trusted fiduciary and adviser to his clients, Douglas had a duty to protect his client’s funds and inform their interest in the purchase of Maumee stock. Here is a link to the Ohio Division of Securities Order.

FINRA records indicate that Douglas is not currently registered and that he worked for the following broker dealers in Perrysburg, Ohio,  during the dates indicated:

  • Cambridge Investment Research, Inc.                                       07/2009-07/2012
  • LPL Financial Corporation                                                        04/2008-07/2009
  • Ameritas Investment Corp.                                                        03/2005-04/2008

Ameritas Investment Corp. was formed in 1984. They have nearly 1,300 registered representatives in over 550 offices nationwide. Their main office is located in Lincoln, Nebraska.

Richard P. Sandru who ran Sandru Financial Group is the subject of a Securities and Exchange Commission cease and desist order for misappropriating client investment advisory funds. FINRA records indicate that several  clients have brought actions against Sandru for losses in Maumee Authority Stamping. Sandru is not currently registered with FINRA.

Mark A. Pantenburg, who is not currently registered with FINRA, worked with Sandru and Douglas at Sandru Financial, received a 60 day suspension by Ohio regulators in December 2012, as a result of the sale of an interest in the Maumee investment. Here is a link to the Ohio Divison’s order.

If you have questions about the losses in your brokerage account, call us to discuss your legal rights. Free iniital consultation.

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