Category Archives: South Carolina Securities Division

Losses on GTAT ? Recovery Options For Investors

If you suffered losses on GT Advanced Technologies (GTAT) purchased from Legend Securities we may able to help you recover damages through FINRA arbitration.

GT Advanced Technologies which traded at nearly $20 in late 2014 now trades at $.02.

Legend Securities was recently sanctioned by two regulatory agencies:

  • South Carolina Division of Securities-assessed a fine of $300,000 for failing to enforce written supervisory procedures concerning sales of GT Advanced Technologies (GTAT) and committed securities fraud in connection with sale of GTAT by failing to disclose that GTAT had filed bankruptcy. See this for more. 
  • The Financial Regulatory Authority (FINRA)-assessed a fine of $125,000 for failing to tailor its anti-money laundering (AML) to its penny stock liquidation busines. See this for more information.

Legend Securities has been a FINRA member since 1998 and is headquartered in New York City. They have about 146 brokers in 14 branch offices.

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

Legend Securities Fined $300,000 by S. Carolina Securities Regulators

March 18, 2016-Columbia, South Carolina

Legend Securities was named in Administrative Order File Number 14108 filed  by the Securities Division of the Office of the Attorney General of South Carolina for violations of South Carolina law.

The Order finds that Legend Securities:

  • charged unreasonable fees on certain sales to residents of South Carolina
  • failed to obtain information necessary to determine if reasonable grounds existed to believe the securities transactions it recommended for a customer were suitable for the customer
  • failed to enforce their written supervisory procedures concerning the sales of GT Advanced Technologies (GTAT), a non-exchange listed, over the counter security, in at least 13 instances
  • committed securities fraud in connection with the sale of GTAT by soliciting buy orders and failing to disclose that GTAT had filed bankruptcy to the purchasers

Legend Securities was ordered to cease and desist violating the South Carolina Securities Act, censured and fined $300,000. Legend Securities has the right to request a hearing on the matter.

Legend Securities has been a FINRA member since 1998 and is headquartered in New York City. They have about 146 brokers in 14 branch offices.

According to FINRA records, Legend Securities has been named in 10 regulatory matters including a recent FINRA sanction in which Legend Securities was fined $125,000 for failing to see and respond to red flags of suspicious transactions related to penny stock sales. See this for more.

GT Advanced Technologies which traded at nearly $20 in late 2014 now trades at $.02. South Carolina residents who suffered losses on GTAT which they purchased on the recommendation of a Legend Securities broker may be able to recover damages through FINRA arbitration. Call 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

Legend Securities Fined $125,000 Over Penny Stock Sales

February 10, 2016

Legend Securities entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from October 2010 to October 2011, Legend Securities failed to tailor its anti-money laundering (AML) program to its penny stock liquidation business.

FINRA alleged that the firm’s system for reviewing trading activity was not reasonably designed to detect patterns of suspicious activity, given the volume of transactions being executed through the firm and the system for detecting and investigating red flags relating to penny stock trading was not adequate.

AWC 20100225921 01

Legend Securities was censured and fined $125,000 and agreed to an undertaking to retain an independent consultant to review firm policies, systems and procedures and thereafter implement and monitor corrective actions.

Legend Securities  has been a FINRA member firm since November 1998 and employs approximately 146 registered representatives in approximately 14 branch offices. Its principal place of business is New York City.

If you have questions about losses in an account at Legend Securities call to discuss it with an experienced securities lawyer.

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

Claus Foerster-Former Smith Barney/Raymond James Broker Indicted for Fraud

March 8, 2016- Greenville, South Carolina

The United States Attorney’s Office for District of South Carolina announced that Claus C. Foerster, 55, of Spartanburg, South Carolina was indicted by a Federal Grand Jury and charged with wire fraud.

According to the indictment, Foerster defrauded clients out of $2.8 million.

Foerster, who was previously a broker with Raymond James, Morgan Keegan, and CItigroup, was barred by FINRA from the securities industry in June 2014. See this for more. 

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

Willis-Stafford Named in Cease and Desist Order by S. Carolina Securities Commissioner

July 14, 2015-Columbia, South Carolina

The Securities Commissioner of South Carolina entered a Cease and Desist Order against Prospect, Kentucky-based  Willis-Stafford Corporation in connection with a proposed offering of stock for the construction and operation of a film sound stage in Williamsburg County, South Carolina.

The S. Carolina Securities Commissioner found that the Willis-Stafford website (www.Willis-Stafford.com ) which solicited investors and  listed an address in Salters, South Carolina, constitutes an offer of securities under the South Carolina securities act. Many of the representations about the proposed operation contain false or misleading statements according to the Order.

Order to Cease and Desist

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

South Carolina Securities Division Hosts Investor Education Seminar–Wednesday August 19th, 2015

August 10, 2015-Darlington, South Carolina

The South Carolina Office of the Attorney General, Securities Division is hosting a public investor education seminar at noon, Wednesday, August 19th, 2015.

Topics to be covered include:

  • Recognizing common investment scams and frauds
  • Researching a securities broker
  • Discussion of prior investment scams in S Carolina

The seminar will be held at the Bethea Baptist Retirement Community, 157 Home Ave. , Darlington, SC. Call Shane at 843-395-4402 to RSVP by 8/12/2015.

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

South Carolina Regulators Seek to Take Securities License of Mark Hotton

June 23, 2015- Columbia, South Carolina

The Securities Commissioner for South Carolina filed a Rule to Show Cause seeking to permanently ban Mark Christopher Hotton from the securities industry.

In 2013 Hotton was permanently barred from the securities industry by FINRA in FINRA Disciplinary Proceeding 2009017408101, which alleged that Hotton improperly used and converted nearly $6 million of customer funds while employed by Oppenheimer & Co. , Inc. The FINRA proceeding also alleges that Hotton forged and falsified numerous company documents to perpetuate is scheme, made unsuitable recommendations to customers and churned accounts.

Hotton has numerous customer complaints seeking damages on his official FINRA records, including an arbitration award of $2.35 million in damages to one customer.

Hotton was most recently registered as follows:                                2/2012-5/2012

  • Alexander Capital LP                                         9/2010-3/2012
  • American Capital Partners                            1/2009-8/2010
  • Oppenheimer & Co.                                           11/2005-2/2009

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