Category Archives: South Dakota Division of Securities

Michael Duch-Kovack Securities Broker-Sanctioned for Sale of Unregistered Oil & Gas Investments

Aberdeen, South Dakota

JUNE 2017 UPDATEMichael A. Duch discloses two regulatory events and 2 prior customer disputes on his FINRA record. In 3/ 2016 he was fined $2,000 by the South Dakota Securities Division to resolve allegations that he participated in private securities transactions.

In one of his prior customer disputes in 2001 a customer of FFP Securities was paid $255,000 to resolve allegations that their account decreased significantly and excessive commissions were generated.

ORIGINAL POST-October 15, 2015

Michael A. Duch  , entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he violated NASD and FINRA Rules by participating in private securities transactions, not for compensation, without providing prior written notice or receiving prior written approval from his firm, Cambridge Investment Research.

According to the AWC, Duch introduced at least three Cambridge customers and two non-Cambridge customers to a distributor for two unregistered oil and gas offerings, Running Springs Oil and Gas and Obele Energy, L.P. In addition, Duch also participated in the offering of notes by MVIS, a casualty insurance company in Montana.

AWC No.2010023826302

Duch  was fined $15,000 and suspended for 20 business days.

According to FINRA records, Duch  was registered with Cambridge Investment Research from 9/2005-8/2010. He has been registered with Kovack Securities since 7/2010. Duch discloses a business affiliation with Schwan Financial Group.

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 Dakota Securities Regulators Warn of High-Yield Investments

December 9, 2014- Pierre, South Dakota

The South Dakota Division of Securities, Department of Labor and Regulation warns of high-yield investment programs (HYIP) commonly found on internet and social media posts.

The most notable characteristic of these schemes is the promise of very high returns at little to no risk to the investor.

Warning signs are:

  • The promise of high daily, weekly or monthly returns.
  • An offer from the company to pay “referral fees” to investors for bringing in additional investors.
  • The use of social media to spread the word and praise the program.
  • The promoter provides very few details about who runs the company and how profits are generated.
  • The promoter may require that the investor open an e-currency account to invest. E-currency accounts are not licensed as a money transmitter.

See this for entire 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