Category Archives: Private Placements

Mark Plummer/Chestnut Exploration Expelled From Securities Industry-Richardson, TX

DECEMBER 2016 UPDATE-Richardson, Texas

In an Extended Hearing Panel Decision, FINRA expelled Texas E&P Partners for providing a falsified document to FINRA during an investigation.

Mark Plummer, its CEO, was barred from the industry and ordered to pay restitution to affected customers for misusing their funds and for falsifying a document produce to FINRA during the investigation as well as for providing false and misleading testimony about the document.

ORIGINAL POST-July 21, 2015-Richardson, Texas

Chestnut Exploration Partners, Inc. (formerly Chestnut Energy Partners, Inc., currently known as Texas E&P Partners) and Mark A. Plummer were named in  Disciplinary Proceeding #2014040501801 filed by FINRA Department of Enforcement. They are charged with making material misrepresentations and omissions to 88 customers who purchased investment contracts in private placement securities contracts in the Chestnut 2007 4×4 Joint Venture.

According to the complaint customers investing in the 4×4 securities have lost over $5 million, representing more than a 90% loss on their  investments. Chestnut and Plummer are alleged to have misused at least $567,000 that investors put up for drilling and completion costs.

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

Stockbroker Sanctioned for Unsuitable Sale of Private Placement Securities

July 21, 2015

John P. Jones  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he engaged in unsuitable trading in a customer account by recommending purchases of three speculative investments that were not consistent with the customers investment objectives or financial condition, resulting in an over concentration in the customer account.

According to the AWC, between January 2004 and December 2006 Jones recommended that the customer, who had a moderate risk tolerance and an investment objective of preservation of capital, invest a majority of her liquid net worth in five speculative private placements of securities, which collectively represented over 50% of  her liquid net worth.

AWC NO. 2013036960801

Jones   was fined $15,000 and suspended for six months. According to FINRA records he was registered with Maloney Securities from 3/2010-7/2015. Prior to that he was registered with First Legacy Securities and before that Jones, Byrd & Attkisson, Inc. 

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

SEC Charges Texas Oil Company Mieka Energy and Its President with Securities Fraud

April 10, 2015- Flower Mound, Texas

The Securities and Exchange Commission (SEC) charged Mieka Energy Corporation and Daro Ray Blankenship, its president, with fraudulently offering oil and gas investments. Vadda Energy Corporation, the publicly traded parent of Mieka Energy was charged with fraud in connection with deceptively reporting the success of Mieka Energy.

According to the SEC complaint, between September 2010 and October 2011, Blankenship and Mieka Energy raised over $4 million from about 60 investors who believed they were investing in the drilling and completion of two oil and gas wells (2010 Mieka PA West and Marcellus Project II ), however the money was actually diverted to unrelated projects.

Robert William Myers, Jr. and Stephen Romo were charged with acting as unregistered brokers for marketing and selling the investments without being registered as broker-dealers.

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

Donald Saccomano- Former Source Capital Group Broker-Suspended by Regulator-Westport, CT

Westport, CT

UPDATE APRIL 2017Donald Saccomano was suspended by FINRA in 4/2017 for failing to respond to a FINRA request for information. FINRA records indicate that he ceased working for Source Capital Group 10/2016.

ORIGINAL POST –February 20, 2015

A few months ago, we commenced an investigation of Donald Saccomano, a broker with Source Capital Group on behalf of an elderly couple and last month filed an arbitration against Source Capital Group  for that couple who are seeking damages in excess of $250,000.

The Financial Industry Regulatory Authority (FINRA) initiated a regulatory action against Donald Saccomano on January 7, 2015. Although the full details have not yet been made available, Saccomano’s FINRA record indicates this regulatory matter involves municipal debt , direct investment products, limited partnership interests and allegations of unsuitable investments, misrepresentations and failure to supervise.

The case we recently filed involves a direct investment product, Greenbacker Renewable Energy.  Our elderly clients have made similar allegations that the investments Saccomano sold them  were unsuitable , that he misrepresented the investments and that Source Capital Group failed to supervise Saccomano.  

Source Capital Group was formed in 1994 and has its main office in Westport, Connecticut. They currently have regional offices located in:

  • Scottsdale, AZ
  • West Hartford CT
  • Pearl City, Hawaii
  • Bowling Green, KY
  • Morristown, NJ
  • New York City

In July 2014 they were sanctioned and fined $100,000 in connection with the sale of oil and gas investments Blue Ridge Securities and Argyle Securities.

If you have losses in an account handled by Donald Saccomano,  or with Source Capital contact us to discuss how you may be able to recover damages for your losses.

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

Losses on UBS ETRACS 2x Monthly Leveraged Alerian MLP Index May Be Recoverable

With interest rates at an historic low during recent years, many brokerage firms and financial advisors, seeking yield for retirees, recommended investments in oil & gas investments, which include not only stocks, but master limited partnerships (MLPs) and more exotic investments that track various indexes related to oil and gas .

Since these  are dependent upon the price of oil or gas, commodities that fluctuate widely, and are often times leveraged, they are generally not considered to be suitable for the average retiree who has a moderate or conservative investment objective.

UBS ETRACS 2xMonthly Leveraged Long Alerian MLP Infrastructure Index ETN  (MLPL) is an exchange traded note linked to the Alerian MLP index.

If you were sold this investment with the belief that it was a low risk investment that was suitable for your portfolio, you may be able to recover damages for any losses you have suffered. Call to speak with an experienced securities attorney.

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

KMS Financial Services Placed on Probation By Florida Securities Regulators

On July 24, 2014, KMS Financial Services entered into a consent order with the State of Florida-Department of Financial Services in which the State of Florida agreed to license KMS Financial Services and KMS Financial Services agreed to be placed on probation and pay $8,000 in administrative costs. Docket Case #150989-14-AG

As a condition of the probation, KMS was ordered to submit a plan to avoid all future violations of securities laws, regulations, and SRO rules in connection with the sale of private placements. The period of probation is two years.

KMS Financial Securities, headquartered in Seattle, WA,  has been a FINRA member since 1969.  They are a subsidiary of Ladenburg Thalmann Financial Services, Inc. They have about 435 registered representatives in over 300 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

RSL Investigates Berthel Fisher Broker Jonathan Pyne Over Alt Investment Sales-Minneapolis, MN

 

MAY 2017 UPDATEFollow this link for update on customer complaints vs. Berthel Fisher/Jonathan Pyne involving alternative investments.
ORIGINAL POST-February 2014- Minneapolis, MN
Rex Securities Law is investigating Berthel Fisher & Company Financial Services broker Jonathan Pyne on behalf of a retiree from the Minneapolis, MN area. Our client was sold the following alternative investments:
  • Gulf Coast Rig & Equipment
  • Reef Income & Development
  • Leaf Equipment Leasing Fund
  • Inland American
  • Cornerstone Properties (now Summit Health Care)
  • Columbia Properties
We anticipate filing an arbitration claim with the Financial Industry Regulatory Authority (FINRA) in the near future on behalf of our client seeking recovery of damages for misrepresentation, unsuitable investments, breach of contract, negligent supervision and breach of fiduciary duty.
According to FINRA records Jonanthan Pyne has been registered with Berthel Fisher & Company since February 2007. He was previously registered with:
  • United Planners Financial Services of America 8/2003-2/2007
  • Clearing Services of America 8/1999-9/2003
According to FINRA records, Mr. Pyne is also associated with Evergreen Financial Group of Minneapolis.
According to FINRA records Berthel Fisher & Company Financial Services, Inc. discloses 22 final regulatory matters and 9 customer arbitrations. Several of these disclosure items relate to unsuitable investments.
UPDATE FEBRUARY 2014-FINRA FINES BERTHEL FISHER $775,000 FOR SUPERVISORY INADEQUACIES IN CONNECTION WITH THE SALE OF ALTERNATIVE INVESTMENTS. See this for more information.
If you have information you feel would be helpful to this investigation, we would appreciate hearing from you.

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