Tag Archives: recover oil investment losses

Timothy T. Gibbons-Former Morgan Stanley Broker-Ordered to Pay Former Customers $749K-New Orleans,LA

NOVEMBER 2017 UPDATE-FOLLOW THIS LINK.

May 2017-New Orleans, LA

According to FINRA records, Timothy T. Gibbons a former Morgan Stanley broker, without admitting or denying the findings, entered into an agreement with FINRA to resolve allegations that he made unsuitable investment recommendations to five elderly customers ranging in age from 72 to 90.

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.

According to FINRA Letter of Acceptance Waiver and Consent No. 2015047910601, Gibbons over concentrated the accounts of these elderly clients in a single energy sector security. The concentration level in the customer’s accounts ranged from 65% to 79%.

The recommendation to invest in such a manner was unsuitable based on the customer’s age, risk tolerance, investment objectives and financial circumstances. FINRA Rule 2111(a) requires stockbrokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer taking those and other factors such as tax status, investment experience time horizon and liquidity needs, into account.

Gibbons, who was employed by Morgan Stanley from 2009-2015,  was suspended from association with any FINRA member for 18 months, fined $20,000 and ordered to pay partial restitution to the customers of $716,750.

 

If you have questions about an account handled  by Timothy Gibbons or if you believe your broker over concentrated your portfolio in energy stocks or made other unsuitable recommendations, 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

Sanders Spangler’s Employer-LPL Financial-Named In Litigation Claim-San Antonio, TX

October 2017-San Antonio, TX

We recently filed a Statement of Claim with the Financial Industry Regulatory Authority (FINRA) against LPL Financial on behalf of a retired widow from the Austin, Tx , area, alleging that LPL Financial failed  to supervise the actions of former San Antonio stockbroker Sanders Spangler. FINRA Case#-17-01513.

The FINRA suit, which seeks damages of between $100,000 and $500,000,  alleges that Spangler made unsuitable investments and traded the victim’s IRA account without her knowledge or authority. The subject account was over concentrated with energy securities.

In February 2017 Spangler was discharged by LPL Financial. LPL made the following allegation on Spangler’s  FINRA record:

“Exercising discretionary power in customer account(s) in violation of firm policy. “

Sanders Spangler had worked for  LPL Financial since 10/2005. As of November 2017, Spangler is not currently registered as a stockbroker with any broker dealer.

Brokers have a responsibility to make suitable recommendations to customers, taking into account their age, net worth, investment experience and risk tolerance. Oil and gas investments can be very risky and over concentrating the account of a retiree in such investments is generally not appropriate.

If you have losses in an account in an account handled by Sanders Spangler , you may be able to recover damages through FINRA arbitration.

EXERCISING DISCRETION

Most brokerage accounts are not discretionary accounts, meaning that the broker is required to consult with the customer before making a purchase or sale in the account.  To avoid regulatory issues and to comply with firm policy, permission to trade a customer’s account without obtaining the authority from the customer must be granted by the customer to the firm in writing.

FINRA ARBITRATION

Arbitration is an alternative to litigation or mediation in order to resolve a dispute over damages when a customer has suffered losses due to the negligence or fraud of a stockbroker. The process is much more expedient and far less costly than court litigation.

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

John Carolyn-UBS Financial Broker-Subject of Numerous Customer Arbitrations Involving Oil & Gas Investments-Houston, TX

May 2017-Houston, TX

The FINRA records of John Carolyn,  a  stockbroker who is employed by  UBS Financial Services  disclose 5 pending customer disputes involving oil and gas securities  and one prior customer dispute.

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.

The pending disputes include:

  • FINRA case 17-0513- a UBS customer seeks damages of $70,000 for unsuitable concentration of oil and gas investments.
  • FINRA case 16-2280- a UBS customer seeks damages of $450,000 for unsuitable concentration of oil and gas investments.
  • FINRA case 16-1941- a UBS customer seeks damages of $100,000 for unsuitable concentration of oil and gas investments.
  • FINRA case 16-1731- a UBS customer seeks damages of $750,000 for unsuitable concentration of energy securities.

 

John Carolyn has been employed by UBS Financial Services since 4/2002.

If you have questions about an account  handled by John Carolyn , 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

Will R. Freeman-Wilbanks Securities Broker-Discloses $1.4M Claim Over Loss on Aztec Oil & Gas

Oklahoma City, OK

MAY 2017 UPDATE-Per FINRA records Will Ricker Freeman left Wilbanks Securities 10/2016 and he is not currently registered.

ORIGINAL POST AUGUST 2016The FINRA records of Will R. Freeman ,  a  stock broker who is currently  employed by Wilbanks Securities  disclose a pending customer dispute involving an oil and gas investment.

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 pending FINRA arbitration 14-03350,  customers of Wilbanks Securities allege damages of $1,465,000 and that Freeman did not review the suitability of an oil and gas limited partnership with customers prior to its sale.

Aaron Wilbanks, President and CEO of Wilbanks Securities, Randy Wilbanks, its Vice President and Steven Sharpe, Chief Compliance Officer, disclose this same case (FINRA #14-0335) on their respective FINRA records, indicating that the subject oil and gas investment is Aztec Oil & Gas. See this for details.

Another Wilbanks Securities broker, John R. Stevens, is named in this arbitration and was discharged from Wilbanks Securities in April 2014. See this for details. 

Freeman has been employed by  Wilbanks Securities since 7/2006.

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

Will R. Freeman-Wilbanks Securities Broker-Discloses $1.4M Customer Dispute Over Oil Investment

August  2016-Oklahoma City, OK

The FINRA records of Will R. Freeman ,  a  stock broker who is currently employed by Wilbanks Securities, Inc.   disclose  a pending customer arbitration.

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 currently pending FINRA Case 14-03350,  customers of Wilbanks Securities allege damages of $1,465,000 and that Freeman did not review the suitability of an oil and gas limited partnership with them prior to its sale.

Freeman has been employed by Wilbanks Securities since 7/2006.

The FINRA Suitability Rule

FINRA Rule 2111 requires, in part, that a broker-dealer or associated person “have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the [firm] or associated person to ascertain the customer’s investment profile.” In general, a customer’s investment profile would include the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs and risk tolerance. The rule also explicitly covers recommended investment strategies involving securities, including recommendations to “hold” securities. The rule, moreover, identifies the three main suitability obligations: reasonable-basis, customer-specific, and quantitative suitability.

For more on the FINRA suitability rule, follow this link. 

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

Michael P. Dalessandro-Investment Center Broker-Discloses Customer Dispute Over Oil & Gas Investments

August  2016-Colt’s Neck, New Jersey

The FINRA records of Michael P. Dalessandro ,  a  stock broker who is currently  employed  by The Investment Center  , disclose a pending customer dispute and a prior final customer dispute.

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 pending dispute, FINRA Case #16-0190, a customer of The Investment Center alleges that between March 2013 and August 2015, Dalessandro recommended that they invest in various oil and gas investments, high yield products and publicly traded securities which were unsuitable. No damages are specified.

In a prior customer dispute resolved in June 2016, a customer of The Investment Center alleged unauthorized and excessive trading. That matter was settled for $82,500.

Dalessandro has been employed by The Investment Center since 9/1991.

August 2016-Investment Center Fined $50,000 by Texas Regulators Over Sale of Energy SecuritiesSee this for details. 

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

The Investment Center Fined $50K For Sale of Energy Stocks to Texas Residents

August 2016- Austin Texas

The Texas State Securities Board (TSSB) sanctioned The Investment Center, Inc. , a New Jersey securities dealer registered in Texas for failing to supervise one of their stock brokers who overloaded a client account with low-priced securities of energy companies.

The Investment Center was fined by TSSB and assessed a fine of $50,000. According to the TSSB Consent Order:

  •  A review of the clients’ accounts revealed that a majority of those clients held more than 95% of their total assets in equities, with shares of energy companies comprising 100% of their equity holdings. In most of the accounts reviewed, clients’ entire equities holdings were shares in a single company.

  • The agent recommended clients buy low-priced shares of energy companies even when the clients indicated they had a low tolerance for risk.

  • The Investment Center did not speak with any of the clients to confirm that the activity in their accounts was in line with their objectives and risk tolerances or that the broker was seeking the clients’ pre-approval prior to purchasing the concentrated positions.

 

  • The Investment Center failed to adequately address internal alert reports. These alerts were based on the concentrated equity positions in client accounts, the decline in value of certain accounts, and the agent’s pattern of amending some clients’ customer information to include “speculation” as an acceptable level of risk.

If you have losses in an account handled by The Investment Center, you may be able to recover damages through FINRA arbitration.

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