Tag Archives: texas securities attorney

Stockbroker Jailed for Selling Annuity to 83 Year Old Woman

The Wall Street Journal reports that California’s insurance commissioner had independent insurance agent Glenn Neasham arrested for selling a complex annuity to an 83 year old woman. The jury in Lake County, CA, found the lady had dementia and  convicted the broker of felony-theft and ordered him to spend 90 days in jail.

Steve Poizner,  the former insurance commissioner was quoted as saying agents “who steal from vulnerable seniors will not get away with their shameful tricks”.

We have warned investors to be wary when making annuity purchases for many years given the fact that there are often steep penalties if money is withdrawn early. Some annuities define “early” as a decade or more. In addition commissions on indexed annuities are very high, sometimes 12% or more.

In the case cited, the broker earned a $14,000 commission (8%) and the penalty to pull the money out of the annuity in the first year was 12.5%.

We are not aware of another case where the regulators have taken such a strong stance. Perhaps this will have some chilling effect on the sale of these products to the elderly, however you can’t ask too many questions about the suitability  of any annuity proposed to you by your broker.

If you have questions about the way your brokerage account is being handled or have unexplained losses in your stock market account, call to discuss your legal 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

 

Securities Regulator Awards $2.1 million For Sale of Tenant in Common Investments (TICs)

A FINRA arbitration panel found that TIC investments were unsuitable and ordered Pacific West Securities to pay $2.1 million in damages to a couple that had been clients.

TICs are real estate securities also known as tenant-in-common exchanges and have been very popular over recent years.

Unfortunately the investor may see little or none of the money since Pacific West’s CEO announced that the firm would be forced to close down. This danger, entrusting your nest egg to a firm that may have limited resources, is one we have warned investors about in the past. See this link (bottom of page “A Word to the Wise…”) for more on the dangers of dealing with a thinly capitalized broker-dealer.

The arbitration panel found that the TICs were not suitable for the couple “given their age, financial condition, cash flow needs, risk tolerance, over concentration in real estate and for other reasons”. The panel also awarded $200,000 in attorney fees and interest and was particularly concerned about the lack of a suitability analysis, saying in their order:

“Among other evidence of a violation of a standard of care under the Securities Act of Washington was the disavowal by [Pacific West and its broker, William Swayne II] of any obligation to conduct a suitability analysis for the sale of TICs in the circumstances of a Section 1031 — like-kind-assets exchange for tax deferral purposes,” according to the award. The arbitrators “determined that the sale of these securities to (the couple) violated the duty of reasonable care.”

Broker dealers that sold TIC investments include:

Alternative Wealth Strategies
American Wealth Management
Berthel Fisher & Co
Cambridge Investment Research
CapWest Securities Inc.
DBSI Securities
DeWaay Financial Network, Inc.
Equity Services Inc.
FINTEGRA LLC
F.A. Repple & Co.
Grubb & Ellis
INVEST Financial Corp.
Investment Security Corporation
Investors Capital
J.P. Turner Co. LLC
LaSalle St. Securities
KMS Financial Services, Inc.
LPL Financial
MCL Financial Group Inc.
Meridian Capital Partners
Next Financial Group
NPV/Direct Invest
Omni Brokerage Inc.
Orchid Securities
Pacific West Securities
QA3 Financial Corp.
Quest Securities
Questar Capital Corp.
Regent Financial Group
Sanders Morris Harris
Sagepoint Financial
Securities Network LLC
Sigma Financial
U. S. Advisors LLC
U. S. Commercial
WFP Securities

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

Allen Stanford Guilty – Ponzi Scheme

Texas financier Allen Stanford was convicted on 13 of the 14 counts for bilking investors out of $7 billion plus in one of the largest Ponzi schemes on record. The jury deliberated 4 days before finding him guilty of all charges but a single count of wire fraud.

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

FINRA BrokerCheck Website Provides Background Information on Stockbrokers

Before entrusting a financial advisor with your Nest Egg wouldn’t you like to know if that broker has a history of customer complaints , sanctions by securities regulators or has been fired by a firm for cause?

Of course you would. FINRA maintains a public website where investors can access this critically valuable information.

Regulatory Notice 12-10, recently published by The Financial Industry Regulatory Authority ( FINRA) , seeks public comment on ways to facilitate and increase investor use of the BrokerCheck information.

BrokerCheck is designed to help investors make informed choices about the individual stockbrokers and firms with which they currently conduct or are considering conducting business by supplying information  about the educational, employment and disciplinary history of registered stockbrokers and brokerage firms. This is an extremely valuable tool that many investors are unaware exists.

You can find out quickly by visiting BrokerCheck on the FINRA website and inputting the name of your broker or brokerage firm.

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