Tag Archives: texas securities fraud lawyer

Investigation of Capital Financial Services Brokers-Mark & Herminia Sitter-The Woodlands, TX

August 2017- The Woodlands, Texas

We are investigating  Capital Financial Services stockbroker Mark Raymond Sitter of the Woodlands, TXand  his wife Herminia C. Sitter, who until June 2017, was also a  broker with Capital Financial Services TX.

Our investigation is on behalf of an elderly Texas retiree who alleges that they recommended she invest most of her retirement funds into unsuitable real estate investments, including American Realty Hospitality Trust and Cole Office and Industrial REIT.

The FINRA records of Mark Sitter disclose an outstanding lien to the Internal Revenue Service of $83,527. Mark Sitter has been registered with Capital Financial Services since 1/2006. Mark Sitter discloses a business affiliation with Chasewood Wealth Management of the Woodlands, TX.

The FINRA records of Herminia Sitter disclose an outstanding lien to the Internal Revenue Service of $83,527. Herminia Sitter was registered with Capital Financial Services from 9/2005-6/2017.

Capital Financial Services has been a FINRA member since 1981 and is headquartered in Minot, North Dakota.

If you have information you believe may be helpful to this investigation please contact our office.

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

Texas Securities Board Appoints New Commissioner-Austin, TX

August 2017-Austin, Texas

Travis J. Lies was appointed Securities Commissioner of the Texas State Securities Board (TSSB) effective September 1, 2017. Lies has worked for the TSSB for 16 years and has been serving as Deputy Commissioner for the past year. He will succeed current Commissioner John Morgan who will retire August 31 after 33 years with TSSB.

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

Additional Individuals Indicted In Chimera Energy Corp. Fraud-Houston, Texas

Houston, Texas – July 2017

According to a press release from the US Attorney’s Office for the Southern District of Texas, a second superseding indictment has been issued by a  federal grand jury naming additional individuals and companies related to the Chimera Energy Corp. pump and dump fraud. Losses due to the fraud may exceed $25 million.

The following individuals were  named in September 15, 2016 indictment for a securities fraud scheme involving the stock of Chimera Energy Corp:

  • Andrew Ian Farmer, 38 , Houston, TX
  • Thomas Galen Massey, 46, Houston, TX

In a superseding indictment April 26,2017, a federal grand jury charged five additional individuals for their roles in the Chimera Energy fraud:

  • Eddie Douglas Austin, Jr. , 66, Houston, TX
  • Carolyn Price Austin, 62, Houston, TX
  • Charles Earl Grob, Jr. 37, Houston, TX
  • John David Brotherton, 57, League City, TX
  • Scott Russell Sieck, 58, Winter Park, FL

On July 20, 2017, a grand jury returned a second superseding indictment against Farmer, Eddie and Carolyn Austin, Brotherton, Sieck and Grob for roles in a broader securities fraud conspiracy involving at least 12 other companies from 2011 to 2017.

The release indicates that Massey pleaded guilty to his role on April 18,2017, and is set for sentencing in June 2018.

Pump and Dump Scheme

In a pump and dump scheme, the fraudsters engage in fraudulent trading practices in a company’s stock by publishing false and misleading information about the company with the intention of inflating the price of the stock. Once the stock rises as a result of this fake information, the fraudsters dump their stock on the market to the investors who have been misled by the false information.

Victims who may have been advised by a registered stockbroker to invest in any of these companies may be able to recover damages through FINRA arbitration. Call to learn about 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

SEC Charges 13 with Fraud Boiler Room Scam Targeting Senior Citizens-Long Island

July 2017

Thirteen individuals from two Long Island-based boiler rooms were charged with securities fraud by the Securities and Exchange Commission who alleges that they made hundreds of thousands of cold calls, many of which targeted senior citizens.

The SEC press release makes quite a few shocking allegations and demonstrates just how far the unscrupulous will go to take advantage of the general public, for example:

  • It is estimated that over $10 million was scammed from innocent and unknowing victims.
  • A boiler room salesman allegedly claimed that Walt Disney Co. was buying into a company that would cause the penny stock he was touting to soar.
  • Victims were harassed and intimidated by sale personnel…One allegedly told a victim “Do you have any rope at home? If so tie a know and hang yourself or get a gun and blow your head off”.
  • The telemarketers would instruct victims to place trades and a specific price and number of shares and then the scammers would place opposing sell orders to dump their own shares.

Scott W. Friestad, Associate Director of the SEC’s Enforcement Division, added, “The defendants allegedly used boiler rooms and high-pressure sales tactics to swindle seniors into investing their life savings in microcap securities they were secretly manipulating for their own profit.  But, through a combination of technology and innovative investigative approaches, we were able to unravel the alleged scheme and prevent further investor harm.”

Defendants named in the SEC complaint are:

  • POWERTRADERSPRESS.COM, INC.
  • ELITE STOCK RESEARCH, INC.
  • ERIK MATZ
  • RONALD HARDY
  • ANTHONY VASSALLO
  • STEPHANIE LEE
  • JEFFREY CHARTIER
  • LAWRENCE D. ISEN
  • ROBERT GLECKMAN,\
  • MICHAEL WATTS
  • BRIAN HEEPKE
  • DENNIS J. VERDEROSA
  • EMIN COHEN
  • SERGIO RAMIREZ
  • ASHLEY ANTOS

If you were recommended to deal with any of these individuals by a registered stock broker, you may be able to recover damages from that broker’s employer. Call 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

Michael K. Parish-San Antonio Investment Adviser Sanctioned by Texas Regulator

July 2017 -San Antonio, TX

The Texas State Securities Board  (TSSB)entered a disciplinary order against San Antonio investment adviser Michael Keith Parish for violations of Board Rule 116.17, known as the “custody rule” which prohibits registered investment advisers from maintaining custody of client funds and/or securities unless certain safeguards are implemented and/or the investment adviser satisfies compliance with an exemption from such safeguards. Link to TSSB Disciplinary Order. 

According to the TSSB Order, Parish did not maintain a balance sheet, income statement and general ledger and did not implement the safeguards required by Section 116.17(b) of the Board Rules.

Parish was fined  $5,000 and his registration as an investment adviser was suspended for 30 days. In addition Parish was ordered to retain an outside auditor registered with the Public Company Accounting Oversight Board (PCAOB) to conduct an audit of all funds under his management.

 

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

Investigation-Frank T. Dunn, Jr.-Concorde Investment Services-The Woodlands, TX

The Woodlands, Texas

We are investigating the sales practices of Frank Timothy Dunn, Jr. a broker who has been employed by Concorde Investment Services since 10/2014. In publicly available records Dunn discloses a business affiliation with Capstone Financial Consultants LLC , 1031 TaxSavings.com and an accounting practice located in the Woodlands, TX.

Dunn also discloses two prior regulatory events, one with the NASD, now known as FINRA, and one with the Oregon Division of Finance and Corporate Securities, both of which resulted in monetary sanctions.

 

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 FINRA case 16-0611 a  customer of Waveland Capital Partners sought damages of $452,388, alleging misrepresentation, breach of fiduciary duty in relation to a tenant in common investment (1031 exchange). That case was settled for $22,500.

In FINRA case 12-3742 a customer of EPlanning Securities sought damages of $1 million alleging misrepresentation, negligence and breach of fiduciary duty in connection with tenant in common investments. That case settled for $67,000.

Prior to his employment with Concorde Investments Services, Dunn was registered with Steven L. Falk & Associates from 5/2010-10/2010 , EPlanning Securities 4/207-12/2008, and with Waveland Capital Partners from 7/2003-4/2007.

If you have information which you believe is 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

David G. Menashe-Former Joseph Stone Capital Broker-Sanctioned by Securities Regulator for Excessive Trading-New York

July 2017-New York

The FINRA records of  David G. Menashe ,  a  stockbroker who is currently  employed by  Newbridge Securities Corp. , disclose a  prior regulatory event.

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 April 2017 Menashe was sanctioned by the Montana Office of the Commissioner of Securities and Insurance for excessive trading and unauthorized trading. The Notice of Proposed Agency Action and Opportunity for Hearing contains various conclusions of law, including the following:

  • Respondents Joseph Stone, Spadaro, Menashe, Maggio and Barrish violated 6.10401(1)(K) when they charged total commissions of $239,260.02 out of the $877,492.99 principal originally invested by Montana clients, or 28% of their total investment. 

Menashe entered into a Consent Agreement with the Montana regulator and agreed to pay restitution of $15,000.

Menashe was employed by Joseph Stone Capital from 2/2013-1/2017. Prior to that he was employed by First Midwest Securities.

If you have questions about an account handled by David G. Menashe, call to learn about 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