Tag Archives: wedbush securities litigation

Wedbush Securities Ordered to Pay Customer $1.8M For Elder Abuse-Los Angeles, CA

Los Angeles, CA-July 2017

A Financial Industry Regulatory Authority (FINRA) arbitration panel comprised of three public arbitrators ordered Wedbush Securities to pay two former customers (husband and wife) compensatory damages of $250,000. In addition the arbitration panel, who found that Wedbush subjected the couple to elder abuse,  awarded punitive damages of over $1 million and attorney fees of $277,000 pursuant to the California Elder Abuse and Adult Civil Protective Act, interest and costs.

The former customers alleged a number of causes of action, including unsuitable recommendations, failure to supervise the broker, misrepresentation and elder abuse in connection with investments in long term municipal bonds and structured certificates of deposit. Dancy, et al vs. Wedbush Securities, FINRA Case #16-0847.

FINRA ARBITRATION

Arbitration is similar to going to court, however it is generally less costly and a shorter process than court litigation. Most cases are resolved in about 12-14 months. If you have losses in your brokerage account which you believe are the result of negligent or fraudulent advice given to you by the broker, or if you believe your broker has made trades in your account without your permission (unauthorized trading) call to learn how 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

Matthew J. Ronan-ViewTrade Securities Broker-Discloses Pending Regulatory Investigation

Boca Raton, Florida

According to FINRA recordsMatthew J. Ronan  a stock broker who works for ViewTrade Securities  discloses  a customer dispute that has been finalized and a pending regulatory investigation.

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.

Ronan’s FINRA record discloses that FINRA instituted an investigation in September 2015 for potential violations of Section 5 of the Securities Act of 1933 and FINRA Rule 2010. Examination #20140404879.

Section 5 of the Securities Act of 1933 regulates the timeline and distribution process for issuers who offer securities for sale. FINRA Rule 2010 is entitled Standards of Commercial Honor and Principles of Trade and states that “A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”

Ronan’s  previous employment includes Wedbush Securities and Oppenheimer & Co.

If you have questions about an account handled by Matthew J. Ronan, 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

Wedbush Fined/Sanctioned by Securities Regulators Over Supervison/Reporting Issues

December 11, 2014

The Financial Industry Regulatory Authority (FINRA) rendered a decision in Complaint #20070094044, appealing the sanctions imposed ay an earlier decision by a FINRA hearing panel against Wedbush Securities and Edward William Wedbush. It  the earlier hearing the panel found  that the company committed various regulatory failures with respect to the reporting of customer complaints and that its founder/president Edward Webush failed to reasonably supervise regulatory reporting.

The appeal affirmed the liability findings of the panel and modified the sanctions, imposing a $300,000 fine on Wedbush Securities and a 31 day suspension in all principal capacities and $50,000 fine on Mr. Wedbush.

According to the decision, “The Firm’s reporting failures included substantial settlements with customers, FINRA and SEC Wells Notices, criminal matters, bankruptcies, customer complaints and arbitration filings.”

With regard to prior supervision issues, the decision notes: “We considered the Firm’s extensive disciplinary history with respect to supervision failures. In the past 10 years alone, the Firm has been fined approximately $2,000.000 by FINRA, NASD and NASDAQ in 16 separate disciplinary actions and settlements involving supervisions failures. The Firm’s disciplinary history coupled with its failure to remedy regulatory reporting problems despite repeated warnings from regulators present a significant aggravating factor in our determination of sanctions”

If you have questions about losses in your brokerage account, call 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

SEC Charges Wedbush Securities & Two Employees For Market Access Violations

Washington, DC- June 6 2014

The Securities & Exchange Commission (SEC) filed charges against Wedbush Securities of Los Angeles, Jeffrey Bell, a former executive vice president and Christina Fillhart, a senior vice president, accusing them of violating an SEC market access rule requiring firms to have adequate risk controls in place before providing customers with access to markets.

According to the SEC press release, Wedbush has consistently ranked as one of the five largest firms by trading volume on NASDAQ, and failed to maintain direct and exclusive control over settings in trading platforms used by its customers to send orders to the markets.

“Wedbush provided market access to overseas traders without pre approval and without ensuring that they  complied with U.S. law” said Andrew J. Ceresney, director of the SEC Enforcement Division. “We will hold Wedbush accountable for reaping substantial profits while failing to protect U.S. markets from the risks posed by these traders.”

Rex Securities Law provides nationwide representation to investors 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

Wedbush Securities Charged by Regulators with Supervisory & Anti-Money Laundering Deficiencies

Washington, DC–On August 18, 2014, the Financial Industry Regulatory Authority (FINRA) filed a complaint against Wedbush Securities for systemic supervisory and anti-money laundering (AML) violations in connection with providing direct market access and sponsored access to broker-dealers and non-registered market participants.

FINRA’s complaint, which can be accessed here, alleges that from January 2008-August 2013, Wedbush enabled market access customers to flood U.S. exchanges with thousands of potentially manipulative wash trades and other potentially manipulative trades.

The complaint also alleges that the firm failed to establish and enforce adequate AML policies and procedures, and failed to report suspicious and potentially manipulative transactions.

Wedbush Securities (formerly Wedbush Morgan Securities) is headquartered in Los Angeles, CA, and has been registered with FINRA since 1955. They have over 400 brokers in 100 branch offices nationwide.

Rex Securities Law provides nationwide representation to investors 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

Securities Regulators Fine Wedbush Securities $72,500

Los Angeles, California

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

AUGUST 2013

Wedbush Securities Inc. (CRD #877, Los Angeles, California) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $72,500 and required to revise its WSPs. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to provide written notification disclosing to its customers its correct capacity in transactions and the reported price.

The firm made available reports on the covered orders in NMS securities it received for execution from any person that included incorrect information as to order type and size categories. The findings stated that the firm’s supervisory system did not provide
for supervision reasonably designed to achieve compliance with applicable securities laws, regulations and/or FINRA rules addressing adequate WSPs in order handling, trade reporting, sales transactions and other rules (books and records).

The findings also stated that the firm failed to provide evidence of supervisory review for trade reporting and other rules (books and records). The findings also included that the firm failed to provide written notification disclosing to its customers its correct capacity in transactions and the correct price and the average price details. FINRA found that the firm failed to properly mark sell orders as short and, as a result, failed to report transactions in reportable securities to the Trade Reporting Facility (TRF®) with a short sale indicator. The firm failed to show the correct order entry time and the correct long/short sale indicators in its proprietary trading ledger. (FINRA Case #2009017002603)

If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.

Rex Securities Law , located in Boca Raton, FL, 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.

Rex Securities Law

561 391 1900