December 10, 2015 Austin, Texas
John Morgan, Securities Commissioner of the Texas State Securities Board (TSSB) issued a disciplinary order against Mike Reed Hall of Carrollton, TX, and assessed a fine of $5,000 for selling shares of unregistered stock issued by a public company through a private offering.
The TSSB concluded that Hall, an investment adviser with ETF Wealth Management System was not registered with the Securities Commissioner as a dealer or as an agent of a registered dealer when he sold over $300,000 of stock through a public offering, receiving a commission of over $30,000 as compensation.
“Just because someone is registered as an investment adviser doesn’t mean he or she can sell securities for a commission,” Commissioner Morgan said. “There are distinctions between the duties owed to clients by dealers and investment advisers. A key reason is the expectation that an investment adviser will not benefit financially from a client’s investment in a specific product.”
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.
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