Mid Atlantic Capital Ordered to Pay $922K to Customers-Denver, CO

December 2016-Denver, Colorado

Brokerage firm Mid Atlantic Capital was ordered to pay a married couple $922,000 by a FINRA arbitration panel for damages they suffered to their brokerage account as a result of the sales of illiquid real estate private placements that were sold to them prior to the 2008 credit crisis. Wellman, et al vs. Mid Atlantic Capital Corporation, FINRA Case#15-0333.

The claims were brought for losses on the following investments:

  • Sonoma Ridge Partners real estate investment trust
  • KBS real estate investment trust
  • Contango Oil and Gas, Inc.
  • iShares Silver 
  • Market Vectors Gold Miners

The claimants alleged breach of fiduciary duty, negligence, negligent misrepresentation, omissions, violation of Colorado Securities Act, common law fraud, negligent supervision and other claims. The claimants alleged that they did not have the required net worth to be considered accredited investors as required by industry rules for the purchase of private placements.

Mid Atlantic Capital, headquartered in Pittsburgh, PA,  has been a registered broker dealer since 1982. It employs about 175 registered representatives. Official FINRA records disclose that Mid Atlantic Capital has been involved in 5 prior regulator matters that are final.

FINRA arbitration offers investors a streamlined way to pursue the  recovery of damages for investment losses for the negligence and/or fraud of stockbrokers and brokerage firm. If you have questions about your account with Mid Atlantic Capital or any other brokerage firm, call to discuss your legal options.

Alternative investments include non publicly traded real estate investment trusts (REITS) , equipment leasing, oil and gas, hedge funds, real estate, commodities and derivatives contracts and, managed futures.  These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

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

Wesley Woodyard Pleads Guilty in $4.6M Fraud Scheme-Dallas,TX

December 2016-Dallas, Texas

Wesley Michael Woodyard, 65, pleaded guilty to one count of wire fraud in connection with a $4.6 million fraudulent scheme involving Ace European Insurance Company (ACE).

According to a release from the U.S. Attorney’s office, from 2002-2013, through his company Ringler Associates of North Texas, Woodyard stole ACE funds which they believed would be used to purchase annuities for insurance claimants. Woodyard unlawfully used the majority of the funds for his own personal financial benefit.

Woodyard faces a maximum of 20 years in federal prison and a $250,000 fine.

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

Wells Fargo Fined $1M Over Consolidated Reports Provided to Customers

December 2016

Wells Fargo was censured and fined $1,000,000 by the Financial Industry Regulatory Authority over its lack of supervision related to the preparation and dissemination of consolidated reports showing a customer’s financial holdings.

According to the FINRA findings, between June 2009 and June 2015, Wells Fargo brokers were allowed to prepare consolidated reports for customers using various software programs available to them. FINRA found that the supervisory system was inadequate because there was no mechanism in place to distinguish between reports that were drafted by brokers and never sent to customers and those reports that were completed and sent to customers.

If you have questions about losses in your brokerage account, call for a no charge consultation 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

Michael Delao-Former Century Securities Broker-Sanctioned by Texas Securities Regulators

December 2016-Georgetown, Texas

The FINRA records of  Michael Ramon Delao,  a  stockbroker with St. Bernard Financial Services , disclose a recently regulatory event , a prior customer dispute and 2 terminations.

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 records, while Delao was employed by  he was arrested in connection with two felony charges and was indicted. Although the felony charges were later dismissed, Delao did not report these events to Century or to the Texas State Securities Board (TSSB) as required by Board Rules. The TSSB reprimanded Delao and assessed an administrative fine of $7,500.

In 2009, Delao was discharged by Southwest Securities who made the following allegation: “Guaranteeing a client against losses in an email.” In 2015, Delao voluntarily resigned from Stifel Nicolaus & Company.

 

Delao has been employed with  since 10/2016. He was employed by IFS Securities from 8/2016-8/2016 and prior to that with Century Securities.

If you have questions about an account handled by Michael Delao , contact us 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

John Simpson-Former RBC Capital Markets Broker-Discloses $11M Customer Suit

December 2016-Hunt Valley, MD

The FINRA records of  John Scott Simpson,  a  stockbroker who formerly worked for RBC Capital Markets, was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

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.

Simpson’s FINRA record discloses a pending customer dispute which seeks damages of $11 million for unsuitable energy and metals sector losses and 5 prior customer disputes as well as two terminations from employment.

Simpson consented to the FINRA sanction barring him from the industry and to the entry of findings that he refused to appear for on the record testimony as requested by FINRA in connection with an investigation regarding the use of discretion in client accounts.

 

Simpson was employed by RBC Capital Markets from 2009-2016. Prior to that he was employed by Ferris, Baker, Watts.

If you have losses in an account in an account handled by John Simpson , contact us to discuss how you may be able to recover damages for those losses.

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