David Shane Simmons Investigation
April 2023-Jefferson, NC
According to publicly available records David Shane Simmons, a former broker who last worked for Lincoln Financial Securities Corporation , discloses a final regulatory matter resulting in a permanent bar from the industry.
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 3/2023 FINRA permanently barred Simmons from the industry to resolve allegations that he refused to produce documents and information and failed to appear for an on-the-record testimony requested by FINRA in connection with its investigation into allegations referenced in the Uniform Termination Notice for Securities Industry Registration filed by his member firm. The findings stated that Simmons firm disclosed that he was discharged he, through counsel, informed the firm that he would not provide a response to the firm’s inquiries in connection with their internal investigation.
Simmons was with Lincoln Financial Securities Corporation from 9/2011 to 3/2023.
David Shane Simmons Charged with Fraud by Department of Justice
A press release from the Department of Justice indicates that David Shane Simmons was indicted by a grand jury in Charlotte, North Carolina, in November 2022 and charged with conspiring to defraud the United States and helping clients file false tax returns based on their promotion and operation of a fraudulent tax shelter. Two tax attorneys from St. Louis, Missouri, Michael Elliott Kohn and Catherine Elizabeth Chollet, were also indicted on the same charges. The fraudulent tax scheme was known as Gain Elimination Plan (GEP) was was allegedly designed to conceal client’s income from the IRS by fraudulently inflating business expenses through fictitious royalties and management fees. If convicted Kohn, Chollet and Simmons each face a maximum sentence of five years in prison on the fraud charges and three years in prison for each of the multiple counts of aiding with preparation of false tax returns.
If you have questions about an account handled by David Shane Simmons, contact us for a no charge consultation 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.
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