Category Archives: Conflict of Interest

Lewis (Buddy) Rogers-Raymond James Broker-Former Client Awarded Over $250K For Unsuitable MLP Investments-Dallas, TX

March 2018-Dallas, Texas

Lewis H. Rogers, a broker who has worked for Raymond James & Associates since 2/2013, discloses on his FINRA records that an all public FINRA arbitration panel in Houston has ordered  Raymond James & Assoc to pay one of Roger’s former clients over $250,000 for losses (including attorney fees and interest) suffered in their accounts, which included an IRA.

The former clients alleged that they received recommendations to invest in inappropriate investments, including master-limited-partnerships, MLPs. The former clients alleged that their accounts were over concentrated in these unsuitable investments and that Raymond James did not disclose its conflict of interest as a major underwriter of at least two of the MLPs. Mosley, et al vs. Raymond James & Assoc. FINRA Case 16-03199. 

FINRA is the Financial Industry Regulatory Authority, the agency that licenses stock brokers and stock brokerage firms. Disputes over the mishandling of a brokerage account are generally resolved in FINRA arbitration, a process that is much more expedient and far less costly that court based litigation.

Stockbrokers have a duty to make recommendations that are suitable for the customer, taking into account the customer’s age, investment objectives and risk tolerance.

If you have suffered losses in your brokerage account and feel that you were misled as to the risks associated with the investments causing the loss, 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

Nicolaas P. Pronk-Noble Capital Named in Complaint Over Sale of AdCare Health Systems Stock-Boca Raton, FL

November 2016-Boca Raton, FL

According to publicly available records Nicolaas P. Pronk , (CRD# 1726101) ,  a  stockbroker who is employed by  Noble Capital Markets,  disclose  a pending regulatory matter.

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.

Pronk is named in a FINRA complaint alleging that he and Noble Financial Capital Markets violated securities laws by soliciting seven customers to purchase nearly a million shares of  stock in AdCare Health Systems (ADK) without disclosing the firm’s multiple and material conflicts of interest.

According to the complaint filed in FINRA Case #2013035740901, Pronk and Noble Capital Markets promoted and recommended ADK to prospective investors to profit from Noble’s undisclosed investment banking relationships with AdCare and their undisclosed arbitrage of AdCare securities, which created a financial incentive to recommend ADK to customers. Pronk retained ultimate control over all firm activities including proprietary trading, sales, investment banking, and the decision to initiate and prioritize the promotion and sale of ADK.

Nicolaas Pronk has been registered with Noble Capital Markets since 1988 and he acts as Noble’s CEO, COO, CFO and President.

Noble Capital Markets has been registered since 1984, is headquartered in Boca Raton, FL, and has 5 branch offices with 38 registered individuals.

If you have questions about an account in an account at Noble Capital Markets , contact us to discuss your legal 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

United Development Funding Offices Raided by FBI- Grapevine, Texas

February 19, 2016- Grapevine, Texas

The FBI raided the offices of United Development Funding (UDF) yesterday causing the shares of its largest fund United Development Funding IV to fall over 50%, before trading was suspended. In December 2015 UDF IV was trading at over $17. At the time of this writing it is trading at just over $3.

UDF

UDF IV 90 Day Chart

 

UDF is based in Grapevine, Texas, and was founded in 2003. The company sells shares to investors and loans the money to real estate companies. Over $1 billion has been raised by UDF from mostly individual investors, many of which are older retired individuals who purchased the UDF  real estate investment trusts (REITs) seeking safe, dependable fixed income.

The Wall Street Journal (WSJ) published an article earlier this week that highlighted risks related to the UDF business model, including the following:

  • UDF IV Loans are Concentrated Geographically– while also operating in North Carolina, South Carolina and Florida, 99% of the UDF IV portfolio consists of loans made to borrowers in Texas, which is contrary to representations made to investors that UDF IV has portfolio diversification by submarket and loan type. Closer examination reveals that 68% of the loans are in the Dallas area, the WSJ reports.
  • UDF IV Loans are Concentrated to Single Borrower– 67% of its loans are to a single borrower, Centurion American Development and its affiliates.
  • UDF III Loans are Concentrated Geographically– 86% of its loans are secured by Texas properties.
  • UDF V Loans are Concentrated Geographically– 100% of it loans are secured by properties in Texas.

Recovery Option for Investors Who Suffered Losses on UDF 

Brokers have a duty to make suitable recommendations to investors. You may be able to recover damages from the brokerage firm that sold you the investment if the recommendation was not suitable for you taking into account your age, health and level of financial sophistication.

Brokers also have a duty to conduct an independent due diligence review of investments before offering the product for sale.

Call to discuss how you may be able to recover damages through FINRA arbitration, a process much more expedient & efficient than court litigation.

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

JMP Securities Fined $125,000 Over Failure to Disclose Conflict of Interest

August 17, 2015,

JMP Securities LLC entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from January 2010 through December 31, 2013, the firm violated several provisions of FINRA’s research analyst conflict of interest rule, NASD Rule 2711.

Rule 2711 fosters transparency in research reports by requiring broker dealers to clearly and prominently provide investors with important information regarding conflicts of interest.

AWC NO. 2013039333001

JMP Securities was censured and fined $125,000.  

JMP Securities  has been a FINRA member since 1988, is headquartered in San Francisco, and has over 150 registered persons in 6 branch offices.  According to FINRA, it publishes about 3,100 research reports annually.

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

William Blair & Company Fined $350,000 Over Failure to Disclose Conflict of Interest

August 17, 2015,

William Blair & Company entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from January 2010 through September 25, 2013, the firm violated several provisions of FINRA’s research analyst conflict of interest rule, NASD Rule 2711.

Rule 2711 fosters transparency in research reports by requiring broker dealers to clearly and prominently provide investors with important information regarding conflicts of interest.

AWC NO. 2013038534401

William Blair & Company was censured and fined $350,000.  

William Blair & Company  has been a FINRA member since 1944, is headquartered in Chicago, and has nearly 900 registered persons in 15 branch offices.  According to FINRA, it publishes about 6,000 research reports annually, covering over 600 companies.

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