Category Archives: Failure to Supervise

Churning, Failure to Supervise, FINRA, Finra Investigation of Stockbroker, Misrepresentation, Stifel Nicolaus & Co., Stockbroker Malpractice, StockBroker Misconduct, UIT (Unit Investment Trust), Unsuitable Investments, Wells Fargo

Kurt Gunter-Former Stifel Nicolaus Broker-Sanctioned Over UIT Sales-Austin, TX

November 2020- Austin, TX 

According to his FINRA record  Kurt Jason Gunter a financial advisor currently employed by Wells Fargo Clearing Services has recently been sanctioned by FINRA for unsuitable sales of unit investment trusts (UITs).

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 November 2020 Gunter, without admitting or denying the findings, agreed to a three month suspension and a fine of $10,000 to resolve FINRA’s allegations that from July 2013-December 2016 he engaged in an unsuitable pattern of short-term trading of UITs in customer accounts at Stifel Nicolaus.

In addition, FINRA found that Gunter signed switch letters that were sent to customers that contained inaccurate or missing information about the costs they were incurring as a result of early rollovers of UITs.

Unit Investment Trusts are designed to be long term investments and short term trading is generally improper. According to FINRA findings, Gunter recommended that his customers roll over UITs more than 100 days prior to maturity on more than 270 occasions. As a result customers incurred unnecessary sales charges and the recommendation was unsuitable in view of the frequency and cost of the transaction.

On average, according to FINRA, the switch letters that contained inaccurate information understated the sales charges incurred by customers by about $2,500.

Kurt Gunter was employed by Stifel Nicolaus from 6/2013-8/2017. Since 8/2017 he has been employed by Wells Fargo Clearing Services in Bee Cave, TX.

If you had an account with Kurt Gunter that suffered losses, or if you were a victim of his short term UIT switching  scheme,  you may be entitled to collect damages from his prior employer.

Call for a no charge consultation with an experienced securities attorney.

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

Failure to Supervise, Forgery, Misrepresentation, Outside Business Activities, Parkland Securities (Sammons), Ponzi Schemes, Selling Away, Stockbroker Discharged, Stockbroker Malpractice, StockBroker Misconduct, Theft, Unsuitable Investments

Keith Ashley-Parkland Securities Broker/ Allen Brewery Owner-Charged with Murder of Client-Carrollton, TX

November 2020- Dallas, TX 

ASHLEY ACCUSED OF MURDERING CLIENT AND STAGING COVERUP TO LOOK LIKE SUICIDE

According to  Fox4 KDFW news, Nine Band Brewing owner and former Parkland Securities financial advisor Keith Ashley has been charged with staging the murder of a client to look like suicide in order to gain control of the client’s finances.

The murder of 62 year old Jim Seegan happened in Carrollton in February. His wife discovered him upon returning home with a gunshot to his head and a typed suicide note.

According to the arrest affidavit, things did not look right from the outset.  The gun was in Seegan’s left hand, however he is right handed and was not a gun owner.  During the investigation over the past 9 months, detectives found evidence that Ashley had drugged Seegan and then murdered him in order to gain control over his money.

Investigators report that Ashley was captured by a doorbell camera entering and leaving Seegan’s house on the day of his death. In addition the camera recorded a unknown loud noise while Ashley was in the house. Forensics have determined the noise was gunfire.

In addition to owning the brewery in Allen, Ashley owns North Texas Money Management. He is also a registered nurse with access to and training on how to use the drug located in Seegan’s system.

According to investigators Seegan had several million in life insurance coverage and 3 weeks before the murder the beneficiary was changed from Seegan’s wife to Ashley.

Investigators believe Ashley was operating a Ponzi Scheme and that there are more victims.

According to his FINRA record  Keith Todd Ashley has been a stockbroker employed with Parkland Securities in Allen, TX, since 2002. He was discharged by Parkland Securities  in 10/2020 when they discovered he was engaged in undisclosed and unapproved outside business activities.

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.

If you had an account with Keith Ashley that suffered losses, or if you are a victim of his Ponzi Scheme,  you may be entitled to collect damages from his prior employer. Call for a no charge consultation with an experienced securities attorney.

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

Aegis Capital Corp, Failure to Supervise, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments

Johnny Guan-Aegis Capital Broker-Discloses Customer Disputes-Red Bank, NJ

November 2020- Red Bank, NJ

According to publicly available records Johnny Guan  (CRD#5711977), a stockbroker employed with Aegis Capital discloses two settled customer disputes.

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 2016 and 2019, customers of Aegis Capital and Guan’s previous employer, National Securities Corp., alleged among other things, unsuitability, over concentration, unauthorized, transactions, breach of fiduciary duty, material misrepresentations, negligence, failure to supervise and violation of FINRA rules.   The cases were settled for $13,199.

Guan has been employed with Aegis Capital Corp.  since November of 2012.    Before that he was employed by National Securities Corporation and Obsidian Financial Group.

If you had an account with Johnny Guan that suffered losses, you may be entitled to collect damages from his prior employer. Call 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

Failure to Supervise, Finra Investigation of Stockbroker, PFS Investments, Selling Away, Stockbroker Discharged, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments

Irene Engard- Former PFS Investments Broker-Barred From FINRA- Federal Way, WA

November 2020- Federal Way, WA

According to publicly available records, former PFS Investments, Inc,  financial advisor Irene Engard,  has been barred from the securities 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 May of 2020  in FINRA case 2019064765701 Engard was  permanently barred from the securities industry to resolve allegations that she refused to provide documents and information requested by FINRA in connection with its investigation of an outside business activity.  Engard was permanently barred from FINRA in all capacities.

 Engard was employed by PFS Investments, Inc. from October of 1992 until November 2019 when she was discharged after allegations that she refused to produce documents and information requested by FINRA in connection with its investigation of her outside business activity.

If you have losses in an account handled by Irene Engard, 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

American Capital Partners, Failure to Supervise, Finra Investigation of Stockbroker, Janney Montgomery Scott, Rockwell Global Capital, Stockbroker Discharged, Stockbroker Malpractice, StockBroker Misconduct, Worden Capital Management

Richard Reynolds-Worden Capital Broker-Discloses 3 regulatory events, 11 customer disputes and a termination-Garden City, NY

November 2020- Garden City, NY

According to publicly available records Richard Foerster Reynolds (CRD#2162706), a stockbroker who works for Worden Capital Management  discloses three regulatory events, 11 customer disputes and a termination from employment.

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 May of 2016, the State of Illinois ordered sanctions that Reynolds would lose his registration as a salesperson in the state of Illinois for a period of two years when he could re-apply. The cost of investigation was also sanctioned in the amount of $150. Sanctions were ordered to satisfy allegations that Reynolds had been barred from the NYSE for five months after violating various New York Stock Exchange rules.

In October of of 2013, the State of Michigan denied Reynolds registration alleging that he had engaged in dishonest or unethical practices in the securities and investment business within the previous 10 years and that he was the subject of an order issued by the NYSE.

In December of 2007 the NYSE Division of Enforcement sought sanctions alleging that Reynolds 1) violated the NYSE rule of engaging in an outside business without consent 2) engaged in conduct inconsistent with just and equitable principles of trade by soliciting firm customers and others to invest in private securities transactions away from the firm and making misstatements to customers 3) sending correspondence to customers without supervisory review or approval. Sanctions were censure and a five month bar from NYSE.

From May of 2008 until April 2019, nine customer disputes were filed by customers firms that employed Reynolds -Janney Montgomery Scott, American Capital Partners and Worden Capital alleging among other things churning, over-concentration, unauthorized trading, unsuitability, misrepresentations, unsuitability, statutory and common law fraud, breach of contract, breach of fiduciary duty, negligence and negligent supervision. The cases were cumulatively settled for more than  $650,000. 

In April of 2010, American Capital Partners terminated Reynolds after allegations of insubordination and violation of firm policy.

Reynolds has been employed with Worden Capital Management since December of 2015. Before that he worked with Rockwell Global Capital, American Capital Partners, and Janney Montgomery Scott.

If you had an account with Richard Reynolds that suffered losses, you may be entitled to collect damages from his prior employer. Call to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investorsnationwide 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