Category Archives: Failure to Supervise

Former Trident Partners Broker William Quigley Investigation

May 28,2015

Rex Securities Law is investigating former Trident Partners, Ltd. broker William Michael Quigley.

The Securities & Exchange Commission filed an administrative proceeding (File No. 3-16560) against William Michael Quigley alleging that he and his two brothers conducted a fraudulent offering scheme by duping foreign investors into sending funds to various US banks and brokerage accounts for purported investments in companies slated to go public. Investors were led to believe they were investing in well known companies like Dell, Berkshire Hathaway and BlackRock Inc. as well.

According to the SEC pleading, Quigley, of Seaford, New York,  and his brothers, who live in the Philippines,  used “every trick in the book” to defraud the victims, including phony account statements, phony stock certificates and fake names. When one investor tried to get his money back he was told that one of the fictitious persons who supposedly handled the investment had died in a motorcycle accident.

According to FINRA records, Quigley was the compliance director for Trident Partners Ltd., a broker dealer in Westbury, N.Y. He was registered with Trident  from 10/2007-9/2014.

If you have losses in an account at Trident Partners, call to learn how you may be entitled to 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

Ausdal Financial Partners Hit With $1.2M Arbitration Award on Variable Annuity

June 8, 2015-Boston, MA

An all public FINRA arbitration panel ordered Ausdal Financial Partners and broker Joan Norton to pay  a customer over $1.2 million on claims of negligence, unsuitability, breach of fiduciary duty, breach of contract and other claims related to the investment in a variable annuity.

In addition Ausdal Financial and Norton were found jointly and severally liable for costs of over $10,000. FINRA Case No. 14-1552, Cindy-Marie Rogers v Ausdal Financial Partners, Inc. and Joan Norton. 

Ausdal Financial Partners has been a FINRA broker dealer since 1980 and has its main office in Davenport, Iowa.

Variable Annuities– Investment firms offer a wide variety of variable annuities and investors should be aware that they are not all the same. Investors should make certain that they understand the risks associated with the particular variable annuity they are considering.

The Securities and Exchange Commission offers this advice about variable annuities:

“Remember:  Variable annuities are designed to be long-term investments, to meet retirement and other long-range goals. Variable annuities are not suitable for meeting short-term goals because substantial taxes and insurance company charges may apply if you withdraw your money early. Variable annuities also involve investment risks, just as mutual funds do.”

Here is the link to the SEC site on variable annuities.

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

First Allied Securities Broker Sanctioned for Sale of Unsuitable Exchange Traded Funds

April 21, 2015

Daniel Grieco  entered into a Letter of Acceptance Waiver and Consent (AWC)  with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he recommended and caused to be executed purchases of leveraged and inverse leveraged exchange traded funds (ETFs) in 15 customer accounts. FINRA alleges that Grieco made the recommendations on non-traditional ETFs to various customers without having reasonable grounds to believe his recommendations were suitable.

According to FINRA, the ETFs were designed to achieve their objectives over the course of a single day, but were actually held for much longer, in some cases as long as five years.

Grieco was fined $7,500 and suspended for 15 days.

Disciplinary Proceeding NO. 2013035076201

Stock brokers have a duty to make recommendations that are suitable for customers, taking into account their age, health, liquid net worth and level of financial sophistication.

According to FINRA records, Grieco has been registered with First Allied Securities since 8/2010. Before that he was registered with Royal Alliance Associates 4/2007-8/2010.

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

Garden State Securities Discloses 21 Regulatory Events

Red Bank, NJ

UPDATE June 2017-Garden State Securities reports 21 prior regulatory events on their FINRA records, including the following recent matter:

  • 4/2017-Agreed to FINRA censure and a fine of $25,000 to resolve allegations that from July 2011-June 2012 the firm failed to establish maintain and enforce a reasonably designed system and written supervisory procedures for the sale of certain non-traditional exchange traded funds ETFs).

June 16, 2015

Garden State Securities based in Red Bank, New Jersey, entered into an Order Accepting Offer of Settlement with FINRA to resolve allegations that they failed to comply with FINRA rules regarding the reporting of customer complaints and arbitrations and other violations.

The findings in Disciplinary Proceeding No. 2011025318202, include:

  • Between 2/2010-3/2012 Garden State Securities failed to timely report four arbitration settlements, an internal disciplinary action  and summary information on 46 customer complaints
  • From 7/2009-3/2012 Garden State Securities did not properly report the other business activities of 25 brokers and arbitration/litigation customer complaints for eight brokers.
  • The Wellington, FL, office violated FINRA Conduct Rule 2212 by failing to include the firm phone number and address during a telemarketing effort in September 2011.
  • Garden State Securities failed to conduct its business in observance of high standards of commercial honor and just and equitable principles of trade in violation of FINRA Rule 2010.

Garden State Securities was censured and fined $85,000.

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

Suntrust Investment Services Broker Pleads Guilty to Wire Fraud, Sentenced to 41 Months

Staunton, Virginia

Kirsten Flynn Hawkins, 45, pled guilty to wire fraud in January 2015, and in May 2015, was sentenced to 41 months in prison and ordered to pay restitution of $472,000 .

Hawkins was charged with stealing nearly half a million dollars from a long time customer of Sun Trust Investment Services who had allowed Hawkins to take control of several bank and investment accounts.

FINRA records indicate that Hawkins was registered with Suntrust Investment Services from 1/2003-12/2014.

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