Category Archives: Fraud

Failure to Supervise, FINRA, Florida Office of Financial Regulation, Fraud, Legend Securities, Stockbroker Malpractice, Unsuitable Investments, Worden Capital Management

Brian Decker-Former Worden Capital Mgmt Broker-Barred From Securities Industry-New York

May 2018

FINRA records disclose that Brian K. Decker, a currently unregistered broker who last worked for Worden Capital Management and Legend Securities, is named in a currently pending customer dispute, has 10 prior customer disputes , a recent regulatory action barring him from the securities industry and 5 outstanding judgment/liens.

In currently pending FINRA Case 15-802, filed by a Florida resident,  a customer of Legend Securities alleges that Decker was not licensed to sell securities in Florida, made false statements of material fact, engaged in unauthorized transactions, failed to follow instructions, engaged in churning and stock manipulation and improperly used margin borrowing in the account. The customer is seeking damages of $150,000.

Brian Decker has been named in ten  other prior customer disputes, including:

  • A July 2015 settlement of $35,000 to a customer of Legend Securities alleging failure to supervise and unsuitable investments.
  • FINRA Case 14-2734, by a customer of Legend Securities  alleging violation of Colorado securities and consumer protection laws, negligence and common law fraud, settled for $14,999.
  • FINRA Case 12-1281, a customer of Legend Securities alleged breach of fiduciary duty, negligent supervision, and fraud settled for $75,000.

Decker was with Worden Capital Management from 4/2017-4/2018 and with Legend Securities 9/2009-11/2016.

In May 2018 Decker was permanently barred from the securities industry by FINRA to resolve allegations that he failed to cooperate with FINRA during an investigation into allegations of conversion. Decker failed to produce requested bank records and failed to appear to provide testimony. FINRA Case 2017055226501.  

If you have losses in an account handled by former   broker Brian Decker , 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

Fraud, Pump & Dump

Two S. Floridians Indicted on Valentine Beauty Pump and Dump Stock Scheme-Miami, FL

May 2018-Miami, Florida

The US Attorneys Office for the Southern District of Florida announced that two Florida stock promoters have been charged with a $1 million pump and dump securities fraud scheme involving shares of Valentine Beauty Inc. (“VLBI“).

The individuals charged are:

  • Eddy Ubaldo Marin, 56, a convicted felon, of Ft. Lauderdale- charged with one count of securities fraud faces maximum statutory sentence of 20 years and a fine up to $5 million.
  • Shane R. Spierdowis, 27, Boca Raton-charged with one count of conspiracy to commit securities fraud faces maximum statutory sentence of up to 5 years and a fine up to $250,000.

According to the press release, Valentine Beauty was a beauty supply company in Sunrise, Florida which traded as VLBI on the OTC market. Marin and accomplices secretly obtained control of VLBI stock, using stock of one of his companies, Green Tree Capital.

In 2014 Marin, Speirdowis and others used press releases and penny stock newsletters to artificially increase the trading volume and price of VLBI which allowed them to dump their shares at a profit.

The Pump and Dump Scheme

The Financial Industry Regulatory Authority (FINRA) and the US Securities & Exchange Commission Office of Investor Education and Advocacy  (SEC) jointly issued a warning to investors regarding the use of dormant shell companies to commit fraud on unwary investors.

Dormant shell companies are often used in a pump and dump scheme where the scammer buys the low priced, rarely traded stock and then sets out to create a phony marketing scheme fueled by  press releases that falsely pump up the value of the stock.

Once the price has been pumped up by the false information, the scammer dumps his stock at the higher price and thereafter the stock value falls back to its original low price.

Investors considering placing funds into a penny stock investment would be wise to read the FINRA/SEC alert in its entirety.

If you purchased Valentine Beauty on the recommendation of your registered broker, contact us for a no charge consultation 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

Elder Financial Abuse, Fraud, Ponzi Schemes, Securities & Exchange Commission (SEC), Theft

Clifton Stanley, Michael Watts, The Lifepay Group- Targeted in SEC Fraud Suit-Houston, TX

April 2018-Houston, Texas

The Securities and Exchange Commission (SEC) charged the following individuals and their companies with operating a $2.4 million Ponzi scheme targeting elderly retirees:

  • Clifton E. Stanley of Galveston, TX
  • Michael Watts of Sugar Land, TX
  • The Lifepay Group of Missouri, TX
  • SMDRE LLC of Sugar Land, TX

According to the SEC complaint, from 2010-2017 they used a collection of misrepresentations and phony promises  of outsized investment returns to convince these elderly victims to invest their retirement funds. Investors were promised returns of up to 36% per year.

Stanley is alleged to have used $1.3 million for personal expenses, including country club memberships, living and entertainment expenses.

Link to SEC complaint

If you were referred to invest in this scheme by a registered stockbroker you may be able to recover your losses from the broker’s employer. 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