On October 17. 2013, the Tampa Bay Business Journal reported that a fine of nearly a quarter million dollars has been assessed against Joseph Brandon Westphal, a former manager at J. W. Cole Financial, Inc. in Tampa for violations of the securities laws.
According to the report Westphal, who was director of client services and designated supervisory principal for J.W. Cole, executed over 30 ‘free riding ‘ transactions.
Free riding means that a person buys securities without sufficient capital to cover the trade and is prohibited under federal regulations. Apparently Westphal covered some trades by selling quickly and in other instances he used the accounts of others to cover his cash needs. Profits went to his account, losses went to J.W. Cole.
In the final order he was fined $249,250 and barred from licensing by the Florida Office of Financial Regulation.
If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.
Rex Securities Law , located in Boca Raton, FL, 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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