Category Archives: Lack of Due Diligence

Energy Securities, FINRA, Finra Investigation of Stockbroker, Lack of Due Diligence, Misrepresentation, Oil & Gas Investment, Oil and Gas Partnerships, Oil related investments, Private Placements, Reef Securities Inc., Reg D Offerings(private placements), Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments

How to Recover Losses on Reef Oil and Gas Fund Investments

April 2018-Richardson, TX

Reef Securities Inc. and its owner and president Frank Mauceli were sanctioned by FINRA on April 11, 2018, for failing to timely notify investors in an Oil and Gas Drilling and Income Fund L.P. , sold in 2014, of revisions to an offering prospectus and of the investors’ rights to rescind his or her investment.

In addition Reef was sanctioned for advertising violations in another Reef offering. According to the FINRA sanction the subject advertising communications:

“failed to provide a balanced presentation or a sound basis for evaluating the investments being promoted, contained misleading and unwarranted claims, and, in addition, made prohibited profit projections.”

FINRA noted the following as being inconsistent and unwarranted statements in the subject advertising materials:

  • a 3 year profit range of 45%-75% in one communication vs a 35-45% range in another communication
  • a divest period of 24-36 months in one communication vs. 3-5 years in another communication
  • prohibited investor performance projections such as “Total Anticipated Profit 45%-75%”

Reef Securities was censured and fined $40,000. Mauceli was fined $5,000 and suspended 4 months from association from any FINRA member firm in all principal capacities. FINRA AWC2015043469001

Reef Oil and Gas, an affiliate of Reef Securities, engages in the developing, exploiting and producing oil and natural gas.

A partial list of recent Reef oil and gas offerings we have been investigating:

  • Reef 2015 Oil & Gas Opportunity Fund
  • Reef 2015 Income Fund
  • Reef Bakken Bear Cat Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2010 Drilling Fund
  • Reef 2009 Drilling Fund
  • Reef 2007-2009 Drilling Program
  • Reef Oil & Gas Drilling & Income Fund
  • Reef Oil & Gas Income & Development Fund III
  • Reef Oil & Gas Income & Development Fund IV

Reef Oil and Gas investments were sold by many brokerage firms, including Reef Securities. These investments can be unsuitable for certain individuals, including the elderly and retired. If you have losses on an investment in one of the Reef Oil and Gas offerings, call 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

Failure to Supervise, H.D. Vest, Lack of Due Diligence, Mortgage Backed Securities, Ponzi Schemes, Promissory Notes, Signal Securities Inc., Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments

Jerry Raines -Former Signal Securities Broker-Customers Sue For $500K for Losses on Woodbridge Funds-Kilgore,TX

March 2018- Kilgore, TX

The FINRA records of  Jerry D. Raines,  a  previously registered stock broker who was last employed by HD Vest Investment Services and Signal Securities,  disclose  two  pending customer disputes involving Woodbridge Mortgage Investment Funds.

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 FINRA Case 18-00359,which was filed in February 2018, a customer Signal Securities, alleges that he was sold a Woodbridge Mortgage Investment which has filed for bankruptcy  and is seeking damages of at least  $100,000.

In FINRA Case 18-00310, filed in February 2018,  a customer of  Signal Securities is seeking damages of $450,000 for losses on Woodbridge Mortgage Investments Funds.

Woodbridge-A $1.2 billion Ponzi According to SEC

The U.S. Securities and Exchange Commission announced charges and an asset freeze against a group of unregistered funds and their owner who allegedly bilked thousands of retail investors, many of them seniors, in a $1.2 billion Ponzi scheme.

According to the SEC’s complaint, unsealed in federal court in Miami, Florida, Robert H. Shapiro and a group of unregistered investment companies called the Woodbridge Group of Companies LLC, formerly headquartered in Boca Raton, Florida, defrauded more than 8,400 investors in unregistered Woodbridge funds.

“We allege that through aggressive tactics, Woodbridge and Shapiro swindled seniors into a business model built on lies, which the SEC’s Miami Regional Office staff moved to halt,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division.

“Our complaint alleges that Woodbridge’s business model was a sham,” said Steven Peikin, Co-Director of the SEC’s Enforcement Division. “The only way Woodbridge was able to pay investors their dividends and interest payments was through the constant infusion of new investor money.”

“Our complaint further alleges that Shapiro used a web of layered companies to conceal his ownership interest in the purported third-party borrowers,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.  “Shapiro used the scheme to line his pockets with millions of investor dollars.”

Raines was employed by HD Vest Investment Services  from 8/2014-5/2017.  Prior to that  he was with Signal Securities, Inc.  from 4/2013-6/2014 and before that with Woodmen Financial Services.

If you have losses in an account handled by Jerry Raines, 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 

Texas-512-329-2870

Failure to Supervise, Fraud, H.D. Vest, Lack of Due Diligence, Misrepresentation, Mortgage Backed Securities, Promissory Notes, Signal Securities Inc., Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments

Donna Barnard-Former Signal Securities Broker-Subject of Woodbridge Mortgage Suit-Kilgore, TX

March 2018- Kilgore, TX

The FINRA records of  Donna L. Barnard ,  a  stock broker formerly employed by HD Vest Investment Services,  disclose  a  pending customer dispute involving Woodbridge Mortgage Investment Funds I and II.

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 FINRA Case 18-00310, a customer of Barnard’s prior employer, Signal Securities, alleged that he was sold Woodbridge Mortgage Investments Funds 1&2 promissory notes  and is seeking damages of $450,000.

Woodbridge-A $1.2 billion Ponzi According to SEC

The U.S. Securities and Exchange Commission announced charges and an asset freeze against a group of unregistered funds and their owner who allegedly bilked thousands of retail investors, many of them seniors, in a $1.2 billion Ponzi scheme.

According to the SEC’s complaint, recently unsealed in federal court in Miami, Florida, Robert H. Shapiro and a group of unregistered investment companies called the Woodbridge Group of Companies LLC formerly headquartered in Boca Raton, Florida, defrauded more than 8,400 investors in the  unregistered Woodbridge funds.

“We allege that through aggressive tactics, Woodbridge and Shapiro swindled seniors into a business model built on lies, which the SEC’s Miami Regional Office staff moved to halt,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division.

“Our complaint alleges that Woodbridge’s business model was a sham,” said Steven Peikin, Co-Director of the SEC’s Enforcement Division. “The only way Woodbridge was able to pay investors their dividends and interest payments was through the constant infusion of new investor money.”

“Our complaint further alleges that Shapiro used a web of layered companies to conceal his ownership interest in the purported third-party borrowers,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office.  “Shapiro used the scheme to line his pockets with millions of investor dollars.”

Barnard , who is not currently registered as a broker, was employed by HD Vest Investment Services  from 8/2014-5/2017.  Prior to that  she was with Signal Securities, Inc.  from April 2013 until June 2014.

If you have losses in an account handled by Donna Barnard,  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 

Texas-512-329-2870

Failure to Supervise, Kalos Capital, Lack of Due Diligence, Oil & Gas Investment, Oil related investments, REITs, Unsuitable Investments, Viatical Settlements

Daniel R. Saur-Kalos Capital Broker-Discloses Pending Customer Arbitration-Dallas, TX

October 2017-Dallas, TX

The FINRA records of  Daniel R. Saur  ,  a  stockbroker who is currently  employed by  Kalos Capital  disclose  a pending customer dispute and a  a prior final customer dispute.

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 FINRA Case 15-2389, a customer of Kalos Capital and D.R. Saur Financial alleged damages of $100,001 resulting from an investment in a viatical settlement That case was settled in 3/2017 for $87,195.

In currently pending FINRA Case 17-0046 a customer of Kalos Capital seeks damages of $500,000 and alleges inadequate due diligence, unsuitable recommendations and failure to supervise Saur in connection with the purchase of oil & gas investments, real estate securities and a viatical settlement.

Daniel R. Saur has been a registered representative of Kalos Capital since 4/2009 and is also a registered investment adviser with D.R. Saur Financial.

If you have questions about an account  handled by Daniel R. Saur  call for a no charge consultation.

Viatical Settlement

A viatical settlement is a contract whereby a person diagnosed with a terminal illness sells their life insurance policy for less than its face value in order to obtain a portion of the proceeds while still alive. The buyer (investor) obtains the full value of the policy upon the death of the insured.

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, Fraud, Lack of Due Diligence, Misrepresentation, Oil & Gas Investment, Private Placements, Reg D Offerings(private placements), Sandlapper Securities, Stockbroker Malpractice, Unregistered Securities, Unsuitable Investments

Losses on Tiburon Saltwater Reclamation Fund Private Placement ?

October 2017-Austin, Texas / Greenville, South Carolina

If you lost money on the Tiburon Saltwater Reclamation Fund, we may be able to help you recover damages.

FINRA (The Financial Industry Regulatory Authority) recently filed a fraud complaint alleging that Sandlapper Securities created and sold private placements in saltwater disposal wells in Texas while charging huge markups (as much as 270%), totalling over $8 million in undisclosed markups.

Sandlapper CEO Trevor Gordon and another Sandlapper executive Jack Bixler are also named in the complaint which alleges that investors were defrauded when undisclosed markups were channeled to Sandlapper through a middleman development company owned by the defendants. FINRA Complaint No. 2014041860801. 

According to the FINRA complaint, investors in Tiburon Saltwater Reclamation Fund were led to believe that not only was their capital protected but they could also anticipate a long term return of 15%.

Private placements are non public offerings that are only sold to accredited investors.

If you purchased  the Tiburon Saltwater Reclamation Fund, call to learn about your options for recovery.

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