Category Archives: Misrepresentation

Mohamed Debbagh-Former Cetera Advisors Broker-Discloses Pending Customer Suit-Boca Raton, FL

April 2018 -Boca Raton, FL

According to FINRA records, Mohamed Debbagh,  a   stockbroker who was recently  employed by Cetera Advisors  , disclose  a pending dispute by a former customer.

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 currently pending FINRA Case 18-0840 a customer of Debbagh while he was employed by  Cetera Advisors and Fintegra is seeking damages of $209,000. The customer alleges breach of fiduciary duty, negligence, misrepresentation, common law fraud, unsuitable trading and violations of securities laws.

Debbagh is currently employed by Merrill Lynch. He was employed by Cetera Advisors from 3/2013-11/2017. Prior to that he was employed by Fintegra, LLC from 3/2010-3/2013. Fintegra withdrew their FINRA registration in 9/2015 and filed for bankruptcy that same month.

If you have questions about an account handled by Mohamed Debbagh contact us 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

Horter Investment Management Hit With $750k Regulatory Sanction-Cincinnati, OH

April 2018-Cincinnati, Ohio

We are investigating Cincinnati-based registered investment adviser Horter Investment Management, LLC. (“Horter“).

In December 2017 the US Securities and Exchange Commission (SEC) entered an Order and imposed sanctions against Horter, including a censure, and  disgorgement of $482,595, prejudgement interest of $46,209 and a civil penalty of $250,000.

According to the SEC Order, Horter made misstatements to certain advisory clients concerning F-Squared Investments, Inc. , materially inflated, and hypothetical and back-tested, performance track record for its AlphaSector strategy between January 2012-November 2014. The SEC found that Horter violated securities laws by publishing, circulating and distributing advertisements that contained untrue statements of material fact.

Horter Investment Management has been registered as an investment adviser with the SEC since January 2007 and as of September 2017 had over $1 billion in regulatory assets under management.

F-Squared Investments was an investment adviser headquartered in Wellesley, MA, registered with the SEC until January 2016. In December 2014, the SEC settled a fraud action against F-Squared in which the company admitted to making material false claims in connection with their AlphaSector strategy.

If you have questions about the way your account has been handled at Horter Investment Management, 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

Brian Berger-Former Newbridge Securities Broker-Sentenced for Fraud-Boca Raton, FL

April 2018-Boca Raton, FL

The FINRA records of former stockbroker Brian M. Berger disclose a pending regulatory matter and two prior regulatory matters, a criminal conviction, 4 customer disputes and a termination from employment.

In 7/2015 Berger  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he failed to cooperate with a FINRA investigation into allegations that he had misappropriated funds from elderly customers while registered with Wells Fargo Advisors and MetLife Securities.As a result, Berger   was  barred from the securities industry.

There is an SEC administrative proceeding pending in connection with the misappropriation of funds.

In 2/2017, in the U.S. District Court for the Southern District of Florida in Miami, Berger pleaded guilty to wire fraud and was sentenced to 18 months and ordered to pay restitution of $372,643.

Over $300,000 has been paid in settlements to former customers of Berger.

According to FINRA records, Berger was registered with Wells Fargo Advisors in Boca Raton from 7.2010-7/2014 and with MetLife Securities from 7/2014-4/2015. After that he was briefly registered with Newbridge Securities from 4/2015-6/2015.

If you have questions about an account handled by Brian Berger, 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

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