Category Archives: StockBroker Misconduct

Ohio Securities Regulators Warn Investors to Be Wary of Church Related Investment Scams

The Division of Securities of the Ohio Department of Commerce has published an alert for investors – Affinity Fraud: Preying on the Faithful can be accessed here.

Affinity fraud “refers to investment scams that prey upon members of identifiable groups, including religious, elderly, ethnic and professional..” according to the publication which offers the following tips:

  • Be wary of investments that seem closely tied to a particular religious belief.
  • Be cautious if the promoter of an investment opportunity tries to capitalize on connections or a leadership position within a religious group.
  • Be on your guard for a new member of your church who springs up out of no where with a ‘surefire’ investment scheme
  • Ignore claims that religious-based investments are unregulated.
  • Check out the promoter and the investment opportunity.
  • Don’t give a break to the swindler who hides behind religion.

Rex Securities Law , located in Boca Raton, FL, provides representation to  Ohio investors  and 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.

Rex Securities Law

561 391 1900

Wells Fargo Advisors Lose Case Involving Sale of Annuities

November 5, 2014-Los Angeles, CA

In an arbitration hearing before The Financial Industry Regulatory Authority (FINRA) Wells Fargo Advisors and one of their brokers were ordered to pay over $144,000 to two individuals and a trust who file the claim alleging that the sale of sale of two annuities (Lincoln Choice Plus Variable Annuities) was unsuitable. Chase,et al v. Wells Fargo Advisors & Mark S. Vandeburgt Case 13-0333. 

In addition, the Claimants alleged damages for breach of fiduciary duty, fraudulent misrepresentation, breach of contract, failure to supervise, elder abuse and emotional distress.

Annuities are often misunderstood by investors and many times the ‘guaranteed’ rate of return that was used to sell the product is deceiving, resulting in actual income far less due to service fees and other hidden charges to the investor. With variable annuities there is investment risk associated with ownership, a fact often downplayed at the time of sale.

The importance of liquidity is often downplayed and underestimated at the time of sale. Having too much of one’s liquid net worth locked up in an annuity that has significant surrender charges is a real problem if cash is need for health or living expenses.

If you feel you were sold an annuity that is not suitable for you and feel that the risks were misrepresented, contact us to learn how you may be able to recover damages.

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.

Rex Securities Law

561 391 1900

Malcolm Meikle Sanctioned by Securities Regulators

November 20, 2014

The Financial Industry Regulatory Authority (FINRA) sanctioned broker Malcolm McGreggor Meikle by assessing a fine of $10,000 and suspending his securities registration for 20 days to resolve allegations that he made discretionary trades, without written authority , in the accounts of 11 customers and made unauthorized trades in violation of FINRA Rule 2010.

FINRA records indicate that Meikle was registered with Pruco Securities, South Portland, Maine branch from 2/1982-7/2013. A customer complaint alleging damages of about $641,000 was settled for $380,000 in October 2014. He was discharged by Pruco in 7/2013 when the firm learned of the discretionary and unauthorized trading.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  in Maine and 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.

Rex Securities Law

561 391 1900

Regal Securities Sanctioned by FINRA

November 21, 2014

The Financial Industry Regulatory Authority (FINRA) censured and assessed a fine of $12,500 against Regal Securities, Inc. of Glenview, Illinois to resolve allegations that Regal failed to amend the regulatory documents of a registered representative to disclose civil judgements and an IRS lien. In addition, FINRA alleged that Regal’s supervisory system was inadequate.

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.

Rex Securities Law

561 391 1900

Robert Benou & Son Marc Benou Charged With Violating Securities Laws by SEC

November 21, 2014

The SEC announced that charges were filed against Robert Benou and his son Marc Benou for violating securities laws by issuing false and misleading press releases while secretly selling thousands of shares of their own stock in Conolog Corporation. They agreed to pay about $325,000 and accept officer and director bars to resolve the SEC charges.

“Information released by a company into the marketplace must be truthful and substantiated so investors can make well-informed trading decisions,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office.  “The Benous caused Conolog Corporation to issue press releases with false and misleading information that was used to promote the stock to unwitting investors.”

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.

Rex Securities Law

561 391 1900