Category Archives: Stockbroker Malpractice

Michael Stanton-Worden Capital Management Broker- Discloses $15M Pending Customer Dispute- NYC

July 2019-New York, NY

The FINRA records of  Michael Salvatore Stanton,  a  financial advisor employed by  Worden Capital Management disclose 2 regulatory events,  3 prior customer disputes, 1 pending customer dispute, a pending bankruptcy and  7 outstanding judgments.

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 # 2015048048801 filed in 11/2016 -FINRA alleged that Stanton and his firm < legend Securities, failed to establish, maintain and enforce a reasonable supervisory system, and failed to prevent a registered representative from churning and excessively trading a customer’s brokerage accounts.   The complaint alleges that Stanton and the firm failed to adequately investigate or simply ignored that the registered representative engaged in aggressive “in and out” trading, repeatedly purchasing securities and then selling them after relatively short holding periods to purchase other securities, for no apparent reason.   Such in and out trading is the hallmark of excessive trading and churning.  Stanton was suspended from FINRA for a period of seven months and was fined $5000.

In March 2017,   a Legend Securities,Inc. customer filed FINRA case #16-03695  alleging failure to supervise representative’s excessive trading and unsuitable recommendations.    The case was settled for $20,000.

In October 2005, a Summit Brokerage Services, Inc. customer alleged inappropriate conduct and coercion concerning payments for margin calls.    The case settled for $15,000.

Pending  FINRA case #18-04040 alleges that while Stanton was employed by Legend Securities he failed to supervise a broker and alleges common law fraud, breach of fiduciary duty, negligence and breach of contract.    The damages  sought are $15,000,000 .

Stanton discloses the filing of a Chapter 13 bankruptcy petition in June 2018, which is currently pending.

Stanton  discloses outstanding 7 currently outstanding lines/judgments, 5 of which are Federal & State Tax Liens.

Michael Stanton has been registered with Worden Capital Management  since December of 2016.  . His prior employment in the financial industry includes Legend Securities, Inc., Obsidian Financial Group and National Securities Corporation.

If you have losses in an account  handled by Michael Salvatore Stanton , contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.

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

Summit Brokerage Services Sanctioned for Churning Accounts-Boca Raton, FL

July 2019-Boca Raton, FL

Wealthmangement.com reports that Summit Brokerage Services, an independent broker dealer headquartered in Boca Raton, FL,  will close it doors and roll its business up into an affiliated broker dealer, Cetera Advisor Network.

Summit Brokerage reports having 450 advisors and $17.5 billion in client assets.

According to FINRA records, Summit Brokerage discloses 15 prior regulatory matters. Most recently in July 2019, Summit Brokerage was censured by FINRA, fined $325,000 and ordered to pay restitution to customers of $558,296, plus interest, to resolve various allegations related to supervision of the firm’s brokers. The supervisory deficiencies include a broker who excessively traded customer accounts which generated over $650,000 in commissions.

If you have losses in an account at Summit Brokerage Services, 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

Texas Securities Regulators Require Metals.Com to Refund $10M

July 2019-Austin, Texas

The Texas State Securities Board (TSSB) issued a news release announcing that Metals.Com, has agreed to offer a full refund to some 84 Texas investors.

According to the release Metals.Com cold called Texas residents, mostly individuals age 65 to 90,  and told them that their money was not safe with conventional registered brokers in order to get them to move their funds into precious metals. The total amount to be refunded may exceed $10 million.

An 80 year old Dallas was convinced to move $850,000 of retirement assets from an IRA into precious metals sold by Metals.Com, according to the TSSB.

The order issued by TSSB requires Metals.Com to repay the full amount invested by the Texas victims.

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

Abed William Lulu-Former Worden Capital Broker- Discloses 6 Regulatory Event & Customer Suits – Melville, NY

June 2019-Melville, NY

The FINRA records of  Abed William Lulu ,  a  financial advisor previously employed by  Worden Capital Management disclose 6 regulatory events,  3 prior customer disputes, 4 outstanding judgments.

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.

Prior regulatory events for Lulu include:

FINRA case # 2017055568801 filed in 2/2018-Lulu failed to request termination of his previous suspension within the required time frame and was permanently barred from association with any FINRA member in any capacity.

FINRA case 2014040347901 was filed in 1/2016.   Without admitting or deny the findings, Lulu consented to the entry of findings that he failed to disclose that he was the subject of an IRS tax lien and a New York State tax lien.  He also provided false information to his member firm stating that he had no judgments or liens against him.   Lulu received a three month suspension and $5,000 fine.

In 2004,  the Colorado Division of Securities suspended Lulu as sanctions for allegations of unsuitable trading, unauthorized trading, unfair and dishonest dealings, securities fraud and failure to supervise.

In 8/2017,  a Laidlaw and Company (UK) Ltd. customer filed FINRA case #17-02227 alleging unsuitability and excessive trading.   That case settled for $23,000.

Lulu  discloses outstanding 2 currently outstanding Federal & StateTax Liens and 2 civil judgments.

Abed Lulu was registered with Worden Capital Management  from May to August of 2016.  . His prior employment in the financial industry includes Rockwell Global Capital, Rockwell Global Capital, Laidlaw and Company and Global Arena Capital.

If you have losses in an account  handled by Abed William Lulu , contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.

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