Category Archives: Stockbroker Malpractice

Dawson James Securities Fined $75,000 by FINRA

 

 

Dawson James Securities of Boca Raton, FL, submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $75,000 by the Financial Industry Regulatory Authority (FINRA) , and required to revise its written supervisory procedures.
The firm consented to the sanctions and to the entry of findings that the firm’s WSPs failed to provide for one or more of the four minimum requirements for adequate WSPs in several subject areas, including registered representatives’ disclosure of potential conflicts of interests to clients; registered representatives’ trading in the opposite direction of solicited customer transactions; sales practice concerns, including unauthorized trading, suitability, excessive trading and free-riding; concentrations of securities in clients’ accounts; sharing of profits or losses in clients’ accounts; wash sales; coordinated trading; marking the open and marking the close; cancel-rebill transactions in clients’ accounts; and the review ofregistered representatives’ electronic communications. The findings stated that the firm failed to investigate numerous red flags relating to a registered representative’s activities.
The firm failed to enforce its written supervisory procedures, which specified that all electronic correspondence, whether incoming or outgoing, would be reviewed on a daily basis. The firm failed to ensure that its head trader was reasonably carrying out his delegated supervisory responsibilities relating to proprietary trading, trade reporting, clock synchronization, short sale compliance, compliance with the Manning Rule, mark ups and mark downs, and compliance with inventory guidelines.
If you have questions about losses in your stock brokerage account, call to speak with an experienced securities attorney.

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

RCS Capital Closes Purchase of J.P. Turner and Summit Financial

By Robert H. Rex, Esq.


On June 13, 2014, RCS Capital Corp. , owned by Nicholas Schorsch, announced the closing of the purchases of two more independent broker dealers–J.P. Turner & Co. and Summit Financial Group

RCS Capital went public last year (symbol RCAP) and bought two other independent broker dealers, First Allied Holdings, Inc. and Cetera Financial Group, shortly thereafter. RCS has a deal pending for the purchase of Investors Capital Holdings Ltd. Following the closing of that deal the RCAP broker dealer network will have about 9,000 representatives which grossed about $1.7 billion in revenues in 2013. 

Stockbrokers are obligated to make suitable recommendations to their customers. If you have questions about investment losses and think you may be the victim of fraud or misrepresentation, call to speak with an experienced securities attorney to learn about your legal rights. 

Nationwide representation.


561 391 1900

Independent Broker Dealer Rankings Announced by Investment News

The Investment News recently announced the rankings of independent broker-dealers for 2013

BrokerDealer                   Gross Revenue

 1            LPL Financial LLC           $4B (billion)

2            Ameriprise Financial
Services Inc.                                     $3.2 B

3            Raymond James Financial
Services Inc.                                   $1.4 B

4            Commonwealth Financial
Network                                         $822 M (million)

5            Lincoln Financial Network       $794M

6            Wells Fargo Advisors
Financial Network                $707 M

7            Axa Advisors            $677M

8            Northwestern Mutual        $654M

9            Cambridge Investment
Research Inc.                      $574 M

10          Securities America Inc.      $475M

11          Royal Alliance Associates
Inc.                              $444 M

12          Cetera Advisor Networks    $435M

13          Waddell & Reed
Financial Advisors                       $426 M

14          ING Financial Partners
Inc.                                  $396 M

15          National Planning Corp.      $383M

16          NFP Advisor Services
Group                                $381 M

17          MML Investors Services
LLC                              $361 M

18          Securian Financial
Services Inc.                            $355 M

19          FSC Securities Corp.        $280M

20          Princor Financial
Services Corp.                           $279 M

21          SagePoint Financial Inc.  $279M

22          INVEST Financial Corp.      $278M

23          HD Vest Investment
Services                               $273 M

24          First Allied Securities
Inc.                                   $272 M

25          Signator Investors Inc.   $269M

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

John Gorman Loses Battle for Control of Tejas Securities Group

By Robert H. Rex, Esq.

On May 30,2014 Bloomberg News reported that John Gorman IV lost his attempt to regain control of Tejas Securities Group, an Austin based broker dealer that he co-founded. Link to Bloomberg story. Tejas Securities Group is a distressed-debt broker with offices in Austin and New york and grosses about $20 million a year. 
 
The case was pending in Delaware Chancery Court and Judge John Noble ruled that Gorman violated an agreement by installing a slate of directors on the board of the parent company and improperly removing an existing board member. In his ruling Judge Noble found that the seven member board now only has 4 validly elected directors, including Gorman, and that Gorman had acted in accordance with the voting-rights agreement by ousting one director and naming an ally as a replacement. 
 
This presently leaves the board deadlocked, according to Bloomberg. It’s CEO Gary Salamone and Mike Dura are on one side and Gorman and his ally T.J. Ford on the other. Ford is a retired NBA player  who played for the Milwaukee Bucks, Toronto Raptors, Indiana Pacers and the San Antonio Spurs during an 8 year career.
 
Gorman is controlling shareholder of Westech Capital Corp. , the holding company that owns Tejas Securities and has many options available to him, according to the article.

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

Joseph Gunnar Ordered to Pay Investor $700K In FINRA Arbitration

A Financial Industry Regulatory Authority (FINRA) arbitration panel in Baltimore, Maryland, ordered brokerage firm Joseph Gunnar and several of their brokers to pay $702,000 to former client who brought an action for unauthorized trading, churning, unsuitablity, improper concentration of investments, securities fraud and other claims. Troutman v Joseph Gunnar & Co, et al. FINRA Case #12-04176.

The claims related to churning and unauthorized trading in mutual funds and common stocks including Apple, Facebook, Amazon, Molycorp, Inc. the Genesis Opportunity Fund and Buttonwood Funds.
Joseph Gunnar brokers Joseph A. Alagna and Keith Joseph Michelfelder were also found to be liable for the joint and several arbitration award.
In FINRA arbitration 12-2526, concluded in November 2013, Joseph Gunnar was ordered to pay a customer $674,030.  In addition they were ordered to pay $23,000 in expert fees and costs. That customer alleged breach of fiduciary duty, account churning, unsuitable investments, breach of contract and failure to supervise.
Joseph Gunnar was founded in 1997 and is headquartered in New York City.
Stockbrokers have a duty to make only suitable recommendations to their customer investors. They also have a duty to not trade customer accounts without permission, unless the account is a discretionary account.
Investors who have lost money as a result of unauthorized trading, broker negligence or fraud may be able to recover those losses through FINRA arbitration. Call to discuss your legal rights with an experienced securities attorney.

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