Category Archives: Unregistered Brokers

Bill Fenwick-First Kentucky Securities Corp. – Discloses $20M Customer Dispute-Louisville, KY

April 2018-Louisville, KY

The FINRA records of  William C. (Billy)  Fenwick Jr.  ,  Senior VP and Board member of  First Kentucky Securities Corporation disclose two pending customer disputes and 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 currently pending FINRA arbitration 17-0188 a customer of First Kentucky Securities Corp. alleges damages of $20,351,400 for unsuitable investments.

In currently pending FINRA arbitration 17-0157 a customer of First Kentucky Securities Corp. alleges damages of $500,000 for unsuitable investments in master limited partnerships (MLPs) and other investments from 2015-2016.

Fenwick has been employed by First Kentucky Securities since 11/2005. First Kentucky Securities, with  offices in Lexington and Louisville, discloses 9 prior regulatory events. In 3/2018, First Kentucky Securities paid FINRA a fine of $50,000 overcharged fees to certain customers on mutual fund sales. FINRA Case 2016048226101.

If you have losses in an account in an account handled by William C. ( Bill) Fenwick Jr.  , contact us for a no charge consultation to discuss how you may be able to recover damages for those losses 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

Greg Smith/Pastor Kirbyjon Caldwell Indicted On Chinese Bond Scam-Shreveport,LA-Houston,TX

April 2018-Shreveport, LA

Shreveport resident Gregory Alan Smith, 55, and Kirbyjon H. Caldwell, 64, of Houston, TX, were indicted by a federal grand jury in a 13 count indictment for allegedly bilking unsuspecting investors out of over a million dollars.

Smith is operator of Smith Financial Group at 7330 Fern Ave., in Shreveport and Caldwell is Senior Pastor of Windsor Village United Methodist Church in Houston. The church is reportedly one of the largest Protestant churches in the U.S. According to Click2Houston Pastor Caldwell gained national notoriety when President George W. Bush made him his spiritual advisor.

Investors were lured to invest in allegedly worthless Historical Chinese bonds issued by the former Republic of China prior to losing power in 1949 and are not recognized by China’s current government.

According to FINRA records, Gregory A. Smith was a licensed broker who worked for New England Securities from 12/1999-7/2010. Smith was discharged by New England Securities in 7/2010 for failing to follow company policy with respect to outside business activities. In 2012, FINRA permanently barred Smith from associating with any FINRA member in any capacity, in part for commingling investor funds in his business account and for misappropriating investor 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.

Smith and Caldwell are charged with  wire fraud and money laundering and face decades in prison if convicted.

SEC complaint vs. Gregory A. Smith and Kirbyjon Caldwell.

If you are a victim of this apparent scam, 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

Dallas Oil & Gas Promoters-SourceRock Companies-Subject of TX State Securities Board Order

February 2018-Dallas, Texas

The Texas State Securities Board (TSSB) entered an Emergency Cease and Desist Order against Jason A. Gilbert and Parker R. Hallam who are doing business through SourceRock Energy Phoenix Prospect LP, SourceRock Energy GP and SourceRock Energy Partners. 

According to the TSSB order Gilbert and Hallam are soliciting $4.4 million for an oil and gas project (Phoenix Prospect)  without disclosing their history of unpaid tax liens and allegations of fraud, are doing business from 2711 North Haskell Ave, Dallas, TX, and through a website WWW.SourceRockOil.com.

The TSSB order also makes the following findings:

  • In June 2016 Hallam was named as a defendant in SEC v Christopher A. Faulkner, et al, Case No: 3:16-cv-1735-D , Northern District of Texas alleging that Hallam violated the Securities Exchange Acts of 1933 and 1934.
  • Hallam is intentionally failing to disclose one or more material facts including other securities related litigation detailed in the order.
  • gilbert failed to disclose numerous IRS tax liens filed against him in Miami-Dade County, FL, Manhattan Borough, NY, and Dallas, TX.

The TSSB orders defendants to cease and desist from engaging in fraud and offering securities in Texas through an offer containing a statement that is materially misleading or otherwise likely to deceive the public.

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

Harry Datys-Westpark Capital Stockbroker-Discloses Regulatory Issues and Customer Complaints- Ft. Lauderdale, FL

Updated March 2018- Warwick, New York

The FINRA records of  Harry Seth Datys,  a  stockbroker who is currently employed by Westpark Capital , disclose three regulatory events, 5 pending customer disputes, 12 prior customer disputes and a termination from employment.

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 April of 2014  Datys consented to a fine of  $15,000 to The New Jersey Bureau of Securities to resolve allegations that  Datys continued to conduct business with New Jersey residents after the New Jersey Bureau of Securities had revoked his registration.

In May of 2008  Datys was sanctioned by the New Jersey Bureau of Securities for violating his supervisory agreement. A fine of $6,000 was assessed.

In May of 2006  Datys was sanctioned by the Colorado Division of Securities for the unlicensed offer and sale of securities and securities fraud. Colorado denied his registration in that state.

Currently pending cases involving Datys include:

  • FINRA Case 18-00182-A customer of WestPark Capital alleges failure to communicate with client and failure to execute sell orders. Damages of $44,006 are sought.
  • FINRA Case 17-2536-A customer of WestPark Capital seeks damages in an unspecified amount for losses on private placement investments.
  • FINRA Case 17-0477-A customer of WestPark Capital seeks damages of $250,000 and alleges unsuitable trading without diversification; false and misleading statements.

Prior customer disputes against Datys include:

  • In February 2017, a Westpark Capital customer was paid $50,000 to resolve allegations that the purchase of a private placement was not suitable and that Westpark Capital failed to supervise Datys.
  • In 1/2013 a Westpark Capital customer was paid $52,500 to resolve allegations that Datys traded the account without the customer’s authority.

In October of 2002, Datys voluntarily resigned from his employment with Joseph Stevens & Company as a result of an internal review of complaints from three clients alleging a variety of wrongful acts including, but not limited to unauthorized trading in their accounts.

Datys has been employed by Westpark Capital since 6/2005.  He was employed by Sterling Financial Investment Group from 10/2002-7/2005. Sterling Financial was expelled from the industry by FINRA 1/2008.

If you have losses in an account in an account handled by Harry Datys, contact us for a no charge consultation to discuss how you may be able to recover damages for those losses 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

SEC Files Action Over Verto Notes-Dallas & Plano, Texas

July 2017-Dallas and Plano, Texas

Two Texas firms and three individuals employed by the firms were named in an enforcement proceeding filed by the U.S. Securities and Exchange Commission over the sale of 7% promissory notes issued by Verto Capital Management LLC.

Named as respondents in the Order Instituting the proceedings, are:

  • Retirement Surety LLC-a Plano-based company, which according to its website is a ‘practicing Christian organization” who provide investment advice for retirement planning. This company has never been registered as a broker dealer.
  • Crescendo Financial LLC-a Plano-based company that brokered the sale of the Verto Notes that also touts itself as being a “practicing Christian organization”.
  • Thomas Rose-a 61 year old resident of Plano, TX, who was a partner of Retirement Surety and Crescendo Financial. Rose does not hold any securities licenses and has never been registered as or associated with a registered securities dealer.
  • David Leeman-a 67 year old resident of Dallas, TX, who is also a partner of Retirement Surety and Crescendo Financial. He purports to be a licensed insurance agent in TX, but has never been registered as or associated with a registered securities dealer.
  • David Featherstone-a 70 year old resident of Dallas, TX. He also purports to be a licensed insurance agent in TX, but has never been registered as or associated with a registered securities dealer.

Other relevant individuals in the order are:

  • WIlliam Schantz III, 62 of Moorestown, New Jersey.
  • Randal Wallis, 63 of Pottsboro, TX.
  • Ronald Howard Wills, 71, of McKinney, TX.

According to the SEC the respondents sold $12.5 million of the Verto Notes  to 82 individual investors and collected commissions of over $650,000 on the sales notwithstanding the fact that none of the respondents was registered as a securities broker. Respondents solicited sales on radio shows broadcast on two Christian networks and by use of the Retirement Surety website where the Verto Notes were touted as being a “Short Term Investment with Superior Returns and Minimal Risk”.

Investors who were referred to respondents by a registered stockbroker may be able to recover damages from the brokerage firm employing that broker. Call for details.

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