December 2020-Austin, Texas
The Texas State Securities Board (TSSB) announced that they have denied the application for registration of Lyle Boudreaux due to unsuitable trading in Leveraged Exchange Traded Funds (ETFs).
In the recently entered Consent Order, the Texas securities regulator made the following findings:
- While employed by Independent Financial Group Boudreaux made unsuitable recommendations to invest in ProShares Ultra VIX Short-Term Futures ETF (UVXY).
- Leveraged ETFs are securities that use financial derivatives and debt to amplify the returns of an underlying index. Leveraged ETFs are typically used to speculate on an index, or to take advantage of the index’s short-term momentum. Due to the high-risk, high-cost structure of leveraged ETFs, they are rarely used as long-term investments. Generally, shares in leveraged ETFs are held for a few days or less, and may not be in the best interest of a client absent an identified, short-term and specific trading objective.
- The recommendation to invest in UVXY exceeded the risk tolerance of certain clients causing significant losses.
The TSSB concluded that the recommendation to trade UVXY in these clients’ accounts was unreasonable and constitutes and inequitable practice in rendering services as an investment advisor.
According to publicly available records. Lyle Boudreaux was employed by Independent Financial Group from 8/2012-1/2020. Following that he had a short stint with TCFG Wealth Management.
If you have losses in an account handled by Lyle Boudreaux, we may be able to help you recover damages from his former employer.
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.
Florida-561 391 1900