Category Archives: The O.N. Equity Sales Company

Richard Wesselt-Former O.N. Equity Sales/Sterne Agee Broker-Discloses $10M Customer Dispute-Collegeville, PA

October 2019 – Collegeville, PA

According to publicly available records  Richard Michael Wesselt  (CRD# 2195569) ,  a   registered stockbroker currently employed by Fortune Financial Services, Inc. disclose 9 pending customer disputes , 10 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 May 2019 a customer of Sterne Agee filed FINRA Case 19-1187 alleging that Wesselt made unsuitable recommendations and omissions of material facts regarding a promissory note and is seeking damages of $10 million.

In April 2019 a customer of Sterne Agee/ O.N. Equity Sales filed a complaint seeking $200,000 and alleging that Wesselt recommended the purchase of whole life products funded by taking loans against cash values of existing policies and by withdrawing money from annuities, IRA and 529 savings accounts.

In 9/2019 a customer of Sterne Agee/ O.N. Equity Sales Co. alleged that Wesselt made several unsuitable recommendations related to life insurance which caused damages of $100,000. That matter was recently settled for $112,725.

Currently pending cases include:

FINRA Case 18-3363 in which a customer of Sterne Agee, Fortune Financial and O.N. Equity Sales Co. seeks damages of $900,000 and alleges Wesselt made unsuitable recommendations related to the investment in annuities.

In 3/2019 a customer of Sterne Agee Financial Services filed FINRA Case 19-0728 alleging that Wesselt made unsuitable investments causing damages of $350,000.

In 2/2019 a customer of Sterne Agee Financial Services filed FINRA Case 19-0475 alleging that Wesselt made unsuitable investment recommendations and implemented an unsuitable strategy causing damages of $220,000.

In December 2018, a customer of  O.N. Equity Sales Company, where Wesselt was previously employed,  alleged Mr Wesselt engaged in unsuitable sales practices relating to sale of insurance and annuities.    The alleged damages are $750,000 and the case is still pending.

In September 2018,  a Sterne Agee Financial Services customer, where Wesselt was previously employed,  filed FINRA case #18-03363 alleging unsuitable investment recommendations, deceptive and unfair trade practices in annuity variable insurance products.    The alleged damages are $900,000.

In June 2018, another Sterne Agee Financial Services customer filed FINRA case #18-02233 alleging unsuitable investment recommendations and misrepresentations and/or omissions of material information siting damages of $150,000.   This case is also pending.

Wesselt was employed by Sterne Agee Financial Services, Inc. from May 2002 until March 2014.   He was then employed with O.N. Equity Sales Company until September 2017.   He has been employed with Fortune Financial Services, Inc. since 9/2017. Earlier in his career, in 1997, Wesselt was discharged by W.S. Griffith & Co. who alleged that Wesselt placed a customer’s signature on a document.

Wesselt discloses a business affiliation with Wesselt Capital Group in Collegeville, PA.

If you have losses in an account handled by Richard Wesselt, contact us for a no charge consultation to learn how you may be entitled 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

Former NEXT Financial Broker in Virginia Charged with Defrauding Texas Citizens

March 2, 2015

A Criminal Information was filed by the United States of America vs. Joshua Ray  Abernathy, of Norfolk Virginia, charging him with mail fraud, unlawful monetary transactions and seeking criminal forfeiture. USA v. Abernathy, US District Court For the Eastern District of Virginia, Norfolk Division, Criminal No. 2:15cr 21.

According to the complaint, Abernathy, a licensed securities broker and financial advisor operated his fraud through his company Omega Investment Group , from September 2008 through October 2014, he solicited funds from clients and investors for investment in stock options and unlawfully misappropriated those funds for personal use.

The victims, according to the Criminal Information, include:

  • A 75 year old widow from Texas who entrusted her retirement funds to Abernathy who concealed his fraud by providing fraudulent statements
  • A single mother from Texas who cashed in her retirement funds with the U.S. Postal Service and invested with Omega. Abernathy concealed his fraud by providing fraudulent statements
  • An individual from Texas who met Abernathy at church who transferred his retirement funds to Omega believing he was investing in a strategic investment fund. Abernathy concealed his fraud by providing fraudulent statements

The Criminal Information lists numerous other victims from Texas and Virginia with similar circumstances and in all cases the victims were provided with fraudulent statements. Losses are estimated to be about $1.3 million.

FINRA records indicate that Abernathy has been permanently barred from the industry. He was previously registered with the following broker-dealers:

  • The O.N. Equity Sales Company          2/2013-8/2014
  • NEXT Financial Group                               3/2007-8/2012
  • MML Investors Services                            2/2005-4/2007

If you had an account with Abernathy that suffered damages, contact us to learn how you may be able to recover all or a part of those losses from the broker-dealer Abernathy worked for at the time.

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

O.N. Equity Sales Co. Broker Dale Dahmen Barred by FINRA

In August 2014, FINRA reported that Dale Kenneth Dahmen of Buffalo, Minnesota, was barred from association with any FINRA member in any capacity on findings that he converted an insurance customer’s funds for his own benefit. The finds state that a $5,000 withdrawal from the policy, intended to repay a loan on the policy, was used by Dahmen to pay personal expenses.

After being contacted by the customer several times Dahmen repaid the money. The findings  also state that Dahmen failed to disclose to regulators a tax lien and judgment entered against him and that he failed to respond to FINRA’s request for information in connection with the investigation.

According to FINRA records Dahmen was most recently registered with The O.N. Equity Sales Company from 03/2003-10/2013. If you had an account with Dahmen and are concerned about how that account was handled, call to discuss your legal rights.

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

SII Investments Broker David Thomas Sanctioned by Securities Regulators

 

David Patrick Thomas, a resident of Washington state was recently sanctioned by securities regulators in Washington in connection with the sale of LLC membership interests issued by Chadbourne Partners, LLC, a Florida limited liability company.
According to FINRA records, Thomas, who is not currently registered, previously was registered as follows:
  • Seacoast Investor Services 12/2010-10/2011
  • SII Investments Inc  9/2007-12/2010
  • The O.N. Equity Sales Co 11/2004-10/2007
  • Wachovia Securities 2/2002-11/2004
According to the regulators, Thomas represented to investors that their funds would be pooled together and used by Chadbourne Partners to acquire a securities broker-dealer firm. Thomas represented that the broker-dealer would expand and become very profitable.
In a related matter, Colorado securities regulators filed a complaint against  Chadbourne Partners, LLC and its operators Daniel R. Murphy and Henry Dyer Wiggans of Jacksonville, FL,  alleging that they offered and sold unregistered securities in violation of the Colorado Securities Act. The complaint alleges they hired Michael Mendenhall, a former licensed stockbroker and raised $879,000  from the sale of unregistered securities.
If you have questions about your legal rights to recover investment losses, call to speak with an experienced securities attorney.

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

Investment News Announces Most Profitable Independent Broker Dealers

By Robert H. Rex 

The Investment News recently (March 2014) announced the most profitable independent broker-dealers, ranked by Pre-Tax Earnings. See this for complete list. 


Independent
Broker Dealer
PreTax Earnings
1 LPL Financial LLC $385,900,000
2 Cambridge Investment Research Inc. $25,287,365
3 AXA Advisors LLC $22,600,000
4 CUNA Brokerage Services Inc. $9,244,000
5 Princor Financial Services Corp. $6,461,785
6 Investacorp Inc. $4,415,574
7 Summit Brokerage Services, Inc. $3,500,000
8 Allstate Financial Services LLC $2,674,035
9 The O.N. Equity Sales Co. $2,349,581
10 VSR Financial Services Inc. $2,338,051
11 Signator Investors Inc. $2,310,447
12 Kovack Securities Inc. $2,280,475
13 Prospera Financial Services Inc. $1,963,764
14 M Holdings Securities Inc. (M Securities) $1,900,000
15 Cadaret Grant & Co. Inc. $1,800,000
16 SWS Financial Services $1,738,576
17 American Portfolios Financial Services Inc. $1,578,496
18 Financial Telesis Inc. $1,500,000
19 Ameritas Investment Corp. $1,418,490
20 United Planners Financial Services $1,257,723
21 Berthel Fisher & Co. Financial Services Inc. $1,184,429
22 National Securities Corp. $1,184,000
23 LaSalle St. Securities LLC $1,133,986
24 The Strategic Financial Alliance Inc. $1,067,097
25 Ausdal Financial Partners $891,000

If you have questions about the way your brokerage account is being handled, call to speak with an experienced securities attorney to discuss your legal rights. 
Nationwide consultation.
561 391 1900