Category Archives: Securities & Exchange Commission (SEC)

How to Recover Losses on GPB Funds

June 2019

GPB Capital reports that their two largest funds have dropped dramatically. GPB Holdings II has dropped by more than 25% and GPB Automotive Portfolio has declined by 39%, according to the company.

A $50,000 in investment in GPB Holdings II is now worth $37,300 and $50,000 invested in GPB Automotive Portfolio is estimated to be worth just over $30,000.

GPB raised over $1.25 billion in these high risk private placements that were sold to investors in $50,000- $100,000 increments. The financial press now reports that the company earned commissions of $167 million on these sales, by charging 9.3%, a rate that is just below the industry cap on commissions.

In February 2019 the FBI made an unannounced visit to company headquarters in New York. Earlier investigations by the Massachusetts securities regulators and the Securities and Exchange Commission are widely reported.

According to the financial press, GPB Funds were sold by as many as 60 independent broker dealers, including Royal Alliance Associates, Sagepoint Financial, FSC Securities and Woodbury Financial Services.

If you have questions about an investment you made in GPB Funds,  contact us for a no charge consultation to learn about your legal options. 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

Ex-Pat With Losses in Your U.S. Brokerage Account? How to Recover Damages.

April 2019

If you are an expat residing in Japan, Thailand, Mexico, United Kingdom, Europe, Australia, the Caribbean, South America, Costa Rica or anywhere else on the planet, and have suffered losses in your U.S. brokerage account, we may be able to help you recover damages.

Disputes with brokerage firms for financial advisor negligence and fraud are generally pursued in arbitration with the Financial Industry Regulatory Authority (FINRA). Unlike court litigation, FINRA arbitration generally is much quicker and far less costly than court litigation.

Cases are typically concluded in 18 months or less and unlike court litigation, you generally do not need to be present in the States until the time of the final hearing or settlement conference. In some situations we you may be able to resolve your case without travelling to the U.S.

Most cases are handled on a contingent fee basis meaning that you only pay if we are successful.

Over the years we have represented expats from all over the world, including Mexico, San Salvador, Chile, Europe, United Kingdom, and the Channel Islands.

If you have losses due to unsuitable recommendations or the negligence of your financial advisor , call for a no obligation opportunity to learn about your options for recovery of damages.

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

Spartan Securities Group Named in SEC Regulatory Action Over Penny Stocks-Clearwater, FL

February 2019-Tampa, FL

The U.S. Securities & Exchange Commission (SEC) issued a litigation release on 2/21/2019 charging Spartan Securities Group, Ltd. , Island Capital Management, LLC, Carl E. Dilley, Micah J. Eldred and David D. Lopez for their roles in the creation “blank check” companies from 2009-2014.

The complaint alleges that Spartan Securities Group filed fraudulent applications with the Financial Industry Regulatory Authority to publicly list the companies so that the shares could be traded to public investors.

According to the release Dilley and Eldred, who are both principals of Spartan Securities, signed the false applications even though they knew or were at least reckless that the companies were fake.

The SEC is seeking to bar Spartan Securities Group from participating in penny stock offerings in the future.

Spartan Securities Group, Ltd.  is headquartered in Clearwater, Florida. They are registered in 38 U.S. States and territories and have been a member of FINRA since 2001. According to FINRA records they have been the subject of 10 prior regulatory actions.

If you have questions about an account at Spartan Securities Group, call for a no charge consultation 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

Bruce Worthington-Former Founders Financial Securities Broker-Discloses Regulatory Event, Pending Investigation, Termination & Customer Complaint-Middleton, MA

February 2019-Middleton, MA

According to publicly available records Bruce C. Worthington (CRD# 2193895) ,  a  stockbroker previously employed by Founders Financial Securities, discloses a pending regulatory event, a prior regulatory event, a  pending FINRA investigation,  a termination from employment and 2 currently outstanding judgement/liens.

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.

Massachusetts regulators recently filed  complaint #E·2018·0119 against Worthington claiming that  from 2006 to 2018,  he took money from at least one retired client Massachusetts customer and he used the investment money for his own personal use and benefit.   This retired client had trusted Worthington with his account for 15 years.

In December 2018 FINRA case #2018059894201 was initiated by  FINRA.   Worthington failed to respond to FINRA request for information and he was suspended indefinitely.

In 9/2018, the United States Securities and Exchange Commission began an investigation into Worthington after concerns arose about his receipt and disposition of customer funds prior to 2013.    This investigation is still pending.

Worthington  began working  for Founders Financial Securities in June of 2013.   He  was discharged in September of 2018, and Founders Financial made the following allegations on Worthington’s record:  “The firm terminated its relationship with Mr. Worthington after concerns arose about his receipt and disposition of customer funds prior to his association with Founders Financial Securities“.

Worthington discloses a business affiliation with LifeHouse Financial Group in Rowley, MA.

If you have losses in an account handled by Bruce Worthington, 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

Rhino Capital Group Investment Losses? How to Recover Damages.

November 2018

We are investigating options for recovery of damages for investors who may have suffered losses on the following :

  • Global Credit Recovery
  • Delmarva Capital
  • DeVille Asset Management
  • Rhino Capital Holdings
  • Rhino Capital Group
  • Riverwalk Financial Corp.

The U. S. Securities & Exchange Commission has charged the following individuals with operating a Ponzi scheme that raised over $345 million from investors who believed they were investing in a business that collected and resold consumer debt:

  • Kevin B. Merrill                              Towson Maryland
  • Jay B. Ledford       Westlake, TX & Las Vegas, NV
  • Cameron R. Jezierski                      Fort Worth, TX

According to the SEC complaint, the more than 230 investor/victims include small business owners, restaurateurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, athletes and financial advisors.

Instead of using the investor funds as promised, the individual defendants stole much of it and used it to fund their lavish lifestyles which included:

  • A Ferrari costing $368,000
  • A seven carat diamond ring costing $330,000
  • $13 million paid to casinos
  • $10 million on high end cars (Bugatti, Rolls Royce, Lamborghini and others)
  • A private jet costing $500,000

If you are a victim of this fraud, contact us for a no charge consultation to learn how you may be able to recover damages for your losses.

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