Category Archives: Securities

Michael Patman Subject of TX Securities Regulators Investigation Over Woodland Resources-Fort Worth, TX

September 2019 -Fort Worth, Texas

The Texas State Securities Board (TSSB) announced that unregistered investment promoter Jeremy “JB” Yowell is cooperating with the Enforcement Division of the State Securities Board in its investigation of Woodland Resources LLC and its director Michael E. Patman.

According to the TSSB release, earlier this year Yowell promoted an investment offering by Woodland Resources, soliciting Texas residents to purchase working interests in oil wells in Seminole County, Oklahoma.

A TSSB emergency order alleges that Patman is violating the Texas Securities Act by failing to disclose that he previously headed two companies that went into bankruptcy and that he owed over $13 million to investors who successfully sued him for fraud.

Yowell was previously sanctioned by Michigan regulators for acting as an unregistered agent selling investments for a commission of up to 20% of the value of the securities sold.

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

Luke M. Johnson-Coastal Equities Broker-Discloses Customer Suits-Scottsdale, AZ

September 2019-Scottsdale, AZ

We are investigating Coastal Equities Inc. broker Luke Michael Johnson on behalf of an Arizona resident who alleges that she was sold an unsuitable investment in GPB Capital Holdings. GPB Capital Holdings is currently under investigation by the Securities & Exchange Commission and the Financial Industry Regulatory Authority (FINRA).

GPB Capital Holdings‘ affiliates include:

  • GPB Holdings LP
  • GPB Holdings I
  • GPB Holdings II
  • GPB Automotive Portfolio LP
  • GPB Waste Management LP
  • Armada Waste Management
  • GPB NYC Development LP

GPB Holdings II and GPB Automotive have both seen substantial declines in value over recent months.

According to publicly available records Luke M. Johnson, discloses a pending customer dispute, 3 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 FINRA Case 18-4125 a customer of Coastal Equities/ Coastal Investment Advisors alleged that Johnson made unsuitable recommendations of alternative investments and limited partnerships. That case was settled for $225,000.

In FINRA Case 18-2266 a customer of Coastal Equities alleged that Johnson recommended unsuitable real estate securities causing losses. That case was settled for $140,000.

In pending FINRA Case 19-1548, a customer of Coastal Equities is seeking damages of $700,000 and alleges that Johnson made misrepresentations and omissions in  soliciting the sale of private placement investments.

Luke Johnson has been employed by Coastal Equities since 4/2012, and does business under the name of Legend Capital Group in Scottsdale, AZ.

If you have an account handled by Luke M. Johnson that you believe has been mishandled, contact us to learn how 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

Cetera Advisors Charged With Defrauding Retail Clients

September 2019

Cetera Advisors, a registered investment advisor and broker-dealer based in Denver, Colorado, was charged by the Securities and Exchange Commission (SEC) with breaching its fiduciary duty and defrauding retail clients out of more than $10 million in undisclosed commissions in connection with the sale of mutual funds.

According to the SEC,  Cetera representatives continuously recommended that clients invest in funds on the Cetera platform that cost the clients more than other less expensive, identical investments that are available.

The SEC alleges that Cetera put clients’ money into mutual fund share classes that charged 12b-1 fees when Cetera knew that the clients could have invested in lower cost shares of the same funds without those fees. These violations, which netted Cetera nearly $11 million to which it was not entitled,  occurred from at least 9/2012-12/2016.

Cetera Financial Group, with about 8,000 advisors and reported revenues of $1.6 billion in 2016,  includes the following firms:

  • Cetera Advisors
  • Cetera Advisor Networks
  • Cetera Financial Specialists
  • Cetera Financial Institutions
  • First Allied 
  • Summit Brokerage Services

Cetera Corporate offices are located in El Segundo, CA, Boca Raton, FL, Denver, CO, San Diego, CA, St. Cloud, MN and Schaumburg, IL.

If you have questions about an investment account handled by one of the Cetera firms,  contact us for a no charge consultation to learn about your legal 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

Texas Securities Regulators Require Metals.Com to Refund $10M

July 2019-Austin, Texas

The Texas State Securities Board (TSSB) issued a news release announcing that Metals.Com, has agreed to offer a full refund to some 84 Texas investors.

According to the release Metals.Com cold called Texas residents, mostly individuals age 65 to 90,  and told them that their money was not safe with conventional registered brokers in order to get them to move their funds into precious metals. The total amount to be refunded may exceed $10 million.

An 80 year old Dallas was convinced to move $850,000 of retirement assets from an IRA into precious metals sold by Metals.Com, according to the TSSB.

The order issued by TSSB requires Metals.Com to repay the full amount invested by the Texas victims.

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

Robert Rotunno-Laidlaw/Tigress Financial Broker-Subject of Numerous Customer Suits Over Private Placements-New York

May 2019 – New York

According to publicly available records, former Laidlaw & Company financial advisor Robert N. Rotunno discloses 3 pending and 8 prior customer disputes most of which allege the sale of unsuitable private placement investments.

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.

The pending customer suits involving Rotunno include:

  • FINRA Case 19-614 in which a customer of National Securities Corp. seeks damages of $150,000 for unsuitable investments.
  • FINRA Case 18-3992 in which a customer of Laidlaw & Co. seeks damages of $558,624 for unsuitable investments and excessive  trading in private placements.
  • FINRA Case 18-2628 in which a customer of Laidlaw & Co. seeks damages of $228,128 for unsuitable recommendations and excessive trading  in private placements and equities.

In the prior 8 customer disputes nearly $700,000 was paid to Rotunno’s customers to resolve allegations of unauthorized trading, unauthorized use of margin, unsuitable recommendations and account churning.

Robert Rotunno  was with Laidlaw & Company from 8/2004-2/2016. He is currently registered with Tigress Financial Partners.

If you have losses on private placement investments or other unsuitable investments in an account handled by Robert Rotunno, call to learn how 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