Category Archives: Structured Products

How to Recover Losses on Future Income Payments Losses

July 2018 UPDATE

Investors in Future Income Payments LLC (FIP) who made their investment upon the recommendation of a registered stockbroker, a registered investment advisor, accountant  or a licensed insurance agent may be able to recover damages for their losses.

While FIP touted itself as “the industry leader and an innovator in buying and selling secondary market pension cash flows….’  numerous officials from various states have alleged that FIP is actually issuing loans which are disguised as sales and charging exorbitant and sometime usurious rates on interest on the loans.

Securities regulators in a number of states (including California, Colorado, Indiana, Iowa, New York, North Carolina, Massachusetts, Pennsylvania and Washington) have issued cease and desist orders curtailing FIP’s practices in those states.

New York regulators shut FIP down in that state and required them to pay back any interest charged plus a $500,000 fine for operating illegally and charging interest at rates as high as 130%.

In May 2018 The Pennsylvania Department of Banking and Securities announced reaching an agreement with FIP (formerly Pensions, Annuities and Settlements, LLC) and owner Scott A. Kohn to provide restitution and relief to over 300 Pennsylvania resident victims. Link to the agency press release. 

Regulatory investigations and actions are pending in another 15 states.

Veterans Targeted -$60K for a $20K Advance

According to recent press, Mr. Wright, a Vietnam Veteran found FIP’s website online and applied for an advance of $20,000 on his military pension. He signed the paper work from FIP, received the advance and months later did he realize that he had agreed to pay FIP $500 a month from his construction pension for ten years. He would be paying $60,000 back for the $20,000 advance.

“This company preys upon vulnerable people who are desperate for money”, according to Iowa Attorney General Tom Miller. “For a few thousand dollars in cash upfront, you’re forced to sign over tens of thousands of dollars from your future pension income. That’s what we call predatory lending. ” 

Regulators are also targeting an affiliate , Pensions  Annuities and Settlements, which is owned by Scott Kohn, the owner of FIP .

Investors in FIP have reported that monthly distributions have been reduced and in most cases, completely suspended.

If you have questions about an investment you made in Future Income Payments LLC, call for a no charge consultation with an experienced securities attorney to learn how you may be able to recover 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

Austin R. Dutton Jr.-Former Newbridge Securities Broker-Fined $200K-Subject of $760K in Customer Suits Over REITs-Doylestown, PA

March 2018-Doylestown, PA

The FINRA records of  Austin R. Dutton, Jr. ,  a  stock broker who was formerly employed by Boca Raton-based Newbridge Securities,  disclose  a recent regulatory event, 4 pending customer disputes, 2 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 July 2017 Pennsylvania securities regulators fined Dutton $200,000 to resolve allegations that, while employed by Newbridge Securities,  he recommended the purchase of a security without reasonable grounds to believe the transaction was suitable and that he engage in dishonest and unethical practices in the securities business. Dutton was ordered to pay the $200,000 fine over a 24 month period commencing August 2017.

In pending FINRA Case 17-03229 filed  by a customer of Newbridge Securities alleges that he was sold unsuitable non-traded real estate trusts (REITs) and structured products and seeks damages of $230,000.

In pending FINRA Case 17-03240, filed  by a customer of Newbridge Securities, alleges that he was sold unsuitable non-traded real estate trusts (REITs) and seeks damages of $150,000.

In pending FINRA Case 17-02871, filed  by a customer of Newbridge Securities, alleges that he was sold unsuitable non-traded real estate trusts (REITs) and seeks damages of $350,000. The claim alleges violations of Federal and Pennsylvania Securities laws, common law fraud and failure to supervise.

Austin Dutton was employed by Newbridge Securities 8/2007-8/2017.   Since leaving Newbridge he was with Center Street Securities for a short period of time, 7/2017-9/2017 and is now registered with Sandlapper Securities since 9/2017.

Newbridge Securities, which is based in Boca Raton, FL, discloses 28 regulatory issues on their FINRA BrokerCheck report. Most recently, Newbridge was fined $499,000 in July 2017 by Pennsylvania securities regulators for failing to supervise an agent in connection with sales of structured products.

If you have losses on non-traded REITs or other structured products purchased on the recommendation of Austin Dutton, call for a no charge consultation to learn about your options for recovery.

 

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

Newbridge Securities Fined $499,000 by Securities Regulator Over Structured Products-Boca Raton, FL

August 2017- Boca Raton, FL

Boca Raton, FL based brokerage firm Newbridge Securities Corp. was fined $499,000 by Pennsylvania Department of Banking and Securities for failure to supervise a broker in connection with the sale of structured products to Pennsylvania residents.

According to the Consent Agreement and Order, from January 2012-December 2016, Newbridge did not maintain a reasonable system for applying and enforcing written procedures pertaining to their sales of structured products by one agent in Pennsylvania.

This is not the first time Newbridge Securities has encountered regulatory problems. Their FINRA record discloses 28 prior regulatory events .

Newbridge Securities has over 80 locations nationwide. Recent SEC filings report total revenue in 2016 of $26 million with a net loss of $487,738.

If you have questions about losses in an account at Newbridge Securities, call to learn how you may be able to recover 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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Investors Capital Corp.-How to Recover Damages For Investment Losses

November 2016- Lynnfield, MA

Investors Capital Corp.  will be closing down and transferring some of its brokers and current clients to another firm within the Cetera network of broker dealers, according to a spokesman for Cetera Financial Group.

RCS Capital, Cetera’s parent has been in bankruptcy and this consolidation is part of their restructuring. The company has announced that  it will also close down VSR Financial Services , another small independent broker dealer as well. It is expected that most of the current brokers of VSR and Investors Capital will be asked to join Summit Brokerage Services, a related entity which is headquartered in Boca Raton, FL.

Investor’s Capital Corp. Recent Regulatory Issues

October 2016-According to FINRA records, Investors Capital Corp agreed to pay $1.1 million in fines and restitution to resolve FINRA allegations that sales procedures for the sale of unit investment trusts (UITs) were inadequate. A UIT is a mix between an actively managed fund and a fixed portfolio of income producing securities.  UITs are generally intended as long term investments.

According to the FINRA sanction several Investors Capital brokers traded UITs on a short term basis causing losses to customers.

August 2016-Pennsylvania securities regulators fined Investors Capital Corp. $100,000 for failures in supervising its brokers.

Recovery of Investment Losses From Investors Capital Corp.

If you have suffered losses in an account at Investors Capital Corp. you may be able to recover damages through FINRA arbitration. Time is of the essence, so if you have a claim, you would be wise to pursue it immediately. Call 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

Stuart Horowitz-Former Securities America Broker-Discloses 37 Customer Disputes

July 2016-Coral Springs, Florida

The FINRA records of Stuart Horowitz  , a former stock broker employed by  Securities America  disclose a prior final regulatory event, 33 prior customer disputes, 4 currently pending customer disputes and a separation 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 February 2016, without admitting or denying the findings, Horowitz entered into an agreement with FINRA to resolve allegations that he recommended and engaged in unsuitable trading in preferred notes of an unregistered limited partnership investment fund. Horowitz was fined $100,000 and suspended for a year. He is not currently registered with any FINRA broker dealer.

Horowitz’s FINRA disclosure indicates that 31 customer cases have been settled, including:

  • A tenant in common (TIC) investment in 2005 while Horowitz was employed by NFP Advisors resulted in a settlement of $100,000.
  • FINRA Case 15-0367, involving another TIC investment while Horowitz was employed by NFP Advisor Services resulted in a settlement of $50,000.
  • In FINRA Case 13-02685 a customer of NFP Securities alleged damages of $590,000 on alternative investments. That case resulted in a settlement of $184,000.

Horowitz was employed by Securities America from 2/2009 until 1/2016 when he was ‘permitted to resign’. Securities America made the following statement in connection with his termination: “After consultation with FINRA, Stuart Horowitz in and agreement with FINRA proposed to resign prior to FINRA’s planned suspension and subsequent fine. Mr. Horowitz will be permitted to resign on January 25, 2016”.

Investors who suffered losses in an account handled by Stuart Horowitz 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