Wells Fargo Hit with $1.5 Million Regulatory Fine Over Anti Money Laundering Compliance Issues

The Financial Industry Regulatory Authority (FINRA) fined Wells Fargo Advisors $1.5 million due to its failure to comply with anti-money laundering regulatory requirements.

According to the FINRA action, from 2003-2012 Wells Fargo failed to properly review about 220,000 new customer accounts by performing the required identity verification, which requires firms  to maintain customer identification and verify information about who is opening an account. Wells Fargo discovered the problem in January 2012 and remedied it, ultimately prohibiting activity in 345 accounts where it could not complete verification of customer identity.

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

Douglas Furth Charged By SEC With Manipulation of SearchPath HCS Stock

December 15, 2014

The US Securities and Exchange Commission (SAC) filed a civil injunction in the Eastern District of New York charging stock promoter Douglas Furth of Solon, Ohio, with manipulating the common stock of SearchPath HCS, Inc.

The complaint alleges that in 2010, Furth engaged in a fraudulent broker bribery scheme designed to manipulate the market for SearchPath through matched trades.

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

Bernard McGee, Former Cadaret Grant Broker- Barred From Securities Industry

December 19,2014- Syracuse, New York

In FINRA Disciplinary Proceeding No. 2012034389202, Bernard G. McGee was barred in all capacities from associating with any FINRA member for making unsuitable recommendations to a customer who was advised to sell 4 annuities and purchase a charitable gift annuity.

McGee denied the charges and after a hearing June 2-6, 2014, the Extended FINRA Hearing Panel ordered the bar from the industry and ordered McGee to disgorge commissions and pay restitution to the affected customer.

The customer incurred charges of over $36,000 when she surrendered about $490,000 in annuities and the surrender also created taxable income.

According to FINRA records McGee was registered with Cadaret Grant & Co. from 4/2007-10/2012. He was most recently registered with Independent Financial Group.

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

Rockwell Global Capital Loses To Customer in Florida Arbitration Proceeding

November 24, 2014-Tampa, FL

In a recent arbitration proceeding before the Financial Industry Regulatory Authority (FINRA) Rockwell Global Capital was ordered to compensate an investor for losses suffered in his investment account. Frederick Griffin v Rockwell Global Capital, FINRA Case# 13-0295. 

In the case, before an all public, three person arbitration panel, the investor sought compensatory damages to his brokerage account of $200,000, attorney fees, interest costs and punitive damages on the following causes of action:

  • violation of the Florida Securities and Investor Protection Act
  • breach of fiduciary duty
  • common law fraud
  • excessive trading (churning)
  • breach of contract
  • restitution
  • negligence
  • negligent misrepresentation
  • omission
  • negligent supervision

After a 5 day hearing, the panel unanimously decided in favor of Mr. Griffin and awarded him:

  • Damages of $119,000 plus interest pursuant to the Florida Securities and investor Protection Act
  • Punitive damages of $119,000-based upon the fact the Panel found evidence of continued excess in fees being hidden from Mr. Griffin by Rockwell Global Capital while at they same time they were representing to Mr. Griffin that minimal or no commission charges were being assessed. The panel found that conduct to be fraudulent and the basis for the punitive award.
  • Attorney fees of $55,200
  • Costs of $12,632

The panel also assessed the entire FINRA hearing session fees of $10,125 against Rockwell Global Capital.

Punitive damages are awarded in legal proceedings, in addition to compensatory damages , as  punishment and and to serve as an example to others for malicious or particularly fraudulent acts.

Rockwell Global Capital is headquartered in Melville, New York.

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

SEC Suspends Trading in Geo Finance Corp. ( GEFI)

December 16, 2014

Trading was temporarily suspended by the US Securities and Exchange Commission in the securities of Geo Finance Corp (GEFI) of Henderson Nevada …“because of concerns regarding the accuracy and adequacy of information in the marketplace and potentially manipulative activity related to GEFI common stock”.

According to press reports, the stock has been the target of pump and dump schemes recently.

In a pump and dump scam the value of penny stocks, which the promoter has already acquired large positions in at very low prices, are “pumped” up using artificial press releases containing false and misleading statements. Once the price rises, the scammers “dump” their positions in the overvalued  shares, the price falls and the investors lose their money.

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

Nationwide representation of victims of stockbroker fraud and the malpractice of investment professionals.

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