Tag Archives: stockbroker malpractice

Regulators Launch Investigation of Realty Capital Securities

November 7, 2014–Massachusetts securities regulators launched an investigation of Realty Capital Securities, the wholesaling division of RCS Capital Corp,  a broker-dealer holding company led by Nicholas Schorsch it’s chairman.

Earlier this week American Realty Capital Properties, Inc. , which is  a part of the Schorsch real estate investment trust (REIT) empire, announced a $23 million accounting error that, according to news reports, was intentionally uncorrected.

News reports suggest that the SEC and the FBI have begun investigations of American Realty Capital Properties.

The Massachusetts regulators, led by William Galvin, are reportedly looking at the information provided to investors purchasing REITs , especially accounting information.

According to the recent quarterly report (10Q for Q1), a copy of which can be found here on the company website, Inland American REIT is currently under investigation by the Securities & Exchange Commission (SEC).

According to the report, the SEC investigation is to determine if there have been violations of federal securities laws related to:

  • business manager fees
  • property management fees
  • transactions with affiliates
  • timing and amount of distributions to investors
  • determination of property impairments

The report states that at the current time the company has not been accused of any wrongdoing and that they are cooperating fully in the investigation.

 

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

Jay John Soojian Sanctioned by Regulators for Sale of Osiris Securities

In July 2014 Jay John Soojian entered submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority (FINRA)  to resolve allegations that he he fraudulently omitted material facts in connection with his sales of $775,000 of Osiris Fund limited partnership interests. FINRA also alleged that Soojian participated in private securities transactions with written approval from his firm.

According to FINRA records, Soojian was registered with New England Securities from 12/2000-8/2011 and with Park Avenue Securities from 09/2011-10/2012.

Soojian was  permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Rex Securities Law provides nationwide representation to investors 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

John J. Packard Pleads Guilty- $110 Million Ponzi Scheme

Long Beach, CA- John J. Packard, age 64, pleaded guilty to mail fraud in an alleged $110 million ponzi scheme involving his company Pacific Property Assets which he ran with co-defendant Michael J Stewart, age 67, of Phoenix.

The company bought and renovated, then rented and managed real estate. As property values increased they  would sell the properties. As revenues fell and salaries to Packard and Stewart increased, the company could no longer survive and filed bankruptcy in 2009.

The indictment alleges that Packard and Stewart lied about the company’s financial health to new investors and Vineyard Bank and used their money to keep the company afloat.

Packard will be sentenced in May.

Rex Securities Law provides nationwide representation to investors 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

Stifel Nicolaus Broker Barred for Churning Account of Elderly Customer Diagnosed with Dementia

October 21, 2014- Robert J. Head, a broker registered with Stifel, Nicolaus & Company, Inc. from 9/2008-1/2014 , submitted a Letter of Acceptance,  Waiver and Consent No. 20130389574 (“AWC”) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he made excessive and unauthorized unsuitable trades in the account of an elderly client who was diagnosed with dementia.

The AWC was submitted by Head without admitting or denying the findings and without adjudication of any issue of law or fact. Head was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

FINRA found that Head exercised discretion (which means that he traded without authority) and recommended transactions that were qualitatively and quantitatively unsuitable for the customer in violation of NASD and FINRA rules.

The conduct FINRA found to be violative includes:

  • Head traded the account actively, often choosing high risk products. In March 2010, the company sent a letter to the client indicating that 385 trades had occurred in her account during the prior 12 months and that the account at the time of the letter had 25 open short positions.
  • During 2010, there were 155 trades by Head, with a value of $250,000 which generated commissions of $41,000 and losses to the client of $13,500
  • In June 2012, the company sent a letter to the client asking her to ratify the trading for the prior year. That trading included 275 trades, generating commissions of nearly $30,000 and losses of $70,000.
  • The client was born in 1936 and in 2013 at age 77, was diagnosed with dementia.

Unless you have given written authority to the broker authorizing the trading of your account, the broker is required to obtain your permission prior to making trades in your account.

If you receive a letter from the brokerage firm asking you to confirm and ratify the trading that has occurred in your account, make certain that you carefully review the trading before signing and returning that letter.

Rex Securities Law provides nationwide representation to investors 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

Evansville Investment Adviser Sentenced to Two Years for Fraud

Warrick, Co., Indiana- WFIE, Channel 14 News reports that Lynn Simon of Evansville was sentenced to two years in prison after pleading guilty to several counts of fraud in the offer, sale of purchase of a security.  His victims lost in excess of $100,000. Simon operated two companies, the Insurance Shoppe and Financial Security Planning.

Simon fled to Alabama and then to Mexico before finally turning himself in. In addition to serving prison time he will also serve 8 years work release and be required to pay restitution.

Rex Securities Law provides nationwide representation to investors 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