Tag Archives: texas securities fraud lawyer

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

Capital Financial Services Closing Down Business-Accounts Transferred to Calton & Associates

September 2019

Capital Financial Services (CFS)  , a brokerage firm with headquarters in Minot, North Dakota, recently notified its customers that it is closing down its business on or about December 31, 2019,  and transferring all customer accounts to Calton & Associates on June 28, 2019.

According to the letter, customers of Capital Financial Services have until November 30, 2019, to notify CFS if they do not wish to have their account transferred to Calton & Associates and prefer to have them transferred to a different broker dealer.

If you have questions about your brokerage account, call to speak 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

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

William Neil “Doc” Gallagher Charged with Operating Ponzi Scheme-Dallas, TX

March 2019-Dallas, TX

Neil ‘Doc” Gallagher, who calls himself the “Money Doctor” on Dallas area radio stations was was charged with operating a Ponzi Scheme by the Securities and Exchange Commission.

According to the SEC Complaint Gallagher and his companies, Gallagher Financial Group and W. Neil Gallagher, raised nearly $20 million from mostly retired Christian investors by making frequent religious references on his radio shows.

The SEC alleges that Gallagher falsely claimed to be a licensed investment adviser who promised investors risk free returns of 5%-8% annually in phony investments he called a Diversified Growth and Income Strategy Account.

Very little of the investor’s money was actually invested but rather used to make payments to other investors to create the impression that he was operating a legitimate business and the rest was spent on his personal expenses.

Gallagher has also been indicted and arrested on criminal charges.

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

How to Recover Losses on GPB Funds

September 2019

In June 2019 GPB Capital reported 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.

GPB Capital has been under investigation by state and federal authorities for potential securities law violations. 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 80 independent broker dealers to over 6,000 investors nationwide. Brokerage firms who sold GPB Funds include: Aegis Capital, American Capital Partners, Arkadios Capital, Capital Financial Services, Financial West Group, FSC Securities, Great Point Capital, Kalos Capital, Lion Street Financial, Money Concepts Capital  Royal Alliance Associates, Sagepoint Financial,  and Woodbury Financial Services.

Recently the Portland Press Herald reported that David Rosenberg was fired as chief executive officer of Prime Automotive Group. His firing followed the filing of a lawsuit in June 2019 by Rosenberg in which he accuses GPB Capital Holdings, which owns a majority stake in Prime Automotive, of running a Ponzi Scheme.

The GPB offerings include:

  • GPB Holdings
  • GPB Holdings I & II
  • GPB Automotive Portfolio
  • GPB Waste Management 
  • GPB Eurobond
  • GPB NYC Development
  • GPB Cold Storage
  • GPB Scientific
  • GPB Holdings Qualified

If you have questions about an investment you made in and of 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