December 19, 2011 Comments (0) Blog, Securities Fraud

Potential Recovery of Martin T. Wegener Investment Losses through FINRA Arbitration

(Last Updated On: July 17, 2015)

Have you suffered losses due to your investment with Martin T. Wegener (Marty Wegener) and/or his entities Wealth Resources, Inc. and Wealth Resources, LLC? If you have, The White Law Group may be able to help you recover some of your losses through a Financial Industry Regulatory Authority (FINRA) dispute resolution claim.

In June of 2010 the Securities and Exchange Commission (SEC) “filed a civil injunctive action against Martin T. Wegener (Wegener)…and two companies formed, owned, and controlled by Wegener, Wealth Resources, Inc. and Wealth Resources, LLC (collectively, Wealth Resources), for fraudulently offering and selling at least $6.5 million in securities.” More recently, in November of 2011, The Grand Rapids Press reported that Mr. Martin Wegener was also facing felony criminal charges related to the alleged investment scheme. And Last week, The Grand Rapids Press stated that Mr. Wegener “pleaded guilty to mail fraud in a $6-million Ponzi-type scheme involving at least 20 investors” and further that he had accepted a plea deal in which he “acknowledged he intended to defraud clients.”

The SEC release about the civil injunction filed in 2010 said that “from at least 2007 to March 2010, Wegener, who, along with Wealth Resources, acted as an unregistered broker and investment adviser, raised at least $6.5 million from at least twenty investors by falsely representing that he would invest their funds in securities through Wealth Resources.” Wegener apparently also provided the investors with “…purported “brokerage account” statements from Wealth Resources that falsely represented that he invested the money in a variety of investments…”

Instead of investing the money raised in securities, the SEC alleged that Mr. Wegener misappropriated the money and used it for personal uses, business expenses and “…to make Ponzi-like payments to other customers who requested a return of all or part of their investment.”

According to Martin T. Wegener’s CRD (CRD# 2247662), publicly available at FINRA.org, he has not been a registered representative of a FINRA member firm since 05/2010. The CRD indicates that he was registered with New England Securities, a FINRA member firm, from 03/1998 – 05/2010. This time period overlaps with much of the time frame associated with the alleged fraud.

When a registered broker conducts business outside of the firm he is registered with, that activity may be considered “selling away.” If a registered broker “sells away” from his firm, the firm may still be liable for negligent supervision of their broker agent and may be responsible for investment losses in a FINRA dispute resolution claim.

If you invested with Martin T. Wegener and/or his entities Wealth Resources Inc. and Wealth Resources LLC and would like to speak to a securities attorney about your potential to recover the investment losses through FINRA arbitration please call our Chicago office at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

 

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