The White Law Group is investigating potential claims involving former Oklahoma broker Larry J. Dearman. Specifically, The White Law Group is investigating the liability that the FINRA broker-dealers that employed Dearman may have and whether victims may be able to recover their losses through the Financial Industry Regulatory Authority (FINRA) dispute resolution process.
It was recently reported that the Securities and Exchange Commission (SEC) has accused Dearman of swindling nearly $700,000 from clients between 2008 and 2012. Dearman allegedly use a majority of the funds he collected from investors on gambling debts and personal expenses. Many of Dearman’s clients had known him since childhood and from church. In addition,of the $4.7 million clients gave Dearman to invest, he put the funds in companies tied to his close friend Marya Gray, who is also under investigation for securities fraud. The companies included Bartnet Wireless Internet, Quench Buds Holding Company and The Property Shoppe.
According to FINRA Broker Report (CRD), Larry Dearman was registered with FINRA member firms up until May of 2012 working at Cambridge Legacy Securities since Febuary for 2010. He worked with Securties America from January of 2009 through Febuary 2010, and Brecek & Young Advisors from Febuary 2005 through January 2009.
When a FINRA affiliated broker misappropriates clients funds and/or fails to demonstrate due diligence, the brokerage firm may be liable for negligent supervision of their broker representative and can be held responsible for investment losses in a FINRA dispute resolution claim. As such, to the extent that Dearman stole from clients and invested in dubious companies, the brokerage firms may have liability for failure to properly supervise Dearman.
If you invested with Larry J. Dearman while he was registered with a FINRA member brokerage firm and would like to speak to a securities attorney about your potential to recover losses through FINRA arbitration, please call The White Law Group at 312-238-9650 for a free consultation.
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 www.WhiteSecuritiesLaw.com.