Are you concerned about investment losses with former broker, Douglas P. Simanski? If so, The White Law Group may be able to help you. As we told you, Simanski was barred from the securities industry in 2016.
According to an article in Pittsburgh Post-Gazette in November, Simanski of Altoona, Pennsylvania has been charged with stealing $120,000 from the VFW Post 4315 in Ashville, Cambria County. He allegedly persuaded several members to invest in a supposedly safe CD that would pay four percent interest. The allegations against him involve affinity fraud: using ethnic, religious or other ties with a group of people to take advantage of them. Simanski also promised a high-interest rate return in a low interest rate environment. According to the article, $3 million of investor money was taken from these working class, non-sophisticated investors.
According to FINRA Broker Check, Simanksi was registered with Next Financial Group, Inc in Altoona, PA from 08/1999 – 06/2016. There are ten customer disputes listed on his Broker Record from 2016.
The following allegations are listed as pending:
Customer alleges he invested $890,000 in a 10% “tax-free” fixed income security or bond which would pay interest annually and have a maturity date of two years. Customer believes this investment was non-existent and registered representative converted funds to his personal benefit.
Customer alleges registered representative recommended they take money out of their annuity and invest it in a safe, tax-free investment for a five year period that would earn $5,000 annual interest which could be taken as cash or reinvested. Money was withdrawn from an annuity, incurred $6,000 in taxes and customers wrote a check for $104,000 to “E*Trade” around February 12, 2016. Customers believe all investments in this account are lost.
Customer alleges in November 2014 that registered representative recommended customer invest $120,000 was invested in a “CD” for 36 months at 1.7% interest. Customer alleges that their check, which was made payable to E*Trade, was deposited in an E*Trade account under registered representative’s control and that the funds were misappropriated.
Customer alleges that on July 23, 2014, she wrote a $100,000 check to E*Trade for an investment with registered representative and she was recently advised that the invested amount no longer exists.
Customers allege that in July or August 2013 registered representative recommended that they invest $90,000 in an investment that would operate like an annuity, guaranteed they would earn $5,000 annual interest for 20 years and could get their principal investment back. Customer wrote a check to E*Trade, which was deposited into an account apparently owned by the registered representative.
Customer’s daughter alleges on 10/22/2014, her father who is now deceased, gave registered representative a check in the amount of $140,000 and received a signed five year fixed investment note in return. Registered representative absconded with the balance of $100,000.
Customers allege that in 2009 they invested $200,000 in a promissory note which they would receive a six percent tax-free return for a two year period. Claimants state the registered representative sold fraudulent and unregistered securities.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
If you suffered losses investing with Douglas Simanski and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.
For more information on the firm, please visit http://www.whitesecuritieslaw.com.