According to the Securities and Exchange Commission (SEC), Western Asset Management Company has agreed to pay more than $21 million to settle sanctions for causing clients investment losses.
Western Asset, a subsidiary of Legg Mason, allegedly concealed a coding error that resulted in investment losses for approximately 100 clients. The coding error would apparently cause restricted private placements to be allocated into the accounts of ERISA clients. The private placements were off-limits to ERISA plans. The private placements plummeted in value yet the company purportedly waited nearly two years to notify the clients.
In addition, the SEC found that Western Asset allegedly engaged in a type of cross trading that was deemed illegal. The SEC order found that during the financial crisis Western Asset allegedly was required to sell mortgage-backed securities for clients that wanted to liquidate their accounts or were no longer eligible to hold those types of securities. according to the SEC, Western Assets prearranged sale-and-repurchase cross trades for clients at the bid price rather than a price between the bid price and the ask price. Reportedly this denied the selling client approximately $6.2 million in market savings.
The foregoing information, which is publicly available on SEC’s website, here, 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 Boca Raton, Florida.
Brokerage firms have fiduciary duty to act in the best interest of their clients. When brokerage firms violate security laws they can be liable for investment losses. If you have reason to believe that your brokerage firm has engaged in activities that violate the securities industry’s rules and regulations, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.
To learn more about The White Law Group, visitwww.WhiteSecuritiesLaw.com.
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According to WSMV Channel 4, a financial planner for Capital Financial Group, Tony Myers, has been arraigned on fraud charges for allegedly stealing money from a dying client.
Myers client, Norman Miller, was the founder of a well-known music management company that managed bands such as the Counting Crows. Miller died in 2012 from cancer.
According to the report, Myers had only been with Capital Financial Group for 20 months and was fired as soon as they found out about the charges.
Financial professionals have a fiduciary duty to their clients to make investment recommendations that are in the best interest of their clients. When a financial professional, like Tony Myers, allegedly steals from clients and violates securities law, they can be held liable for investment losses.
The foregoing information, which is publicly available, is being provided to you by The White Law Group.
If you have concerns about your dealing with Tony Myers and would like to discuss your litigation options, 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 dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. The firm’s offices are located in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.
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The White Law Group is investigating the liability that brokerage firms may have for selling Telesis oil and gas private placements.
According to their website, Telesis Operating Co. is an oil and gas exploration and production company that owns and operates approximately 165 wells throughout western Texas. In addition, the company is active in the acquisition of producing oil and gas properties. Telesis has apparently been in the industry since 1980 and is headquartered in Ft. Worth, Texas.
Oil and gas private placements are speculative and inherently high risk investments. Typically these types of investments lack liquidity, and are better suited for sophisticated and institutional investors. In addition, oil and gas private placements are exempt from registration with the Securities and Exchange Commission, and therefore they lack the same regulatory oversight as more traditional investments.
Brokerage firms that sell oil and gas private placements, like Telesis, have a fiduciary duty to perform adequate due diligence to determine if the investment is appropriate for the client given the client’s age, net-worth, financial objectives, investment experiences, financial needs, and risk tolerance. Unfortunately, the high sales commissions associated with oil and gas investments often provides some brokerage firms with enough incentive to overlook suitability requirements. If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
If you would like to speak with a securities attorney regarding your ability to recover investment losses in an oil and gas investment, 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.
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According to the Disciplinary and Other FINRA Actions report for January 2014, registered broker, Benjamin Irby Cox, was suspended for one year and fined $5,000 for falsifying suitability information on client intake forms.
Cox submitted a Letter of Acceptance, Waiver and Consent to settle Finra’s allegations. Without admitting or denying the FINRA’s findings, Cox consented that he cold-called potential investors to identify suitable investors for oil and gas offerings. During the cold calls Cox allegedly was to document information the information he gathered from the potential clients. Unfortunately, the report stated that Cox purportedly falsified information, including potential investor’s address, occupation, financials and investment experience on some of the documents he submitted to his firm.
According to FINRA’s BrokerCheck Report, Cox was registered in Plano, Texas with Red River Securities, LLC from 3/2010-3/2012.
If you suffered investment losses as a result of your dealings with Benjamin Irby Cox and would like to discuss your litigation options with a securities attorney, please call The White Law Group at (312)238-9650 for a free consultation.
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According to the Columbus Dispatch, former broker, Jeffery Kelly, was sentenced to 5 years in prison for operating a Ponzi scheme. Kelly who was indited on 17-counts, pled guilty last year to to wire fraud and interstate transportation of a security taken by fraud.
Kelly allegedly took more than $1.5 million from investors between 2006 and 2011. Kelly allegedly operated his scheme through a number of businesses he operated near Columbus, Ohio. Some of his victims included family, friends, and fellow church members.
Victims purportedly thought their money was being invested in an variety of securities which included stocks, annuities, and REITs. However, the money was spent on personal and business expenses, as well as purported payments to earlier victims.
Although Kelly was ordered to pay restitution, it is unlikely that the victims will receive payment from Kelly to cover their total losses. As such, The White Law Group is investigating the liability that Kelly’s employers may have for failure to properly supervise him and his activities.
Brokerage firms have a supervisory responsibility to monitor the business activities of their employees. When a broker, like Jeffery Kelly, is guilty of securities fraud the brokerage firm can be liable for negligent supervision and responsible for investment losses.
According to Kelly’s FINRA BrokerCheck Report, during the relevant time we worked with three brokerage firms, Woodbury Financial Services, WPR Investments, and Questar Capital Corporation.
If you are a victim of Jeffrey Kelly and would like to discuss your ability to file a FINRA arbitration claim to recover your investment losses, please call the securities attorney of The White Law Group at (312)238-9650 for a free consultation.
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