The Securities and Exchange Commission recently filed charges against Family Endowment Partners LP (FEP) and the owner, Lee Dana Weiss, for allegedly failing to disclose numerous conflict of interest to clients and using investors’ funds.
The SEC complaint alleges that between 2010 and 2012 FEP and Weiss encouraged clients to invest more that $40 million in illiquid securities products and failed to disclose that he had ownership interest in the parent companies that issued these securities.
He also allegedly failed to inform clients he was receiving payments from these entities.
Furthermore the SEC alleges FEP and Weiss recommended investments owned and controlled by Weiss and failed to disclose to clients that the investments would benefit FEP. As a result, Weiss and the entities he controlled received more than $600,000 in payments. He also allegedly failed to disclose the significant risks associated with certain investments.
Finally, the SEC alleges that between 2012 and 2014 FEP and Weise recommended $8.25 million in notes to companies owned by Weiss. In at least one incident, Weises allegedly failed to disclose the ownership to the client.
According to BrokerCheck, Weiss is currently a registered rep with MIP Global. In addition to working with FEP, Weiss was registered with Stillpoint Capital from 03/2011-08/2015.
The White Law Group is investigating what liability that Weiss’ employer may have for his actions. When a registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.
If you suffered losses investing with Lee Dana Weiss and would like to discuss your potential to recover your losses through a FINRA arbitration claim, please call the securities attorney of The White Law Group at (312) 238-9650 for a free consultation.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.