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Robert W Pearce
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Mr. Pearce has tried, arbitrated and mediated numerous disputes involving complex securities, commodities, administrative, contract, commercial, business tort and employment law issues for over 30 years. He has represented hundreds of clients in Federal and state courts (trial and appellate) as... More
My company:
The Law Offices of Robert Wayne Pearce, P.A.
My blog:
The Investor's Rights Law Blog
  • HUEL COX JR. BARRED BY FINRA FOR MISAPPROPRIATING CUSTOMER'S FUNDS 0 comments
    Sep 26, 2013 4:26 PM

    Huel Cox Jr., a former broker at Duluth, Georgia based PFS Investments, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanction and the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he misappropriated a customer's funds for his own personal use. According to FINRA's findings, Mr. Cox solicited a friend, who was also a customer of his member firm, to make various investments in real estate and a casino. The customer agreed to make the investments and, over a period of years, wrote personal checks payable to Mr. Cox. FINRA found that Mr. Cox did not make any of the promised real estate investments for the customer. Further, it found Mr. Cox misappropriated at least $206,398.89 of the customer's funds for his own personal use without the customer's authorization. Mr. Cox, of Phoenix, Arizona, was barred from associating with any FINRA member in any capacity.

    Broker-dealers must establish and implement a reasonable supervisory system to protect customers from stockbroker fraud and other stockbroker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for failure to supervise and the damages flowing from the misconduct. Therefore, investors who have suffered damages due to prohibited activity such as misappropriation of funds can bring forth claims to recover losses against broker-dealers like PFS Investments, which should monitor their brokers' activities in order to prevent the above described illegal conduct.

    The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. Please see our Instablog profile (left column) for ways to contact us and get answers to any of your questions about this blog post and/or any related matter.

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