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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
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  • Your Broker Has Been Fired And The Brokerage Firm Is Calling You-What To Do

    By Robert H. Rex, Esq.

    On occasion stockbrokers are fired by the brokerage firm where they work and have handled your account for many years.

    The reason for termination can be mundane. Perhaps it was motivated by business conditions, ie; lack of production by the broker or a cutback in staffing to adapt to the needs of the current business climate.

    The termination can also be motivated for reasons which should be of greater concern for the investor/customer. Terminations are often the result of negligence behavior or wrongdoing on the part of the broker that has resulted in regulatory sanctions by the SEC, state securities regulators, and/or FINRA. These sanctions can range from fines to suspension and if the wrongdoing is severe enough, a permanent bar from the industry. Customer complaints and arbitrations over investment losses can also lead to the termination of a stockbroker.

    In either case it can be expected that the brokerage firm will make contact with all of the existing customers of the terminated broker in an attempt to keep those customers from leaving for another firm. If the termination is due to the broker not doing enough business or a cutback in staffing and you still have confidence in the firm and the new broker they are proposing to handle your account, then you need read no further.

    Has the Broker Been Sanctioned by Regulators?

    If however the termination is the result of regulatory sanctions, customer disputes or arbitrations, you need to strongly consider whether it is in your best interest to remain with that firm or whether your financial security is better served by transferring your account to another firm.

    It is not uncommon for firms to make promises they may not be able to keep when trying to convince you from transferring your account after they have fired your broker. They cannot guarantee the future nor predict with certainty that an account with losses will ever recover.

    For example, if you have a portfolio that contains real estate investment trusts, private placements or other alternative investments that have declined in value,you should consider what kind of job the firm was doing in the first place that permitted the terminated broker to make these unsuitable investments with your nest egg.

    How can you be assured they will do a better job in the future?

    Can you afford to take the risk they will do a better job in the future?

    Generally the only way to recover investment losses is to file a FINRA arbitration. We know that making the decision to file an arbitration against the firm that has been your trusted advisor for years is a difficult step to take.The relationship with a financial advisor is a very personal one and making the decision to pursue recovery of damages is not an easy one, but adjusting one's lifestyle to accommodate a loss of capital for the negligence of the brokerage firm is not an easy thing to do either.

    If you have questions about losses in your brokerage account, call to speak with an experience securities attorney or follow the "Send Message" link at the top of the page and send us an email with details about your situation and we will be in touch.

    Nationwide representation.

    RexSecurities Law

    561 391 1900

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jan 10 1:08 PM | Link | Comment!
  • Texas Certified Financial Planners Disciplined By CFP Board-January 2014 Update

    UPDATED JANUARY 2014

    According to their website, the "Certified Financial Planner (NYSEMKT:CFP) Board is a non-profit organization acting in the public interest by fostering professional standards in personal financial planning through its setting and enforcement of the education, examination, experience, ethics and other requirements for CFP. "

    The CFP Board can discipline those holding the CFP title in one of three ways:

    • Public Letter of Admonition
    • Temporary Suspension of CFP certification
    • Revocation of individual's CFP certification

    The list below, taken from the CFP board disciplinary page of their website in JANUARY 2014, is a historical record of individuals from Texas who have been disciplined by CFP Board and does not imply that any listed discipline is currently in force. To verify an individual's current certification status visit the CFP website here.

    Revocations

    Nicole Y. Allen (Dallas)

    Charles I. Alvarez (Houston)

    Jeffrey W. Baum (Lubbock)
    Farrish E. Betton (Houston)
    Texas Craig R. Brockman (Plano)
    Robert Carpenter (Wylie)
    Mark W. Chuckran (Spring)
    Jerrell J. Cosby (Fort Worth)
    David Disraeli (Cedar Park)
    Kathryn B. Farland (Plano)
    Gordon Fiddes (Arlington)
    A. Ken Flake, Sr. (Houston)
    John J. Forsberg (Dallas)
    Larry B. Groover (Dallas)
    Douglas J. Hellie (San Antonio)
    A. James Lynn (Dallas)
    William H. Matthews (Dallas)
    Jay C. Miles (Brenham/Chappell Hill)
    Julia Carolyn Norton (San Antonio)
    Solomon O. Onita (Houston)
    Hymie Orlin (Houston)
    Paul O. Ptak (Carrollton)
    Lawrence L. Richter (San Antonio)
    Terrence P. Riely (San Antonio)
    Ralph R. Rush (El Paso)
    Richard J. Suydam (Austin)
    Travis D. Wakeley (Hurst)
    Brian P. Troy (Keller)

    Suspensions

    Noor Amirali (Houston)
    Matthew J. Anderson (Austin)
    Brian W. Armstrong (Cleburne)
    Gilbert J. Baker (Houston)
    C. W. Biggs (Denton)
    Russell K. Childs (Spring)
    Thomas M. Couch Jr. (Houston)
    Craig A. Curry (Houston)
    Kenneth W. Dresel (Midland)
    Daniel P. Hensley (San Antonio)
    Kyle Holland (Austin)
    Carl E. Jones (Euless)
    M.F. "Mickey" Long (Plano)
    Texas Lance R. McCollum (Itasca)
    Marianne Springer Miller (San Antonio)
    Jeremy B. Stauss (Fort Worth)
    John Howard Towers (Plano)
    Roger D. Stevenson (San Benito)

    Interim Suspension
    Brian P. Troy (Keller)

    Letters of Admonition
    Douglas Wayne Blankenship (Addison)
    Donald H. Christie (Waco)
    Gerald S. Cohn (San Antonio)
    Alan Goldfarb (Dallas)
    Patricia Bisch Green (Houston)
    Greer A. Kendall (Dallas)
    MF "Mickey" Long, II (Plano)
    Sidney J. Lorio (Bedford)
    Sharon R. Luker (Plano)
    Linnie Logan Phebus (Austin)
    Lee A. Przybyla (San Antonio)
    David L. Rhodes (Bryan)

    If you have questions about your stock brokerage account or investment losses, contact us for a no charge consultation. Call the number below to speak with an experienced securities attorney or click the "Send Message" button at the top of the page, tell us a little about your situation and we will be in touch.

    Nationwide representation

    Rex Securities Law

    561 391 1900

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jan 10 11:07 AM | Link | Comment!
  • Update On Investigation Of VSR Financial Broker John H. Towers

    Rex Securities Law has been investigating VSR Financial broker John H. Towers on behalf of several of his customers whose account suffered losses in private placements, REITs and other alternative investments.

    UPDATE APRIL 2014- ANOTHER FINRA ARBITRATION FILED AGAINST VSR- Rex Securities Law filed another FINRA arbitration against VSR to recover damages in excess of $475,000 on behalf of two St. Petersburg, FL residents who allege that VSR broker John Towers sold them unsuitable non-conventional investments including the following:

    • ArciTerra REIT
    • Bradford Drilling Assoc 23
    • Cypress Equipment Fund 13
    • Cypress Income Fund III 8.25% Note
    • Florida Capital Real Estate Partners 27, Ltd.
    • Mewbourne Energy Partners 07-A LP
    • NetREIT Common
    • Odyssey Operating Partnership II
    • Odyssey Properties III Inc.
    • United Development Funding III
    • Waveland Drilling Partners 2007-A LP
    • Waveland Vanguard Partners LLC
    • Waveland Vestara-Class B

    UPDATE FEBRUARY 2014-FINRA ARBITRATION FILED AGAINST VSR-Rex Securities Law files FINRA arbitration against VSR to recover damages in excess of $600,000 for two Dallas, TX area residents who allege that VSR broker John Towers sold them unsuitable alternative investments.

    The investments made in the customer accounts included various gold funds (First Eagle Gold Fund, Invesco Gold & Precious Metals, Van Eck International Investors Gold) and :

    • Alliance Petroleum Corp. 2006B
    • Arciterra Strategic Retail Echelon
    • Arciterra Whitefish Opportunity Fund
    • Atlas America Public #17
    • Bradford Drilling Assoc 27
    • Cypress Equipment Fund 13
    • Florida Capital Real Estate Partners 27
    • NetREIT Common
    • Mewbourne Energy Partners 9, 10, 11, 12
    • Odyssey Properties III
    • Odyssey Residential Realty II, 9% Note
    • Reef SWD 2007-A
    • Ridgewood Energy Funds
    • Waveland Drilling 2006-B
    • Waveland Drilling 2007-A
    • Waveland Drilling 2008-B
    • Waveland Resource Partners
    • Waveland Vanguard Partners

    On December 18, 2013, without admitting or denying the findings, Towers entered into an Acceptance, Waiver and Consent (AWC) with FINRA which provides for a three month suspension starting January 21, 2014, and ending April 20, 2014, and a civil and administrative penalty of $25,000.

    In its investigation, FINRA alleged that Towers recommended that a married couple invest in high risk private placements and real estate investment trusts (REITS) totalling over $6 million dollars and representing over 70% of their invested capital. According to FINRA allegation, the private placements and REITs recommended by Towers were all described in the offering documents as high risk investments. The couple had stated a moderate risk tolerance on their new account forms and specified that no more than 10% of their account be invested in high risk products. Towers provided false and inaccurate values of the investments that had no correlation to prices published by his firm and despite knowing that the investments had declined in value listed the couple's original cost basis rather than the actual current value specified by the firm.

    According to FINRA records, Towers has been registered with VSR Financial Services, Inc. since June 2002, and offices in Plano, Texas.

    Real estate investment trusts, especially those not traded on a conventional exchange, as well as other alternative investments such as oil and gas and other limited partnerships and private placements are generally not considered suitable for persons not wanting to accept high risk.

    If you have information which you feel may be of assistance to our investigation , we would appreciate hearing from you. If you have suffered losses in an account handled by John Towers you may be able to recover all or a part of those losses through FINRA arbitration.

    Call to discuss your legal rights with an experienced securities attorney. No charge for initial consultation.

    Nationwide representation.

    Rex Securities Law

    561 391 1900

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Dec 31 1:15 PM | Link | Comment!
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