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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
  • INVESTORS IN FLORIDA BEWARE OF HIGHLY LEVERAGED PRECIOUS METALS DEALERS

    Florida has recently been faced with a resurgence of boiler room type operations pushing highly leveraged precious metals. Historically, boiler rooms were associated with securities and commodities futures trading, and they have had a presence in South Florida for many years. Today, they consist of salespeople who use high-pressure sales tactics to market speculative, and even fraudulent, investments. The salespeople use calls lists (aka sucker lists) and scripts to pitch securities and commodities to potential investors. Most of the salespeople have no formal market training and oftentimes make up facts to close a sale.

    Florida does not require highly leveraged precious metals dealers to apply for and maintain a license in order to act as an introducing broker or a clearing/counter party firm. However, they are required to apply to the Florida Department of Agriculture for a telemarketing license. They are also required to file the scripts that are to be used when contacting potential investors. Many of these scripts are never filed with the Department - they are usually buried in other marketing materials distributed for internal use by brokers. Although regulators have actively sought to shut down dealers of such type due to violations, Florida still remains a hotbed for highly leveraged precious metals dealers. As for investors, it is oftentimes too late for them to hedge against the risk of losing their life savings once a dealer has gone bust.

    A precious metal is a rare and natural metallic element of high economic value. Historically, precious metals were important as currency but are now regarded mainly as investment commodities. Gold, silver, platinum, and palladium are among the most popularly traded precious metals. The demand for precious metals is driven not only by their practical use but also by their role as hedges against market risk. Leverage is a technique used in finance to multiply gains by borrowing money, which increases purchasing power. The most obvious risk associated with leverage is that it can multiply losses. Since precious metals markets are extremely volatile and unpredictable, the use of leverage can dramatically increase the risk of losing all of one's principal if prices were to swing in the opposite direction.

    Have you suffered losses in highly leveraged precious metals? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

    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. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

    Jan 25 11:43 AM | Link | Comment!
  • DEUTSCHE BANK SECURITIES INC. FINED FOR FAILURE TO DELIVER PROSPECTUSES TO INVESTORS

    Deutsche Bank Securities Inc. (DBSI) has been fined by the Financial Industry Regulatory Authority (FINRA) for violation of securities industry rules and regulations relating to the protection of investors. DBSI failed to implement and maintain adequate supervisory systems and procedures to monitor and ensure the timely delivery of mutual fund prospectuses as required by Section 5 of the Securities Act of 1933 (the "Securities Act"), NASD Conduct Rule 3010 and FINRA Rule 2010. FINRA investigators discovered that DBSI failed to provide prospectuses to its customers who purchased mutual funds and other securities products during the period of its investigation - 2009 through 2011 (the "relevant period"). FINRA estimated that DBSI may have failed to deliver at least 75,000 prospectuses to its customers in a timely manner during that period.

    The federal and state securities laws require the delivery of a prospectus to investors because it provides them with important information about the product being purchased. Our federal and state securities laws require disclosure of the details of the enterprise in which an investor's putting money so that he can be fully apprised and can intelligently appraise the risks involved in his or her particular investment. Not only has DBSI violated the Section 5 of the Securities Act, but it has also violated Section 10 (b) of the Securities Exchange Acts of 1934 (the "Exchange Act"), which states the time prospectus must be delivered. A prospectus is required to be delivered by a securities broker-dealer before the transaction is complete on the settlement date of the transaction, which in the case of mutual fund, other initial public offering (NYSEARCA:IPO) transactions and most stock transactions is no later than 3 business days after the order is placed.

    The failure to deliver prospectuses in a timely manner is an extremely serious violation. It is not only a violation that can result in sanctions by securities regulator such as FINRA, but it can also give rise to a civil action or arbitration claim by an investor for rescission (to unwind the transaction) under both federal and state securities laws. Alternatively, an investor may recover damages for losses suffered in connection with an investment he or she made through DBSI if that investor did not receive a prospectus in a timely manner.

    Have you suffered losses resulting from a DBSI stockbroker's failure to deliver a prospectus relating to an investment made through that brokerage firm? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

    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. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

    Jan 24 11:39 AM | Link | Comment!
  • THE SEC CHARGES FORMER JP TURNER COMPANY BROKER JASON KONNER FOR CHURNING CLIENT ACCOUNTS

    The Securities and Exchange Commission (SEC) has charged former JP Turner and Company broker Jason Konner for churning client accounts with conservative investment objectives. Mr. Konner's churning activity caused severe losses for clients, while he collected hefty fees. He served as a JP Turner registered representative from September 2006 until December 2011, and he is currently a registered representative at DPEC Capital, Inc.

    Churning is a fraudulent practice in which brokers ignore their clients' investment objectives and engage in excessive trading for the purpose of generating commissions. The SEC alleged that between January 2008 and December 2009, Mr. Konner churned two client accounts, which suffered approximate losses of $134,000.00. The SEC said that the trading in the accounts were excessive in light of Mr. Konner's customers' objectives, experience, age, and needs. Mr. Konner split commissions, fees, and margin interest totaling $845,000.00 with two other brokers accused by the SEC for churning client accounts at JP Turner. An administrative proceeding by the SEC against Mr. Konner is currently pending.

    Broker-dealers must establish and implement a reasonable supervisory system to protect customers from churning and similar abuses. If broker-dealers do not establish a reasonable supervisory system, they may be liable to investors for damages. In the case of JP Turner, the SEC found that adequate procedures were not implemented to detect and prevent churning. Therefore, investors who have suffered damages can bring forth claims to recover losses against JP Turner due to Mr. Konner's churning.

    Have you suffered losses as a result of Jason Konner's churning? Did you have an actively traded account with Mr. Konner that the SEC did not review? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

    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. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

    Jan 24 11:32 AM | Link | Comment!
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