HUEL COX JR. BARRED BY FINRA FOR MISAPPROPRIATING CUSTOMER'S FUNDS
Contributor Since 2012
Mr. Pearce has tried, arbitrated and mediated numerous disputes involving complex securities, commodities, administrative, contract, commercial, business tort and employment law issues for over 35 years. He has represented hundreds of clients in Federal and state courts (trial and appellate) as well as administrative, arbitration, and mediation proceedings before the U.S. Securities and Exchange Commission (SEC), Commodities Futures Trading Commission ("CFTC"), Florida Office Financial Regulation (FlaOFR), Florida Division of Securities & Investor Protection ("FDS"), Financial Industry Regulatory Authority (FINRA), National Association of Securities Dealers regulation, Inc. ("NASD"), New York Stock Exchange, Inc. ("NYSE") and/or National Futures Association ("NFA"). Mr. Pearce is a Florida Circuit Court Civil Mediator and a respected mediator in the FINRA Mediation Program. He also acts as a private judge or arbitrator in mini-trials and arbitration proceedings, respectively. Mr. Pearce has also served as a Federal Court-appointed Receiver- an attorney who is called upon by Federal and state regulators (SEC, CFTC and FlaOFR) to take over companies engulfed in legal problems. Areas of Practice • Courtroom Litigation, Arbitration and Mediation Proceedings Involving • Securities and Commodities Law • Business & Commercial Law • Federal, State and Industry Enforcement Actions • Employment Law A Brokerage Employees Only • Trust / Estate / Guardianship Law • Probate & Estate Administration Education • Hofstra University School of Law, Hempstead, New York J.D. - 1979 • Hofstra University School of Business, Hempstead, New York M.B.A. - 1979 • Florida Tech B.S. – 1973 Professional Associations and Memberships • American Association for Justice • Florida Justice Association • Broward County Bar Association • Broward County Justice Association • Palm Beach County Bar Association • Palm Beach County Justice Association • Public Investor Arbitration Bar Association • South Palm Beach County Bar Association Past Employment Positions • Lerner & Pearce, P.A., January 1, 1990 - December 31, 1999 • Lerner, Harris, Pearce, P.A., March 1, 1983 - December 31, 1989 • U.S. Securities & Exchange Commission, May 1, 1980 - February 28, 1983
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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