The Financial Industry Regulatory Authority (FINRA) licenses and regulates the stock brokerage industry. It requires stock brokerage firms and their stock brokers to be qualified, registered, and approved by the agency before they may offer and sell securities to the public. FINRA also requires its registrants to immediately report regulatory events, such as suspensions, fines, and customer complaints, against the firm and broker. FINRA maintains a database of investor complaints and disciplinary and employment history for registered representatives and publishes some of this information on its BrokerCheck website, www.brokercheck.finra.org. The FINRA BrokerCheck is purportedly useful for predicting future broker misconduct. Unfortunately, not all customer complaints are accurately or completely reported on the website. We are seeking investors with information about National Securities Corporation broker Leonard A. McAbee to determine whether the reported information on the FINRA BrokerCheck website is accurate and complete.
FINRA reports that Mr. McAbee has been registered in the securities industry since 1990. Over the years, he has been registered with 6 brokerage firms: Hibbard Brown and Co. Inc., L. C. Wegard and Co. Inc., Merrill Lynch Pierce Fenner and Smith Inc., H. J. Myers and Co. Inc., Barron Chase Securities Inc., and, most recently, National Securities Corporation. During that period, the FINRA BrokerCheck report indicates that Mr. McAbee has been the subject of one Regulatory Events and 4 Customer Disputes, 2 of which were pending as of August 24, 2016.
The Regulatory Events include one enforcement action brought by the State of Indiana State securities division against Mr. McAbee which was settled by consent for allegedly making trades in the client's account without a properly signed power of attorney. As a result, Mr. McAbee was fined $5,000.
There are 2 customer disputes with allegations of fraud, breach of fiduciary duty, violation of FINRA rules, and failure to supervise that have supposedly settled for amounts ranging from $13,000 to $17,000. There were 2 pending arbitrations reportedly filed involving Mr. McAbee for alleged unauthorized trading, fraud, breach of fiduciary duty, making unsuitable recommendations and churning customer's accounts in violation of FINRA rules while he was employed at National Securities Corporation. We believe that Mr. McAbee's employers may have not accurately or completely reported all of the Customer Disputes involving him and request that all investors with complaints against Mr. McAbee contact our office immediately.
The most important of investors' rights is the right to be informed! We intend to notify FINRA of any and all unreported or inaccurate customer complaints against this firm and/or broker. This blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.