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Securities Fraud Blog

Greco & Greco, P.C.

W. Scott Greco

Fight Investment Fraud

Greco & Greco's lawyers represent investors to recover losses caused by securities fraud, churning, lack of suitability, negligence, sales of unregistered securities, unauthorized trading, and other misconduct by stock brokers, investment advisors, financial planners and their firms.

For a Free Attorney Consultation, call us at 877-821-5550 or 

H.D. Vest Charged With Failures Related to Supervision

The SEC entered a Cease and Desist Order pursuant to an Offer of Settlement by H.D. Vest Investment Securities Inc.  The Order can be found here.

The SEC charged H.D. Vest with failing to implement proper supervisory procedures and policies that would have discovered and prevented a fraudulent scheme by one its brokers who wired monies out of customer accounts to an account controlled by the broker.  H.D. Vest further failed to monitor and preserve investment related emails from its brokers.

H.D. Vest was fined $225,000 and ordered to hire an independent consultant to recommend improvements to its supervisory systems.

Greco & Greco regularly represents investors in broker theft cases such as this.  Customers may attempt to recover their losses in FINRA arbitration and/or court by demonstrating firms’ failures to supervise, failure to follow up on red flags, and by arguing the firm is responsible for the acts of its agent under the legal theories of respondeat superior and vicarious liability.  Federal and state securities laws also mandate liability of control persons (such as brokerage firms) if certain requirements are met.  If you are a victim of broker theft, please contact one of our attorneys for a free consultation. Contact

Posted by W. Scott Greco on 03/11/15.
ArbitrationBrokerage FirmsH.D. Vest InvestmentFINRAFraudSECPermalink

Norfolk Virginia Financial Advisor Charged with Fraud

As reported by the Virginia Pilot, Joshua Abernathy was charged in U.S. District Court for the Eastern District of Virginia with mail fraud related to his alleged unlawful conversion of funds from customers.  Court documents filed by the government allege he defrauded and stole almost 1.3 million dollars from various customers in Texas and Virginia.  The government further alleged that he had many customers write checks to Omega Investment Group and he then converted funds for his personal use.

According to FINRA Brokercheck, Mr. Abernathy was registered with Next Financial from 2007 to 2012 and with The O.N. Equity Sales Company from 2013 to 2014.  FINRA barred him from the securities industry in February, 2015.

Greco & Greco regularly represents investors in “selling away” cases such as this where the broker sells unauthorized securities or converts funds away from his firm.  Customers may attempt to recover their losses in FINRA arbitration and/or court by demonstrating firms’ failures to supervise, failure to follow up on red flags, and by arguing the firm is responsible for the acts of its agent under the legal theories of respondeat superior and vicarious liability.  Federal and state securities laws also mandate liability of control persons (such as brokerage firms) if certain requirements are met.  If you are a victim of Mr. Abernathy, please contact one of our attorneys for a free consultation.

Posted by W. Scott Greco on 03/05/15.
Affinity FraudArbitrationBrokerage FirmsNext FinancialO. N. Equity Sales CompanyFINRAFraudPonzi SchemeSecurities FraudState RegulatorsVirginiaPermalink

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