The Financial Industry Regulatory Authority is accusing former broker Barkley Lundy, who worked with PFS Investments, of defrauding at least 20 customers. The self-regulatory organization claims that from at least 1/11 through 3/14, Lundy took these clients’ funds and placed the money in his own bank accounts. He also purportedly generated fake investments, issuing monthly payments to customers to conceal the securities fraud. FINRA says that Lundy violated FINRA Rule 2010 when he comingled customer monies.
The SRO said that Lundy kept a list of customers, setting up a payment schedule for them to receive monthly payments. PFS Investments was unaware of the payment schedule and the list. Lundy moved the money of a few of his customers from his account into their bank accounts and then moved the funds into their PFS accounts. He also worked it out so that these customers bought mutual fund shares that were customer-held. Lundy explained the fund movements as “dividend reinvestments.”
He gave one customer, per that client’s request, tax forms to track the monthly payments. FINRA, however, says that the documents were fabricated and contained falsified information. Meantime, Lundy made it appear as if PFS Investments not only provided the documents but also created them.
Without denying or admitting to the findings, Lundy has accepted and consented to the Letter of Acceptance, Waiver, and Consent, as well as to a bar preventing him from associating with any FINRA member. Our stockbroker fraud lawyers at Shepherd Smith Edwards and Kantas, LTD LLP are investigating investor claims involving PFS Investments and Barkley Lundy.
In addition to the customers that are part of the probe, Barkley may have acted improperly with other clients. Customers of Barkley should therefore carefully review their accounts. If you feel like you may have sustained unnecessary or inexplicable investment losses while working with Barkley or PFS Investments, contact our securities fraud law firm today.
Shepherd Smith Edwards & Kantas LLP Investigating Claims Involving Barkley Lundy and PFS Investments, Inc., PR Newswire, January 27, 2015
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FINRA Fines Fidelity $350K for Overcharging More than 20,000 Clients $2.4M, Stockbroker Fraud Blog, January 20, 2015