Securities Fraud: FINRA Bars Ex-UBS Broker, Imprisoned Former LPL Financial Broker Faces SEC Charges, and SEC Refiles Unregistered Securities Fraud Case

Former UBS Broker is Barred form the Securities Industry
Ronald Broadstone, an ex-UBS (UBS) broker, has agreed to be barred from the securities industry. The Financial Industry Regulatory Authority is the one that brought the ban, accusing him of misusing and misappropriating customer monies, settling a customer case without telling his firm, and taking part in unauthorized trading.

According to the self-regulatory organization, Broadstone’s attorney testified that the former broker would not respond to more questions. His refusal to speak violated FINRA rule 8210.

SEC Charges Ex-LPL Financial Representative of Bilking 23 Investors
The US Securities and Exchange Commission has charged Thomas Edward Andrews, a former LPL Financial (LPLA) representative, and his personal assistant Scott Walter Christensen with securities fraud. The two men are accused of bilking investors by getting them to liquidate investments and invest their money in “the Lincoln “ and “the Jackson Trust.”

Andrews guaranteed yearly returns for both of at least 5% or more when, in truth, said the Commission, the investments were bogus. Instead, Andrews used investors’ funds to pay for his own expenses. Christensen is accused of helping Andrews commit fraud. The SEC said that Andrews misappropriated over $8M and paid Christensen $1M for his help.

The civil charges are not all that the two men are facing. Last December, Andrews pleaded guilty to mail fraud and securities fraud, and he was sentenced to 97 months behind bars. Andrews was told to pay full restitution.

Earlier that year, Christensen pleaded guilty to making false statements to a federal agent and also to securities fraud. He was ordered to repay his ill-gotten gains and serve a year in prison.

Man Accused of Making Fraudulent Unregistered Securities Sales Must Pay Full Restitution
Last month, in a California district court, the SEC submitted a settled civil enforcement case against Michael Andre Jones accusing him in the fraudulent offering and sales of unregistered securities. This was an identical action to the one that the Commission had filed against him in federal court in DC last year. That action was dismissed without prejudice.

The Commission accused Jones of selling over $700K of convertible promissory notes to 20 investors in a dozen states, making reckless fraudulent statements, and running a scam to bilk investors.

According to the complaint, the promissory notes that he sold were unregistered securities but not exempt from registration with the SEC. The regulator also accused Jones of acting as an unregistered broker when making the offering.

Jones has settled the case and will pay over $709K of disgorgement, a penalty of the equivalent amount, and more than $77K of prejudgment interest.

Securities Fraud Cases
At Shepherd Smith Edwards and Kantas, LTD LLP, our securities fraud lawyers work with investors throughout the US, as well as investors abroad with claims against financial firms and/or representatives based in the US. We are here to try to help our clients recoup their losses sustained because of the negligence, carelessness, or wrongdoing of brokers, investment advisers, broker-dealers, and other members of the securities industry, as well as those claiming to be registered within the industry but who are are not. Over the years, we have successfully helped thousands of investors.

If you are a retail investor, an senior investor, a high net worth investor, a novice investor, a sophisticated investor, and/or an institutional investor and you would like to determined whether you have grounds for a broker fraud claim, contact us today.

Finra bars former UBS broker, InvestmentNews, April 27, 2017

SEC Charges Two Individuals with Defrauding 23 Investors, SEC, April 26, 2017

SEC Refiles Action Charging Michael Andre Jones with Fraudulent Offering and Sales of Unregistered Securities, SEC, April 27, 2017