Texas Securities Cases: Ex-LPL Financial Adviser is Suspended for Charging Unreasonable Fees and Commissions, State Regulator Enters Cease and Desist Order Against R2B Coin, and Former Pharr Bank Worker Pleads Guilty to $1M Theft Involving Elderly Customers

Beaumont, TX Investment Adviser is Suspended for 90 Days
In a Disciplinary Order, the Texas State Securities Board suspended former LPL Financial LLC (LPLA) investment adviser Jason N. Anderson for 90 days. The state contends that while registered with that firm, Anderson touted an active-trading program to clients that charged them unreasonable fees, which included commissions to Anderson, as well as trading costs.

For example, one client paid costs that were approximately 30% of “the value of the average equity securities” in the client’s account. The Texas regulator said that the trading program would have had to make “extraordinary returns” for investors to “offset” such fees or even, in some cases, allow them to merely “break-even.”

The order called the commissions and trading costs “inequitable practices” that violated the Texas Securities Act. The state accused Anderson of not having reasonable grounds for believing that the trading program would be appropriate for these clients.

However, the state’s order also approved Anderson’s registration with Financial Management Services of America, LLC. He was previously registered with Kovack Securities and IFS Securities.

State Regulator Said R2B Coin is Not Registered to Sell Securities in Texas
In an emergency cease and desist order, the Texas State Securities Board is accusing R2B Coin of fraud related to its sale of the r2b coin cryptocurrency. The regulator contends that Williams Corp. Ltd., which is the supposed distributor of the coin, is not registered to sell securities to investors in the state.

Currently, R2B Coin is asking investors, including Texas investors, to participate in a “pre-sales” period of the r2b coin, claiming that the more they invest the more their “life will change.” R2B Coin is purportedly promising prospective investors that their r2b coin will never lose value unlike other cryptocurrencies.

The company maintains that it will soon be listed on a major stock exchange and that investors will be able to get stock for their tokens. R2B Coin recruits sales agents to solicit investors as part of what the Texas regulator describes is a “multilevel marketing scheme.” Texas investors are among those being solicited for money by these agents who stand to receive “generous commissions.”

The Texas State Securities Board’s Enforcement Division is accusing R2B Coin of committing multiple violations of the state’s Securities Act.

Former South Texas bank Worker Pleads Guilty to Embezzlement
Cynthia Luna Rodriguez, an ex-Pharr, TX. bank worker, has pleaded guilty to stealing over $1M from six customers. She embezzled money from them while at First National Bank in Edinburg and after PlainsCapital Bank took over that entity.

Her victims were older customers whom she met at the bank or people living abroad who were less likely to notice their US account bank balances. Rodriguez made unauthorized account withdrawals.

Texas Securities Fraud
Throughout the state, our Texas securities fraud lawyers represent investors that have suffered losses because of negligence, inadequate supervision, carelessness, fraud, and other wrongful acts. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.

Texas Securities Act (PDF)

The Disciplinary Order Against Anderson (PDF)

The Cease and Desist Order Against R2B Coin (PDF)

More Blog Posts:
Ex-Financial Adviser Settles Private Equity Fund Fraud Charges in Texas, Stockbroker Fraud Blog, December 8, 2017

Texas REIT UDF Files Lawsuit Accusing Hedge Fund Manager of Damaging False Statements, Stockbroker Fraud Blog, November 30, 2017