The Securities and Exchange Commission has filed a complaint charging Brent S. Lemons, a former AG Edwards Inc. and Bank of America Investment Services Inc. stockbroker, with misappropriating over $1.3 million from at least three clients. He allegedly used the money to pay off his gambling debts.
The Commission is accusing Lemons of violating Section 10(b) of the Securities Act of 1934 and Rule 10b-5 there under. The SEC says that Lemons, who managed the financial affairs of certain customers, had clients sign brokerage and bank documents in blank. The former stockbroker allegedly then told them he would use the documents to liquidate securities in their accounts and reinvest any proceeds in instruments that were higher yielding.
The SEC is seeking a permanent injunction against Lemons, as well as disgorgement with prejudgment interest and a civil penalty. He also faces criminal charges related to his alleged misconduct.
It is wrong for a stockbroker to misappropriate investor funds for personal use. If you have lost money because of broker misconduct, our stockbroker fraud lawyers can help you determine whether you have grounds to file a claim to get your money back.
Examples of common claims involving broker misconduct:
• Unsuitability • Misrepresentation • Overconcentration • Omissions • Churning • Failure to Supervise • Failure to Execute Trades • Breach of Fiduciary Conduct • Breach of Contract • Negligence • Breach of Promise • Margin Account Abuse • Unauthorized Trading • Registration Violations
Related Web Resources:
SEC Charges Brent Lemons, Former Registered Representative From Tyler, Texas, With Fraud, SEC.gov
Read the SEC Complaint (PDF)
Contact Shepherd Smith Edwards & Kantas LTD LLP today.