Ex-Dallas Broker Accused of Texas Securities Fraud Face Five Years
Wade Lawrence, a former Dallas broker, has pleaded guilty to Texas securities fraud. As part of his plea bargain the 43-year-old will have to forfeit $1.5 million and pay over $250,000 in fines. He also faces up to five years behind bars for his $2.1 million securities scam.
According to prosecutors, over the course of working for several securities firm over the last seven years, Lawrence falsely offered risky investments with the promise of 20% to 100% returns. He lost a significant amount of money and invested just a portion of investors’ funds. Lawrence used a lot of investors’ cash to cover his own living expenses, personal travel, as well as pay for fancy jewelry. The Associated Press reports that to date Lawrence has given back $581,000 to investors.
Minnesota-Based Brokerage Firm Files for Bankruptcy
Broker-dealer Fintegra has filed for bankruptcy in U.S. Bankruptcy Court in Minnesota. The firm had to stop its securities business in June after it was hit with a $1.5M arbitration award that placed it under the $250,000 regulatory net capital requirements of minimum.
According to the FINRA arbitration panel, Finestra and a broker violated state anti-fraud provisions related to the sale of Miasole Investments II, an unregistered security. The securities fraud complaint, submitted by Fintegra customers, states that the broker-dealer could only pay $300,000 of the award. However, InvestmentNews reported that the attorneys for one of the clients said that to date none of the award has been paid.
Fintegra, in its FOCUS report with the SEC, admitted that it had been named in five separate lawsuits, all involving the alleged sale of securities that were either unsuitable or violated state securities laws.
The broker-dealer had hoped to regroup, but in July, it reached an agreement to transfer its advisers to Ladenburg Thalmann Financial Services Inc., which is a Securities America Inc. subsidiary.
Broker Settles FINRA Arbitration Case, Is Permanently Barred from Selling Securities
Hector Perez is permanently banned from selling securities. The New Jersey broker settled Financial Industry Regulator Authority charges accusing him of persuading investors to place $3 million into a project that was supposed to pull precious metals from leftover mining operations.
The regulator contends that the project was “nearly worthless.” FINRA said that investors were persuaded to get involved because they were told that their money would double within the year. By settling, Perez is not admitting or denying the findings.
He is one of a group of brokers who used to work for HFP Capital Markets. The firm and its executives were previously sanctioned in this matter. The brokers also purportedly failed to disclose that the firm’s executives had a stake in the metals and mining company.
Our broker fraud lawyers at Shepherd Smith Edwards and Kantas LTD LLP are here to help investors get their money back. We have helped thousands of investors recover their securities losses. Our clients reside in the US and abroad.
Former Dallas Securities Broker Faces Up To Five Years For Fraud, DFW.CBSLocal.com, September 15, 2015
Struggling broker-dealer Fintegra files for bankruptcy, InvestmentNews, September 24, 2015
Kearny man, 3 other brokers settle fraud allegations, NJ.com, September 17, 2015