A brokerage firm has a duty to supervise accounts under its supervision and the activities of its registered representatives to prevent unauthorized transfers or withdrawals, according to Jake Zamansky.
New York, NY (PRWEB) March 12, 2013
Zamansky & Associates LLC (“Zamansky”) announces that it is investigating financial advisor Lewis Hunter of H. D. Vest Investment Services (“HD Vest”), a FINRA member. The investigation concerns Hunter’s activities at HD Vest, and his potential recommendations to customers.
The Securities and Exchange Commission (“SEC”) has filed an administrative and cease-and-desist proceeding against Hunter, to determine whether he committed any violations. The case is SEC Admin. Proc. No. 3-14974. In the Order instituting the proceeding, the SEC alleges that Hunter wired funds from HD Vest customers to bank accounts he controlled for the purpose of trading in foreign currency. The SEC alleges that while he was an HD Vest-registered representative, Hunter was associated with National Business Concepts International-CME Trade Group, LLC and International Trade Alliance, LLC, two foreign currency trading firms. The SEC also alleges that Hunter used funds from HD Vest customers for his own personal and business expenses.
“A brokerage firm has a duty to supervise accounts under its supervision and the activities of its registered representatives to prevent unauthorized transfers or withdrawals,” according to Jake Zamansky. “Brokerage firms also have duties to supervise outside sales transactions called ‘selling away,’” according to Jake Zamansky. In addition to “knowing their customers”, FINRA Rules require brokerage firms to know what their employees are up to, says Zamansky.
What Investors Can Do
If you were a customer of Hunter’s at HD Vest, or the customer of another financial advisor who recommended that you wire money to an outside investment, and would like to discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky & Associates LLC
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414