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PFS Investments Broker Named in a FINRA Complaint for Misrepresentations Involving Customer Funds

Norma M. Skeete, an Arlington, Virginia-based registered representative formerly employed by PFS Investments Inc. (PFS Investments), was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging she made negligent misrepresentations to a PFS Investments customer in connection with a loan that customer made to a real estate venture.

According to the Complaint, Norma Skeete made multiple negligent misrepresentations to her PFS Investment customer. FINRA alleged that Ms. Skeete exchanged emails with the customer, allegedly assuring the investor that the loan would be safe and would be returned. Based on what business partners told Ms. Skeete, she allegedly responded to an email from her PFS Investments customer seeking an update about his $160,000 loan. According to FINRA, Ms. Skeete allegedly told the customer “things are going according to plan,” and that the loaned funds were “not in jeopardy” and were “absolutely going to be reimbursed.” However, Ms. Skeete allegedly neglected the due diligence to actually look into the independent steps necessary to understand how the loans would be documented, where the funds would be held, and who would be holding the funds.

FINRA’s complaint alleges that Norma Skeete never ventured to see if her PFS Investments customer’s funds were safe or if his return was guaranteed. Consequently, the PFS Investment customer never recovered his investment of approximately $160,000. The FINRA Complaint charges Ms. Skeete with violating FINRA Rule 2010, which states that a member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of the trade. According to FINRA, each of the misrepresentations constitutes separate and distinct violations of FINRA Rule 2010.

Stockbrokers and other financial industry professionals have been known to engage in different types of misconduct which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker dealers to establish and implement a supervisory system. The implementation of these rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be held liable to investors for damages flowing from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s lack of due diligence and misrepresentations can file a claim to recover damages against broker dealers like PFS Investments, which should consistently oversee its employees in order to prevent stockbroker misconduct.

Have you suffered losses in your PFS investment account due to your stockbroker’s misrepresentations and/or failure to do due diligence? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against PFS Investments stockbrokers for the above-described misconduct and other types of stockbroker misconduct.

The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at pearce@rwpearce.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.