FINRA has filed a complaint against Lawrence LaBine of Fountain Hills, Arizona for alleged misrepresentations and omissions of material fact. LaBine, who was a representative at DeWaay Advisory LLC between 2007 and 2010, allegedly sold senior debentures (Series D) issued by Domin-8 to over 100 clients guaranteeing them that they would preserve their initial principal.
At the time (April-August 2009), LaBine was receiving updates on Domin-8’s poor financial condition. FINRA alleges that LaBine knew of and willfully failed to disclose Domin-8’s perilous financial condition to his clients in connection with those sales. In September 2009, Domin-8 filed for bankruptcy.
FINRA also alleges that between August-December 2009, LaBine made fraudulent misrepresentations and omissions of material fact to four of his clients with regard to the sale of D8 Acquisition Corp. (D8) securities. FINRA alleges that LaBine created D8 in an effort to acquire some of the assets of Domin-8 in bankruptcy and that LaBine told those clients who invested in Series D that they would receive their principal if they invest in D8, which was untrue.
FINRA also alleges that the investments that he offered to clients were unsuitable for their age and experience level. LaBine allegedly offered Series D, D8, REITs (Real Estate Investment Trust) and other investments to six elderly clients. The clients were “interested in conservative, low risk investments that would preserve the principal they were to invest” which was the opposite of LaBine’s alleged investment recommendations. FINRA alleges that LaBine “ignored critical investment objectives expressed by customers and instead recommended higher risk alternative investment” which could be a violation of FINRA Rule 2010.
The FINRA Department of Enforcement has requested that the Panel make findings of fact and conclusions, require Mr. LaBine to pay full restitution, and make specific findings on Mr. LaBine’s alleged willful violation of the Exchange Act. Lawrence LaBine is currently a member of Newbridge Securities and has been since 2010. LaBine has been in the securities industry for 29 years and has received 20 disputes during that period.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers like DeWaay Advisory to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as DeWaay Advisory’s own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like DeWaay Advisory, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Dewaay Advisory investment account due to your stockbroker’s misconduct? 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 stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
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 40 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 firstname.lastname@example.org, 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.