Stuart G. Dickinson, a former registered representative with the Highland Park, Texas branch of WFG Investments, Inc. was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he failed to perform adequate due diligence in connection with a private placement securities offering that turned out to be a fraudulent investment.
The complaint alleges that Mr. Dickinson, of Highland Park, Texas sold limited partnership interests in ATMA, LP (ATMA), a private placement securities offering involving the acquisition and operation of automated teller machines (ATMs) to seven customers of WFG Investments for $1,024,000. According to FINRA’s complaint, Mr. Dickinson failed to conduct adequate due diligence with respect to the securities investment, because the underlying business scheme of the offering was a fraud and most of the ATMs were fictional. FINRA’s complaint alleges that had Mr. Dickinson conducted proper due diligence of the offering, he would have found numerous red flags, such as stale and overstated performance history. As a result of the foregoing alleged events, Mr. Dickinson’s seven customers suffered a total loss of more than a million dollars.
Stockbrokers, registered representatives, and other financial industry personnel have been known to engage in many types of fraud and other violations of industry rules, practices, and procedures. In order to protect customers from broker misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors do not establish and implement such protective measures, they may be a liable to account holders for damages flowing from the misconduct. As a result, account holders who have suffered losses stemming from a registered representative’s failure to conduct due diligence and/or other types of misconduct can bring forth claims to recover damages against broker-dealers like WFG Investments, which have a duty to oversee its employees in order to prevent these types of stockbroker misconduct.
Have you suffered losses in your investment account due to Mr. Dickinson or any other WFG Investments 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 WFG Investments and others stockbrokers for unsuitable recommendations, failure to do due diligence, and/or other 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 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.