Matt David Degenhart, a former broker with New York, New York based MetLife Securities, Inc., submitted a Letter of Acceptance, Waiver and Consent in which consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that a client gave him a $2,500 check to earn more interest than what she was currently receiving to cover upcoming legal expenses. Mr. Degenhart requested the client leave the payee line of the check blank, made the check payable to himself, deposited it into his personal checking account, and used the client's funds for his personal expenses, thereby converting her funds, without the client's knowledge or authorization. FINRA stated that when the client informed Mr. Degenhart that she had received the bill from the attorney, Mr. Degenhart gave her a $2,597.09 cashier's check, which represented a return of $2,500 plus interest of approximately 1.6 percent. Mr. Degenhart, of Orefield, Pennsylvania, was barred from association with any FINRA member in any capacity.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the misconduct. As a result, investors who have suffered damages can bring forth claims to recover losses against broker-dealers like MetLife Securities, which should have prevented the above described illegal activity. Have you suffered losses in your MetLife Securities, Inc. account due to broker misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
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 30 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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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