Friday, January 10, 2014


Huel Cox Jr., a former broker at Duluth, Georgia based PFS Investments, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the described sanction and the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he misappropriated a customer's funds for his own personal use. According to FINRA's findings, Mr. Cox solicited a friend, who was also a customer of his member firm, to make various investments in real estate and a casino. The customer agreed to make the investments and, over a period of years, wrote personal checks payable to Mr. Cox. FINRA found that Mr. Cox did not make any of the promised real estate investments for the customer. Further, it found Mr. Cox misappropriated at least $206,398.89 of the customer's funds for his own personal use without the customer's authorization. Mr. Cox, of Phoenix, Arizona, was barred from associating with any FINRA member in any capacity.

Broker-dealers must establish and implement a reasonable supervisory system to protect customers from stockbroker fraud and other stockbroker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for failure to supervise and the damages flowing from the misconduct. Therefore, investors who have suffered damages due to prohibited activity such as misappropriation of funds can bring forth claims to recover losses against broker-dealers like PFS Investments, which should monitor their brokers' activities in order to prevent the above described illegal conduct.

Have you suffered losses in your PFS Investments account due to misappropriation of funds by your broker? 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 who may have engaged in stockbroker misconduct and caused investment losses.

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 33 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,, post a comment, call (800) 732-2889, or email Mr. Pearce at for answers to any of your questions about this blog post and/or any related matter.

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