RAPHAEL HUAMAN BARRED FROM THE SECURITIES INDUSTRY BY FINRA FOR MISAPPROPRIATING FUNDS

Raphael Huaman, a former broker with Atlanta, Georgia based Suntrust Investment Services, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the entry of the Financial Industry Regulatory Authority's (FINRA) that he misappropriated a total of $134,047.65 from different bank trust accounts at his member firm's affiliate. The findings stated that Mr. Huaman misappropriated the funds by having a colleague transfer money from the bank trust accounts to a separate affiliate account. Mr. Huaman requested and obtained checks drawn on these accounts made out to third-party payees and deposited the checks into his personal bank account. When the Suntrust Investment Services' affiliate confronted Mr. Huaman regarding the transactions, he admitted his misconduct, and Suntrust Investment Services terminated his employment. FINRA also stated that Mr. Huaman failed to respond to FINRA requests for information. Mr. Huaman, of Miami, Florida, 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 due to misappropriation against broker-dealers like Suntrust Investment Services, which should have prevented the above described illegal activity. Have you suffered losses in your Suntrust Investment Services, 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.

GENSPRING IN THE HOT-SEAT FOR HEDGE FUNDS SOLD AS CONSERVATIVE BOND ALTERNATIVES

The Law Offices of Robert Wayne Pearce, P.A. is currently investigating GenSpring Family Offices (formerly Asset Management Advisors (AMA)), a large wealth management firm that serves high net worth individuals and families, for selling hedge funds to investors as an alternative to bond or fixed income investments. Some of the hedge funds that were sold were "funds of funds" with layers of managers and mixed investment strategies. Some Investor portfolios have lost up to 24 percent of their value between September 2008 and December 2008 - more than two times the amount of downside protection promised by GenSpring to its clients. This comes as no surprise given the amount of misrepresentation and lack of disclosure issues related to high risk investments that investors have been facing recently.
Hedge funds are similar to mutual funds in structure. Investor money is pooled together and invested in an effort to make a positive return. However, hedge funds have more flexible investment strategies than mutual funds. Hedge funds seek to profit in all kinds of markets by utilizing strategies involving leverage, short-selling, and other speculative investment practices that are not typically used by mutual funds. Another factor that distinguishes hedge funds from mutual funds is that hedge funds are not subject to the same regulations designed to protect investors. Depending on the amount of assets in the hedge funds advised by a manager, some hedge funds may not be required to file reports with the SEC. Fortunately, hedge funds are subject to the same prohibitions against fraud as are other market participants. In addition, managers owe a fiduciary duty to the funds under management.
GenSpring has more than $17 billion under management, and it currently caters to some of the wealthiest families in the world. It is a wholly-owned subsidiary of SunTrust and has offices in Florida, Minnesota, Tennessee, Colorado, California, Georgia, Maryland, Connecticut, North Carolina, Arizona, and New York.
Have you suffered losses resulting from an investment misrepresented by GenSpring Family Offices? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold unsuitable investment to investors.
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.

FLORIDA SUNTRUST INVESTMENT SERVICES BRANCH MANAGER BRENNAN R. LOLLAR BARRED FOR MISAPPROPRIATING FUNDS

The Financial Industry Regulatory Authority (FINRA) has barred Brennan R. Lollar from association with any FINRA member for misappropriating funds while working as a branch manager for SunTrust Investment Services. FINRA's finding stated that Mr. Lollar transferred funds into customers' accounts without SunTrust's permission and labeled them as refunds of banks fees. However, bank fees were never incurred by the customers, and Mr. Lollar knew that the customers were not entitled to any refunds. Mr. Lollar misappropriated a total of $3,242.90 into customer accounts through a series of small transactions - Mr. Lollar admitted to the bank that he issued the false refunds for purposes of gaining favor with certain customers. SunTrust Investments obtained reimbursement through the liquidation of Mr. Lollar's retirement fund. In addition, Mr. Lollar did not respond to FINRA requests for information and failed to appear for an on-the-record FINRA interview.
Broker-dealers must establish and implement a reasonable supervisory system to protect clients from fraudulent practices by their investment professionals. If broker-dealers do not establish and/or implement a reasonable supervisory system, they may be liable to investors for damages. Therefore, investors who have suffered damages resulting from the misappropriation of their funds by an investment professional can bring forth claims to recover losses against their broker-dealer for failure to prevent such illegal activity.
Have you suffered damages resulting from a misappropriation of your funds? 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.