- November 10, 2018
- Money Concepts Capital Financial
The Wolper Law Firm, P.A. is currently investigating claims against Ray Reece, a Financial Advisor at MONEY Concepts Capital Corp. in Farmington, MO. Ray Reece has been in the securities industry since the 1980s and previously worked at Prudential Insurance Co.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), since 2015, Ray Reece has been the subject of three customer complaints, alleging sales practice violations. The specific allegations against Ray Reece include the following:
April 2018—” Customer alleges RR misrepresented the product as they were not informed it was not publicly traded and therefore illiquid.”
May 2018—”Claimants allege unsuitability, negligence, breach of contract, and breaches of Missouri statutes in connection with the loss of assets they deposited in their accounts in 1999 and early 2000. Claimants also allege that at the time they made a down payment on a whole life insurance policy, Mr. Reese misrepresented to them that the initial premium would not increase and that they could pay no attention to letters from the insurance company which notified them of unpaid premiums. Claimant also allege that Mr. Reese converted their monies for their own use and did not promptly comply with their request for their entire file.” Alleged damages are $650,000 and the matter remains pending.
February 2015—”COMPLAINT WAS WRITTEN BY OUR CLIENT’S DAUGHTER, HOWEVER BOTH SHE AND HER FATHER (CLIENT) SIGNED THE LETTER. DAUGHTER IS ALLEGING FINANCIALS NOTED ON AZTEC NEW ACCOUNT FORM IS NOT CORRECT AND HER FATHER DID NOT QUALIFY AS AN ACCREDITED INVESTOR. ALSO, SHE IS ALLEGING HER FATHER’S ARC BDCA IS DECREASING AT AN FRIGHTENING RATE. IN MARCH 2013 CLIENT INVESTED $125,000 IN AZTEC COMANCHE OIL & GAS DRILLING PROGRAM AND $85,000 IN BUSINESS DEVELOPMENT CORP. OF AMERICA (ARC BDCA). ACCORDING TO MR. REESE, CLIENT PROCURED MUCH CONSIDERATION AND MADE HIS DECISION THOUGHTFULLY. CLIENT SIGNED MANY DOCUMENTS ACKNOWLEDGING HIS FINANCIALS AS AN ACCREDITED INVESTOR (INCLUDED BOTH AZTEC & ARC BDCA NEW ACCOUNT FORMS AND SUBSCRIPTION AGREEMENTS). CLIENT ALSO SIGNED AZTEC AND ARC BDCA CUSTOMER DISCLOSURE FORMS ACKNOWLEDGING HE IS AN ACCREDITED INVESTOR AS WELL AS HE UNDERSTOOD ALL OF THE RISK FACTORS INVOLVED. A COMPLETE SUITABILITY REVIEW WAS CONDUCTED. JANUARY 2014 ARC BDCA ACCOUNT TRANSACTION STATEMENT SHOWING AS 01/02/14 BALANCE AMOUNT OF $87,339.45 AND OVER $11,000 OF INCOME. DURING AUGUST 4, 2014 CLIENT MEETING, CLIENT RESCINDED HIS PERMISSION (VIA SIGNED LETTER) INDICATING DAUGHTER IS AFTER HIS MONEY. ALSO, AT THIS CLIENT MEETING CLIENT REMOVED HIS DAUGHTER AS “TRANSFER ON DEATH” OF HIS AZTEC INVESTMENT.” The matter was settled for $95,000.
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
If you or someone you know was a customer Ray Reece and you experienced investment losses, please contact the Wolper Law Firm, P.A. at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.