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FINRA Disciplinary Action against Legend Securities, Inc.

On December 4, 2017, an Office of Hearing Officers decision became final in which Legend Securities, Inc.  was censured and fined $200,000.  The sanctions were based on findings that it failed to supervise one of his registered representatives who engaged in a manipulative, deceptive and fraudulent scheme in which he churned the accounts of an elderly and blind customer.

The investigation revealed that between October 1, 2012 and December 31, 2015, the firm’s agent, Hank Werner, churned and excessively traded each of the three of the elderly client’s accounts, charging more than $243,000 in commission and fees.  According to the complaint, the Firm identified the representative as an individual who should be subject to heightened supervision, however, it failed to act at any time during the investigation period.  Additionally, the firm failed to reasonably supervise the Mr. Werner, which allowed him to engage in unsuitable trading and churning in the customer’s accounts causing the client’s losses of nearly $184,000.  The firm failed to enforce its procedures and adequately monitor its representatives.

If you believe that you have suffered losses as a result of misconduct, you may contact David A. Weintraub, P.A. 7805 SW 6th Court, Plantation, FL 33324.  By phone: 954.693.7577 or 800.718.1422.