Our law firm is presently investigating Edward Jones’ supervisory practices and procedures in connetion with two of the firm’s brokers who were allegedly engaged in “selling away” resulting in millions of dollars in customer losses. “Selling Away” describes the situation where the transaction or securities in question are not approved for sale by the firm, or they are not on the firm’s approved product list.
According to Edward Jones, a client brought the firm’s attention to Gibraltar Partners, Inc., which the firm later learned was in the middle of an FBI investigation. Although Edward Jones fired the brokers involved, some of the firm’s clients reportedly invested money in Gibraltar Partners. It is alleged that Gibraltar Partners and others, including the Rahfco Funds LP, were running a Ponzi scheme. At least two Edward Jones brokers were soliciting funds from customers that eventually led to a complete loss for the Edward Jones clients involved with this scheme.
In June of 2011, a group of investors reportedly sued Gibraltar Partners in Federal Court in New York, alleging that Gibraltar Partners, the Rahfco Funds LP, and other defendants were involved in running an alleged Ponzi scheme. Investors are believed to be seeking $100 million in damages in that suit. Other defendants in the investor lawsuit reportedly include the following: Rahfco Funds LP, Rahfco Select, Rahfco Management Group, Rahfco Investment Funds LP, Gibraltar Partners dba Gibraltar Partners Inc., Gibraltar Funds dba Gibraltar Funds Inc., Anthony Johnson, Robert Johnson, Christine Johnson, individually and dba Arc Ventures, Allison Johnson, Robert Johnson Sr., Annette Johnson, Randal K. Hansen aka Randy K. Hansen, Glenn Griffin, Vincent Puma, Kevin Nugent, Ward Onsa, Hudson Partners NYC, Spicer Jeffries LLP, SFG Accounting PLLC, Man Financial Inc., Permapave USA Corp., Verigreen, Steller Corporation Services, Capstone Investment Funds LLP, Meidinger & Associates CPA’S Prof LLC, Susan Meidinger, CPA, and Entrust Group dba Entrust Retirement Services.
Edward Jones customers who invested in Gibraltar Partners and Rahfco Funds may be able to recover their losses in the FINRA arbitration forum. FINRA’s Arbitration Department is where investors go to seek redress as a result of sales practice violations committed by their brokerage firm, including claims of over-concentration, misrepresentation and omission, unsuitable recommendations and failure to supervise. If you sustained losses in Gibralter Partners or Rahfco Funds, contact our law firm to discuss your legal rights and options.