If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*
Need Legal Help? Contact Us. Call +1 (888) 997-9956
Our law firm is investigating Securities America, Inc. relating to the supervision of Larry J. Dearman, Sr. (“Dearman”) who allegedly ran a Ponzi-scheme. On August 27, 2013, the Securities and Exchange Commission (“SEC”) brought securities fraud charges against Dearman and his close friend, Marya Gray, in connection with alleged fraudulent securities offerings that raised at least $4.7 million from more than 30 of Dearman’s advisory clients. The securities at issue include investments in Bartnet Wireless Internet, The Property Shoppe and Quench Buds.
From February 2005 to January 2009, Dearman was registered with FINRA broker-dealer Brecek & Young Advisors (“Brecek”). After Brecek was acquired by Securities America, Dearman was registered with Securities America from January 2009 to February 2010. Under FINRA Rules, these firms were obligated to properly supervise the activities of Dearman during the time he was registered with the brokerage firms. Accordingly, Securities America may be liable for failing to supervise Dearman’s activities while registered at Brecek and then Securities America, and could potentially be responsible for compensating customers of Dearman for their losses.
According to the SEC’s Complaint, “from approximately December 2008 through August 2012, Tulsa-resident Dearman, an investment adviser then working in Bartlesville, Oklahoma, and his friend Gray raised at least $4.7 million through various illegal schemes in which Dearman fraudulently obtained investments from more than 30 of his investment-advisory clients. Dearman promised his clients he would apply the money to various investments in entities owned or controlled by Gray. But in truth, he and Gray squandered the vast majority of those funds in gambling, personal expenses, payments to other businesses controlled by Gray, and payments to other investors, i.e., Ponzi payments. In addition, Dearman also stole roughly $700,000 from some of his clients through various ruses in flagrant violation of his fiduciary duties owed as an investment adviser. Dearman and Gray were able to lure these clients in part because many of them had known him and his family since childhood, thought of him as an active member of their church, and knew him as a popular local wedding singer.”
If you have information relating to this investigation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of KlaymanToskes, at 888-997-9956.