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The Securities Law Firm of KlaymanToskes announced today that it is investigating securities arbitration claims relating to losses sustained in Maumee Authority Stamping’s “investments-for-jobs” program.
In 2008, Maumee Authority Stamping, an automobile parts manufacturer in Maumee, Ohio, created an investment program that offered job applicants the ability to obtain a job with the company by making an investment in the company. With the appeal of this offer, many investors invested in the program. Maumee Authority Stamping shut down soon thereafter. As a result, many of Maumee Authority Stamping’s investor-employees lost their investment and their jobs.
According to KlaymanToskes’s investigation so far, FINRA brokers were involved in selling investments in Maumee. One broker, Mark Alan Pantenburg, formerly of LPL Financial, was suspended for 60 days by the Ohio Department of Commerce, Division of Securities for failing to disclose that he had conducted no due diligence but encouraged his customers to invest in Maumee Authority Stamping, for failing to fully inform investors about their investments, and for falsely leading investors to invest in Maumee by telling them their investments were secure and that they would be hired by Maumee. After a hearing, the Commissioner issued a final order suspending Mr. Pantenburg’s licenses for 60 days based on a finding that he lacked good business repute under Ohio statutes. As Mr. Pantenburg was registered with LPL when he engaged in this conduct, LPL may be liable for the resulting losses, as the firm was obligated to properly supervise the activities of Pantenburg. Two other former LPL advisors, Richard Sandru and Eric M. Douglas, were also involved in selling investments in Maumee. Other FINRA brokers may have also been involved in selling this investment.
Most likely, LPL did not approve the Maumee product for sale by its representatives. When the advisors sold the unapproved product anyway, they engaged in conduct which is called “selling away.” In most cases, brokerage firms are responsible to the customer for losses sustained as a result of selling away.
If you invested in Maumee Authority Stamping’s “investments-for-jobs” program or have information relating to this investigation, contact KlaymanToskes, toll free, at 888-996-9956.