The Securities Arbitration Law Firm of KlaymanToskes investigates Waddell & Reed and WRP Investments (“WRP”) in connection with the supervision of Jeffrey Brian Meyer, CRD No. 411125. On August 21, 2014, the Financial Industry Regulatory Authority (“FINRA”) filed a Complaint against Meyer. According to the Complaint, Meyer, “while employed by Waddell & Reed and WRP, acted outside the scope of his employment with those firms by participating in 37 private securities transactions totaling more than $1.5 million, without providing prior written notice to the firms of his proposed roles in the transactions. As a result of the foregoing, Meyer violated NASD Conduct Rules 3040 and 2110 and FINRA Rule 2010.”
FINRA alleges that Meyer participated in private securities transactions of United Private Capital. FINRA’s Complaint states that, “United Private Capital, Inc. was a corporate entity established as an investment vehicle for Forex currency trading. Between November 2008 and September 2009, United Private Capital, Inc. sold corporate guarantees totaling approximately $1 million to 20 investors…The corporate guarantees issued by United Private Capital, Inc. were securities. By his own admission, while associated with Waddell & Reed, Meyer participated in each of the private securities transactions identified [by FINRA]… For example, Meyer in some instances collected checks from customers and assisted them in preparing documentation necessary to effect the transaction. On at least one occasion, Meyer presented sales material to an individual who subsequently invested in the product. Meyer’s participation in the private securities transactions…was outside the course and scope of his employment at Waddell & Reed.”
FINRA also states that Meyer participated in private securities transactions of Strategic Lending Solutions. In its Complaint, FINRA states, “Strategic Lending Solutions LLC was a limited liability company established to make commercial loans to its customers using funds solicited from investors. Between January 2010 and July 2012, Strategic Lending Solutions LLC issued promissory notes totaling approximately $300,000 to 13 investors… By his own admission, while associated with WRP, Meyer participated in each of the private securities transactions identified [by FINRA]. For example, Meyer in some instances collected checks from customers and assisted them in preparing the documentation necessary to effect the transaction. In addition, Meyer on several occasions received selling compensation in the form of a 2% payment based on the amount of the promissory note.”
FINRA also states that Meyer participated in private securities transactions of K&M Oil Company. In its Complaint, FINRA states, K&M Oil Company, Inc. was a corporate entity established for the purpose of purchasing and developing oil wells. Meyer invested approximately $30,000 of his own money in K&M Oil Company, Inc. and held a one-third interest in the entity. Additionally, he served as K&M Oil Company’s Secretary-Treasurer and Vice-President of Finance. Between August 2010 and July 2011, K&M Oil Company, Inc. issued promissory notes totaling approximately $238,000 to eight investors. The promissory notes issued by K&M Oil, Inc. were securities… By his own admission, while associated with WRP, Meyer participated in the private securities transactions involving the promissory notes identified [by FINRA]. For example, Meyer retained the services of a consultant who helped prepare offering documents, attended offering presentations held in Texas, Florida and California, and in certain instances provided offering documentation to investors and accepted their investment checks.”
According to FINRA’s BrokerCheck, during the time period of January 2006 to September 2009, Meyer was registered with Waddell & Reed. Thereafter, from September 2009 to August 2012, Meyer was registered with WRP. Under FINRA Rules, these firms were obligated to properly supervise the activities of Meyer during the time he was registered with the respective firms. Accordingly, Waddell & Reed and/or WRP may be liable for failing to supervise Meyer’s activities while registered at the firms, and could potentially be responsible for compensating customers of Meyer for any potetial losses.
If you invested with Meyer, please contact our law firm to explore your legal options, toll-free, at 888-997-9956.