Securities Lawyers Blog
On August 21, 2014, Richard A. March, Senior Regional Counsel of FINRA’s Department of Enforcement filed a complaint against Jeffrey Meyer, a financial advisor in Lake in the Hills Illinois who was formerly associated with Waddell & Reed, Inc. The complaint alleges that while employed at Waddell & Reed and WRP Investments, Inc. Mr. Meyer 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. FINRA alleges that as a result of the foregoing, Mr. Meyer violated FINRA Rule 2010. FINRA Rule 2010 states that “A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”
Mr. Meyer entered the securities industry in January 2000 as an investment company products and variable contracts representative with Franklin Financial Services, Corp. In February 2001 he became a general securities representative with Focused Investments, LCC. According to FINRA, United Private Capital, Inc. was a corporate entity that was established as an investment vehicle for FOREX currency trading. Between November 2008 and September 2009, United Capital sold corporate guarantees totaling $1 million to 20 investors and Mr. Meyer participated in each of the private securities transactions. Mr. Meyer, in some instances collected checks from customers and assisted them in preparing documents to effectuate the transactions. Furthermore, on at least one occasion, Mr. Meyer presented sales material to an individual who subsequently invested at United Private Capital.
In addition, according to FINRA, Mr. Meyer participated in private securities transactions related to commercial loans through Strategic Lending Solutions, LLC as well. Those promissory notes totaled approximately $300,000 with 13 investors. Mr. Meyer received a 2% payment based on the amount of the promissory note.
Finally, Mr. Meyer also participated in private securities transaction of K&M Oil Co. Mr. Meyer got eight investors to contribute approximately $238,000 in this investment. K&M Oil Co. issued promissory notes and are considered securities.
FINRA has requested a finding that Mr. Meyer violated FINRA Rule 2110, that he be sanctioned pursuant to FINRA Rule 8310(a) and that Mr. Meyer bear the cost of the procceding pursuant to FINRA Rule 8330.
Gana Weinstein LLP is investigating Waddell & Reed and WRP Investments for not properly supervising Mr. Meyers’ activity when he sold notes through United Private Capital, Strategic Lending Solution and K&M Oil, in violation of FINRA Rule 3010. If you invested with Mr. Meyer you should contact us for a free consultation of your claim. Our attorneys are highly experienced in this nuanced area of law and can help you determine if you have a claim that is worth pursuing.