Securities Lawyers Blog
According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Edward Segur (Segur) has been the subject of at least 2 customer complaints, 3 judgements or liens, 1 criminal matter, and 2 regulatory actions. Customers have filed complaints against Segur alleging securities law violations including excessive commissions and unauthorized trades among other claims. In addition, Segur has had difficulty managing his own finances and had a tax lien of $125,687 imposed in February 2015. Tax liens and judgements are often a sign that the broker cannot manage their own personal finances and may be tempted to recommend high commission products or strategies to clients in order to satisfy debts.
Finally, two state regulators have brought actions against Segur. The state of Arkansas alleged that in January 2013, Segur cold called a resident of the state to recommend the purchase of Sandridge Energy, Inc. (Sandridge). At that time Sandridge was trading at about $7 per share and that Segur stated that he had information that the stock would rise to $12 in less than three months because a new chief executive officer would take over Sandridge causing the stock price to increase. The state of Arkansas found that such statements were unjustified and violated the state’s securities laws. In addition, the state of New Hampshire alleged that Segur cold called one of its residents even though the resident was on the state’s do not call list.
Segur entered the securities industry in 1998. An examination of Segur’s employment history reveals that Segur moves from troubled firm to troubled firm. The pattern of brokers moving in this way is sometimes called “cockroaching” within the industry. See More Than 5,000 Stockbrokers From Expelled Firms Still Selling Securities, The Wall Street Journal, (Oct. 4, 2013). In Segur’s 16 year career he has switched firms 22 times even returning to several firms on different occasions. Many of the firms have been expelled by FINRA including John Thomas Financial which was run by Anastasios “Tommy” Belesis who recently agreed to be banned from the securities industry when the SEC accused him of defrauding investors in two hedge funds. In addition, John Thomas faced allegations of penny-stock fraud by FINRA after the firm reaped more than $100 million in commissions over its six-year history before it closed in July. According to new sources trainees at the firm earned as little as $300 a week to pitch stocks with memorized scripts.
