The investment fraud lawyers at Meyer Wilson are investigating potential claims involving former stockbroker Barkley J. Lundy, Jr. (CRD# 2260127), of Rapid City, South Dakota, relating to his alleged misuse of customer funds and misrepresentations to customers.
At all relevant times, Mr. Lundy was under the exclusive supervisory control of the brokerage firm of PFS Investments, Inc. The lawyers at Meyer Wilson believe that investors who lost money because of Mr. Lundy's alleged misconduct may be able to recover all of their losses against PFS for PFS's failure to properly supervise Mr. Lundy and the activity in his customers' accounts.
According to regulatory documents signed by Mr. Lundy, it is alleged that from at least January 2011 through March 2014 (while he was PFS' registered representative), Mr. Lundy improperly received money from at least 20 PFS customers and deposited those funds into his personal bank accounts. Lundy allegedly retained in his office a list of those customers along with a payment schedule in which the customers were to receive monthly payments in varying amounts from Mr. Lundy. Such arrangements are in strict violation of industry rules.
In addition, for at least three of his customers, Mr. Lundy allegedly routinely transferred funds into his personal bank accounts and then back into the customers' PFS brokerage accounts. Regulators claim that Mr. Lundy then arranged for these customers to purchase additional shares of mutual funds already held in their PFS investment accounts and represented to the customers that the fund movements were akin to 'dividend reinvestments' in their mutual funds.
Furthermore, regulators claim that Mr. Lundy also provided a fabricated tax document to at least one PFS customer and represented that the document was created by PFS.
PFS discharged Mr. Lundy in August 2014 when it finally learned of his misconduct, and he was subsequently permanently barred from working in the securities industry.
Under securities industry rules, brokerage firms like PFS are required to carefully monitor all transactions in customer accounts in order to identify potential improper activity like what allegedly occurred in Mr. Lundy's customers' brokerage accounts. Customers who suffer losses because of a brokerage firm's failure to supervise their accounts may bring formal claims against the brokerage firm, but such claims typically cannot be brought in court and instead are subject to mandatory arbitration through the Financial Industry Regulatory Authority, or FINRA.
If you lost money because of alleged misconduct by Mr. Lundy, then you may be able to recover your losses by bringing mandatory arbitration claims against PFS. Please contact the experienced securities fraud lawyers at Meyer Wilson for a free review of your case. Since 1999, the lawyers of Meyer Wilson have represented investors in over 900 securities arbitration claims against brokerage firms and recovered hundreds of millions of dollars on behalf of their clients.