Former PFS Investments Inc. Client Wins FINRA Arbitration for $850,000 for Unapproved and Unauthorized Trades
Posted on Monday, July 29th, 2019 at 2:31 pm
In June 2019, a former client of PFS Investments Inc. won an award in a FINRA arbitration for compensatory damages for $850,630 for losses sustained from unauthorized and unapproved transactions. The investors were clients of financial advisors Perry De Leeuw (CRD# 4792703) and Nancy De Leeuw.
The causes of action included breach of contract, indemnification, fraud and deceit, and misappropriation and conversion. Claimant alleged that P. De Leeuw, while an independent contractor sales representative of Claimant and in breach of his agreements with Claimant and its affiliates, conducted unauthorized and unapproved transactions with customers of Claimant and others. Claimant alleged that N.E. De Leeuw, while working in P. De Leeuw’s office, assisted and benefited directly from P. De Leeuw’s conduct. Claimant further alleged that N.E. De Leeuw wrote checks and made other debits from bank accounts owned by Claimant’s customers to fund personal expenses for herself and P. De Leeuw. The FINRA arbitration hearing was conducted in Dallas, Texas.
Perry De Leeuw was registered with PFS Investments Inc. in Duluth, Georgia from 2004 to 2016, when he was terminated regarding, “information indicated that agent was engaged in an unapproved outside business activity and the agent failed to adequately cooperate during a review of a related complaint. (see FINRA disclosure occurrence no. 1880273)”
In September 2016, De Leeuw was barred by FINRA after he failed to respond to FINRA request for information.
De Leeuw has also been the subject of five customer complaints between 2016 and 2017, according to his CRD report:
May 2017. “Customers allege they gave mr. De leeuw money to invest in outside businesses which were not disclosed to the firm.” The customer is seeking $600,000 in this pending customer complaint.
May 2017. “Customers allege they gave mr. Deleeuw money to invest in an outside business which was not disclosed to the firm.” The customer sought $250,000 and the case was settled for $100,000.
November 2016. “Non-customer alleges she gave Mr. DeLeeuw $100,000 to invest in an outside business and she was not repaid. The outside business was not disclosed to the firm.” The customer sought $100,000 in damages and the case was settled for $40,000.
June 2016. “Customer alleged mr. Deleeuw misrepresented features of products the customer purchase.” The customer sought $64,476.26 in damages and the case was settled for $28,486.98.
April 2016. “Complainant alleges that in mid-2015, she gave perry de leeuw funds for investment in and to become a distributor for a company called waterbos. Complainant futher alleges that de leeuw informed her in mid-march 2016 that she would not receive products for distribution or a return of her funds.” The customer sought $163,350 in damages and the case was settled for $100,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, PFS Investments Inc. may be liable for investment or other losses suffered by De Leeuw’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call our FINRA attorneys at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.