fbpixel
888-840-1571

National Investment Fraud Lawyers

¿Perdió en bonos y fondos de Puerto Rico?

Were You the Victim of Former FSC Securities Corporation Broker Leonard Fox?

Posted on Monday, May 3rd, 2021 at 8:27 pm    

FSC Securities Corporation

Erez Law is currently investigating former FSC Securities Corporation broker Leonard Fox (CRD# 1034449) who was barred by FINRA for misappropriation of customer funds. Fox was registered with FSC Securities Corporation in Marlton, New Jersey from 2013 to 2016.

In August 2017, the New Jersey Bureau of Securities expelled Fox from a self-regulatory organization. 

In August 2016, FINRA barred Fox after he, “consented to the sanctions and to the entry of findings that he failed to respond to FINRA’s requests for documents and information related to an investigation into allegations that he had borrowed and misappropriated funds from a firm customer. The findings stated that Fox acknowledges that he received FINRA’s requests and will not produce the documents and information requested.”

In May 2012, FINRA sanctioned Fox to a $2,500 civil and administrative penalty and suspended him for 10 days regarding the following allegations: “NASD rules 2110, 2370: fox entered into a lending arrangement with a customer and borrowed $10,000. Fox repaid the loan in full, including interest. Fox used the funds for personal expenditures, including costs associated with a former business venture he had with the customer. Fox, however, failed to inform his member firm of the loan or otherwise obtain its permission. Indeed, the firm’s written supervisory procedures expressly prohibited its representatives from borrowing money from customers.”

Fox has been the subject of six customer complaints between 2003 and 2020, one of which was denied, according to his CRD report. Recent complaints are regarding: 

March 2020. “It is alleged that advisor misled claimant about her investments and misappropriated the funds transferred to him.” The customer sought $1 million in damages and the case was settled for $150,000. The complaint took place while Fox was registered with FSC Securities Corporation. 

October 2016. “Excessive trading/unauthorized trading 2013-2016.” The customer sought $250,000 in damages and the case was settled for $162,500. The complaint was regarding mutual funds and unit investment trusts (UITs). The complaint took place while Fox was registered with FSC Securities Corporation. 

August 2016. “Claimant alleged inter alia that his funds were misappropriated through loans and disbursements requested by FA – 2007 to 2012.” The customer sought $4 million in damages and the case was settled for $450,000. The complaint took place while Fox was registered with Morgan Stanley.

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, FSC Securities Corporation may be liable for investment or other losses suffered by Fox’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us 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.