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Did You Suffer Losses from Penny Stocks with Former Meyers Associates, L.P. Financial Advisor John Telfer?

Posted on Wednesday, September 27th, 2017 at 7:33 am    

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Erez Law is currently investigating former Meyers Associates, L.P. financial advisor John Telfer (CRD# 1099745) regarding losses sustained from penny stock sales. Telfer was registered with the following firms during the past few years:

Meyers Associates, L.P. in New York, New York (2013 to 2016)
Obsidian Financial Group, LLC in Woodbury, New York (January to August 2013)
Clark Dodge & Co., Inc. in Garden City, New York and then White Plains, New York (2009 to 2012).

In June 2017, the U.S. Securities and Exchange Commission cease-and-desist proceedings be taken against Windsor Street Capital, L.P. (formerly known as Meyers Associates, L.P.) and Telfer, who acted as the firm’s AML officer and was personally responsible for monitoring customer transactions for suspicious activity and ensuring the firm’s compliance with SAR reporting requirements. According to the complaint, “The Commission alleges that on numerous occasions, from at least June 2013 to the present, Meyers Associates violated Securities Act Section 5 by facilitating the unregistered sale of hundreds of millions of penny stock shares, without performing adequate due diligence regarding the sales’ Section 5 compliance.” Additionally, the firm failed to file suspicious activity reports (SARs) with the United States Treasury Department’s Financial Crimes Enforcement Network regarding suspicious penny stock sale transactions that resulted in proceeds of at least $24.8 million. According to the SEC complaint, “From June 2013 to the present, Meyers Associates earned a total of at least $493,000 in commissions and fees from the above illegal penny-stock sales and unreported suspicious transactions.” The SEC barred Telfer from acting as a broker or investment adviser or otherwise associating with firms that sell securities or provide investment advice to the public, and issued him civil and administrative penalties and fines of $10,000.

In November 2009, FINRA alleged, “SEC regulation S-P, NASD rules 2110: a member firm, acting through Telfer, failed to develop a privacy policy or disseminate to its customers privacy notices required by regulation S-P,” according to the Acceptance, Waiver & Consent (AWC). Telfer was sanctioned to civil and administrative penalties and fines of $5,000.

In March 2002, the National Association of Securities Dealers, Inc. issued Telfer civil and administrative penalties and fines of $10,000 after he, “consented to the entry of findings that, in connection with the purchase of active acounts (sp) from another member firm, his firm did not have the new account forms for the accounts and that, in many instances, the brokers’ books were missing other essential information including social security number, occupation, signature of the registered representative handling the account, the customer’s employer, and whether the customer was an associated person of another firm; and a member firm, acting through Telfer, in connection with penny stock transactions, failed to provide the customers with penny stock risk disclosures and failed to provide the customers with required market and price information regarding each of their penny stock holdings on their monthly account statements.As a principal, telfer was responsible for the firm’s new account review and recordkeeping, and overseeing the firm’s penny stock transactions.”

Telfer has been the subject of four customer complaints, one of which was closed without action, between 2000 and 2017, according to his CRD report:

April 2017. “Excessive Trading Unsuitability Failure to supervise.” The customer is seeking $88,671 in damages and the case is currently pending.

January 2016. “Failure to supervise.” The customer is seeking $53,532 in damages and the case is currently pending.

June 2000. “Breach of fiduciary duty, unauthorized trading, common law and statutory 10(b)5 fraud.” The customer was awarded $55,000 in damages.

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, Meyers Associates, L.P. may be liable for investment or other losses suffered by Telfer’s customers.

Erez Law represents investors in the United States for claims against former Meyers Associates, L.P. financial advisor John Telfer regarding losses sustained from penny stock sales. If you were a client of Meyers Associates, L.P. or another firm, and 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.