Firm May Be Liable for Actions of Tracy Morgan Spaeth

by InvestorLawyers on March 21, 2013

in Arbitration,FINRA,Securities Fraud,Suitability,Unauthorized Trading

Stock fraud lawyers are currently investigating claims on behalf of customers of Tracy Morgan Spaeth in relation to his sales of ProfitStars Int’l Corp. Spaeth, a former broker with BrokersXpress LLC, entered into a Letter of Acceptance, Wavier and Consent regarding his ProfitStars sales. According to the Financial Industry Regulatory Authority, Spaeth did not receive written approval, nor did he provide written notice to BrokersXpress, a FINRA member firm, prior to participating in private securities transactions. The alleged misconduct occurred from October 2010 through December 2010. During this time, Spaeth promoted ProfitStars Int’l Corp. limited partnership interests and assisted around 115 clients with the purchasing of the security. Investments in the security amounted to more than $8,000,000.

Firm May Be Liable for Actions of Tracy Morgan Spaeth

FINRA also alleged that “in connection with the private securities transaction described above, Spaeth provided a webinar to his clients regarding foreign exchange currency trading software. The webinar failed to provide a sound basis for evaluating the products and services being offered, failed to disclose the risks of the software and strategy being promoted, was exaggerated and misleading, and contained performance forecasts, all in violation of NASD Rule 2210 and FINRA Rule 2010.”

Securities arbitration lawyers say that according to FINRA rules, BrokersXpress LLC was obligated to adequately supervise Spaeth from July 2009 through December 2010, the entire time he was registered with the FINRA-registered firm. Spaeth’s alleged misconduct occurred during the time he was registered with the firm and, as a result, stock fraud lawyers say that BrokersXpress may be held liable for customer losses resulting from Spaeth’s alleged misconduct.

If you suffered significant losses as a result of your investment with Tracy Morgan Spaeth and his recommendation of ProfitStars Int’l Corp. limited partnership interests, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities arbitration lawyer at Law Office of Christopher J. Gray. P.C. at (866) 966-9598 for a no-cost, confidential consultation.

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