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Family Endowment Partners and Broker Lee Weiss Charged With Defrauding Clients

On September 29, 2015, the Securities and Exchange Commission (SEC) filed charges against Family Endowment Partners, LP (FEP) and broker Lee D. Weiss (Weiss), alleging self-dealing and failure to disclose material facts to clients. Weiss and FEP allegedly urged clients to invest more than $53 million in illiquid securities to the benefit of Weiss and FEP.

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Weiss has been in the securities industry since 1992. Weiss has previously been registered with Fidelity Brokerage Services, LLC from 2004 to 2007; Stillpoint Capital, LLC from 2011-2015; and he is currently registered with MIP Global, Inc based out of Massachusetts. Weiss formerly led an investment advisor known as FEP.

The SEC alleges that between 2010 through 2012, Weiss and FEP recommended that 11 clients and two FEP affiliated hedge funds, FEP Fund I, LP (FEP Fund I) and the Catamaran Holding Fund, Ltd. (Catamaran Fund), invest more than $40 million in securities issued by BioSyntec. Weiss did not did not disclose that he had an ownership interest in BioSyntec and that he received payment from the company. Weiss received over $600,000 in payments from BioSyntec shortly after Weiss recommended the investments to be made.

In addition, between 2012 and 2014 Weiss allegedly persuaded five (5) clients to invest $8.3 million in notes or shares of companies under Weiss’ control. Weiss failed to inform his clients that the investments actually went to pay off debts and expenses of the companies under Weiss’ control.

If you believe you have been the victim of stockbroker misconduct, you may wish to consult an attorney to find out more about your legal rights and options. Investors may contact a securities arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

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