Investors who suffered losses due to the alleged misconduct of Rockland County financial advisor Hector A. May (CRD# 323779) may be able to recover their losses in arbitration before FINRA. A resident of Orangeburg, NY, Mr. May was most recently affiliated with the independent broker-dealer Securities America, Inc. (CRD# 10205) from 1998 until March 2018. As recently reported, on June 6, 2018, the United States Attorney for the Southern District of New York implemented an asset freeze pursuant to a Restraining Order against Mr. May and his wife, Sonia May, with their consent. According to publicly available information through FINRA, the Justice Department is “conducting an official criminal investigation of a suspected felony.”
Among the assets frozen under the terms of the government’s Restraining Order are those assets held by Executive Compensation Planners Inc. (“ECP Inc.”), the Registered Investment Advisory (“RIA”) firm owned and controlled by Hector May. In addition to freezing ECP Inc. assets, the government is also restraining numerous bank and brokerage accounts owned by the Mays, as well as monthly proceeds payable to Hector May through an Equitable Life Pension payment and social security. Finally, the government has frozen Mays’ real assets, including a house in Orangeburg, NY, a condominium in Vernon Township, NJ, as well as “all jewelry, fur products, antiques, and silver owned by Hector May or Sonia May.”
According to FINRA BrokerCheck, Mr. May was discharged from his employment with Securities America due to his alleged “misappropriation of client assets.” Acting through his RIA, Mr. May’s business as a financial advisor was supposedly predicated on selling certain wrap fee advisory programs through Securities America.
Brokerage firms Securities America have a duty to ensure that their registered representatives and investment advisors are adequately supervised, a duty which includes monitoring their advisors to ensure that no misconduct or fraudulent activity is permitted. Unfortunately, in some instances, independent advisors who work remotely under the supervision of firms like Securities America are able to engage in a pattern and practice of misconduct. Nevertheless, firms like Securities America must take reasonable steps to ensure that their advisors follow all applicable securities rules and regulations, in addition to internal policies and procedures. In those instances where firms fail to adequately supervise their financial advisors, they may be held liable for losses sustained by investors.
Attorneys at Law Office of Christopher J. Gray, P.C. have successfully resolved a number of disputes on behalf of investors concerning misconduct by stockbrokers and financial advisors. Investors may contact a securities arbitration attorney by telephone at (866) 966-9598, or by e-mail at firstname.lastname@example.org for a no-cost, confidential consultation.