Rockwell Global Capital LLC (Rockwell) brokers Robert E. Lee Jr. (Robert Lee), Douglas Guarino (Guarino), and Lawrence Lee (Lee) have been the subject of at least 29 combined customer complaints. All three brokers have been accused by clients of churning their accounts and making unsuitable investment recommendations.
Robert Lee first became registered in 1988. From March 2005, through November 2009, Robert Lee was registered through former FINRA member firm GunnAllen. Since November 2009, Robert Lee has been registered through Rockwell.
In August 2013, Robert Lee accepted a settlement with FINRA barring the broker from associating with any broker dealer. FINRA found that between September 25, 2008, and October 31, 2008, while Robert Lee was registered with GunnAllen, Robert Lee failed to follow a customer’s instructions regarding the purchase of three securities. FINRA also found that between September 2008, and at least December 2009, while Robert Lee was registered with two member firms, Robert Lee made material misrepresentations and omissions to a customer regarding the status of their investments. Specifically, FINRA found that Robert Lee misrepresented to the client that certain investments had earned $49,591 in dividends when in fact the investments did not exist and no dividends had been earned.
In addition, Robert Lee has been subject to nine customer disputes, two firm terminations, and five judgments or liens. The majority of the complaints involve allegations of unsuitable investments, penny stocks, churning, unauthorized trading. Rockwell’s termination notice states that Robert Lee acknowledged providing inaccurate written information to a customer regarding the customer’s account and investments. Maxim Group LLC also discharged Robert Lee stating the reason as a result of allegations relating to the handling of accounts. In addition, Robert Lee had several tax liens against him. Large outstanding debts provide a broker with an incentive to sell high commission products or to churn accounts.
Guarino entered the securities industry in 1988. In May 2005, Guarino became associated with Advance Planning Securities, Inc. until June 2007. In February 2007, Guarino became associated with Rockwell where he remains registered. Guarino has had ten customer complaints filed against him.
The customer complaints against Guarino involve claims of excessive trading, churning, suitability, breach of fiduciary duty, misrepresentation, negligence, and fraud. The complaints against Guarino involve allegations concerning the sale of penny stocks, options, promissory notes, and private placements.
Lee entered the securities industry in 1996. In 2006 through July 2007, Lee was associated with National Securities Corporation. From July 2007, through February 2008, Lee was associated with FINRA firm BrokersXpress LLC. Thereafter, from August 2008, until November 2010 Lee was associated with Rockwell. Lee’s BrokerCheck reveals that he conducted business through the firm name LYL Investments Corp.
Lee has had three regulatory complaints filed against him, ten customer disputes, three brokerage firm terminations, and one judgment or lien. In January 2014, FINRA barred Lee concerning allegations that he failed to timely update his disclosures to include the fact that he was charged with seven felonies and convicted of aggravated criminal sexual abuse. In addition, the State of Illinois brought a complaint against Lee alleging that Lee made 250 unauthorized trades in a client account during a 10 month period generating approximately $30,000 in commissions and losing $46,000 for the investor. Most of the customer complaints against Lee involve allegations of excessive trading, churning, and unauthorized trading.
The attorneys at Gana LLP are experienced in representing investors concerning claims of churning and unsuitable investments. Our consultations are free of charge and the firm is only compensated if you recover.