Broker Lawrence LaBine Accused of Selling Unsuitable Alternative Investments

shutterstock_173849111Gana LLP, a securities law firm, is investigating customer complaints against Lawrence Labine, a broker located in Scottsdale, Arizona. Gana LLP’s investigation is on the heels of regulatory investigations into LaBine’s conduct.

On April 28, 2015, the Department of Enforcement of Financial Industry Regulatory Authority filed a complaint against Mr. Lawrence LaBine. According to the Complaint, from April 2009 through August 2009, LaBine sold senior debentures (Series D) issued by Domin-8, a company that developed software for real estate management companies. During that period, LaBine was registered with DeWaay Financial Network, a FINRA regulated broker-dealer. The Complaint alleges the LaBine made fraudulent misrepresentations and omissions of material fact to five customers in connection with the sale of the Series D senior debentures.

At the time of those sales, LaBine was receiving regular updates about Domin-8’s poor financial condition from senior management at Domin-8 and the company’s lead investment banker, and had arranged to receive compensation and other valuable consideration from the company – such as a seat on Domin-8’s board of directors – for meeting Series D fundraising targets he had arranged with the company. The information about Domin-8’s financial condition and LaBine’s personal incentive to sell Series D was material to the investors, yet LaBine failed to disclose that information to his customers according to the Complaint.

In addition, FINRA alleges that from 2007-2010, LaBine also made unsuitable recommendations of non-traded real estate investment trusts, or REITs, and other alternative investments, to various elderly and inexperienced investors.

LaBine is accused of having violated FINRA Rules 2310 and 2110 and FINRA Rule 2010 in making unsuitable recommendations to customers, Section 17(a) of the Securities Act and FINRA Rule 2010 in making misrepresentations and omissions concerning Domin-8 and D8, and Section 10(b) of the Exchange Act, Rule 10b-5 thereunder and FINRA Rules 2020 and 2010 by making fraudulent misrepresentations and omissions concerning Domin-8 and D8.

LaBine has had a checkered regulatory history. According to his CRD, FINRA’s publicly available broker check system, LaBine has had five regulatory investigations, two pending and three final. Sixteen customer disputes filed against him or his employing firm over his career, four pending customer disputes, has twice been terminated by his employer, and has three non-securities related judgments against him.

Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana LLP are experienced in representing investors in cases of the unsuitable sale of securities, fraud, and specifically in the context described in the FINRA action related to debentures and Real Estate Investment Trusts. Our consultations are free of charge and the firm is only compensated if you recover.