Lynn A. Simon was arrested for swindling investors of over a $1 million. Once authorities were alerted to his swindle, because investors stopped receiving their interest payments, Simon disappeared and was later traced to Alabama and New Mexico.
During the course of his association with CFD Investments, Inc., while operating his own office under the trade names, Insurance Shoppe and Financial Security Planning, in Evansville, Indiana, Simon offered his customers the opportunity to invest a “special company” and promised a high rate of return.
In May 2013, Simon was terminated by CFD Investments, Inc. for purportedly engaging in undisclosed outside business activities, and for selling unregistered securities without firm approval. In June 2013, Simon was expelled by the Financial Industry Regulatory Authority, not for the sale of unregistered securities or operating a Ponzi scheme, but for the failure to cooperate with regulators.
Failure to Supervise Simon
A securities arbitration claim has already been filed against CFD Investments, Inc. for Simon’s conduct and ostensibly the failure to supervise Simon.
Firm’s Duty to Supervise
CFD Investments, Inc. has an absolute duty to supervise Simon’s activities during the course of his registration or association with them as a licensed stockbroker. Accordingly, CFD Investments, Inc. may be held responsible for his conduct based upon the failure to supervise, and as a control pursuant to Section 20(a) of the Exchange Act of 1934, 15 U.S.C. § 78t.
Customers purchasing these unregistered securities from Simon, ought to have their investment accounts reviewed by a professional to determine if they have been the victim of the fraud or the sale of unregistered securities and may have the opportunity to seek recovery from CFD Investments, Inc.
Guiliano Law Group
Our Practice is limited to the representation of investors in claims against stockbrokers and investment professionals for fraud, the sale of unsuitable investments, breach of fiduciary duty, failure to supervise. National Practice. Contingent Fee. Free Consultation. If you have suffered losses a the result of the recommendation of inverse and leveraged ETFs by your stockbroker or investment professional and were unaware of the risk associated with these securities, contact us for a free confidential evaluation at (877) SEC-ATTY.
