Charles Frederik Lek of Weston, Connecticut, the owner of Lek Securities Corp., is the subject of a Financial Industry Regulatory Authority (FINRA) enforcement action in which the regulator is seeking sanctions against Lek based upon allegations that Lek failed to comply with an prior Order in connection with the sale of microcap securities. FINRA Enforcement Action No. 2021071137001 (May 18, 2022).
According to the Complaint, Lek is accused of violating the terms of a December 2019 FINRA Order while he was associated with Lek Securities Corporation. Lek allegedly accepted for deposit and liquidated microcap securities while a microcap business line was suspended, failed to install 18 of the 98 recommendations made in the FINRA Order concerning improving its anti-money laundering and supervisory systems, and falsely certifying to FINRA that the recommendations contained in the Order were implemented. Additionally, the firm is accused of liquidating over 2 billion shares of microcap securities without maintaining or establishing a supervisory system from October 2019 through February 2022. Lastly, Lek is accused of using unauthorized communication methods to correspond with other firm members and firm customers. As a result, Lek is accused of violating FINRA Rules 2010, 4511, and 3310(a).
This is not the first time that Lek has been the subject of an enforcement action by a securities regulator concerning his conduct in the securities industry. FINRA Public Disclosure shows that The Depository Trust & Clearing Corporation and The National Securities Clearing Corporation are seeking sanctions against Lek based upon allegations that Lek provided false or misleading information during an investigation. Case No. Admin. Proc. File No. 3-20808 (Mar. 10, 2022). The decision is subject to an appeal.
FINRA Public Disclosure shows that Lek is referenced in customer initiated investment related disputes concerning Lek’s conduct while associated with securities broker dealers, including Lek Securities Corp. and Lek Securities UK Ltd. On March 27, 2019, a customer initiated investment related FINRA securities arbitration claim involving Lek’s conduct was settled for $350,000.00 in damages based upon allegations that Lek charged the customer excessive commissions, made misrepresentations, and breached a contract relating to the recommendation and sale of penny stocks. FINRA Arbitration No. 19-00800.
On November 18, 2020, a customer filed an investment related FINRA securities arbitration claim involving Lek’s conduct in which the customer requested $244,370.01 in damages based upon allegations that Lek committed sales practice violations in connection with the recommendation and sale of investments when Lek was associated with Lek Securities Corp. FINRA Arbitration No. 20-03836.
Lek is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $24,000,000.00 in damages based upon allegations that Lek committed sales practice violations with regard to the recommendation and sale of options when Lek was associated with Lek Securities Corporation. FINRA Arbitration No. 21-00580 (Mar. 15, 2021).
Charles Lek was associated with Peter R. Mack Co. Inc. in Weston, CT, as a stockbroker from June 9, 2018 to October 6, 2018. Lek has been associated with Lek Securities Corporation in New York, NY, as a stockbroker since February 1, 2008.
