Barkley JW Lundy Jr. (also known as Mike Lundy Jr.) of Rapid City South Dakota a stockbroker formerly registered with PFS Investments Inc. has been barred by Securities and Exchange Commission (SEC) from having any association with any broker or investment adviser according to an Order containing findings that Lundy committed fraud. In the Matter of Mike Lundy Administrative Proceeding File No. 3-18163 (Sept. 8, 2017).
Prior to the Order, Lundy had pled guilty of violating 18 U.S.C. §1343 by committing felony wire fraud. United States vs. Mikey Lundy, Case No. 5:17-cr-50023-JLV (Feb. 14, 2017). He was ultimately ordered to pay $1,626,070.26 in restitution and sentenced to five years in prison.
The SEC noted that Lundy concocted a fraudulent scheme through 2014. He apparently steered his customers into providing him money so that investments could be made in municipal bonds. Apparently, Lundy did not use customer funds as intended; he never purchased securities with the customer’s funds. Rather, he misappropriated their funds for his benefit and for making payments to other investors.
Lundy has also been barred from associating with any FINRA member in any capacity based upon consenting to findings that he mishandled twenty PFS customers’ funds. Letter of Acceptance Waiver and Consent No. 2014041887201 (Sept. 22, 2014).
According to the AWC, twenty customers of PFS Investments provided Lundy funds between January 2011 and March of 2014 which Lundy deposited into his bank accounts. Evidently, those transfers were made without customers’ knowledge or permission. FINRA found that Lundy’s conduct was violative of FINRA Rule 2010.
FINRA Public Disclosure reveals that Lundy has been identified in six more customer initiated investment related disputes containing allegations of his violative conduct during the time that he was associated with PFS Investments. Particularly, on August 14, 2014, a customer filed an investment related complaint involving Lundy’s activities where the customer requested $5,000.00 in damages based upon accusations that Lundy sold investments to the customers that were not authorized by the firm.
On November 3, 2015, a customer initiated investment related complaint regarding Lundy’s activities was resolved for $100,000.00 in damages founded on allegations that Lundy failed to repay the customer’s funds that were invested in products away from the firm. Subsequently, a customer initiated investment related arbitration claim regarding Lundy’s conduct was settled for $70,000.00 in damages supported by accusations that Lundy failed to fulfill his obligation to repay the customer who provided him money for an investment. FINRA Arbitration No. 16-00452 (Aug. 26, 2016).
Additionally, a customer initiated investment related arbitration claim concerning Lundy’s activities was resolved for $25,000.00 in damages based upon allegations that Lundy failed to provide the customer a return of the customer’s principal according to the terms of an investment arrangement. FINRA Arbitration No. 16-01465 (Aug. 26, 2016).
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