Securities Arbitration

Samuel Frederik Lek of New York New York the Chief Executive Officer of Lek Securities Corp is the subject of a customer initiated investment related arbitration claim where the customer requested $2,804,880.05 in damages supported by allegations that the customer’s account lacked supervision and that the customer’s funds had been misappropriated. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01731 (June 12 ,2020). According to the claim, Lek Securities Corp committed violations of FINRA Rules 2150, 3110 and 2010 between October of 2018 and April of 2019.

This is not the first time that Lek has been the subject of a customer’s dispute alleging sales practice violations at Lek Securities Corp. FINRA Public Disclosure confirms that a customer filed an investment related complaint concerning Lek’s conduct in which the customer requested $500,000.00 in damages founded on accusations that a contract between the customer and the securities broker dealer had been breached and that misrepresentations were made by the stockbroker. FINRA Arbitration No. 19-00800 (Mar. 27, 2019). According to the claim, the customer had been charged excess fees for penny stock transactions and was not able to liquidate their investments due to an asset freeze.

FINRA Public Disclosure additionally reveals that Lek has been the subject of 16 regulatory actions relating to his violative actions. On October 10, 2019, Lek was barred by SEC from being a stockbroker or investment adviser representative or associating with securities broker dealers and investment advisories. According to the SEC Order, its decision to bar Lek was based on a judgement which called for Lek to refrain from violating Securities Exchange Act of 1934 Section 10(b), Rule 10b-5, and Securities Act of 1933 Section 17(a) based upon allegations of Lek’s part in a manipulative trading scheme involving Avalon FA Ltd. Civil Action No. 17-cv-1789 (Oct. 1, 2019). Lek was also assessed a $420,000.00 penalty by SEC for his actions at Lek Securities Corp.

Lek was terminated by Lek Securities Corp supported by accusations of fraud. The securities broker dealer referenced allegations of the stockbroker helping to carry out a manipulative trading scheme violative of Securities Exchange Act of 1934, SEC Rule 10b-5 and Securities Act of 1933 Section 17(a).