The investment fraud lawyers at Meyer Wilson are investigating potential
claims involving former stockbroker Barkley J. Lundy, Jr. (CRD# 2260127), of Rapid City, South Dakota, relating to his alleged misuse of customer
misrepresentations to customers.
At all relevant times, Mr. Lundy was under the exclusive supervisory control
of the brokerage firm of PFS Investments, Inc. The lawyers at Meyer Wilson
believe that investors who lost money because of Mr. Lundy's alleged
misconduct may be able to recover all of their losses against PFS for
PFS's failure to properly supervise Mr. Lundy and the activity in
his customers' accounts.
According to regulatory documents signed by Mr. Lundy, it is alleged that
from at least January 2011 through March 2014 (while he was PFS' registered
representative), Mr. Lundy improperly received money from at least 20
PFS customers and deposited those funds into his personal bank accounts.
Lundy allegedly retained in his office a list of those customers along
with a payment schedule in which the customers were to receive monthly
payments in varying amounts from Mr. Lundy. Such arrangements are in strict
violation of industry rules.
In addition, for at least three of his customers, Mr. Lundy allegedly routinely
transferred funds into his personal bank accounts and then back into the
customers' PFS brokerage accounts. Regulators claim that Mr. Lundy
then arranged for these customers to purchase additional shares of
mutual funds already held in their PFS investment accounts and represented to the customers
that the fund movements were akin to 'dividend reinvestments'
in their mutual funds.
Furthermore, regulators claim that Mr. Lundy also provided a fabricated
tax document to at least one PFS customer and represented that the document
was created by PFS.
PFS discharged Mr. Lundy in August 2014 when it finally learned of his
misconduct, and he was subsequently permanently barred from working in
the securities industry.
Under securities industry rules, brokerage firms like PFS are required
to carefully monitor all transactions in customer accounts in order to
identify potential improper activity like what allegedly occurred in Mr.
Lundy's customers' brokerage accounts. Customers who suffer losses
because of a brokerage firm's
failure to supervise their accounts may bring formal claims against the brokerage firm, but
such claims typically cannot be brought in court and instead are subject
to mandatory arbitration through the Financial Industry Regulatory Authority, or FINRA.
If you lost money because of alleged misconduct by Mr. Lundy, then you
may be able to recover your losses by bringing mandatory arbitration claims
against PFS. Please contact the experienced securities fraud lawyers at
Meyer Wilson for a
free review of your case. Since 1999, the lawyers of Meyer Wilson have represented investors in over 900
securities arbitration claims against brokerage firms and recovered hundreds of millions of dollars
on behalf of their clients.