Legend Securities Broker Named in FINRA Complaint for Allegations of Fraudulent and Excessive Trading
Hank M. Werner, a Northport, New York-based registered representative formerly employed with Legend Securities, Inc. and Liberty Partners Financial Services, LLC, was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that he fraudulently and excessively traded the accounts of his customer, a 77 year old blind and physically disabled widow. According to the FINRA complaint, while working at Liberty Partners Financial Services and then later at Legend Securities, Mr. Werner serviced and exercised control over all of his customer’s accounts. Due to his customer’s disabilities, she relied completely upon Mr. Werner for investment recommendations and information on account activity. However, FINRA’s complaint alleges that Mr. Werner churned and excessively traded the elderly widow’s accounts, allegedly placing over 700 trades and generating approximately $243,430.20 in commissions and fees and approximately $183,734.33 in net losses for his customer. Further, the complaint alleges that when Mr. Werner changed firms, he increased his markups and commissions on her trades to 3.75-4.25%, an increase of over 40%!
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