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Charles Lek: Clients Seek Over $24 Million in Damages

Charles Lek (CRD #: 4672129), a broker registered with Lek Securities, is the subject of several investor disputes, according to his BrokerCheck record, accessed on July 10, 2022. Read on to learn more about Charles Lek’s conduct as a broker.

FINRA Investigation

On May 18, 2022, FINRA made a preliminary determination recommending disciplinary action be brought against Charles Lek regarding the following allegations:

  • Lek Securities Corporation’s failure to comply with a settlement filed in December 2019 by violating its suspension from the microcap securities business
  • Lek Securities’ failure to comply with the independent consultant’s recommendations described in that settlement order
  • False certifications and representations made by Charles Lek to FINRA
  • His failure to establish and maintain an anti-money laundering (AML) program at Lek Securities
  • Charles Lek’s failure to supervise the microcap securities business

In this determination, FINRA alleged that Charles Lek violated FINRA Rules 3110 and 2010.

Also on May 18, FINRA filed a pending regulatory action regarding these allegations.

FINRA Rules 3110 and 2010

Failure to supervise violates FINRA Rule 3110, which requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must ensure that supervisory personnel have the training or experience necessary for their role.

FINRA Rule 2010 requires that brokers uphold high standards of professional honor and just and equitable principles of trade. Many forms of misconduct violate this rule.

Investor Disputes

In a dispute filed on March 15, 2021, an investor alleged that Lek Securities placed restrictions on the client’s trading and access to margin during market volatility in February and March 2020, resulting in losses. The client seeks $24,000,000 in damages in this pending dispute.

On November 18, 2020, an investor filed a lawsuit against Lek Securities seeking to recover money withheld by the firm to pay for the client’s unpaid bills for the usage of exchange data between July and November 2020. The client seeks $244,370.01 in this pending dispute.

On March 27, 2019, a client filed a dispute against Charles Lek, Samuel Lek, Lek Securities, and Lek Holdings Ltd., alleging that the respondents caused damages of at least $500,000 due to frozen funds, excessive fees, misrepresentation, and breach of contract. This dispute was settled for $350,000.

FINRA Rule 2020

FINRA Rule 2020 bans the use of fraudulent tactics, like deception or manipulation, as they relate to the purchase and sale of securities. This also includes the misrepresentation or omission of information concerning investments.

Background Information

Charles Lek has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination

Charles Lek is a registered broker in Arkansas, Connecticut, Nebraska, New York, and Tennessee.

He previously worked for Peter R. Mack & Company (CRD#:18275) and Lek Securities (CRD#:33135).

Kurta Law Can Help

If you worked with Charles Lek and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.