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Ray Reese Embroiled in New Investor Dispute

Ray Reese (CRD #:1694620), a broker registered with Money Concepts Capital, is involved in two investor disputes, according to his BrokerCheck record, accessed on July 7, 2023. He is also an investment advisor registered with Money Concepts Advisory Service. Read on to learn more about his alleged conduct as a broker.

Pending Investor Disputes

On May 16, 2023, an investor filed a dispute alleging that Ray Reese engaged in misrepresentation and misconduct relating to suitability. The client seeks $450,000 in this pending dispute.

On June 29, 2020, an investor alleged that Ray Reese failed to correctly set up her account after she inherited her father’s IRA from his estate, causing a tax liability. The client seeks $200,000 in this pending dispute.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulative, deceptive, or otherwise fraudulent means of influencing investors’ decisions. Misrepresenting or omitting facts about an investment’s fees, limitations, or other features violates this rule.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must use the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Settled Disputes

On November 30, 2020, Ray Reese was the subject of a dispute alleging common law fraud, violation of Missouri’s Securities Act, unsuitable investment recommendations, and breach of contract. The investor further alleged negligent misrepresentation and omission and other forms of negligence.

The allegations concerned investments in variable annuities, and a private placement/direct private participation program GPB Waste Management L.P. The investors alleged that Ray Reese recommended these investments in order to generate the maximum amount of commissions for himself.

Clients received a settlement of $110,000 outside of arbitration. You can read the arbitration award here.

On February 26, 2015, the daughter of a client named Ray Reese in allegations that her father was mistakenly identified as an accredited investor on a new account form and that his investments in an Aztec Comanche oil and gas drilling program and Business Development Corporation of America were decreasing in value.

This dispute was settled for $95,000.

What qualifies as broker negligence?

Many types of broker misconduct may qualify as negligence. Common examples include failure to supervise, unsuitable investment recommendations, and misrepresentations or omissions of material facts.

Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration

What are Blue Sky Laws?

Blue sky laws are state securities regulations that provide investors with an extra layer of protection against fraud. They frequently also define what investments qualify as securities in the state.

What are Variable Annuities?

Variable annuities are complex investments. These policies can decline in value depending on the performance of the underlying security. Surrender charges, tax penalties, and other fees can make these policies unsuitable.

Regulation D

Regulation D of the Securities Act of 1933 defines the qualifications for accredited investors, which include individuals and financial organizations like banks or investment companies. Individuals must meet financial thresholds, such as having a net worth exceeding $1 million, or be a registered broker or investment adviser to qualify as an accredited investor.

Background Information

Ray Reese has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 6TO – Investment Company Products/Variable Contracts Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

He is a registered broker in ten states and a registered investment advisor in Missouri.

Ray Reese has also worked with the following firms:

  • Pruco Securities Corporation (CRD#:5685)
  • The Prudential Insurance Company of America (CRD#:680)
  • Hibbard Brown & Co. (CRD#:18246)
  • Sherwood Capital (CRD#:10474)

Kurta Law Can Help

If you have worked with Ray Reese and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.