Articles Tagged with Moloney Securities

Stoltmann Law Offices is representing GWG L-Bond investors from across the country in FINRA arbitration claims against the brokerage firms responsible for soliciting the investors to put their hard-earned money into the speculative bonds offered by GWG Capital.

There are thousands of investors in the GWG-Bonds and very few have actually filed FINRA claims.  Many are waiting on the sidelines to see what happens with the ongoing Chapter 11 process while others are relying on information being peddled by the brokers and firms who sold them GWG, who continue to (mis)represent the alleged value of GWG Holdings, promising a full return of investor funds.  This is false and at this point, its fraud.

Let’s examine some of the representations advisors and their firms continue to make to their clients. First, GWG has an interest in FOXO Technologies (symbol FOXO). In September, FOXO went public in a SPAC deal and its stock is down over 90% since it hit the market.  FOXO has a current market capitalization of only $38.6 million, making it a micro-cap penny stock. Any representations that L-Bond investors will be saved as a result of any FOXO interest is clearly false as the stock continues to crater.

Stoltmann Law Offices, a Chicago-based securities and consumer protection law firm, is representing investors in FINRA Arbitration cases involving brokerage firms and speculative, high-risk investments.  One of the firm’s latest filings on behalf of an investor is against FINRA registered brokerage firm Moloney Securities. The firm is headquartered in Manchester, Missouri and offers a wide range of  brokerage services to its clients in all fifty states.  Moloney Securities also uses dozens of other names depending which state it is operating in, which are identified in the tags below.

The recent claim, reported in FINRA Case No. 22-01465, involves two speculative investments masked as fixed-income – GWG L-Bonds and Legion Capital Bonds. The issues with GWG L-Bonds have been written about extensively by Stoltmann Law Offices. These L-Bonds were speculative, illiquid bonds that were subordinated to hundreds of millions in debt, in a company that was nothing more than a penny-stock niche finance company that had lost hundreds of millions of dollars in 2019 and 2020. That barely scratches the surface when it comes to issues related to GWG and what investors were not told by aggressive financial advisor-sales reps.

This specific claim also involves debt obligations issued by Legion Capital, which is a publicly-held private equity company that provides loans for real estate development. Although public (LGCP), the stock has virtually no trading volume is worth $0.00020 per share, and trades “OTC” or “over the counter”.  Financial records establish that Legion Capital has thirteen employees, has virtually no net-income, and has revenue of under one million dollars. Legion has a market cap of about $3,280 and is registered as a Regulation A company.

Stoltmann Law Offices is interested in speaking to those individuals who may have invested money with Matthew Lilleberg, a registered representative with Moloney Securities in Minnesota. Lilleberg has been accused of executing unauthorized trades, executing an unauthorized purchase of a stock, and recommending unsuitable investments. These are all against securities rules and regulations. Lilleberg was registered with Wells Fargo Investments in Aspen, Colorado from March 2004 until October 2008, Brookstone Securities in Willmar, Minnesota from September 2010 until June 2012 and Minnesota Valley Investments in Willmar from August 2012 until March 2014. He is currently registered with Moloney Securities in Willmar and Spicer, Minnesota and has been since April 2014. He has eight customer disputes against him. If you or someone you know has invested money with Matthew Lilleberg, please call our securities law firm in Chicago to speak to one of our attorneys about your options of suing Moloney Securities in the FINRA arbitration forum on a contingency fee basis. We help investors recover financial losses.

Stoltmann Law Offices is investigating Russell Macke, a former registered broker with B.B. Graham. Macke is accused of making unsuitable investment recommendations, churning and excessive trading (in which the broker excessively trades a customer account to generate large commissions for himself) and investment fraud, among other transgressions. Allegedly, Macke caused his customers to pay excessive margin interest, commissions and fees and the amount of trading in the customer’s accounts was inconsistent with their financial circumstances and investment objectives. A broker must take into account a client’s investment objectives, investment sophistication and knowledge, age and net worth among other factors before recommending investments. If he does not, his firm may be liable for investment losses because they must reasonably supervise him as an employee. Macke was alleged to have opened a brokerage account for an 85 year-old customer who was living in a nursing home. During the time period from August 6, 2007 through June 30, 2008, Macke effected 99 stock transactions in the account. The account lost $52,905 in value and the customer paid $50,117 in margin interest, fees and commissions.

Russell Macke was registered with Metropolitan Life Insurance Company, John Hancock Mutual Life Insurance, Re-Direct Securities Corp, Waterstone Financial Group, Moloney Securities, Forsyth Securities, and B.B. Graham & Company in Orange, California from July 2012 until April 2015. He has four customer disputes against him, one of which is pending. He is not licensed within the industry and the Financial Industry Regulatory Authority (FINRA) permanently barred him from the industry.

If you invested money with Russell Macke, please call our Chicago-based securities law firm at 312-332-4200 to speak to an attorney. You may be able to sue his former firm, B.B. Graham for investment losses. The call is free with no obligation and we take cases on a contingency fee basis only so we only get paid if you recover money.

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