TULSA, Okla., Sept. 10, 2013 (GLOBE NEWSWIRE) -- Lawyers with the Securities Law Firm of Shepherd Smith Edwards & Kantas LLP, www.sseklaw.com, are investigating claims involving Larry J. Dearman, Sr. ("Dearman") and his prior brokerage firms. According to records with the Financial Investment Regulatory Authority ("FINRA"), Dearman began operating as a financial professional in Oklahoma in 2005, working for broker-dealers in the area including Cambridge Legacy Securities, LLC, Securities America, Inc., and Brecek & Young Advisors. Dearman also worked as an investment advisor for The Focus Group Advisors, and was also a partial owner of that firm.
The Securities & Exchange Commission ("SEC") recently charged Dearman with a number of securities laws violations related to an alleged Ponzi scheme. According to the SEC complaint, Dearman raised almost $5 million dollars, if not more, from over 30 of his clients, to invest in local companies with "little or no risk," and that would substantially outperform investments the clients were currently holding. The purported investments included Bartnet, a wireless internet service provider, the Property Shoppe, which was purportedly in the business of purchasing and renovating real estate, and Quench Buds, which operates four convenience stores.
The SEC claims that these investments were not low risk and were, in fact, fraudulent. Dearman allegedly helped a personal friend, Marya Gray ("Gray"), set up at least one company to solicit investors that was used to operate a Ponzi style scheme where original investors were being paid returns with new investor money. According to the SEC, the principal of the investments was not being used as represented and may have simply been stolen.
Additionally, the SEC claims Dearman convinced multiple clients to write checks to Dearman personally for reasons including: (1) that Dearman had a good investment which wanted to remain anonymous and so investment checks would have to be made out to Dearman; (2) that Dearman needed a loan to buy out another investment advisor's practice; and (3) that the clients had not paid sufficient advisory fees. All told, the SEC has alleged Dearman collected over $700,000 from his clients by these practices alone.
Although the scheme has now collapsed, many investors suffered catastrophic losses before Dearman was caught. Moreover, schemes like this are typically indicative of much more widespread and long-running problems. Many of Dearman's other clients for years may have been mistreated, misled, or otherwise harmed, and may not even realize that they have potential legal rights. As such, present and former clients of Larry Dearman should carefully review their accounts to ensure that they have not suffered losses from improper recommendations or other wrongful conduct. If you are or were a client of Larry Dearman, contact the law firm of Shepherd, Smith, Edwards & Kantas LLP for a free, confidential evaluation of your account.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. For more than two decades, our firm has represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions.