stock brokers misconductRockwell Global Capital LLC (Rockwell)  stock brokers Robert E. Lee Jr., Douglas Guarino, and Lawrence Lee have been the subject of at least 29 combined customer complaints.  All three brokers have been accused by clients of churning their accounts and making unsuitable investment recommendations.

Here is a recap of the complaints that have been brought against these 3 stock brokers.  These reviews serve well in educating investors in the types of situations that may arise.

Robert Lee first became registered in 1988.  Since November 2009, he has been registered through Rockwell.

  •  In August 2013, Robert Lee accepted a settlement with FINRA barring him from associating with any broker dealer.  FINRA found that between September 25, 2008, and October 31, 2008, while he was registered with GunnAllen, Mr. Lee failed to follow a customer’s instructions regarding the purchase of three securities.  FINRA also found that between September 2008, and at least December 2009, while he was registered with two member firms, he made material misrepresentations and omissions to a customer regarding the status of their investments.  Specifically, FINRA found that Robert Lee misrepresented to the client that certain investments had earned $49,591 in dividends when in fact the investments did not exist and no dividends had been earned.
  • In addition, Robert Lee has been subject to nine customer disputes, two firm terminations, and five judgments or liens.  The majority of the complaints involve allegations of unsuitable investments, penny stockschurning, and unauthorized trading.  Rockwell’s termination notice states that he acknowledged providing inaccurate written information to a customer regarding the customer’s account and investments.  Maxim Group LLC also discharged him stating the reason as a result of allegations relating to the handling of accounts.

In addition, he had several tax liens against him.  Large outstanding debts provides stock brokers with an incentive to sell high commission products or to churn accounts.

Douglas Guarino entered the securities industry in 1988.  In February 2007, Mr. Guarino became associated with Rockwell where he remains registered.

  • Douglas Guarino has had 10 customer complaints filed against him.  The customer complaints against him involve claims of excessive trading, churning, suitability, breach of fiduciary duty, misrepresentation, negligence, and fraud.  They involve allegations concerning the sale of penny stocks, options, promissory notes, and private placements.

Lawrence Lee entered the securities industry in 1996.  From August 2008, until November 2010 Lawrence Lee was associated with Rockwell.  Mr. Lee’s BrokerCheck reveals that he conducted business through the firm name LYL Investments Corp.

  • Lawrence Lee has had three regulatory complaints filed against him, 10 customer disputes, three brokerage firm terminations, and one judgment or lien.  In January 2014, FINRA barred Mr. Lee concerning allegations that he failed to timely update his disclosures to include the fact that he was charged with seven felonies and convicted of aggravated criminal sexual abuse.  In addition, the State of Illinois brought a complaint against him alleging that Lee made 250 unauthorized trades in a client account during a 10 month period generating approximately $30,000 in commissions and losing $46,000 for the investor.  Most of the customer complaints against Lawrence Lee involve allegations of excessive trading, churning, and unauthorized trading.