Ledoux failed to report six liens between 2004 and 2012
Boca Raton broker David J. Ledoux faced a suspension and fine in June after allegations that he failed to file an updated Form U4 to reflect six liens in a timely manner, according to FINRA. Ledoux, who has been employed in the security industry since 2004, was permitted to resign from National Securities Corporation after allegedly failing to report liens between 2004 and 2012. He didn’t report four of them until 2014 and two were never disclosed.
This resulted in disciplinary action from FINRA, which levied sanctions against him in the form of a 45-day suspension and $5,000 fine. The first lien, which was civil, was in the amount of $369, but the remaining tax liens amounted to a total of more than $184,000, according to FINRA. According to the disclosures made on his FINRA Broker Check report, he is on an installment plan to repay two of them.
Between 1998 and 1999, Ledoux was involved in a number of customer disputes on allegations ranging from fraud to misrepresentation to churning—or the excessive buying and selling of securities with the intent to generate commission for the broker without benefiting the investor—among other securities industry violations. The alleged damages among all the disputes amounted to nearly $1.5 million, and more than $400,000 in damages were actually granted in the settlements.
Prior to his employment with National Securities Corp. in Boca Raton, Florida, in 2001, Ledoux was employed with FAS Wealth Management Services, Inc., in Sarasota. Before that, he worked for Biltmore Securities, Inc., in Ft. Lauderdale until 1998. Biltmore was expelled by FINRA in 1999, shortly thereafter.
Brokers are required to disclose a variety of different types of events, even some that do not necessarily involve a customer complaint. These disclosures often include IRS tax liens, judgements and even financial and criminal matters. These financial issues may cause a broker to seek additional funds by increasing their commissions, which often means providing clients with improper advice that result in allegations like the ones Ledoux is facing.
If you have been impacted by the actions of David Ledoux or any other financial adviser, you may be able to recover your losses through securities arbitration. To discuss your case with an experienced securities arbitration attorney, contact Silver Law Group today. Our consultations are free of charge and the firm is only compensated if you recover.