Broker Ray Reese Subject Of Five Customer Dispute Disclosures

Ray Gene Reese (CRD #1694620) is a FINRA Broker and Investment Advisor with Money Concepts Capital Corp (CRD #12963) of Farmington, MO. His previous employers include Pruco Securities Corporation (CRD #5685) and The Prudential Insurance Company Of America (CRD #680), of Newark, NJ, Hibbard Brown & Co., Inc. (CRD #18246) and Sherwood Capital, Inc. (CRD #10474). He has been in the industry since 1987.

Reese is the subject of five disclosures, all customer disputes dating back to 1999. The latest, filed on 05/08/2018, involved Reese misrepresented a publicly traded, illiquid product. The customer requested damages of $75,000. Reese countered that he had indeed informed the client of its illiquid nature. After the customer stated that they did not need the money for 11-20 years, the firm found that this was a suitable investment based on the provided information. Additionally, the clients indicated that the accounts were not held in their name; at the time, they were in a brokerage account by Pershing LLC. This dispute was denied.

The next customer dispute is dated 05/07/2018, and is currently listed as “pending.”  These clients claim “unsuitability, negligence, breach of contract” as well as breaches of Missouri statutes related to losses of funds deposited in their accounts in 1999 and 2000. The clients also claim that they made a down payment on a whole life insurance policy, with Reese stating that the premiums would never increase, and to ignore letters from the insurance company regarding unpaid premiums. Furthermore, the clients allege that Reese converted money for his own use and ignored their requests to see their file. Reese denies all the allegations, was not the individual who sold the client their insurance policies, and indicated that the clients took loans against their $400,000 investment and personal distributions in excess of $400,000. The clients are requesting damages in the amount of $650,000.

In a dispute filed on 02/26/2015, a customer and his daughter allege that two of his investments were decreasing rapidly. However, the client was found to be an accredited investor, and understood all the risks that were involved. After conducting a suitability review, a total of $11,000 of income was realized from his investments. During a subsequent client meeting, the client indicated that his daughter was simply “after his money,” and he removed her as the “transfer after death” person on one of his investments. The case was settled without any admission of wrongdoing. The client (and his daughter) requested damages of $125,000 and were awarded a settlement of $95,000.

A prior dispute filed on 6/10/2002 involving a client’s life insurance purchase, in which the client claimed that no further premium payments were required, and the client requested damages of $5,162.97. Reese stated that he was unaware of this complaint, and that this incident took place while he was employed with Pruco, departing in 1997.  The matter was closed with no action.

Reese’s first customer dispute disclosure is dated 3/29/1999, alleging no specific damages other than misrepresentation during the purchase of a variable annuity. Reese indicated that Prudential rescinded the client’s policy new policy and reinstated the previous one, at a cost of $7,688.27. Prudential made no allegations or indicated any fault on Reese’s part.

Have You Invested With Ray Reese?

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