Goodman & Nekvasil P.A., May Recover Investor Losses | Laurence Torres (Larry Torres), Financial Advisor Barred by SEC
Larry Torres was previously licensed with Larry Torres. FINRA reports that Larry Torres was barred from the securities industry in February 2018.
ACCORDING TO THE SEC: The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 8A of the Securities Act of 1933 (“Securities Act”) and Sections 15(b) and 21C of the Securities Exchange Act of 1934 (“Exchange Act”), against Laurence M. Torres (“Torres” or “Respondent”). The Commission finds that from August 2012 through September 2014, Torres violated the antifraud provisions of the federal securities laws by recommending a high-cost pattern of frequent trading that he had no reasonable basis to believe would be suitable for eight of his customers or for anyone, by making material misrepresentations and omissions regarding the high-cost pattern of frequent trading that he recommended to those customers, by churning those customer accounts and by engaging in unauthorized trading therein.
ACCORDING TO THE SEC: First, for eight customers, Torres recommended a high-cost pattern of frequent trading that he had no reasonable basis to believe was suitable for those customers or for anyone. The high-cost pattern of frequent trading implemented by Torres was almost certain to result in losses if implemented in any account and did produce losses in the accounts of all eight customers. Torres knowingly or recklessly disregarded the fact that the high-cost pattern of frequent trading he recommended had virtually no chance of generating any profit for eight customers. Second, Torres made material misrepresentations and omissions regarding the high-cost pattern of frequent trading that he recommended to the eight customers. Torres failed to disclose to the eight customers that the pattern of frequent trading that he recommended, combined with the high per-trade transaction costs, was extremely likely to cause losses. This was clearly material information that any reasonable investor would want to know prior to investing. Third, Torres churned the brokerage accounts of at least three of the eight customers. The trading in the accounts was excessive in light of the customers’ investment objectives, and as indicated by the high annualized cost-to-equity ratios (between 63% and 113%) and turnover rates (between 18 and 37) for each of these accounts. The accounts were nondiscretionary, meaning that the customer was supposed to make all trading decisions and Torres could not execute a transaction without customer authorization prior to the trade. Torres exercised de facto control over these non-discretionary accounts because the customers rarely, if ever, suggested an investment idea, nor did they reject any of Torres’ recommendations. Torres acted with willful and reckless disregard for these customers’ interests. Fourth, although the accounts were non-discretionary, Torres executed trades without seeking prior authorization from at least four of the eight customers and thereby executed unauthorized trades in their accounts. Torres communicated with his customers almost exclusively by telephone. A comparison of trading and the firm’s phone records revealed large numbers of trades for all four customers had no call with the customer in advance of the trade, as would be required for a non-discretionary account. As a result of the conduct described, Torres willfully violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, which prohibit fraudulent conduct in the offer or sale of securities and in connection with the purchase or sale of securities.
If you lost money on investments with Larry Torres and believe the investments may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action concerning Larry Torres’ conduct. There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA, has practiced in this area of the law for more than 35 years. Goodman & Nekvasil, P.A. has recovered more than $180 million on behalf of victimized investors. If you lost money on investments with Larry Torres and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
KeyTerms:
Investment Fraud Attorney, Stockbroker Misconduct Disciplinary Actions, Unsuitable Investment Advice, Investment Fraud, Churning, Misrepresentation and Omission of Material Facts, Elder Fraud, Unauthorized Trading, Theft, Selling Away, Unapproved Outside Business, Nationwide, PIABA, SEC, Securities Exchange Commission, NASD, National Association of Securities Dealers, NASDAQ, Dow Jones, Wall Street, New York Stock Exchange