Malecki Law announces the filing of a civil arbitration complaint in excess of
$4 million, plus punitive damages, against MetLife Securities, Inc. The case is being filed with the
Financial Industry Regulatory Authority ("FINRA") today for alleged improper supervision and selling away, relating to an alleged Ponzi scheme that devastated a
Bronx
community. The complaint alleges that the firm failed to properly
supervise and maintain the compliance of one of their registered
representatives,
Mr. Robert H. Van Zandt, in violation of federal and state securities laws, as well as financial industry rules and regulations.
Robert H. Van Zandt is already under investigation by the
New York State Attorney General's Office.
"I believe there are a lot of victims out there who don't know what is
going on, nor their rights under the rules and regulations of the
securities industry," securities fraud attorney
Jenice Malecki indicates.
In November of this year FINRA and the U.S. Securities and Exchange Commission
jointly released Regulatory Notice 11-54 stressing the importance of
supervision over registered representatives. Shortly before the
release of Regulatory Notice 11-54, FINRA filed a regulatory action against Merrill Lynch and fined the firm $1 million for failing to properly supervise a registered representative and catch a Ponzi scheme that he was running out of a San Antonio, Texas
branch office that victimized clients and non-clients of Merrill Lynch,
all to which Merrill Lynch was responsible for its failure to
supervise.
The complaint filed by Malecki Law relates to the alleged conduct of Robert H. Van Zandt
of the Van Zandt Agency, who is believed to have sold unregistered
securities in the form of promissory notes that were represented to
prospective investors as part of a secured real estate investment, which
appears improperly set up and not secured at all. It is alleged that
these notes were part of yet another "Ponzi" scheme in what Ms. Malecki
opines to be "an era filled with ponzi schemes for which the industry
should closely monitor to avoid harm to unwitting victims," this alleged
ponzi scheme run through a series of shell companies including Burke
and Grace Avenue Corp.
According to his FINRA Broker Check Report, Robert H. Van Zandt
was a registered representative with MetLife Securities, Inc. from
December of 2004 through February of 2007. During that time, it is
alleged that despite its duties to properly supervise Mr. Van Zandt,
MetLife Securities allowed him and others to sell unregistered
securities in connection with the operation of this Ponzi scheme for the
entirety of his tenure with the firm.
It is alleged that Mr. Van Zandt used his status in the close-knit Bronx community to earn the trust of his clients, and ultimately, solicited hundreds of investors, defrauding them of over $20 million.
According to the complaint filed with FINRA, Investors were solicited
to invest in the scheme while they were having their tax returns done at
the Van Zandt Agency and were lured into verbally and through
prominently placed brochures promising essentially "guaranteed" returns
of 9-12% annually, without appropriate registration, disclaimers, or any
earmarks of supervision over this conduct. It is believed that these
investors, many of whom invested their IRA's, proceeds from
inheritances, and life savings, have lost substantially all, if not all,
of their investment.
Investors
or employees with knowledge of the events at the Van Zandt Agency who
seek further information or want to explore their rights should contact
Malecki Law
by e-mail or phone. Malecki Law has a uniquely diverse background with
significant experience representing clients in securities and
investment fraud issues and
is "AV Rated" by Martindale-Hubbell.
Malecki Law hosts a website providing information and resources dedicated to the securities industry:
www.AboutSecuritiesLaw.com.