Furgison Law Group investigates claims against Andrew Clinton LeGros

The securities fraud lawyers at Furgison Law Group are currently investigating claims against Andrew Clinton LeGros, Wells Fargo Advisors, LLC and Stifel, Nicolaus & Company. The arbitration specialists at Furgison Law Group are investigating claims involving allegations of breach of fiduciary duty, failure to supervise, misrepresentations, omissions of material facts, conflict of interests, violations of state and federal securities laws, along with other broker misconduct.

FINRA fines and suspends Andrew Clinton LeGros

FINRA assessed Andrew Clinton LeGros (CRD #1540847, Waite Hill, Ohio) a deferred fine of $15,000 and suspended him from association with any FINRA member in any capacity for three months. LeGros consented to the sanctions and to the entry of findings that over a number of years, he circulated communications to institutional investors about companies, which his member firm’s research analysts discussed during morning calls and about which they wrote in their research reports. The findings stated that these communications failed to meet the related requirements under NASD Rule 2711, were not fair and balanced, did not provide a sound basis for evaluating the facts, and contained exaggerated, unwarranted and misleading statements. The communications included LeGros’ so-called idea list that he created and distributed to institutional clients that represented his top 10 to 20 stock picks, and his so-called research insights emails that he sent to dozens of institutional customers. LeGros made a variety of claims without providing a sound basis for evaluating the facts with regard to them. In frequent references, LeGros made it difficult to distinguish between his own views versus those of his firm’s research department. The idea list’s pages of excerpts omitted material information about the stocks covered by the research report, did not include information relating to disclosures and certifications, and deleted extensive sections of analysis and supporting information. The excerpted pages also contained handwritten commentary by LeGros, much of which was misleading or unwarranted. The findings also stated that LeGros failed to maintain a copy of each version of the idea list provided to customers; rather, he generally maintained a copy of the most recent version. As a result, LeGros caused the firm to fail to maintain a copy of each version of the idea list, as the applicable rules required.

The findings also included that LeGros sent research insights emails to dozens of institutional customers several times a week. These emails provided ratings for specific stocks but did not define the meaning of each rating; failed to disclose the percentage of all securities rated by the member to which the member would assign a “buy,” “hold/neutral,” or “sell” rating; and did not include the percentage of subject companies within each of these three categories for whom the member has provided investment banking services within the previous twelve months. The research insights emails provided price targets (either those of the firm’s research analysts or LeGros’) but failed to disclose the valuation methods used to determine the price target or the risks that may impede achievement of the price target. The emails failed to fully disclose or make the additional disclosures as required by the applicable law or regulation, including the analyst certification required by SEC Regulation AC. FINRA found that LeGros was not properly licensed or registered as a research analyst, and should not have been circulating the research insights emails. The suspension is in effect from January 19, 2016, through April 18, 2016. (FINRA Case #2012032945602)

Investors Have the Right to Recover Their Losses

When investments are sold by brokerage firms licensed by FINRA, they are subject to the laws that FINRA enforces. The brokerage firms are responsible for ensuring that their brokers are trading fairly, ethically and in the best interest of their clients. Ideally, they would accomplish this through careful supervision. Unfortunately, too often this supervision has been inadequate to fully protect investors. If you purchased any investments through a representative of a registered brokerage firm and suffered loses through negligence or fraud, it immediately puts the brokerage firm at fault for failing to supervise their broker. FINRA law then dictates that you can hold the firm legally liable to recover your damages.

Can I recover my investment losses?

If you lost a substantial portion of your retirement savings or other assets as a result of investments purchased through Andrew Clinton LeGros, Wells Fargo Advisors, LLC and Stifel, Nicolaus & Company, please contact us immediately. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Time is of the essence in these claims. The sooner you act, the greater your chances of recovering your investment losses. Don't wait. Contact us TODAY for a FREE Consultation and case evaluation. We will tell you if you have a viable claim worth pursuing.