The Stock Market Loss fraud investigation team currently is assisting former clients of Lee Dana Weiss, who has been barred by the Securities and Exchange Commission from serving as an investment adviser or broker. Weiss also is prohibited from associating with companies that offer investment advice or sell securities to members of the public.
Weiss was a previously registered broker and investment adviser with five companies, most recently Stillpoint Capital, LLC, from 2011 to 2015 and MIP Global, Inc., from 2014 to 2016.
Complaints Against Weiss
Several complaints from former customers are pending against Weiss. In one complaint from July 2013, a customer alleges that Weiss and his company mismanaged assets and breached their fiduciary duty by concentrating assets in risky investments that did not correspond to the objectives the clients had stated.
In addition, Weiss and his company allegedly failed to fully disclose relevant relationships with the investment issuers and failed to carry out due diligence on the investments. The customer is seeking $20,000,000 in damages. The company, FEP, has denied any wrongdoing.
Judgment by SEC
In September 2015, the SEC announced charges of fraud against Weiss and his self-owned investment advisory firm for allegedly “engaging in self-dealing.” The agency also alleged that Weiss failed to disclose material facts to customers about use of investors’ funds, conflicts of interest, and the level of risk of recommended investments.
According to the complaint, Weiss encouraged clients to invest in excess of $40 million in securities without disclosing that he held an interest in the securities issuer’s parent company.
In addition, Weiss was accused of violating clauses of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. A judgment was rendered against Weiss, and he was assessed monetary sanctions and fines of more than $8.4 million. In June 2016, the SEC barred Weiss from working as a broker or investment adviser.
The attorneys of McCarthy, Lebit, Crystal & Liffman Co., LPA, are representing individuals who have lost funds as the result of investment adviser misconduct and fraudulent activity. For a consultation with an experienced investment fraud lawyer, contact Stock Market Loss.