#McNally Financial Services complaint

[rexsecuritieslaw]

Mark A. Kemp Investigation-McNally Financial Services Broker-Corpus Christi, TX

Mark A. Kemp Investigation-McNally Financial Services Broker-Corpus Christi, TX

Mark Kemp Investigation July 2022 – Corpus Christi, Texas According to publicly available records Mark A. Kemp  (CRD#2057200) ,  a  stockbroker who currently works for San Antonio-based McNally Financial Services Corp. ,  discloses a prior regulatory event, 8 prior customer disputes, 3 pending customer disputes and 2 terminations from employment. The Financial Industry Regulatory Authority…

[illionoisprelawland-blog]

The College Admissions Scandal And Its Ties To Honest Services Fraud

By Beverly Batts II, University of Chicago Class of 2023

April 13, 2020

The purpose of higher education is to improve the quality of life for many and create a level playing field for those vying to enter the workforce. For others, higher education is the next monumental step to attending graduate school and then a career in their prospective profession. However, for a small group of individuals, higher education has become a burden because of their methodology to pursue this higher learning.

Six months ago, the general public was made aware of the college admissions scandal that changed the regulatory system of college admissions. American actress Lori Loughlin is one of  thirteen individuals who is alleged to have paid bribes to college admission officers to have her daughter allowed admission to the University of Southern California, along with other universities. Currently, her defense lawyers are arguing for the dismissal of charges on the count of “alleging prosecutorial conduct” on the premise that one of the leading witnesses in this case, Rick Singer, was "coerced" (as stated by Loughlin's defense team) by the government when he confessed that he told the clients that the briberies would be counted as donations to the university¹. Essentially, this is a gross mishandle of court documents through alleged wiretapping if the judge deems this true. Moreover, dismissal of such incriminating evidence could weaken the prosecution’s argument if all of the notes are disregarded.

The motion for dismissal follows Loughlin's plea that she did not participate in “quid pro quo” which would presume her to be innocent². In accordance to Cornell Law School’s Legal Institute, it defines “quid pro quo” as the Latin translation of “something for something” where “an exchange of acts or things of approximately equal value.”³ This would mean that Loughlin and her husband’s donations to the school were not made for the purpose of gaining their daughter to the university, but out of generosity. If sufficient evidence is provided for by the judge or the notes acquired by the prosecution of Ricky Singer are discarded, Loughlin, her husband, and the thirteen others would not be proven guilty of honest services fraud.

Honest services fraud is defined as “a scheme or artifice to deprive another of the intangible right of honest services” after the Supreme Court case McNally vs. United States ruled that “the mail and wire fraud statutes proscribed schemes to defraud others of tangible property or financial interests, and of the intangible right to honest services.”⁴To apply this to Loughlin's case, the precedent set by McNally would acknowledge that the donations (if presumed to not be in quid pro quo) are protected, but does not refer to the intangible right to the University for practical uses.

Additionally, Loughlin is also being charged for money laundering. Money laundering describes “the process by which criminals disguise the original ownership and control of the proceeds of criminal conduct by making such proceeds appear to have derived from a legitimate source.”⁵ This charge may carry a sentence up to 20 years and a maximum fine of 500,000 dollars⁶. This would be the equivalent of how much Loughlin allegedly paid Singer through his nonexistent charity to create rowing profiles for her two daughters This is where the significance of the Singer notes come because they would directly implicate Loughlin and her husband in participating in laundering money through this false charity. For Louglin’s defense attorney to adequately have such charges dismissed, it would have to prove that neither she, her husband, nor any of the other defendants implicated had the mens rea to commit such a crime as stated in the 19 U.S. Code 1956: Laundering of Monetary Instruments. As the code states, if the intent is there “to promote the carrying on of unspecified unlawful activity,”, then one is guilty⁷. However, if intent can not be proven, then the person is innocent.

Despite the large publicity surrounding the case, students involved are protected under the Family Educational Rights and Privacy Act of 1974 (FERPA) where their information can not be provided to the public without their consent⁸. This is why on popular media, Loughlin is greatly referenced due to her daughter's consent to disclose such information. Permission from her daughter is quintessential by law due to the provisions of FERPA. This measure, FERPA, "protects the privacy of student education records⁹. The law applies to all schools that receive funds under an applicable program of the U.S. Department of Education, and applies to the University of Southern California, where many of those involved gained admission for their children. This is the reason why the other students besides Loughlin's daughter remain unknown to the general public. If the University were to breach this protection, the risk of losing federal funding and/or a formal complaint from the Department of Education.

While the University of Southern California has made efforts to follow the law (as other universities that have also been implicated in this scandal have), the same may not be application for the defendants demanding a dismissal of charges until court returns back in session. As there is no current verdict for Loughlin or the thirteen other defendants, the judge will have the final say to see if this honest service was a breach of understanding or a breach of the law.

________________________________________________________________

1.     Almasy, Steve and Sarah Jorgenson (April 9, 2020). “College admissions scandal prosecutors argue cases against Lori Loughlin and others shouldn't be dismissed.” CNN: Central News Network. Accessed April 9 2020.

2.     Del Valle, Lauren (April 2, 2020). “Lori Loughlin and 13 other defendants move to dismiss charges in college admissions scandal.” CNN: Central News Network. Accessed April 9 2020.

3.     Cornell Law School. “Quid pro quo | Wex | US Law.” Cornell Law School. Accessed April 9 2020.

4.     Banoun, Raymond, et al. “Honest Services Fraud in the Private Sector.” Cadwalader, Wickersham & Taft LLP. Accessed April 9 2020.

5.     “What is Money Laundering?” International Compliance Association. Accessed April 11 2020.

6.     “Learn About Money Laundering, Defense, and Sentencing.” Brandon Sample PLC. Accessed April 11 2020.

7.     Cornell Law School. “18 U.S. Code 1956 - Laundering of Monetary Instruments |U.S. Code | US Law.” Cornell Law School. Accessed April 11 2020.

8.     “Family Educational Rights and Privacy Act.” U.S. Department of Education. Accessed April 9 2020.

9.     “What are the consequences for violating FERPA?” George Mason University. Accessed April 9 2020.

Photo Credit: Padsquad19

[rexsecuritieslaw]

Mark C. O'Meara - Former McNally Financial Services Broker-Discloses Customer Disputes-Georgetown, TX

Mark C. O’Meara – Former McNally Financial Services Broker-Discloses Customer Disputes-Georgetown, TX

Mark C. O’Meara Investigation May 2022 – Georgetown, TX According to publicly available records Michael C. O’Meara  (CRD#2652113) ,  a  stockbroker who currently works for LPL Financial and who previously worked for  McNally Financial Services Corp.  discloses a pending customer dispute and  three prior final customer disputes The Financial Industry Regulatory Authority (FINRA) is the agency that…

[rexsecuritieslaw]

Lawrence Goldstein-Former McNally Financial Services Broker-Churning Allegations Result in Bar from Industry- San Antonio, TX

Lawrence Goldstein-Former McNally Financial Services Broker-Churning Allegations Result in Bar from Industry- San Antonio, TX

Lawrence Goldstein Investigation November 2021- San Antonio, TX According to publicly available records  Lawrence B. Goldstein (CRD#2282699), a  former stockbroker who last worked for McNally Financial Services Corporation, discloses a regulatory event resulting in his bar from the industry. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers…

[rexsecuritieslaw]

Lawrence Goldstein-Former McNally Financial Services Broker-Permanently Barred From Securities Industry- San Antonio, TX

Lawrence Goldstein-Former McNally Financial Services Broker-Permanently Barred From Securities Industry- San Antonio, TX

February 2021- San Antonio, TX According to publicly available records  Lawrence B. Goldstein (CRD#2282699), a  former stockbroker who last worked for McNally Financial Services Corporation, discloses a regulatory event. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to…

[rexsecuritieslaw]

Lawrence Goldstein-Former McNally Financial Services Broker-Permanently Barred From Securities Industry- San Antonio, TX

Lawrence Goldstein-Former McNally Financial Services Broker-Permanently Barred From Securities Industry- San Antonio, TX

February 2021- San Antonio, TX According to publicly available records  Lawrence B. Goldstein (CRD#2282699), a  former stockbroker who last worked for McNally Financial Services Corporation, discloses a regulatory event. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to…

[rexsecuritieslaw]

Investigation of Former Merrill Lynch Broker Forrest Jones -Conroe, TX

Investigation of Former Merrill Lynch Broker Forrest Jones -Conroe, TX

July 2021- Conroe, TX  We are investigating former Merrill Lynch financial advisor Forrest Jones. According to publicly available records, Forrest Jones discloses  a pending regulatory civil suit,  pending customer dispute and a terminations from employment. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA…

[rexsecuritieslaw]

Investigation of Former Merrill Lynch Broker Forrest Jones -Conroe, TX

Investigation of Former Merrill Lynch Broker Forrest Jones -Conroe, TX

July 2021- Conroe, TX  We are investigating former Merrill Lynch financial advisor Forrest Jones. According to publicly available records, Forrest Jones discloses  a pending regulatory civil suit,  pending customer dispute and a terminations from employment. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA…

[rexsecuritieslaw]

Barrett O. Schultz-McNally Financial Services Broker-Subject of $1M Customer Dispute-San Antonio, TX

Barrett O. Schultz-McNally Financial Services Broker-Subject of $1M Customer Dispute-San Antonio, TX

March 2018 – San Antonio, TX According to publicly available records Barrett Oliver Schultz , (CRD# 2741114) ,  a  stockbroker who is employed by McNally Financial Services,  disclose  a pending customer dispute . The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report…

[rexsecuritieslaw]

David McNally-CEO of McNally Finanical-Discloses $1M Customer Dispute-San Antonio, TX

David McNally-CEO of McNally Finanical-Discloses $1M Customer Dispute-San Antonio, TX

March 2018 – San Antonio, Texas According to publicly available records David Dorn McNally , (CRD# 839798) ,  a  stockbroker who is employed by McNally Financial Services,  disclose that he is the subject a FINRA arbitration by a customer seeking damages of a million dollars or more. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and…

[rexsecuritieslaw]

McNally Financial Services Discloses Regulatory Sanction Over Sale of Steepener Investments-San Antonio, TX

McNally Financial Services Discloses Regulatory Sanction Over Sale of Steepener Investments-San Antonio, TX

San Antonio, Texas According to publicly available records San Antonio-based brokerage firm McNally Financial Services  (CRD#121196) , discloses two prior regulatory events. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as…

[rexsecuritieslaw]

Mark A. Kemp-McNally Financial Services Broker-Discloses Numerous Customer Disputes-San Antonio, TX

Mark A. Kemp-McNally Financial Services Broker-Discloses Numerous Customer Disputes-San Antonio, TX

June 2017 – San Antonio, Texas According to publicly available records Mark A. Kemp  (CRD#2057200) ,  a  stockbroker who currently works for McNally Financial Services Corp. ,  discloses a prior regulatory event, 7 prior customer disputes and 2 terminations from employment. The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage…

[rexsecuritieslaw]

Rex Securities Law Investigates McNally Financial Services Broker Marshall Cassedy-Tallahassee, FL

February 12, 2016- Tallahassee, FL Rex Securities Law is investigating broker Marshall R. Cassedy, Jr.  of McNally Financial Services . According to FINRA records  Cassedy has been named in  3 regulatory events, 17 customer disputes and 1 termination. The customer disputes have alleged various causes of action, including: unsuitable and unauthorized investments excessive investments breach of…

[rexsecuritieslaw]

Stockbroker Sanctioned for Trading Without Customer's Permission

Stockbroker Sanctioned for Trading Without Customer’s Permission

March 17, 2015  

Armen Bahadourian   entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  in late 2012, while registered with UnionBanc Investment Services, he executed a total of 15 unauthorized transactions in municipal securities in the accounts of nine customers in violation of MSRB Rule G-17.

Baha…