Securities Broker Leonard Fox Accused Of Misappropriation

Soreide Law Group is investigating possible investor disputes to be brought against securities broker Leonard Fox (CRD: 1034449, Marlton, New Jersey). It appears that this securities broker, who worked for Morgan Stanley (2011 and 2013) and FSC Securities Corporation (2013 to 2016), is involved in a number of investor disputes, the most recent one being in March 2020. Also, securities regulators including FINRA and New Jersey Bureau of Securities have sanctioned Fox. Let’s take a closer look at these disclosures.

FSC Securities Corporation Alleges That Leonard Fox Misled Them And Misappropriated Their Money

Evidently, a client of FSC Securities Corporation filed a FINRA Arbitration Claim about Leonard Fox. In this March 2020 dispute, the client primarily alleges that the broker misled them about investments. Not only that, but he supposedly misappropriated their money. For this reason, FSC Securities Corporation opted to compensate this client in the amount of $150,000. Accordingly, this dispute settled in December 2020.

Fox Purportedly Makes Unauthorized, Excessive Trades In FSC Client’s Account

Also, an FSC Securities Corporation client took aim at Leonard Fox in a 2016 lawsuit. Namely, the client alleged that Fox made excessive trades. In addition, Fox supposedly traded without authorization from the client resulting in damages. It appears that these allegations of excessive and unauthorized trading concern mutual funds and unit investment trusts. Evidently, that client obtained $162,500 from FSC Securities Corporation via settlement.

Client Indicates That Leonard Fox Misappropriated Funds

Additionally, a Morgan Stanley client disputed Leonard Fox’s sales practices. In an August 2016 FINRA Arbitration Claim, the client alleged misappropriation by the financial advisor. It seems that Fox misused the client’s money in connection with loans and disbursements. Because of this, Morgan Stanley paid the client $450,000 in damages to settle this matter.

FINRA Expels Fox For Failure To Cooperate With Its Investigation

Notably, FINRA indefinitely barred Leonard Fox for not responding to its investigation-based requests, violating FINRA Rule 8210. Specifically, FINRA asked for Fox to provide certain documents and information so that it could evaluate whether he misappropriated funds. Fox did not oblige. For this reason, FINRA barred him. This means that he cannot associate with FINRA-member brokerage firms in any way. It appears that New Jersey Bureau of Securities expelled Fox because of FINRA’s sanctions.

Did You Experience Losses By Investing Through Securities Broker Leonard Fox?

Have you sustained losses because of Leonard Fox? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced lawyers about the recovery of your investment losses. Soreide Law Group represents its clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to the misconduct of financial advisors and securities brokers. FINRA BrokerCheck indicates that Fox denies all accusations of sales practice violations.