Orlando Broker Barred by FINRA for Allegedly Giving False Valuation of Hedge Fund

Fort Lauderdale-based Soreide Law Group, (888) 760-6552, has obtained the following summation of information from FINRA’s website, under “Disciplinary and Other FINRA Actions, July, 2014.”

John Warren DuBrule (CRD #1223724, Orlando, Florida)

was barred by FINRA for allegedly engaging in securities fraud by the distribution of quarterly statements containing false information about the valuation of a hedge fund.

FINRA's findings stated that DuBrule inflated the value of the fund’s assets on its quarterly statements by including the face value and promised interest of defaulted promissory notes as assets of the fund. This falsely inflated the value of investors’ interests in the fund. DuBrule made materially false and misleading statements and omissions to investors to get them to re-invest additional funds.

FINRA's findings stated that John DuBrule and his wife invested $88,554 in the fund. They withdrew a total of $92,405, on the inflated value of their investments in the fund. Allegedly, DuBrule misappropriated investor funds by withdrawing the funds despite knowing that the promissory notes had been cancelled and the value of the fund’s assets had decreased substantially. Investors deposited $3.8 million, this based on the fraudulent misrepresentations and omissions in the summary quarterly statements.

(FINRA Case #2011027666902)

John W. DuBrule was previously registered with the following securities firm(s):

MERRIMAC CORPORATE SECURITIES, INC. (CRD# 35463) - ALTAMONTE SPRINGS, FL
09/2008 - 09/2013
BERTHEL, FISHER & COMPANY FINANCIAL SERVICES, INC. (CRD# 13609) - ORLANDO, FL
11/2005 - 08/2006
CAPITAL SECURITIES OF AMERICA, INC. (CRD# 36405) - ORLANDO, FL
02/2004 - 10/2005
WACHOVIA SECURITIES FINANCIAL NETWORK, LLC (CRD# 11025) - ST. LOUIS, MO
01/2001 - 02/2004
JWGENESIS FINANCIAL GROUP, INC (CRD# 38166) - BOCA RATON, FL
01/1999 - 01/2001
CHATFIELD DEAN & CO., INC. (CRD# 14714) - GREENWOOD VILLAGE, CO
11/1990 - 01/1999
THE STUART-JAMES COMPANY, INCORPORATED (CRD# 11691) - DENVER, CO
08/1990 - 12/1990
BLINDER, ROBINSON & CO., INC. (CRD# 5096) 12/1983 - 10/1990

This summation of information on FINRA's website ends here.

If you had financial losses due to the recommendation of your broker/financial advisor call Fort Lauderdale based Soreide Law Group for a free consultation with an attorney at: (888) 760-6552.