Samuel Lek Faces Dispute Following FINRA, SEC Bars

Lek Securities Corporation's Sam Lek Involved In Investor Dispute

The Financial Industry Regulatory Authority (“FINRA”) reports a new investor dispute regarding securities broker Samuel Frederik Lek (CRD#: 1642936, New York, New York). It appears that two investor disputes have been filed against the securities broker since March 2019. Not only that, but securities regulators have sanctioned Lek, who ran Lek Securities Corporation from 1993 to 2019. Here’s a brief rundown of these disclosures.

Lek Securities Corporation Client Indicates That Samuel Lek Potentially Violated FINRA Rules

Evidently, a client of Lek Securities Corporation brought a dispute about Sam Lek in June 2020. Namely, the client claimed that Lek and Lek Securities Corp potentially violated FINRA rules from October 2018 to April 2019. Notably, the client points out FINRA Rule 3110 which is a rule about securities firm supervision. Sometimes, FINRA sanctions firms if they fail to supervise their securities business which can include client transactions. It appears that the client allegedly sustained $2,804,880.05 in damages. This matter is ongoing.

SEC Bars Lek

Notably, in December 2019, SEC barred Sam Lek as securities broker. The Commission claimed that Lek and his company helped Avalon FA Ltd. engage in a manipulative trading scheme. SEC indicated that Lek allowed and facilitated those schemes at a time that he knew (or should have known) that the company was engaging in market manipulation. In the Order, SEC notes that it obtained a judgement against him before imposing the permanent bar.

FINRA Bars Samuel Lek

FINRA pursued a couple disciplinary actions against Sam Lek. In the most recent one, in December 2019, the financial industry watchdog claimed that as the CEO of Lek Securities Corporation, Sam Lek did not adequately supervise certain programs including AML policies. It appears that Lek did not create written supervisory procedures regarding microcap securities transactions to identify if the securities required registration. Lek also did not react to red flags concerning transactions.
And in a prior FINRA action, the regulator barred Sam Lek based on the actions identified by SEC. This includes Lek purportedly rendering assistance to a company engaging in manipulative trading. Because of this bar, Lek cannot work as a securities broker for FINRA member firms as of December 17, 2019.

Client Of Lek Securities Corporation Alleges Breach Of Contract, Misrepresentation In Dispute About Samuel Lek

Also, a Lek Securities Corporation client took aim at Sam Lek in a FINRA Arbitration Claim dated March 2019. First of all, the client alleged excessive fees. Secondly, Lek supposedly misrepresented information to them. Thirdly, the lawsuit alleges breach of contract. All of these allegations concern the client’s investments in penny stocks which seemingly caused losses. Evidently, Lek Securities Corporation paid the client $350,000 to resolve this matter in May 2019.

Did Lek Cause Your losses?

Did you lose money or suffer damages because of Sam Lek or Lek Securities Corporation? If so, call Soreide Law Group at (888) 760-6552 and talk with a knowledgeable securities lawyer about possibly recovering your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions for investors who have sustained losses because of their financial advisors and securities brokers. Evidently, Lek denies all allegations of his sales practice violations.
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