Andrew V. Reid: Chairman and Co CEO
The Financial Industry Regulatory Authority's database indicates that Reid is no stranger to securities fraud.
In 2002, while working for Williams Financial Group in Dallas, Reid took a $10,090.58 check from a customer and deposited it in his own account rather than forwarding it to the firm. When Reid failed to respond, the National Association of Securities Dealers barred him from association with any member firm.
In 2004, Reid was accused of unsuitable trading and investing, fraud, negligence and violating state and federal securities regulations that caused $6 million in damage to investors. After arbitration, the case was settled in 2006 for $35,000.
In 2003, Reid's employer, Corporate Securities Group, filed a complaint alleging "unsuitable investment" in municipal bonds that caused more than $100,000 of damage. Arbitration is pending.
In 2001, while working for First Allied Securities in San Diego, Reid was accused of having an unexplained debit balance of $60,321.09. The case was settled for $290.
In 2001, GMS Group of New Jersey accused Reid, who worked for the firm, of making "unsuitable recommendations, misrepresentations and breach of contract in connection with their investments in certain high yield corporate debt and other securities" resulting in damages of $200,000. The case was settled in arbitration for $106,275.
Bruce Gwyn: Company President and Director
A Metairie-based futures fund manager was suspended and his two companies permanently banned from the U.S. futures industry after allegations he misled investors, the regulatory National Futures Association said Friday.
Bruce A. Gwyn, of Metairie, the two firms' former principal, agreed to a seven-year withdrawal from membership in the National Futures Association, authorities said. His companies, Level III Management LLC and Level III Trading LLC, were barred.
The action came after the National Futures Association alleged that Gwyn willfully misled investors, including New Orleans area residents, by exaggerating the fund's value by the millions and using fund profits for personal expenses. Investors put their money in Level III Trading Partners LP, the commodity pool that the management firm operated.
The National Futures Association is a Chicago-based regulatory agency for the U.S. futures industry. Membership is necessary to conduct business on U.S. futures exchanges.
Gwyn could not immediately be reached for comment Friday. The NFA's decision says that Gwyn and his companies agreed to withdraw without admitting or denying any of the allegations.
According to the complaint, Gwyn told investors that the fund was valued at $1.7 million in December 2011 and $3.7 million in February 2012. The NFA said that in fact, the fund was invested in over-the-counter penny stocks worth at most $200,000 and stock in private companies that was worthless.
Gwyn used more than $200,000 from the fund on personal expenses including food, gas and spa services, according to the complaint.
National Futures Association also noted transfers to Gwyn's personal account that occurred soon after deposits came into the fund. For example, on Dec. 21, 2011, the fund received a wire for $44,000 from Alpine Securities Corp., a firm that held some of the fund's investments, the complaint alleges.
The next day, the fund transferred $44,000 to Gwyn's personal bank account, according to the complaint.
The remaining assets were in stock in privately held companies that "supposedly included oil and energy companies, a management company for businesses that own and operate specialty retail meat stores, and an entertainment production company that booked magic shows," the complaint says.
The report continues: "L3M and Gwyn failed to provide NFA with any current bank statements or other supporting documents from independent sources to demonstrate that the fund was actually invested in the above companies in 2011, and, if so, what the value of these investments were." The National Futures Association decided that those interests had no market value, despite the fund reporting the value at $650,000.
Gwyn would be required to pay a $50,000 fine before applying for membership after the seven-year disbarment.
Gwyn is listed as president, chief operating officer and director of New Orleans-based Treaty Energy Corp on the company's website. A message left at the company's office late Friday was not immediately returned.
He was also listed as a director of Axiom Global Properties, the New Orleans-based company that once operated under the name Orpheum Property Inc. and owned the shuttered Orpheum Theater. Disgruntled investors in that venture wrested control of the property in court last year and put it up for sale. A phone number listed on Axiom's website was disconnected Friday.
Paul L. Fourt, Jr.: Director
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