Corporate & Securities Law

Two former financial advisers who were barred from the securities industry have sued Utah for $357 million, accusing state regulators of targeting them without proof of wrongdoing in an overzealous campaign to bring down securities violators according to a recent issue of InvestmentNews.

Advisers Henry Brock and Jay Rice both lost their brokerage licenses after separate investigations by the Utah Division of Securities found them to have committed a host of securities violations, including making false promises to seniors at seminars.

The pair struck back last month by filing a lawsuit in U.S. District Court for the District of Utah, claiming that the Securities Division heaped dozens of allegations on each of them - 25 for Mr. Brock and 28 for Mr. Rice - without giving them a chance to appear before a judge in a timely manner.  They claim that they were put out of business and forced to declare bankruptcy as a result of the agency's actions.

We'll stay tuned to see what happens in this very interesting lawsuit.

Source:  InvestmentNews