Tag Archives: Texas Fraud

Eric Carl Willer

If you invested with Eric Carl Willer of Fusion Analytics please call 303-300-5022.

From January 2017 to December 2018, Willer recommended that 13 potential investors purchase bonds in two private offerings without having a reasonable basis to believe that the bonds were suitable for any investor.  This means that he did not conduct sufficient investigation into the investments to determine whether the investments were financial sound enough for any investor to invest into. Additionally, Willer negligently misrepresented and omitted important facts when he distributed offering documents to four potential investors that included misrepresentations and omissions, in violation of securities regulations.

In January 2017, Promoters of the bond engaged Willer to sell the bonds through Fusion. On its website and in press releases, the issuer of the bonds identified itself as a wholly-owned subsidiary of the company that was sanctioned in a prior SEC action which ordered the Promoter to cease and desist raising money for past securities violations. Promoter was among the issuer’s management and was the president of the parent company.

The bond offering was intended to raise $6 million of the necessary $7.75 million to build a power plant, which the issuer claimed would use clean energy technology patented by the company that was sanctioned by the SEC. Revenue from the power plant would be the only source of revenue to support payments to the bondholders. In late December 2018, the issuer commenced a second offering (Offering 2) to fund the same power plant as Offering 1. As Willer was aware, none of the issuer, its parent company, Promoter 1, or Promoter 2 had any experience building or operating a power plant.

Willer performed no investigation of the issuer or its management in connection with the offerings, other than reviewing offering documents prepared by the issuer. Furthermore, the offering documents Willer used and distributed to potential investors in the sale of the bonds contained multiple, significant misrepresentations that Willer failed to recognize.

The Financial Industry Regulatory Authority (FINRA) began investigating this matter in March of 2021.  Willer agreed to a nine month suspension from the securities industry.

NEXT Financial Excessive Trading

On July 13, 2021, NEXT Financial entered into a regulatory settlement for excessive trading.   In the settlement,  the regulator censured, fined $750,000 and required NEXT to certify that it has implemented supervisory systems and procedures reasonably designed to address the issue.  If you believe you have a potential claim, call 1-866-817-0201.

investingstockphoto 1The trading issues stem from unsuitable short-term trading of mutual funds and municipal bonds in customer accounts and over-concentration of customer accounts in Puerto Rican municipal bonds. Without admitting or denying the findings, the NEXT consented to the sanctions and to the entry of findings that it failed to establish, maintain and enforce a supervisory system, including written supervisory procedures, reasonably designed to detect and prevent unsuitable short-term trading of mutual funds and municipal bonds in customer accounts and over-concentration of customer accounts in Puerto Rican bonds.

Rules concerning suitability and excessive trading are designed to protect investors from excessive risk which an investor is not prepared or willing to take.  The motivation for such unsuitable investments is generally a heightened commission to the broker.  In the case of turnover of mutual funds, the costs and commissions incurred from sale and repurchase are much higher than the investor can reasonably re-earn if even the account is turned-over only a few times.

Investors of Judith Johnston, NY Life

Investors of Judith Johnston of Frisco, formerly employed by NY Life, may have recourse for investment products sold to them.  Ms. Johnston was recently barred from the securities industry for failing to comply with an investigation into her annuity and insurance sales.  Please call 303-300-5022 for a free consultation with an attorney.

Ms. Johnston came to the attention of the regulator, FINRA, the Financial Industry Regulatory Invest photo 2Authority, due to the high number of customer complaints.  Eight different investors have submitted written complaints and have either sued NY Life concerning Johnston’s sales activities or threatened to sue.

The complaints by investors included Johnston’s solicitation and sale of variable universal life and variable annuities.  These complaints asserted that Johnston mislead them concerning various aspects of the financial products, such as the fees, the costs and the feasibility of taking .  They also assert that the husband of Johnston engaged in deception during the sale of these products and that Johnston was complicit.

On November 6. 2018, FINRA Enforcement sent a request to her address, requesting that she appear to provide testimony on December 4, 2018. On November 20, 2018, Johnston hired an attorney and testimony was rescheduled for January 24, 2019.

On January 24. 2019. Johnston appeared to start her testimony.  At the conclusion of one day of testimony on January 24th, FINRA staff determined that it needed additional testimony from her and requested that she appear to continue her recorded hearing.

By email dated February 11, 2019. Counsel for Johnston stated that Johnston would not comply with FINRA’s request to provide any additional testimony, and no longer wished to cooperate with the investigation. As stated in the email to FINRA staff on February 11, 2019, and by this agreement. Johnston acknowledges that she received FINRA’s request to provide testimony. and will not comply with that request.