Source Capital Sold Interests in Blue Ridge Securities Without Adequate Disclosure

New Orleans Investment fraud attorneysVincent Christopher and Thomas Gilleland, of Source Capital Group’s Adams Street branch office in Bowling Green, Kentucky, fraudulently sold interests in Blue Ridge Investments and Argyle Securities, a FINRA Letter of Acceptance, Waiver and Consent (AWC) alleges. Christopher and Gilleland made material misrepresentations to their customers regarding the viability of both Blue Ridge and Argyle, the AWC reports.

Source’s Adams Street Branch Was Sole Seller of Blue Ridge; Source’s Wright Street Branch Was Sole Seller of Argyle

Blue Ridge and Argyle were located in the same building as the Adams Street branch office and were owned by Robert Burr, a major stockholder and former officer of both Blue Ridge and Argyle, the AWC reports. Kevin Cline, meanwhile, was the branch office manager for Source’s Bowling Green, Kentucky branch office on Adams Street, and from October 11, 2006 to December 17, 2012, Source, through Cline, sold or caused the sale of interests in Blue Ridge Securities without sufficiently disclosing that Blue Ridge provided funds to Cline that he used to pay brokers who sold Blue Ridge investments, in violation of FINRA rules, the AWC alleges.

Christopher and Gilleland Accused of Excessive Claims and Promises to Customers Via E-mail

Gilleland reportedly wrote to a potential customer in a December 3, 2009 e-mail that he had a rare opportunity to earn “a potential of 6-8 times your money” and further claiming investment returns of “25-30% annually right out of the gate.” Gilleland also drew upon sports metaphors, and in a November 2009 e-mail told investors that Argyle was a “slam dunk.” In the end, FINRA censured Source Capital Group, and fined them $100,000 in connection with the fraudulent sale of interests in Blue Ridge Investments and Argyle Securities by Vincent Christopher and Thomas Gilleland, the AWC notes.

Investment Fraud Lawyers Investigating

The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

Broker: Vincent Christopher

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Broker: Thomas Gilleland

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Peiffer Wolf (1249 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.