FINRA Panel Holds Wunderlich Securities and Broker Ralph E. DeRose Liable for Over $1 Million due to Securities Misconduct Relating to Energy Investments

A FINRA arbitration panel held Wunderlich Securities (CRD# 2543) and Ralph E. DeRose (CRD# 721488) liable for over $1 million in damages to a customer alleging securities misconduct related to energy investments on April 25, 2017.

According to the Award, Wunderlich’s and DeRose’s customers alleged that DeRose failed to sell holdings in their accounts at their request and overconcentrated their accounts in unspecified energy holdings.

DeRose is based out of Wunderlich’s Beachwood, Ohio branch.  Wunderlich has employed DeRose since October 2010.

Wunderlich has been tied to many oil-, gas- and energy-related companies as a market maker and/or underwriter.  A list of many of the oil and gas companies Wunderlich has underwritten can be found on the NASDAQ Exchange website.

Some of the more notable companies Wunderlich served as underwriter for were Sandridge Energy, Breitburn Energy Partners, Linn Energy, Atlas Resource Partners, and Swift Energy.  All of these companies have declared bankruptcy in the past two years and, amidst 119 North American bankruptcies, they all had some of the highest amounts of unsecured debt.

As part of these underwriting agreements, underwriters and market makers often received discounted shares as well as options to purchase more discounted shares as compensation.

Wunderlich has been bullish on some oil and gas investments in the recent past.  Its analysts have provided coverage on numerous master limited partnerships (“MLPs”) and other oil and gas investments.

Wunderlich analysts include Jason A. Wangler (CRD# 5334275), who was bullish on oil as recently as early 2015, Arthur R. Hogan (CRD# 1390087), and Irene O. Haas (CRD# 2760027).

Many of these oil and gas investments were touted by Wall Street as safe, secure investments for income.  Unfortunately, these investments rely on the price of oil, which is extremely volatile.  Many brokers and brokerage firms failed to disclose the inherent risks of these oil and gas investments and recommended them anyway, leaving many unknowing investors with huge losses.

If you have lost money investing in any of these oil and gas companies at the recommendation of Ralph E. DeRose and Wunderlich Securities, contact us.  Our lawyers have litigated hundreds of cases through FINRA arbitration and won millions of dollars on behalf of aggrieved investors.  Our lawyers represent investors nationwide in securities cases and FINRA arbitration to recover investment losses.  There is no fee unless we recover money for you.

For more information about the law firms, the lawyers, and our oil and gas investment practice area, please visit our website at  Contact Scott L. Silver at (800) 975-4345 for a free, confidential consultation.

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