BOCA RATON, Fla., Nov. 27, 2010 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) announced today that it is continuing to investigate potential claims against Lincoln Financial Securities Corp. and Capital Analysts on behalf of victims of Kenneth Wayne McLeod. Earlier this year, the SEC alleged that the now deceased McLeod "lured many of his investors through retirement benefits seminars he gave at government agencies nationwide. He raised at least $34 million since 1988 from an estimated 260 investors around the country. The security of the government bonds was a key element of McLeod's deception but he never purchased any bonds. Instead, he used the investors' retirement savings to conduct a Ponzi scheme, to pay himself, and to pay for lavish entertainment, including annual trips to the Super Bowl for himself and 40 friends." K&T has received numerous inquiries from investors who sustained significant losses as a result of this Ponzi scheme, and is preparing to file claims on their behalf.
McLeod offered numerous customers guaranteed annual returns of 8% to 10% by investing in a so-called tax-free "FEBG Bond Fund" or "FEBG Special Fund." The SEC said that "he falsely told investors that their principal would be 100 percent invested in and secured by government bonds. McLeod explained to several investors that the fund invested in government securities that provided a 13 percent return. McLeod misrepresented that he used the three to five percent spread to expand FEBG and his other businesses, but the investors' principal would remain untouched."
From January 2004 through December 2007, Kenneth Wayne McLeod was registered with Capital Analysts, Inc. Thereafter, he moved his securities license to Lincoln Financial Securities Corp. Both Capital Analysts and Lincoln Financial Securities are active members of the Financial Industry Regulatory Authority ("FINRA"). Under FINRA Rules, Capital Analysts and Lincoln Financial Securities were obligated to properly supervise the practices and activities of McLeod during the time that he was registered with these firms. Accordingly, these brokerage firms may be liable for failing to supervise McLeod's activities during his tenure at these firms, and responsible for compensating investors who lost money investing with McLeod.
K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action or mass/group claim. By participating in a class action or mass/group claim, an investor may only recover a nominal amount. However, if one has experienced significant losses by investing with McLeod, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, K&T conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
Victims of Kenneth Wayne McLeod can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or sustained losses of $100,000 or more by investing with Kenneth Wayne McLeod, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com