Ex-broker stole $1.4M from couple, panel finds

Facing jail time, a former branch manager for Banc of America Investment Services Inc. and A.G. Edwards & Sons Inc. owes two former clients $4.5 million after losing an arbitration claim last month.
SEP 03, 2008
By  Bloomberg
Facing jail time, a former branch manager for Banc of America Investment Services Inc. and A.G. Edwards & Sons Inc. owes two former clients $4.5 million after losing an arbitration claim last month. The manager, Brent S. Lemons, was accused of wide-ranging fraudulent activities, including churning and unauthorized trading, selling away and excessive commissions, according to the award, which was decided late last month by a three-person Financial Industry Regulatory Authority panel. Mr. Lemons stole money from his clients, Venna and Gerald Stubbs and spent as much as $1.4 million of that money to cover gambling debts, said Mrs. Stubbs’ attorney, Bryan Forman of Tyler Texas, in a statement. Mr. Lemons has more legal problems. On August 20, he pled guilty to two of 19 criminal counts in federal court in Tyler, Texas, according to Mr. Forman’s statement. Also last month, the Securities and Exchange Commission alleged that Mr. Lemons stole $1.3 million from former clients. Banc of America Investment Services, a unit of Bank of America Corp., fired Mr. Lemons last year. The firms, Banc of America Investment Services of Charlotte, N.C. and A.G. Edwards, now Wachovia LLC of St. Louis, are off the hook in this arbitration claim. Last December, the arbitrators decided to “sever” or separate the claims. Mr. Lemons is solely liable in the matter, according to the award. “I am glad Brent will go to prison — he deserves it,” said Mrs. Stubbs in a statement. “Although I doubt I will ever see a dime from the arbitration award, it is satisfying that the arbitrators found Brent to be a fraud.” The award includes $1.5 million in punitive damages, and $1.2 million in legal fees. In the statement, Mrs. Stubbs also said she doubted whether she could completely trust someone again.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.