Empire Seeks Redress for Penson's Retaliatory Actions (PR Newswire)
Thu, 23 Apr 2009 12:30:00 Etc/GM
"The continued actions by Penson to the detriment of Empire, its customers, employees and shareholders are regrettable but not entirely surprising," said Empire's Chairman, Steve Rabinovici. "We have seen first hand Penson's dubious business methods and have heard over and over again allegations of similar conduct by Penson with its introducing firms; it is endemic of the way they do business." As set forth in Empire's Statement of Claim, Penson's Chairman, Roger Engemoen, has some 19 customer complaints reported on his CRD in the last two years alone. Penson's CEO, Phil Pendergraft, has some 14 customer complaints for that same period. Just one of those matters encompassed 39 separate arbitration claims alleging fraud, breach of contract, gross negligence, excessive use of margin and breach of fiduciary duty. Those 39 matters were collectively settled for $16,200,000, with Engemoen contributing $4,500,000 and Pendergraft contributing $2,000,000 toward the settlement. Moreover, Pendergraft has a disciplinary record which includes a fine and a suspension.
About Jesup & Lamont, Inc.
Established in 1877, Jesup & Lamont has an extensive history on Wall Street, with its origins encompassing such successes as providing brokerage services to Standard Oil and raising capital for the construction of Rockefeller Center. Jesup & Lamont, through wholly owned subsidiaries, offers full service broker-dealer and registered investment advisory services through its approximately 150 registered representatives in over 20 locations including offices in New York, San Francisco, Boston, Boca Raton, Chicago, Fort Lauderdale and Orlando. The Company's Jesup and Lamont Securities Corporation subsidiary also publishes proprietary research on several industries including Aerospace/Defense, Alternative Energy and Life Sciences/Healthcare and offers comprehensive investment banking services.
Forward-Looking Statement Disclaimer
This press release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risk, uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, without limitation, fluctuations in the volume of transactional services provided by the Company, competition with respect to financial services commission rates, the effect of general economic and market conditions, factors affecting the securities brokerage industry as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to revise or update any forward-looking statement.
source: http://biz.yahoo.com/prnews/090423/la03759.html?.v=1