Carlos Legaspy, Broker for Insight Securities, Named in Four Customer Disputes Seeking Over $10M in Damages

The disputes allege that Legaspy recommended “worthless” investments. 

The Sonn Law Group is investigating allegations that Carlos Legaspy made unsuitable recommendations. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Carlos Javier Legaspy  (CRD#:2148751) is currently employed with Insight Securities, where he has been a broker since 2002. Previously, he was employed by Investment Placement Group from 1996 until 2002. 

Legaspy has four disclosures on his BrokerCheck report, all of which are pending customer disputes filed in the last two years. 

October 2019 Customer Dispute

• Status: Pending
• Allegations: “Client is managed by a 3rd party advisor. Client alleges Insight and Mr. Legaspy participated in selling client worthless securities in April of 2017.”
• Damage Amount Requested: $500,000.00
• Broker Comment: “It appears that I have been named personally because as a control person of Insight, I am a target. I am not the registered rep on the account. Claimant was managed by an outside third party adviser with discretion on account and who instructed the trade. Only one trade was made per that discretion; exchanging one security for another of similar value. The trade in question has been cancelled and client has received his original security back in account.”

February 2019 Customer Dispute

• Status: Pending
• Allegations: “Clients were managed by third party advisors. In Oct of 2018 Client alleges that the transfer documents were fraudulent and that Insight Securities, Mr Legaspy and Pershing LLC were negligent in missing the red flags of this transfer. Also alleges part of client funds invested in worthless notes.”
• Damage Amount Requested: $2,765,000.00
• Broker Comment: “I have never met claimants, and it appears that I have been named personally because I own Insight, which acted as the custodian for the unaffiliated unaffiliated third-party advisor who represented claimants. The third-party advisor provided Insight with signed letters of authorization (“LOAs”) to transfer the customer assets to a Cayman based broker-dealer Madison Assets LLC (“Madison”). Madison is now in bankruptcy, and claimants are alleging Insight is liable based on allegations that the LOAs were fraudulent. Clients had internet access to the accounts and received electronic notices of all trades and transfers, yet the client took no action until after Madison filed for bankruptcy, which was as a year and a half after the transfers were executed prudent to the LOAs. There is no allegation that Insight played any role other than a custodian for the claimants and agent to execute their third-party advisor’s orders. Insight followed the proper procedure for transfers of a customer’s assets to an account with the same name as that as the sending account. The signatures appear genuine and match the signatures on file with Insight.”

January 2019 Customer Dispute

• Status: Pending
• Allegations: “Clients were managed by third party advisors. In March of 2018 LOAs were submitted to transfer assets to another bank. Client alleges that the transfer documents were fraudulent and that Insight Securities, Mr Legaspy and Pershing LLC were negligent in missing the red flags of this transfer.”
• Damage Amount Requested: $6,000,000.00
• Broker Comment: “I have never met claimant, and it appears that I have been named personally because I own Insight, which acted as the custodian for the unaffiliated third-party adviser who represented claimants. The unaffiliated third-party advisor, who provided Insight with signed letters of authorization (“LOAs”) to transfer the customer assets to a Cayman based broker-dealer Madison Assets LLC (“Madison”). Madison is now in bankruptcy, and claimants are alleging Insight is liable based on allegations that the LOAs were fraudulent. Client’s trustee had internet access to the accounts and received electronic notices of the transfers, yet the client, or trustee, said nothing for two months until Madison filed for bankruptcy. There is no allegation that Insight played any role other than a custodian for the claimant and agent to execute their third-party advisor’s orders. Insight followed the proper procedure for transfers of a customer’s assets to an account with the same name as that as the sending account. The signatures appear genuine and match the signatures on file with Insight. The law firm representing the claimants also represents other actions against InSight stemming from their relationship with the third-party advisor.”

August 2018 Customer Dispute

• Status: Pending
• Allegations: “Clients were managed by third party advisors. On March 15th, 2018 an LOA was submitted to transfer assets to another bank. Client alleges that the transfer documents were fradulent and that Insight Securities, Mr. Legaspy, Pershing LLC, and Deustche Bank were negligent in missing the red flags of this transfer.”
• Damage Amount Requested: $2,386,452.00
• Broker Comment: “I have never met the claimants, and it appears that I have been named personally because I own Insight, which acted as the custodian for the unaffiliated third-party advisor who represented claimants. The unaffiliated third-party advisor, who provided Insight with signed letters of authorization (“LOAs”). to transfer the customer assets to a Cayman based broker-dealer Madison Assets LLC (“Madison”). Madison is now in bankruptcy, and claimants are alleging Insight is liable based on allegations that the LOAs were fraudulent. One of the Clients had internet access to the account and received electronic notices of the transfers, yet the client took no action for two months until Madison filed for bankruptcy. There is no allegation that Insight played any role other than a custodian for the claimants and agent to execute their third-party advisor’s orders. Insight followed the proper procedure for transfers of a customer’s assets to an account with the same name as that as the sending account. The signatures appear genuine and match the signatures on file with Insight. The law firm representing the claimants also represents other actions against InSight stemming from their relationship with the third-party advisor.”

Contact Us Today

The Sonn Law Group is currently investigating allegations that Carlos Legaspy recommended “worthless” investments. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.