Sonn Law Group is investigating claims regarding Daryl Richard Lemon (CRD #2473133, Los Angeles, California). Lemon recently submitted an AWC in which he was barred from association with any FINRA member in any capacity. See FINRA Case #2013036632201. Lemon was associated with SagePoint Financial, Inc. (Culver City, CA) from October 2005 until his termination in July 2013. The Form U-5 filed by SagePoint to terminate Lemon’s registration states that Lemon “failed to report funds received from a client. Rep received funds from client that did not relate to any account or business at the firm. Pursuant to firm policy rep had a duty to disclose receipt of such funds.”
FINRA found that Lemon executed 1,236 transactions in an elderly customer’s discount brokerage account maintained at another broker-dealer without providing prior written notice, or any notice at all, to his member firm. FINRA also found that Lemon periodically charged the customer amounts that he characterized as “advisory fees.” In entering into the AWC, Lemon neither admitted nor denied FINRA’s findings.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Sagepoint may be liable for investment or other losses suffered by Lemon’s customers.
If you were a client of SagePoint or Lemon, and have suffered investment losses, financial irregularities or unauthorized transactions in your account, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our “contact form.”