Broker Investigation: Samuel Frederik Lek

Samuel Frederik Lek (CDR#: 1642936) has been a broker with Lek Securities Corp. since 1993. According to a November 26, 2018 FINRA regulatory decision, Lek and Lek Securities Corp. did not develop Anti-Money Laundering (AML) programs for a line of low-priced penny stocks.

As a result, Lek Securities customers were able to liquidate more than 56 billion shares of penny stocks and claim $100 million in proceeds. This generated more than $1.6 million in commissions for Lek Securities.

By design, AML programs catch possible money laundering activities. But because proper programs were not implemented, Lek Securities could not detect the penny stock trades. The failure allowed account owners to make millions of dollars in microcap stock deposits and trades.

Other allegations against Lek and his firm include:

• Failure to perform Financial Crimes Enforcement Network reviews.
• Failure to conduct AML testing and training.
• Failure to maintain and enforce a supervisory system under Section 5 of the Securities Act of 1993.
• Facilitating the unlawful distribution of securities.

These failures amount to many violations of not only FINRA rules, but the Securities Act of 1993. The FINRA decision asks for monetary sanctions and costs to be paid by Lek and Lek Securities Corp.

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