Legal Eagle Review News

According to the Statement of Claim, the Claimant alleges that while employed with Jesup, he discovered that certain employees of Jesup were engaging in what he believed to be wrongful conduct that violated various securities laws. On numerous occasions, the Claimant reached out to the principals and compliance officer of Jesup and then Empire to seek the firms' help. In a retaliatory move, one of those employees physically assaulted the Claimant. Moreover, those employees took steps which hurt the Claimant's institutional business. The Claimant contends that Jesup and Empire ignored his pleas and allowed the conduct to escalate.

In addition, the Claimant alleges that Jesup, through its principals and employees, interfered with his institutional business relationships and transactions and created an environment that made it impossible for him to continue working at the firm. After making several attempts to bring the conduct he witnessed to the attention of the principals of Jesup and Empire, the Claimant was compelled to resign.

In recent months, Jesup & Lamont Securities Corp. witnessed the departure of former CEO Stephen J. DeGroat. In his place, Jesup hired James B. Fellus to serve as the new CEO of Jesup & Lamont Securities Corp. The replacement of Jesup's top executive raises questions as to whether the firm was being managed in compliance with the federal securities laws, and it may substantiate the claims as alleged by the Claimant discussed above.

Based on the foregoing, Klayman & Toskes is investigating the sales practices and conduct of Jesup & Lamont and Empire over the last several years. If you have information relevant to our investigation, please contact Steven D. Toskes, Esq., or Jahan K. Manasseh, Esq., of Klayman & Toskes, at 888-997-9956.