Philly Law Firm Says Broker Helped Developer In $1M Fraud

Law360, Philadelphia (September 10, 2012, 3:48 PM EDT) -- Attorneys for Philadelphia law firm Spector Gadon & Rosen PC told a federal jury Monday that Texas-based brokerage Southwest Securities Inc. had helped a bankrupt real estate developer commit a million-dollar fraud on the firm.

Spector Gadon claimed Southwest Securities broker Leighton Stallones had misrepresented the value of client Stephen Jemal's account in telephone and email communications. The firm, which represented Jemal in several loan transactions, contends that Stallones' actions allowed Jemal to overstate his holdings, prompting them to advance Jemal roughly $1 million in credit...
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