Former broker ordered to pay back $4M

By PAUL STONE
The Palestine Herald

September 05, 2008 02:25 am

— A panel of arbitrators has ordered that former Palestine stockbroker Brent Lemons pay back more than $4 million that he allegedly stole from a customer’s investment accounts.
On Aug. 27, arbitrators for the Financial Industry Regulatory Authority (FINRA) awarded Venna C. Davis Stubbs a total of $4,259,436, according to the woman’s attorney, Bryan Forman of Tyler.
This is the second such award made by the FINRA to one of Lemons’ former clients.
In April, former Palestine residents Tammy and Cindy Mays, who now reside in Tyler, were awarded a total of $1,318,042 following a hearing in Dallas in connection with their claims against Lemons.
Lemons also pled guilty to a pair of federal criminal charges last month.
On Aug. 20, Lemons pled guilty to charges of interstate transportation of stolen money and engaging in a transaction with criminally derived property before U.S. District Judge Judith Guthrie.
A pre-sentencing report has been ordered, and U.S. District Judge Michael Schneider is expected to impose Lemons’ sentence at a later date, possibly before the end of the year.
Lemons is currently out of jail on bond pending his sentence on the charges which both carry a maximum sentence of 10 years.
In relation to the criminal charges, the federal government has alleged Lemons stole almost $410,000 from his victims over a two-year period.
According to court documents, Lemons has admitted he withdrew $80,000 from Stubbs’ accounts on two occasions, transferring those monies to the Boyd Corporation which owns and operates casinos throughout the U.S., including Sam’s Town in Bossier City, La.
Lemons worked for A.G. Edwards in Palestine during the 1980s and ‘90s before moving to Tyler in 1997. He continued to work for A.G. Edwards in Tyler until accepting a position with Bank of America in 2004.
Lemons was named president of Bank of America’s Tyler market in September 2005 before being fired from the post shortly before being federally indicted in April 2007.
During his time in both Palestine and Tyler, Lemons was heavily involved in a number of civic, non-profit and community organizations.
The 51-year-old Lemons, who now lives in Arlington, is suffering from several health problems, including a heart condition, and takes almost a dozen prescriptions, according to his attorney.
In May, Forman told the Herald-Press that he is representing other “claimants” in their claims against Lemons, saying most of his clients came to know Lemons during his days in Palestine.
“All of them are Palestine relationships that bridged over into Tyler when Brent moved to Tyler,” Forman said at the time. “...It is my opinion that of the people I’m representing they were longtime friends and associates and trusted Brent explicitly with their money.”
Forman has said Lemons’ license has been suspended by the FINRA, in addition to being sued by the U.S. Securities & Exchange Commission.
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Paul Stone may be contacted via e-mail at pstone@palestineherald.com