The Financial Industry Regulatory Authority Inc. has barred Floyd Powell from the securities industry. The broker sold close to $3.5 million of promissory notes relating to the Woodbridge Group of Companies through unapproved private securities transactions between July 2016 and December 2017. According to FINRA, Powell received $104,000 in commissions from the transactions of the Woodbridge Ponzi Scheme.
Powell Acted as Unregistered Sales Agent for Woodbridge
Between July 2016 and December 2017, Powell sold Woodbridge promissory notes to 13 investors, 11 of whom were customers of MetLife Securities or MSI. According to FINRA, he did not provide notice to the broker-dealers prior to selling the securities.
According to FINRA’s BrokerCheck system, Powell worked at MSI Financial Services Inc., formerly known as MetLife Securities Inc. In March 2017, MSI merged with MML Investors Services Inc. where Mr. Powell was registered through last February. According to the FINRA report, MML reported that it had terminated Mr. Powell in February 2018.
Despite concerns, many brokers sold promissory notes related to the Woodbridge Group of Companies, a purported real estate investment fund that is alleged to be a $1.2 billion Ponzi scheme, resulting it massive losses for investors.
During the investigation it was revealed that some of the Woodbridge sales agents were registered at broker-dealers or investment advisory firms. Furthermore, several of the sales agents had been censured or barred by the SEC, FINRA or state securities regulators.
In December 2017, Woodbridge declared bankruptcy, and weeks later the Securities and Exchange Commission charged the company with running a massive Ponzi scheme.
Have You or Someone You Know Lost Money as a Result of Stockbroker Misconduct?
Brokerage firms are obligated to supervise their brokers. If they fail to do so and a broker’s negligence causes you financial harm, you may have a claim to recover your investment losses. If you or someone you know lost money as a result of stockbroker misconduct, contact an experienced investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today.
Speak with an Investment Fraud Attorney
Our AV-rated* lawyers have extensive experience litigating a broad range of investment disputes, including those involving elder fraud. We will aggressively pursue claims against culpable brokerage firm or stockbroker to recover your investment losses.
If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of investment fraud or stockbroker misconduct. We’ve recovered more than $100 million in assets lost to investment fraud and stockbroker misconduct.
Contact Dimond Kaplan & Rothstein Today
Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule an appointment for a FREE case evaluation.
Our offices are located in Los Angeles, New York, Detroit, West Palm Beach, Naples and Miami, and we represent clients nationwide. Translations services are available.
