Securities Arbitration Lawyers BlogFormer Tennessee Woodbury Broker Under Investigation Over Allegations of Outside Business Activities
Silver Law Group is investigation former Tennessee-based Woodbury Financial Services, Inc. broker David A. Ross (CRD# 3021782) for allegedly failing to disclose an outside business activity and accepting loans from firm clients.
According to Ross’s FINRA BrokerCheck report, Woodbury Financial Services (CRD# 421) discharged Ross in April 2016 for the allegations listed above as well as other undisclosed firm violations.
Ross has seven other disclosures on his FINRA BrokerCheck report. Of those other seven, six of them are tax liens totaling over $250,000.
Ross, who was employed by Woodbury from 2010 to 2016 at its Murfreesboro, Tennessee branch, is no longer licensed by FINRA.
The term “selling away” is used when a broker sells or solicits the sale of securities that are not held or offered by the brokerage firm he or she is associated. Usually, the investments sought to be sold by the rogue broker are not approved by the employing firm and are often private placements or other alternative investments.
This is an important issue, as our firm sees many cases in which brokerage firms allege they conducted due diligence and the due diligence conducted was inadequate. In the cases of selling away, you have a rogue broker selling an investment that was either not vetted at all by the employing brokerage firm or was vetted and determined unsuitable for the brokerage firm’s customer base.
Brokers and brokerage firms have a duty to recommend suitable investments to their customers. This entails ensuring the investment is generally suitable for investment purposes and also suitable for the particular investor, factoring age, investment goal, and other factors.
On top of the duty to recommend suitable investments, a brokerage firm has a duty to supervise its brokers. The brokerage firm is responsible for the actions of its brokers.
FINRA arbitration is a fast, efficient way to recover your lost investment funds. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.
If you have invested with David Ross and Woodbury Financial Services, Inc. and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.