Securities Arbitration Lawyers BlogFINRA Bars Broker Dustin Shafer After Investigating Loan To Client
Dustin Shafer (Dustin Paul Shafer CRD# 34198962) is a former registered broker and investment advisor who was registered most recently with Newbridge Securities Corporation from 2019-2020, but spent the previous decade of his career with Money Concepts Capital Corp in Springfield, Illinois. Shafer worked in the brokerage industry since 2000.
Dustin Shafer Discharged From Newbridge Securities
In November 2020, Shafer was discharged from Newbridge. According to Shafer’s BrokerCheck Report, published by the Financial Industry Regulatory Authority (FINRA), Shafer’s discharge stemmed from allegations that he “borrowed money from an existing client without firm pre-approval, in contradiction of firm policies.”
Allegations That Shafer Borrowed From Clients Leads To Regulatory Sanctions
First, in December 2020, Shafer was investigated by the Illinois Securities Department for allegations that while employed by Newbridge and Money Concepts, he “borrowed over $55,000 from one of his elderly clients” in violations of Illinois securities laws. For this alleged misconduct, the state issued a permanent bar.
FINRA followed suit shortly thereafter in and January 2021, permanently barred Shafer from the securities industry. According to FINRA’s Letter of Acceptance, Waiver and Consent with Shafer, FINRA investigated whether Shafer borrowed money from a customer, but Shafer did not appear for on-the-record testimony in response to FINRA’s request. This is a violation of FINRA rules and resulted in the permanent bar.
Investors Also Allege Misconduct Related To Shafer’s Investment Recommendations
Shafer is also the subject of several investor arbitration claims for other misconduct. There are a total of nine customer complaints on Shafer’s BrokerCheck report, which, among other things, allege:
- A January 2020 complaint alleges misrepresentations in connection with an investment recommendation resulting in damages of $175,000. That claim was settled for $94,000.
- A June 2020 complaint that alleged “unsuitable investment recommendations, misrepresentation and omission, violation of Illinois Securities Law and Regulations of 1953, violation of the Illinois Consumer Fraud & Deceptive Practices Act, Breach of Fiduciary Duty, violation of FINRA Rule 3110, negligence and breach of contract” was settled for $280,000.
- A pending complaint seeks damages of $454,000 and alleges “customer purchased alternative investments . . . and is alleging these were misrepresented.”
Shafer also has several civil and tax liens disclosed on his BrokerCheck report ranging in amount from $10,207 to $71,285. Brokers are required to disclose these liens.
Did You Invest With And/Or Loan Money To Dustin Shafer?
There are special rules that govern when brokers borrow funds from customers. Moreover, many brokerage firms impose additional restrictions on doing so. Brokers and financial advisors stand in a special position of trust with their clients, and these types of transactions pose serious risks to investors. If you loaned money to Shafer, you may be able to recover your losses.
Moreover, FINRA Rules require brokers to have“a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable” based on a variety of factors, including the investor’s age, financial situation, investment objectives, risk tolerance etc. FINRA also requires brokers to “Know Your Customer” so that brokers learn and evaluate these factors before making investment recommendations. This applies to recommendations of REITs, annuities, and other investments.
Silver Law Group represents investors in securities and investment fraud cases against brokers and brokerage firms nationwide. Our lawyers routinely represent investors to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingency fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.