Published on:

Colorado Financial Broker Barred by FINRA for Unauthorized Private Securities Transactions

Tracy Rae Turner, a former broker with Colorado Financial Service Corporation, was barred by the Financial Industry Regulatory Authority (FINRA) amid findings that he offered and sold over $4.1 million in interests in saltwater disposal wells used in oil and gas production without the approval of his member firm.

FINRA found that Tracy Turner, of San Marcos, California, offered and sold interests in saltwater disposal well facilities (SWDs) to 12 investors, 8 of whom were Colorado Financial customers, without providing the firm with the required written notice of his participation in the securities transactions.  According to FINRA, Mr. Turner marketed the sale of the SWD interests by creating and making available online an Offering Memorandum which purportedly touted a “25.4% cash-on-cash return” on the investment.  FINRA found that Mr. Turner’s statements made unwarranted predictions about the returns investors could expect and were therefore misleading.  Mr. Turner was barred from association with any FINRA member in all capacities and fined $272,879.04 plus prejudgment interest.  The amount of the fine assessed is equal to the commissions Mr. Turner received from the sales of the SWD interests.

Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of misconduct which are in violation of industry rules and procedures.  In order to protect customers from such misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system.  The implementation of the rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures.  If broker dealers and their supervisors fail to establish and implement these protective measures, they may be held liable to account holders for losses flowing from the employees’ misconduct.  As a result, account holders who have suffered losses stemming from unauthorized and/or unsuitable securities transactions and/or false and misleading statements regarding investments can bring forth claims to recover damages against broker-dealers like Colorado Financial Service Corporation, which have a duty to supervise its employees in order to prevent stockbroker misconduct.

Have you suffered losses in your Colorado Financial Service Corporation account due to your stockbroker’s unauthorized securities transactions or false and misleading statements regarding your investment?  If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.  Mr. Pearce is accepting clients with valid claims against Colorado Financial Service Corporation stockbrokers for stockbroker misconduct.

The most important of investors’ rights is the right to be informed!  This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida.  For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues.  The securities fraud lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally!  Please post a comment, call (800) 732-2889, send Mr. Pearce an email at pearce@rwpearce.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.