Did David T. Phillips Cause You Investment Losses?
David T. Phillips of Gilbert, Arizona submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority in which he was fined $5,000 and suspended from association with any FINRA member for a period of nine months. The sanctions were based on findings that he allegedly participated in private securities transactions in violation of FINRA Rules 3280 and 2010. The suspension is in effect from December 7, 2020, through September 6, 2021.
From November 20, 2017, through November 30, 2018, David T. Phillips was registered with Moloney Securities Co., Inc. as a General Securities Representative. According to the FINRA findings, Phillips allegedly solicited eight investors to purchase securities in Future Income Payments (FIP) worth $876,636 and promised a 7% to 8% rate of return. FIP ceased to do business, owing nearly $300 million in unpaid investor payments. The findings state that Phillips received $33,184 in commissions. He allegedly never sought or obtained approval from his firm to participate in the private transactions. Although David T. Phillips is not currently registered or associated with a FINRA member firm, he remains subject to FINRA’s jurisdiction.
FINRA Rule 3280 requires that prior to “participating in any manner” in a private securities transaction, a person associated with a member firm shall provide written notice to his or her firm “describing in detail the proposed transaction and the person’s proposed role therein.” FINRA Rule 3280 defines a private securities transaction as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.” A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires FINRA members and associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
Do You Need an Arizona FINRA Securities Arbitration Attorney?
Did your Arizona stockbroker or investment advisor recommend an investment that turned out to be an investment that was never reviewed or approved by their stockbrokerage firm employer? The stockbrokers who stoop to that level are usually insolvent or uncollectible. And so, the investor’s only recourse is against the brokerage firm employer. But stockbrokerage firms always claim ignorance of the stockbroker’s activities and deny liability for the sale of unauthorized investments which they call Selling Away as if that was an absolute defense. Not so! You will definitely need an experienced attorney who knows the securities laws and how to hold the stockbrokerage firm responsible for their employees Selling Away under legal principles of actual authority, apparent authority, estoppel and failure to supervise. If your attorney knows where to look he/she can often find Red Flags of the alleged unauthorized sales that the firm did not look for, missed, or saw and just ignored.
Free Initial Consultation With Experienced Ponzi Scheme Attorneys Representing Gilbert, Arizona Residents in FINRA Arbitrations
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Arizona, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving Arizona citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.