A previously registered broker Floyd Powell was barred by the Financial Industry Regulatory Authority (FINRA) on the allegation of engaging in unapproved private securities transactions and recommending unsuitable investments to investors and he is currently the subject of pending customer disputes on similar allegations according to an investigation by attorney Alan Rosca.
Ponzi scheme attorney Alan Rosca of the Rosca Scarlato LLC law firm, is investigating conduct related to the bar of Floyd Earl Powell for his engagement in unapproved private securities transactions and his recommendation of unsuitable securities to investors and the pending customer disputes on the similar allegations.
Former broker Floyd Earl Powell was previously in the employment of MML Investors Services, LLC, a FINRA member firm till February 2018.
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Floyd Earl Powell Was Barred for Unapproved Private Securities Transaction
The investigation of publicly-available records by the Ponzi scheme attorneys at Rosca Scarlato reveals that the previously registered broker was barred by FINRA for engaging in unapproved private securities transactions and also recommending unsuitable investments according to the reports on his FINRA brokercheck page.
The reports showed that the previously registered broker allegedly engaged in private securities transaction to the tune of $3.49 million without the approval of his firm. The report further discloses that the previously registered broker allegedly solicited investors to invest in securities issued by the Woodbridge Group of Companies LLC.
Former broker Floyd Powell sold to 13 investors, 11 of which are clients of his firm, promissory notes issued by the Woodbridge company. The former broker allegedly sold $3,491,707 worth of securities in the transaction and earned $103,598 in commissions from the transactions.
Floyd Powell in settling the regulatory action, signed a letter of Acceptance Waiver & Consent, AWC. Without accepting or denying the findings, he was barred indefinitely in all capacities starting from February 2019.
The Woodbridge company securities have been under investigation by the various state and federal regulatory authorities. The Woodbridge Group of Companies which filed for bankruptcy in December 2017 sold the Woodbridge securities which was an alleged $1.2 billion Ponzi scheme. The alleged Ponzi scheme took over 8400 investors largely composed of elderly investors.
The Securities and Exchange Commission, in 2018, initiated proceedings against 10 companies and 13 individuals for fraud in connection with the Ponzi scheme.
The U.S District Court for the Southern District of Florida also ordered the group of companies to pay almost $900 million in disgorgement.
The CEO, Robert Shapiro, in addition to being ordered to pay $100 million in disgorgement was also charged by US federal prosecutors alongside two former executives in April 2019 for orchestrating the alleged Ponzi scheme.
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Floyd Earl Powell Has Pending Customer Disputes
The latest customer dispute was initiated in February 2020. The client alleged that the former broker in November 2016 recommended unregistered, unsuitable and fraudulent investments to her to invest in. The client further alleged former broker Floyd Powell also made false representations and failed to disclose material facts about the investments. This client is seeking to recover $101,001 in damages.
Another client also sought damages against him in the same month. The client alleged that the former broker recommended inappropriate and unsuitable investments to them beginning in early 2017.
Powell Customers Were Reportedly Paid Over $1.3 M in Combined Settlements
The former broker settled a customer dispute reported as filed in March 2019 on similar allegations of recommendation to invest in fraudulent programs. The client, who sought $100,001 in damages alleged that the previously registered broker Floyd E. Powell recommended that she invest in unregistered and fraudulent investment programs. The dispute was eventually resolved for $25,000.
In 2018, four additional customers filed disputes that are reported as settled as of the day of this article.
In October 2018 a claim was filed requesting $3,169,727 in alleged damages for alleged unregistered and fraudulent investments. The dispute was reportedly settled one year later for $1,075,000.
Also in October 2018, a Floyd Powell customer filed a claim in the Circuit Court of Dekalb, Alabama, alleging that while Powell was registered with MSI Financial Services, he made inappropriate and unsuitable investment recommendations involving a promissory note. This dispute was reportedly settled on or around March 2019 for $17,455.
In August 2018, a Powell customer filed a FINRA claim alleging that while Powell was registered with MSI, he recommended a fraudulent investment. The customer requested $240,000 in alleged damages and in March 2019 settled for $139,000.
In May 2018, a customer requested $135,715 in damages for similar allegations and in March 2019 accepted a settlement to the tune of $65,000.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating Potential Options on Behalf Of Powell Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to Floyd Powell’s bar by FINRA and his pending customer dispute on the allegation of unsuitable investment recommendation.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Floyd Powell’s bar by FINRA and his pending customer dispute on the allegation of unsuitable investment recommendation, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
