The Rosca Scarlato LLC law firm investor rights attorneys are investigating former broker Dustin Shafer, also known as Dustin Paul Shafer, in connection with allegedly borrowing money from a customer without pre-approval from his FINRA member firm, according to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), under review by attorney Alan Rosca.
Securities lawyer Alan Rosca of the Rosca Scarlato LLC law firm and his colleagues are investigating Dustin Shafer’s alleged broker misconduct. Investors who are concerned about their investments with Shafer may contact attorney Alan Rosca or his colleagues for a free case evaluation and discussion of available options, or to provide any useful information.
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Dustin Shafer Barred by FINRA for Refusing to Appear for On-The-Record Testimony
FINRA staff sent Dustin Paul Shafer a request for on-the-record testimony in December 2020 in connection with an investigation into whether Shafer allegedly borrowed money from a customer, the AWC notes. As stated in an email to FINRA staff, Shafer acknowledges that he received the request and he will not appear for on-the-record testimony at any time, in violation of FINRA Rules.
As a result of former broker Dustin Shafer refusing to appear for on-the-record testimony in connection to an investigation, FINRA barred Shafer indefinitely from associating with any FINRA member firm in all capacities.
Dustin Paul Shafer signed the AWC accepting and consenting to FINRA’s findings, without admitting or denying the findings, and solely for the purposes of the proceeding brought by or on behalf of FINRA, prior to a hearing and without an adjudication of any issue of law or fact.
Dustin Shafer Was Also Under Investigation by the Illinois Securities Department
The Illinois Securities Department issued a order in January 2021 barring Schafer from offering or selling securities in Illinois. The regulators alleged that Dustin Shafer borrowed over $55,000 from one of his elderly customers, an Illinois resident, in violation of Illinois Securities Law, according to Shafer’s FINRA Brokercheck page.
Former broker Dustin Shafer was reportedly employed with Money Concept Capital Corporation and Newbridge Securities Corporation when the alleged misconduct occurred, as stated on his brokercheck report. In January 2021, the Illinois regulators issued an Order of Prohibition barring Shafer from offering and selling securities in State of Illinois, FINRA reports.
Shafer Has Been the Subject of Multiple Customer Disputes
The most recent customer dispute on Shafer’s FINRA brokercheck page filed in June 2021 alleges that while Dustin Shafer was employed by Money Concepts Capital Corp. he failed to inform the customer of suitability standards or illiquidity of her real estate investment. The customer is requesting $60,000 in alleged damages.
Another Dustin Shafer customer filed a customer dispute in July 2021. The customer alleged breach of fiduciary duty, unsuitability, material misrepresentations and breach of FINRA rules. The customer requested $150,000 in alleged damages and on September 30, 2021 agreed to conclude the dispute for a $45,000 settlement.
Another dispute, filed in May 2020 alleges unsuitable investment recommendations, misrepresentation and omission, violation of Illinois Securities Law and Regulations of 1953, violation of the Illinois Consumer Fraud & Deceptive Practices Act, violation of FINRA Rules, breach of fiduciary duty, negligence, and breach of contract. The customer received a settlement in September 2020 to the tune of $280,000 for the alleged damages.
One customer filed a dispute in December 2019 alleging they purchased misrepresented alternative investments. The customer also alleges violation of Illinois securities laws, breach of fiduciary duty, negligence, and violation of FINRA Rules. The customer was seeking $454,000 for the alleged damages and accepted a settlement of $250,000 from Money Concepts Capital in June, 2021 the Brokercheck reports.
Another customer filed a dispute involving Shafer in January 2020 alleging the investment was not explained, there was no guaranteed monthly dividend, and there were losses due to devaluation of the offering. The customer is seeking $175,000 for the alleged damages. According to the broker statement, the complaint evolved in arbitration and the customer is alleging breach of fiduciary duty and negligence.
Dustin Paul Shafer Was Registered with FINRA Since 2000
Dustin Shafer was registered with FINRA for 19 years until he was barred by FINRA and discharged from his most recent FINRA member firm, Newbridge Securities Corporations in November 2020 for allegedly borrowing money from an existing client without obtaining pre-approval from the firm, according to his brokercheck report.
Shafer was employed with Newbridge Securities located in Springfield, Illinois from November 2019 until November 2020. He was previously employed with Money Concepts Capital located in Springfield, Illinois, from June 2008 until July 2019 and Chase Investment Services located in Springfield, Illinois from July 2005 until May 2008.
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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Potential Options for Concerned Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or broker misconduct and is currently investigating the allegations brought by Dustin Shafer’s customers.
The firm takes most cases of this type on a contingency fee basis and advance 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 in cases ranging from arbitrations to class actions.
Investors who are concerned about their investment with former broker Dustin Shafer may contact 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.
