by Howard Haykin

Quest Capital Securities broker was BARRED from the industry … in November (notwithstanding his 23 years’ experience in the business) for having engaged in undisclosed and unapproved private securities transactions totaling more than $10.8 million. Between 2013 and 2017, the broker solicited investors to purchase promissory notes issued by the Woodbridge Group of Companies LLC. The $10.8 million in Woodbridge notes were sold to 58 investors, 30 of whom were Firm customers. The broker, who received $261,000 in commissions, did not provide notice to the Firm prior to participating in these private securities transactions, nor did he obtain approval from the Firm.  [FINRA AWC NO. 2018057197801]

Despain Financial Corporation broker was BARRED from the industry … in January (notwithstanding his 31 years’ experience) for failing to cooperate with FINRA's requests for documents and for on-the-record testimony. The regulator was conducting an investigation into whether the broker engaged in unauthorized sales (PSTs) of Woodbridge Promissory Notes and interests in Future Income Payments, LLC.  [FINRA AWC NO. 2018038604101]

Mutual Securities broker was fined $10K, suspended for 12 month, and disgorged of $40K  … in December (notwithstanding his 26 years’ experience) for having engaged in undisclosed and unapproved private securities transactions totaling more than $1.1 million. Between June 2016 and August 2017, the broker solicited investors to purchase promissory notes issued by the Woodbridge Group of Companies LLC. The $1.1 million in Woodbridge promissory notes were sold to 15 investors, 5 of whom were Firm customers, for which the broker received $40,000 in commissions.  [FINRA AWC No. 2018057586601]