Dennis Anthony Edmonds, of Wilmington, North Carolina, a stockbroker formerly registered with J.P. Turner & Company, L.L.C., was suspended for eleven months from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he engaged in unauthorized outside business activities. Letter of Acceptance, Waiver and Consent, No. 2014039863301 (Dec. 6, 2016).
According to the AWC, in December of 2004, recommendations of investments in international asset protection trusts were made by Edmonds to customers via Foster and Dunhill, a marketing entity. Apparently, customers had established these trusts, and included within the trust instrument an insurance policy. The AWC stated that the trust deed was signed by Edmonds as the protector, and agreements were signed by such customers making Edmonds the trusts’ investment manager.
Apparently, Edmonds’ capacity as investment manager enabled him to administer the trusts’ assets on the customers’ behalf. The AWC stated that Edmonds, in this capacity, called for the trusts’ funds to be invested in Private International Wealth Management – a foreign investment fund containing securities.
The AWC revealed that between 2005 and 2008, Edmonds reportedly facilitated the creation of five individuals’ asset protection trusts, where Edmonds was registered with former employer, Packerland, during the creation of two of them; and Edmonds was registered with J.P. Turner during the creation of three. Apparently, throughout this time, more than $1,600,000.00 in funds had been invested by six customers in Private International Wealth Management, in which Edmond participated in such investment transactions.
Private International Wealth Management was also a massive Ponzi Scheme, and all or most of the statements made to investors, and all or most of the accounting associated with their investments and funds under management were a fiction. On September 7, 2012, the United States Securities & Exchange Commission filed an emergency enforcement action against Private International Wealth Management, Nickolai Battoo and Tracy L. Sunderlage for the violation of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 and Rule 10b-5, and Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8. (See, S.E.C. v. Battoo, et al,.,. et al, Civil Action No. 12-cv-7125 (E.D. Ill. Sept. 7, 2012)
Edmonds reportedly received compensation in connection with each of the customers’ deposits that were made into the international asset protection trusts, in addition to receiving compensation pertaining to any extra monies invested by customers after establishment.
The AWC stated that neither J.P. Turner, nor Packerland, had been provided with any notification regarding the participation on Edmonds’ part concerning the creation and investment recommendations of investments within the international asset protection trusts – or any information concerning the international asset protection trusts. These trusts, according to FINRA, had not been authorized as investments which J.P. Turner or Packerland brokers could sell.
Additionally, no review or supervision had taken place concerning Edmonds’ investments pertaining to the international asset protection trusts. As such, FINRA found that Edmonds’ conduct was violative of NASD Conduct Rule 2110 and 3040, leading to his suspension.
FINRA Public Disclosure reveals that Edmonds has been subject to a customer initiated investment related arbitration action on June 3, 2002, in which the customer requested $17,000.00 in damages based upon allegations that Edmonds committed misconduct during the time customers requested to surrender insurance policies.
Further, on January 3, 2014, a customer initiated investment related arbitration claim involving Edmonds’ conduct was settled, in which the customer requested $3,187,000.00 in damages based upon allegations against Edmonds for defrauding the customer and making misrepresentations concerning investments. The customer additionally alleged that J.P. Turner failed to supervise Edmonds’ activities.
Following Edmonds’ termination from J.P. Turner & Company, L.L.C. in January of 2012, he became registered with Saxony Securities, Inc. from January of 2012 to October of 2012. Edmonds has been associated with Innovation Partners LLC since October of 2012.
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