Brian Lamont Royster of Ann Arbor Michigan a stockbroker formerly registered with HD Vest Investment Services is referenced in a customer initiated investment related arbitration claim where the customer sought $295,936.76 in damages supported by allegations that (1) fraudulent misrepresentations had been made to the customer concerning the terms and fees relating to City Financial Inc. direct participation program or limited partnership interests (2) the Capital City Financial Inc. investment was not suitable for the customer and (3) funds belonging to the customer had been utilized by Royster for his personal use rather than for advancing the customer’s investment objectives. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-03842 (Jan. 17, 2019).
FINRA Public Disclosure confirms that Royster has been identified in three additional customer initiated investment related disputes that concern accusations of his misconduct during the time that he was associated with Edward Jones and HD Vest Investment Services. Particularly, a customer initiated investment related complaint concerning Royster’s conduct was settled to resolve allegations that while Royster was employed by Edward Jones, he made misrepresentations to the customer concerning investments. Another customer initiated investment related complaint regarding Royster’s activities was settled to resolve accusations that a bad annuity had been sold to the customer.
Additionally, on January 31, 2018, a customer filed an investment related complaint involving Royster’s conduct in which the customer requested unspecified damages founded on allegations that false information had been provided to the customer about the penalties and tax consequences which pertained to an individual retirement account transfer.
Moreover, Royster has been barred from associating with any FINRA member in any capacity based upon consenting to findings that he hindered a FINRA investigation concerning accusations of him borrowing funds belonging to HD Vest Investment Services customers. Letter of Acceptance Waiver and Consent No. 2017052882601 (Nov. 21, 2017).
According to the AWC, FINRA’s investigation into Royster seemingly stemmed from Royster’s termination from HD Vest Investment Services. In particular, the regulator was notified on January 12, 2017 that Royster had been discharged based upon Royster borrowing from the firm’s customers; conduct violative of the firm’s policies. Evidently, Royster was instructed under Rule 8210 to hand over information and documentation to FINRA by August 28, 2017 so that the allegations of Royster’s misconduct could be further examined; however Royster failed to respond by that deadline. FINRA was eventually contacted by Royster on September 13, 2017; however, Royster conveyed that he would at no point furnish the requested information. FINRA found Royster’s conduct violative of FINRA Rules 2010 and 8210.
