Clinton F. Byrd, of Tallahassee, Florida, a stockbroker registered with Cantella Co. Inc., has been discharged by the securities broker dealer on May 28, 2021, based upon allegations that Byrd failed to disclose certain outside business activities.
On January 9, 2023, Byrd was suspended by FINRA for the undisclosed sale of promissory notes. Department of Enforcement v. Byrd, AWC No. 2021070461801 The findings stated that Byrd caused a musical production company, which he owned, to issue a promissory note to the daughter of a firm customer, who signed the note on behalf of the customer’s family. Byrd, acting on behalf of his musical production company, signed a promissory note through which his company borrowed $550,000 from the customer’s family. Funding for the principal amount of the note came from the customer’s firm brokerage account. Pursuant to the terms of the promissory note, Byrd’s company used the note to finance its acquisition of a collection of historical memorabilia. Acting outside the scope of his employment with the firm, Byrd drafted the promissory note, which was a security, transmitted it to the customer’s daughter, and both Byrd and the customer’s daughter signed the note. Although the note required Byrd’s company to make quarterly interest payments and repay the principal within one year, the company made no such payments. Byrd did not provide written notice to the firm before causing his company to issue the promissory note, nor did he obtain written approval from the firm.
Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Byrd is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested compensation based upon allegations that Byrd made unsuitable recommendations and breached his fiduciary duties in connection with the recommendation and sale of unregistered promissory notes, as set forth above, during the time that Byrd was associated with Cantella Co. Inc. FINRA Arbitration No. 21-00215 (January 28, 2021).
Byrd was associated with Cantella Co. Inc. in Tallahassee, Florida, as a stockbroker from August 30, 2007, to June 9, 2021.
