Tracy Turner, of Carlsbad, California, a stockbroker previously registered with Colorado Financial Service Corporation, was charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Turner effected unauthorized private securities transactions or selling away, and made misrepresentations to customers in connection with such. Department of Enforcement v. Tracy Turner, No. 2015047883501 (Nov. 3, 2016).
According to the Complaint, an estimated $4,100,000.00 in investments was solicited and sold through Turner while outside the auspices of his firm. Apparently, Turner was able to accrue commissions of $270,000.00 in connection with his sales efforts. However, FINRA alleged that Turner never apprised his firm regarding the transactions, nor did he gain permission from his firm in order to engage in such transactions.
The Complaint alleged that Turner concocted and presented an offering memorandum regarding a security interest which had failed to enable investors to have a proper basis to make investment evaluations. Turner reportedly made claims and statements to prospective customers regarding the investments that were not warranted in FINRA’s view. Further, Turner reportedly made an unwarranted statement publicly available to customers in connection with the offering memorandum, where such statement did not allow for customers to reasonably consider the investment. The Complaint indicated that the firm did not approve of Turner’s statements in this regard.
FINRA Public Disclosure records reveal that Turner has been subject to twenty-nine customer initiated arbitration actions. On July 9, 2001, a customer initiated investment related arbitration claim involving Turner’s conduct was resolved for $6,827.35 in damages based upon allegations that Turner invested the customer’s funds in mutual funds despite lacking proper authorization. On April 15, 2002, a customer initiated investment related arbitration claim involving Turner’s conduct was settled for $1,250,000.00 in damages based upon allegations including fraud, breach of fiduciary duty, and unsuitability.
On April 19, 2002, a customer initiated investment related arbitration claim was settled for $57,000.00 in damages based upon allegations against Turner of effecting unauthorized transactions in unit investment trusts. On May 16, 2002, another customer initiated investment related arbitration claim involving Turner’s actions was resolved against Turner for $51,301.00 in damages based upon allegations including fraud, failure to diversify the customer’s investments, and unsuitability.
On June 6, 2002, a customer initiated investment related arbitration claim involving Turner’s conduct was settled for $100,000.00 in damages based upon allegations of unsuitability, failure to diversify, breach of fiduciary duty, and conflicts of interest. On June 12, 2002, a customer initiated investment related arbitration claim involving Turner’s actions was settled for $66,307.00 in damages based upon allegations that customers were sold unsuitable investment products.
On June 24, 2002, a customer initiated investment related arbitration claim involving Turner’s conduct was settled for $600,000.00 in damages based upon allegations including breach of fiduciary and contractual relations, misrepresentations concerning investments, unsuitability, and negligence. On June 28, 2002, a customer initiated investment related arbitration claim involving Turner’s actions was settled for $105,000.00 in damages based upon allegations of unsuitable and aggressive equity trading.
On July 23, 2002 and December 27, 2002, two customer initiated investment related arbitration claims involving Turner’s conduct were settled for $80,000.00 in damages in the aggregate based upon the customers’ allegations including breach of fiduciary duty, conflicts of interst, failure to diversify, and unsuitability. Turner was again alleged to have effected unsuitable trades in connection with a customer initiated investment related arbitration claim, which was settled for $64,000.00 on December 29, 2002.
On February 24, 2003, customer initiated investment related arbitration claim involving Turner’s conduct was settled for $75,000.00 in damages based upon allegations of unsuitability. On September 1, 2003, a customer initiated investment related arbitration claim involving Turner’s actions was settled for $17,500.00 in damages based upon allegations that Turner did not transfer the customer’s funds per the customer’s instructions, traded in an excessively aggressive manner, and mismanaged the customer’s assets.
On September 19, 2003, a customer initiated investment related arbitration claim involving Turner’s conduct was settled for $700,000.00 in damages based upon allegations against Turner of failing to abide by the customer’s instructions. On November 7, 2003, two customer initiated investment related arbitration claims involving Turner’s conduct were settled for a total of $180,000.00 in damages based upon allegations including unsuitability, breach of contract, breach of fiduciary duty, and fraud.
Since 1985, Turner has been associated with nine different broker dealers, one of which has been expelled by securities regulators for violation of federal securities laws or is otherwise defunct.
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