Dana Bruce Vietor of Dallas Texas a stockbroker formerly registered with CFD Investments Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Vietor sold unregistered securities away from his securities broker dealer employers including CFD Investments as well as Cape Securities and Oakbridge Financial Services. Letter of Acceptance Waiver and Consent No. 2018060199101 (Mar. 23, 2020).
According to the AWC, in 2011, a business venture had been created by Vietor and his business partners. Funds had been raised by the business venture through two private offerings under Securities Act of 1933 Regulation D Rule 506. The AWC stated that the securities broker dealers who employed Vietor during this period were provided with notice of the business venture and private placements but were not made aware of the unregistered securities transactions that followed.
Starting in 2014, additional funds had been accumulated for the business venture through the issuance of promissory notes called Deposit Agreements. The AWC stated that $1,000,000.00 in these promissory notes had been sold to customers of Cape Securities and Oakbridge Financial Services between January of 2014 and July 12, 2016. Another $2,000,000.00 in Deposit Agreements were sold to customers of CFD Investments between July 24, 2016 and November 11, 2018.
The AWC indicated that Cape Securities, Oakbridge Financial Services and CFD Investments did not approve of Vietor’s participation in those securities transactions. FINRA also stated that funds raised through the Deposit Agreements had been allocated to entities that were tied to the business venture and that Vietor was part of a management team who controlled these entities. Vietor also possessed membership interests in the entities.
According to the AWC, during the time that Vietor was registered with his securities broker dealer employers, he was required to provide advanced written notice regarding any private securities transactions that he would be involved in and required to detail his role in the transactions. FINRA determined that Vietor’s failure to comply in this regard was violative of FINRA Rules 2010 and 3280 and National Association of Securities Dealers (NASD) Rule 3040.
This is not the first time that Vietor has been subject of a disciplinary action by a regulator. He was fined by the State of Minnesota Commerce Department based upon allegations that he neglected to deliver variable annuity contracts to customers of Workman Securities Corporation who purchased annuities.
Vietor has been identified in six customer initiated investment related disputes containing allegations of his misconduct while employed with Workman Securities Corporation, Oakbridge Financial Services, Cape Securities and CFD Investments. FINRA Public Disclosure reveals that a customer filed an investment related complaint involving Vietor’s conduct in which the customer requested unspecified damages based upon allegations that unauthorized purchases of Philip Morris stock were effected in the customer’s account by Vietor on a discretionary basis without the customer’s knowledge or consent.
Vietor is referenced in another customer initiated investment related arbitration claim which was resolved for $35,000.00 in damages founded on accusations that a disproportionate amount of the customer’s assets had been placed in a non-traded real estate investment trust which failed to be suitable for the Workman Securities Corporation customer. Another customer initiated investment related arbitration claim pertaining to Vietor had been settled to resolve allegations that real estate investment trusts were inappropriately recommended to the Workman Securities Corporation customer by Vietor as the securities conflicted with the customer’s objectives for investing.
On August 1, 2017, a customer initiated investment related arbitration claim concerning Vietor’s activities was settled for $18,000.00 in damages founded upon allegations that inappropriate annuities and direct investments including direct participation program interests or limited partnership interests had been sold to the customer during the time that Vietor was associated with Cape Securities. FINRA Arbitration No. 17-00667. The claim also alleges that there were misrepresentations made by the stockbroker concerning those transactions.
Vietor is the subject of another customer initiated investment related written complaint on November 20, 2018 in which the customer requested damages estimated to exceed $5,000.00 based upon accusations that Vietor disregarded the best interests of the Oakbridge Financial Services and CFD Investments customers through effecting sales of promissory notes and private placements. The stockbroker allegedly made omissions concerning the transactions that he effected away from the securities broker dealers.
On June 17, 2019, another customer filed an investment related arbitration claim involving Vietor’s conduct in which the customer requested $75,000.00 in damages based upon allegations that Vietor defrauded the customer and provided bad investment advice. FINRA Arbitration No. 19-01642. According to the claim, a fiduciary duty that Vietor owed to the customer had been breached and that fraudulent misrepresentations and omissions were allegedly made by the stockbroker in regard to the sale of private placements and variable annuities. The claim also alleges breach of contract and negligence with regard to Vietor’s activities.
On November 12, 2018, Vietor was terminated by CFD Investments based upon allegations of the stockbroker having taken part in private securities transactions without obtaining advanced written authorization. CFD Investments also indicated that Vietor lied on compliance questionnaires about selling away. Vietor has been associated with at least two different securities broker dealers who have been expelled by securities regulators for violation of federal securities laws or who are otherwise defunct.
