Donald Shelby Toomer of Las Vegas Nevada a stockbroker formerly registered with Wells Fargo Advisors Financial Network LLC is the subject of a customer initiated investment related arbitration claim which was resolved for $75,000.00 in damages supported by allegations that (1) transactions executed in the customer’s account failed to be suitable for the customer and (2) misrepresentations had been made concerning the terms and conditions of the mutual funds selected for the customer’s account. Financial Industry Regulatory Authority (FINRA) Arbitration No. 17-01022 (Aug. 21, 2018).
This is the first customer complaint in regard to Toomer’s potential misconduct since he was sanctioned by securities regulators. Specifically, Securities Exchange Commission (SEC) obtained a judgement against Toomer which, inter alia: enjoined Toomer from engaging in conduct violative of Securities Exchange Act of 1394 Section 10(b) and SEC Rule 10b-5; enjoined Toomer from offering or selling securities in violation of Securities Act of 1933; barred Toomer from engaging in any offers or sales of penny stocks; and required Toomer to disgorge $687,067.75 in ill-gotten gains based upon Toomer seemingly conspiring to commit securities fraud. Securities Exchange Commission v. Donald Toomer Jr. Civil Action No. 2:15-cv-08656-JLL-DEA (D.N.J. Jan. 31, 2017).
Evidently, Toomer acquiesced to pleading guilty to conspiracy to commit securities fraud; conduct violative of 18 U.S.C. § 371. United States v. Darren Goodrich (Aug. 10, 2016). Allegedly, Toomer took part in a stock manipulation scheme involving Mesa Energy Holdings Inc., Clear-Lite Holdings Inc., BioNeutral Group Inc., and NXT Nutritionals Holdings Inc.
SEC’s Complaint proceeding the judgement contains accusations of Toomer making fraudulent arrangements to purchase three microcap stocks for customers in return for kickbacks. Securities Exchange Commission v. Donald Toomer Jr. Case No. 15-CV-8656 (Dec. 21, 2015). Allegedly, Toomer falsified market demand for the stocks in order to further a pump-and-dump scheme. Apparently, hundreds of thousands had been paid to Toomer in return for the stock purchases effected by him on his customers’ behalf. SEC alleged Toomer’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and Securities Exchange Act of 1933 Section 17(a).
Moreover, Toomer has been barred from associating with any FINRA member in any capacity according to a FINRA Office of Hearing Officers Expedited Hearing Panel Decision containing findings that Toomer obstructed a FINRA investigation into allegations of his participation in a potential fraudulent market manipulation scheme. Department of Enforcement v. Donald Shelby Toomer Case No. FP1160009 (Oct. 5, 2016).
