Dustin Paul Shafer of Springfield Illinois a stockbroker formerly registered with Newbridge Securities Corporation has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he failed to cooperate with FINRA during the period that he was investigated for borrowing from Newbridge customers. Letter of Acceptance Waiver and Consent No. 2020068114401 (Jan. 7, 2021).
According to the AWC, FINRA had been notified by Newbridge that Shafer was discharged on November 4, 2020 based upon allegations that Shafer borrowed customer funds while associated with the securities broker dealer. Newbridge indicated that Shafer did not ask for its approval as required by company policy.
FINRA commenced an investigation into Shafer’s activities following its receipt of Newbridge’s termination notice. On December 3, 2020, he was asked to provide on-the-record testimony. Shafer responded to the regulator eight days later to confirm that he received the request for his testimony. He also relayed to FINRA that he would not make any appearance to testify. Shafer’s refusal to testify in response to the accusations of his customer loan constituted the violation of FINRA Rules 2010 and 8210.
This is not the first time that Shafer has been the subject of a regulatory action. He has also been issued a Temporary Order by State of Illinois Securities Department who prohibited Shafer’s securities sales in Illinois supported by allegations of him borrowing funds from an elderly customer in violation of Illinois Securities Law. Case No. 2001056 (Dec. 22, 2020).
FINRA Public Disclosure confirms that Shafer has been referenced in nine customer initiated investment related disputes concerning accusations of his improprieties while employed by securities broker dealers including Money Concepts Capital Corp. On September 30, 2019, a customer filed an investment related complaint regarding Shafer’s activities where the customer sought $90,000.00 in damages founded on allegations of omissions relating to the liquidity of a non traded Real Estate Investment Trusts. According to the complaint, a large portion of the customer’s net worth had been placed into the real estate security before the customer was notified of its illiquidity.
Shafer is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $454,000.00 in damages based upon accusations of misrepresented alternative investments being sold to the Money Concepts Capital Corp customer. FINRA Arbitration No. 19-03811 (Jan. 3, 2020). According to the claim, there was a violation of FINRA rules and breach of fiduciary duty by the stockbroker. The claim also alleges that the stockbroker’s negligence resulted in damages to the customer.
On September 22, 2020, another customer initiated investment related FINRA securities arbitration claim regarding Shafer’s conduct was resolved for $280,000.00 in damages supported by allegations including breach of contract, breach of fiduciary duty and negligence pertaining to a non-traded real estate investment trust transaction. FINRA Arbitration No. 20-01663 (Sept. 22, 2020). According to the claim, the REIT transaction violated Illinois Consumer Fraud and Deceptive Practices Act in addition to Illinois Securities Law. The claim also alleges that misrepresentations and omissions were made by the stockbroker. The non-traded REIT was allegedly unsuitable.
Shafer is the subject of another customer initiated investment related written complaint on October 19, 2020 where the customer sought $60,000.00 in damages founded on accusations that the stockbroker concealed the illiquid nature of the real estate security that he sold while registered with Money Concepts Capital Corp. The complaint also alleges omissions relating to the suitability standards on securities transactions.
