John Wade Loofbourrow of New York, New York, a stockbroker registered with Demopolis Capital Inc., was the subject of a customer initiated investment related FINRA securities arbitration claim that was settled for $175,000.00 in damages based upon allegations that the customer was defrauded in connection with the sale of Concord Group Holdings private placements. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-03565 (November 16, 2021).
FINRA Public Disclosure shows that Loofbourrow has been fined $7,500.00 and suspended for two months from associating with any FINRA member in certain principal capacities because, as managing director of John F. Loofbourrow Associates Inc., Loofbourrow failed to review stockbrokers’ outside business activities. Letter of Acceptance, Waiver, and Consent No. 2019061086303 (June 11, 2020).
According to the AWC, from December 14, 2014 through April 25, 2019, Loofbourrow failed to complete the review of outside business activities of two registered representatives that he supervised. The registered representatives disclosed their outside business activities, which were investment related. However, Loofbourrow did not consider whether those outside activities potentially interfered with the representatives’ responsibilities or if customers would view those activities as part of John F. Loofbourrow Associates Inc.’s business. Therefore, Loofbourrow violated FINRA Rules 2010 and 3270.
Craig Anthony Zabala also of John W. Loofbourrow Associates Inc. was been barred by Securities and Exchange Commission In the Matter of Craig A. Zabala, Order Instituting Administrative Proceedings, File No. 3-20233 (February 24, 2021). SEC alleged that Zabala misrepresented funds raised by Concorde Group Holdings in connection with the sale of stock and notes. Also, SEC alleges that investor funds were misappropriated by Zabala. Prior to the SEC Order, Zabala was enjoined from future violations of federal securities laws. Securities and Exchange Commission v. Zabala, et al., Civil Action No. 20-CV-7880 (S.D.N.Y. February 3, 2021).
Loofbourrow was associated with Demopolis Capital Inc. in New York, NY, as a stockbroker from November of 1983 to March of 2021.
