Terry J. Bagwell, of Birmingham, Alabama, a stockbroker formerly associated with Pruco Securities, LLC, was named in a pending customer initiated investment related arbitration claim on February 22, 2016, in which the customer alleged that Bagwell made misrepresentations to a customer concerning a life insurance policy.
FINRA Public Disclosure reveals that Bagwell has been subject to a dozen other customer arbitrations. Particularly, on March 1, 2001, a customer initiated investment related arbitration claim involving Bagwell’s conduct was settled for $60,000.00 in damages based upon allegations that Bagwell failed to discuss information with the customer concerning annuity contracts.
On August 12, 2002, a customer initiated investment related arbitration claim involving Bagwell’s actions was settled for $117,454.99 in damages based upon allegations that Bagwell made misrepresentations to the customer concerning withdrawal charges and investment based returns associated with a variable annuity. Additionally, on December 1, 2003, a customer initiated investment related arbitration claim involving Bagwell’s conduct was settled for $1,024,000.00 in damages based upon allegations that Bagwell made omissions and misrepresentation to the customer, and committed fraud.
On October 4, 2006, another customer initiated investment related arbitration claim was settled for $500,000.00 in damages based upon allegations that Bagwell fraudulently misrepresented investment related information to a customer, breached his contractual duties, and negligently handled the customer’s investment account.
Further, on September 3, 2014, a customer initiated investment related arbitration action involving Bagwell’s conduct was settled for $450,000.00 in damages based upon allegations that Bagwell failed to supervise a registered representative who effected unsuitable investment and unregistered transactions in the customer’s investment account, and defrauded the customer. On October 30, 2014, another customer initiated investment related arbitration claim involving Bagwell’s conduct was settled for $450,000.00 in damages based upon similar allegations.
On October 31, 2014, a customer initiated investment related arbitration claim involving Bagwell’s actions was resolved for $975,000.00 in damages based upon allegations that Bagwell breached his fiduciary duty to the customer, effected unsuitable transactions, and failed to supervise a registered representative’s sales of variable life policies and securities which were unregistered. On December 15, 2014, another customer initiated investment related arbitration claim involving Bagwell’s conduct was settled for $500,000.00 in damages based upon allegations that Bagwell failed to supervise a registered representative who took part in a Ponzi scheme.
On July 7, 2015, a customer initiated investment related arbitration claim involving Bagwell’s conduct was settled for $750,000.00 in damages based upon allegations against Bagwell including failure to supervise a registered representative who committed misconduct. Subsequently, on December 15, 2015, another customer initiated investment related arbitration claim involving Bagwell’s actions was resolved for $27,000.00 in damages based upon allegations that Bagwell failed to supervise a registered representative who engaged in a fraudulent scheme.
Bagwell was fined $25,000.00 and barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity after consenting to findings that he engaged in unauthorized private securities transactions, and failed to properly supervise a registered representative’s activities to ensure compliance with FINRA rules. Letter of Acceptance, Waiver and Consent, No. 2014041391401 (Feb. 26, 2015).
Per the AWC, in April and August of 2012, a total of $35,000.00 was provided by Bagwell to a registered representative (whom Bagwell was responsible for supervising) for investment of Bagwell’s monies in an outside securities transaction which the registered representative controlled and managed. Bagwell apparently earned $7,600.00 per his investments with the registered representative. Bagwell seemingly failed to provide his firm with notification regarding his outside investment, and did not receive approval from his firm to engage in such. FINRA found that Bagwell’s conduct in this regard was violative of FINRA Rule 2010 and NASD Rule 3040.
The AWC further detailed that Bagwell never supervised the registered representative’s private securities transactions as Pruco’s policies called for, nor did Bagwell notify his firm concerning the registered representative’s conduct. The registered representative in question reportedly sold $8,400,000.00 worth of investments to investors in furtherance of a Ponzi scheme. FINRA found that Bagwell’s failure to supervise the registered representative was conduct violative of FINRA Rules 2010 and 3010(b). On March 13, 2015, Pruco Securities, LLC permitted Bagwell to resign based upon FINRA’s disciplinary action against Bagwell.
Guiliano Law Group
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