Terry Joe Bagwell of Birmingham Alabama a stockbroker formerly registered with Pruco Securities LLC is the subject of a customer initiated investment related arbitration claim which was settled for $120,000.00 in damages founded on accusations that Bagwell failed to supervise a stockbroker who sold away from the firm by placing customers into fraudulent unregistered securities connected to a Ponzi Scheme. Financial Industry Regulatory Authority (FINRA) Arbitration No. 16-02762 (Nov. 30, 2018).
FINRA Public Disclosure reveals that Bagwell has been identified in twelve more customer initiated investment related disputes which pertain to allegations of Bagwell’s misconduct during the time that he was associated with securities broker dealers including Pruco Securities and MetLife Securities. Specifically, a customer initiated investment related arbitration claim regarding Bagwell’s conduct was resolved for $750,000.00 in damages based upon accusations of Bagwell failing to supervise an advisor who executed sales of unregistered securities, real estate products and an annuity that were not appropriate for the customer resulting in the customer sustaining unwarranted losses. FINRA Arbitration No. 14-02983 (July 7, 2015).
Another customer initiated investment related arbitration claim involving Bagwell’s activities was settled for $975,000.00 in damages supported by allegations of the violation of Alabama Securities Act in regard to the sale of variable life insurance policies and unregistered securities; breach of a fiduciary duty that was owed to the customer; unsuitable securities transactions effected for the customer’s account; and the lack of MetLife Securities’ supervision concerning the transactions placed in the customer’s account. FINRA Arbitration No. 14-03085 (Jan. 12, 2016).
Subsequently, a customer initiated investment related arbitration claim concerning Bagwell’s conduct was resolved for $27,000.00 in damages founded on accusations that the customer had been defrauded by a Pruco Securities stockbroker who sold the customer unregistered securities that were supposedly part of a Ponzi Scheme. FINRA Arbitration No. 15-03178 (Mar. 8, 2016). Thereafter, a customer initiated investment related arbitration claim in regard to Bagwell’s activities settled for $53,000.00 in damages based upon allegations that misrepresentations were made to the customer pertaining to life insurance policy terms. FINRA Arbitration No. 16-00442 (May 15, 2017).
Moreover, a customer initiated investment related arbitration claim involving Bagwell’s conduct was resolved for $120,000.00 in damages supported by accusations that while Bagwell was associated with MSI Financial Services Inc., the customer’s assets were exposed to a Ponzi scheme by an advisor who had not been properly supervised by Bagwell. FINRA Arbitration No. 16-02762 (Jan. 11, 2019).
FINRA Public Disclosure also confirms that Bagwell has been fined $25,000.00 and barred from associating with any FINRA member in any capacity supported by findings that (1) Bagwell sold away from the firm; and (2) Bagwell failed to supervise a stockbroker who executed $8,400,000.00 in securities sales outside the firm’s auspices. Letter of Acceptance Waiver and Consent No. 2014041391401 (Nov. 5, 2015).
According to the AWC, a total of $35,000.00 worth of the securities had been purchased by Bagwell from the stockbroker who he supervised. Bagwell reportedly failed to procure any authorization from the firm in regard to that securities transaction. Additionally, the AWC stated that Bagwell knew about that stockbroker violating the policies of the firm by effecting securities transactions away from the firm; however, Bagwell did not take any meaningful action to address the unauthorized transactions. Critically, the investments sold to customers of Pruco Securities were part of a Ponzi scheme. FINRA found Bagwell’s conduct violative of FINRA Rules 2010 and 3040 as well as NASD Rule 3010(b).
