Walter Warren Parker of Rowlett Texas a stockbroker formerly registered with Titan Securities of Addison Texas (CRD No. 131392) has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to customers. Letter of Acceptance Waiver and Consent No. 2016050492101 (Apr. 18, 2018).
According to the AWC, in July of 2012, Parker began servicing the account of customer BH, who was a sixty-four-year-old investor with minimal investment experience, a moderate risk tolerance, and an objective for investing in income and growth oriented securities. The AWC stated that BH was advised by Parker to invest BH’s retirement account funds in four alternative investments that were illiquid. Consequently, $75,000.00 of the customer’s retirement funds were placed into BEMT – a real estate investment trust designed to purchase a portfolio of apartments, and $75,000.00 into UDF4 – a real estate investment trust designed to produce income via secured loans investments and profits generated from residential property investments.
Moreover, BH placed $75,000.00 into a direct financing fund, IEFF, which engaged in debt-based operating financing transactions with companies; and $65,000.00 in ARC3 – a real estate investment trust geared to generate returns through purchasing retail properties. The AWC stated that in March of 2013, Parker advised BH to make additional contributions in two additional real estate investment trusts, ARC4 and ARCHT.
The AWC stated that significant losses were incurred by BH in connection with her alternative investment positions. Particularly, the UDF4 real estate investment trust failed after the issuer had been investigated for fraud; IEFF declined substantially in value. Evidently, BH’s losses were so severe that by 2016, BH was required to resume full time work.
FINRA determined that Parker recommended for BH to place in inappropriately high percentage of BH’s net worth in illiquid, alternative investments. The AWC stated that those investments were not suitable for BH given BH’s needs for liquidity, time horizon, experience with investing and financial circumstances. Consequently, FINRA found Parker’s conduct to be violative of FINRA Rules 2010 and 2111 as well as National Association of Securities Dealers (NASD) Rule 2310.
FINRA Public Disclosure confirms that Parker has been identified in seven customer initiated investment related disputes that pertain to allegations of his wrongful conduct during the time that he was associated with Titan Securities. Particularly, a customer initiated investment related arbitration claim that pertained to Parker’s conduct was settled for $16,500.00 in damages founded on accusations of real estate investment trust suitability. FINRA Arbitration No. 16-01929 (Mar. 13, 2017). Another customer initiated investment related arbitration claim involving Parker’s conduct was settled for $70,000.00 in damages supported by allegations that the customer was not made aware of the illiquidity and risks pertaining to a real estate security investment. FINRA Arbitration No. 16-02349 (June 9, 2017).
Moreover, on October 11, 2017, a customer filed an investment related complaint regarding Parker’s conduct where the customer sought $300,000.00 in damages based upon accusations that over-the-counter equity transactions were placed in the customer’s account that were not suitable for the customer. FINRA Arbitration No. 17-02747 (Oct. 11, 2017). Another customer initiated investment related arbitration claim regarding Parker’s conduct was settled for $60,000.00 in damages founded on allegations that Parker made misrepresentations to the customer and executed unsuitable viatical settlement transactions. FINRA Arbitration No. 15-02351 (Oct. 16, 2017).
Parker’s employment with Titan Securities ceased on March 7, 2018.
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