Murray Todd Petersen (also known as Todd Petersen), of Roseville, California, a stockbroker formerly registered with SCF Securities Inc. and WFG Investments Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he engaged in outside business activities and private securities transactions. Letter of Acceptance, Waiver, and Consent No. 2019064432901 (November 22, 2021).
According to the AWC, when Petersen was employed by WFG Investments, he was permitted to engage in an outside business activity in which he sold jewelry on behalf of a company in return for commissions. WFG Investments eventually told Petersen that he was no longer allowed to engage in that activity. That did not stop him from effecting additional jewelry sales to at least three customers of the securities broker dealer. Petersen obtained commissions of $115,900.00 in return for his $177,500.00 in sales. He violated FINRA Rules 2010 and 3270.
The AWC states that between June and July of 2018, two customers of SCF Securities were introduced by Petersen to a short-term capital raise opportunity, which was an investment offered by the jewelry company. Petersen helped investors purchase the investments. The investors signed contracts stating that their money would be used to manufacture jewelry sold in Asian markets. The capital raise contract also stated that the jewelry sales would be executed by the company and that investors would receive periodic payments for twelve months. The contract additionally stated that investors would be entitled to a cut of the profits from jewelry sales.
FINRA noted that in June of 2018, one customer had invested $80,000.00 in the capital raise investment. They only received seven of twelve monthly payments. None of the profits were paid to the customer. Their $80,000 investment has not been returned.
In July of 2018, a second customer was introduced by Petersen to the capital raise investment, resulting in a $1,000,000.00 purchase. The contract stated that the customer would receive quarterly payments for a year and a percentage of the profits generated by the jewelry company. The customer’s investment in the capital raise was facilitated by Petersen, as he explained how the investment worked, edited the contract, and helped the customer inspect the jewelry to be held as collateral. Petersen received a commission for this transaction.
FINRA states that the customer only received two of the four quarterly payments. No additional payments or distributions have been made by the company. The customer’s $1,000,000.00 principal investment has not been returned by Petersen, according to the regulator.
FINRA found that SCF Securities was not notified about Petersen’s involvement with the jewelry company. The securities broker dealer did not grant permission to Petersen to engage in private securities transactions with its customers. The regulator also states that Petersen was administered compliance questionnaires which prompted him to disclose outside activities. Petersen inaccurately stated in two of his submissions that he was not selling away. Petersen violated FINRA Rules 2010 and 3280 for this reason.
FINRA Public Disclosure shows that Petersen has been identified in eleven customer initiated investment related disputes involving allegations of his harmful activities during the period that he was registered with securities broker dealers, including Commonwealth Financial Network and SCF Securities. On August 31, 2020, a customer initiated investment related FINRA securities arbitration claim concerning Petersen’s conduct was resolved for $46,305.00 in damages based upon accusations of breach of fiduciary duty and fraud relating to Petersen’s activities when registered with SCF Securities. FINRA Arbitration Claim No. 20-00788.
Petersen is also the subject of a customer initiated investment related FINRA securities arbitration claim that was settled for $351,205.00 in damages founded on allegations of the customer having been defrauded as it pertained to diamond purchases through Petersen in an outside business activity when Petersen was registered with SCF Securities. FINRA Arbitration Claim No. 20-01962 (September 23, 2020).
Another customer initiated investment related FINRA securities arbitration claim regarding Petersen’s activities was resolved for $77,500.00 in damages supported by accusations of Petersen’s breach of fiduciary duty and fraud in reference to an outside business activity. FINRA Arbitration Claim No. 20-03618 (December 23, 2020).
Petersen was employed by SCF Securities between October 3, 2015, and October 29, 2019.
