Signator Stockbroker Barred By FINRA For Selling Away
Dee Dee Brooks (also known as Doris Brooks and as Doris Takooshian) of Huntington Beach California a stockbroker formerly associated with Signator Investors Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that she engaged in unapproved private securities transactions involving Future Income Payments LLC and Woodbridge Group of Companies LLC. Letter of Acceptance Waiver and Consent No. 2018058983601 (June 9, 2020).
According to the AWC, between July 2016 and December 2017, investors were solicited by Brooks to make $1,770,000.00 worth of purchases in Future Income Payments and Woodbridge Group of Companies. FINRA indicated that five Signator customers and four non-Signator investors were solicited by Brooks through an outside business resulting in $906,497.00 in Woodbridge Group of Companies promissory notes purchases. At no point did Brooks inform Signator Investors that she would be taking part in those transactions. She did not receive any authorization from Signator to effect the sales. FINRA determined her conduct in this regard to be violative of FINRA Rules 2010 and 3280.
The AWC stated that a Chapter 11 bankruptcy petition had been filed by Woodbridge following the investors’ purchases of the promissory notes. Woodbridge founder Robert H. Shapiro was later subject of a final judgement in which he was permanently enjoined from committing violations of federal securities antifraud laws, disgorged of unlawful gains and was required to pay a $100,000,000.00 civil penalty. SEC v. Robert H. Shapiro et al. Case No. 1:17-cv-24624-MGC (S.D. Fla. Dec. 27, 2018).
The AWC stated that investors were also urged by Brooks to purchase Future Income Payments. This structured cash flow investment was apparently supposed to provide investors between seven and eight percent returns. At least six Signator customers had agreed to buy $866,895.00 in Future Income Payments purchase agreements. Brooks did not notify Signator about these outside transactions and had not secured any approval to engage in them. FIP closed down in April of 2018 leaving investors deprived of $300,000,000.00 in payments. Its founder Scott A. Kohn was charged with fraud. FINRA determined that by selling FIP purchase agreements away from Signator, Brooks violated FINRA Rules 2010 and 3280.
FINRA Public Disclosure also indicates that Brooks has been referenced in a customer initiated investment related arbitration claim which was settled for $75,000.00 in damages supported by allegations that the customer’s assets had been inappropriately directed into Woodbridge Mortgage Investment Fund because of Brooks. 18-01963 (Aug. 27, 2018). FINRA Arbitration No. The claim alleges that Woodbridge was a fraudulent Ponzi scheme.
Brooks was terminated by Signator investors on June 4, 2018 during which time she was internally probed for unregistered securities sales.