HD Vest Sued For Fraudulent Woodbridge Notes
Jerry Davis Raines of Kilgore Texas a stockbroker formerly registered with HD Vest Investment Services is referenced in a customer initiated investment related arbitration claim where the customer requested $2,250,000.00 in damages based upon accusations of Raines misrepresenting risks which pertained to Woodbridge Group of Companies investments sold to the customer during the time that Raines was employed by HD Vest Investment Services. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-00826 (Apr. 3, 2019).
FINRA Public Disclosure confirms that Raines has been identified in sixteen more customer initiated investment related disputes containing allegations of his misconduct while employed with Signal Securities Inc. and HD Investment Services. Specifically, Raines is the subject of a customer initiated investment related arbitration claim in which the customer sought damages estimated to exceed $5,000.00 in damages founded on accusations that the customer was placed into unsuitable Woodbridge Companies products which led the customer to experience unwarranted losses. FINRA Arbitration No. 19-00325 (Jan. 30, 2019).
Another customer initiated investment related arbitration claim concerning Raines’ conduct was resolved for $106,049.00 in damages supported by allegations of the failure to conduct due diligence on Woodbridge Mortgage Investment Fund investments solicited by the stockbroker; and false statements being made to the customer concerning the risks, terms or other critical details about the unregistered direct investments. FINRA Arbitration No. 18-00935 (Mar. 6, 2019).
Raines is also the subject of a customer initiated investment related arbitration claim where the customer requested $1,300,000.00 in damages based upon accusations of misrepresentations being made by the stockbroker; and investment advice from Raines being wholly inappropriate which led the customer to purchase and incur losses from Woodbridge Mortgage Investment Funds. FINRA Arbitration No. 19-00680 (Mar. 20, 2019). Another customer filed an investment related arbitration claim regarding Raines’ activities in which the customer sought $950,000.00 in damages founded on allegations of bad direct participation programs or limited partnership interest being sold to the customer; and misleading statements being made by Raines concerning risks of Woodbridge Group of Companies investments. FINRA Arbitration No. 19-00827 (Mar. 27, 2019).
An additional customer initiated investment related arbitration claim involving Raines’ conduct settled for $47,152.34 in damages supported by accusations that false or misleading statements had been made to the customer about Woodbridge Mortgage Investment Funds 1 and 2; and investment recommendations made by the stockbroker failed to be suitable given the customer’s tolerance for risk. FINRA Arbitration No. 18-00936 (Nov. 5, 2019).
FINRA Public Disclosure additionally reveals that Raines has been barred from associating with any FINRA member in any capacity founded on findings that he neglected to cooperate with its investigation concerning allegations of his sales of Woodbridge Group of Companies promissory notes. Letter of Acceptance Waiver and Consent No. 2018057494202 (Sept. 7, 2018).
According to the AWC, Raines was sent a letter from FINRA in July of 2018 which called upon him to furnish information and documentation to the regulator as part of its investigation into the stockbroker’s sales of notes pertaining to the Woodbridge unregistered investment companies. The AWC stated that Raines’ counsel initially corresponded with FINRA to arrange for Raines’ cooperation; however, Raines never turned over the requisite information. Legal counsel later confirmed with FINRA that Raines would at no point comply with its instructions. FINRA determined that Raines’ failure to cooperate was violative of FINRA Rules 2010 and 8210.
Raines’ employment with HD Vest Investment Services has been terminated as of May 22, 2017.