HD Vest Broker Barred For Obstructing Investigation
Jerry Davis Raines of Kilgore Texas a stockbroker formerly employed by HD Vest Investment Services has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Raines failed to cooperate with FINRA in an investigation into allegations of his sales of notes pertaining to Woodbridge Group of Companies LLC. Letter of Acceptance Waiver and Consent No. 2018057494202 (Sept. 7, 2018).
According to the AWC, following HD Vest’s termination of Raines, FINRA launched an investigation into his potentially violative sales practices. Apparently, on July 11, 2018, Raines was sent a letter from FINRA personnel which called upon him to provide FINRA with information and documentation in reference to Raines’ participation in notes sales pertaining to Woodbridge Group of Companies, LLC. Raines’ information about his involvement with the unregistered investment companies was required to be provided to FINRA personnel by July 25, 2018.
The AWC stated that FINRA honored a request made by Raines’ counsel for an extension of time to cooperate with the request for information and documentation; however, Raines ultimately failed to hand over the details to FINRA. Apparently, Raines’ counsel informed FINRA personnel that Raines would not be providing any documentation or information to the regulator. Counsel then confirmed that Raines understood the nature of FINRA’s request but refused to participate in the investigation. FINRA found Raines’ conduct violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that Raines has been identified in fifteen additional customer initiated investment related disputes pertaining to accusations of his misconduct while employed with Signal Securities and HD Vest Investment Services. In particular, two customers filed investment related civil actions involving Raines’ conduct where the customers requested damages estimated to exceed $5,000.00 in damages founded on allegations that Raines made misrepresentations to the customers concerning Woodbridge Companies, and placed them in investments that were not appropriate for the customers. Civil Action Nos. 18-0220; 18-0221 (Apr. 3, 2018).
Thereafter, on April 18, 2018, a customer filed an investment related arbitration claim concerning Raines’ activities in which the customer sought $244,000.00 in damages supported by accusations that Raines engaged in Woodbridge Mortgage Fund sales despite those investments not having been approved by Signal Securities, Inc.
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