Al Westbrook Sanctioned, Facing Investor Dispute

Securities Broker Al Westbrook Receives Suspension, Fine From FINRA For Allegedly Selling Away

Soreide Law Group provides you with the following update regarding securities broker John Albert “Al” Westbrook (CRD#: 1846059, McDonough, Georgia). Specifically, Westbrook, who worked for Center Street Securities (2014 to 2020), faced sanctions from FINRA for his alleged private securities transactions. In addition, a client of Center Street Securities disputed Westbrook’s sales practices. Here’s more on these disclosures.

FINRA Issues Fine, Suspension To Al Westbrook For Purported Private Securities Transaction

Evidently, Al Westbrook agreed to pay a $5,000 fine and to serve a five-month suspension as securities broker to resolve Financial industry Regulatory Authority’s allegations that he was involved in private securities transactions – a violation of FINRA rules. Specifically, the securities broker purportedly helped complete $350,335 in investors’ transactions without Center Street Securities’ knowledge or its approval. Supposedly, Westbrook had clients invest in Future Income Payments LLC (“FIP”).
Supposedly, Al Westbrook’s involvement with FIP, and the commissions he received for selling these FIP securities, all came about in violation of Center Street Securities’ policy. Specifically, the firm required him to give notice and get approval for any private securities transaction. However, he purportedly did neither. Evidently, Al Westbrook served a suspension as securities broker from November 16, 2020 to April 15, 2021, and paid the fine to resolve this matter. The securities broker denies the allegations.

FIP Charged In Alleged Scheme

Notably, FIP stopped doing business in 2018 and faces investor lawsuits and regulatory actions. Notably, the United States Department of Justice (“DOJ”) announced that Future Income Payments and owner Scott A. Kohn (Newport, California) were charged in an indictment alleging a Ponzi scheme. Allegedly, the company solicited pension holders in dire need of money to take a lump sum payout. Then, FIP solicited investors to buy structured cash flows stemming from those pensions. According to DOJ, FIP used new investor funds to finance payments to earlier investors. As of 2018 – the year that FIP shut down – the company supposedly owes $300 million to investors. It appears that 2,600 individuals allegedly fell victim to the scheme. This matter is unresolved at this time.

Center Street Securities Client Files Dispute About Al Westbrook

Notably, a client of Al Westbrook’s at Center Street Securities filed a FINRA Arbitration Claim in June 2020. First of all, the client alleged that Westbrook sold unsuitable FIP securities. Secondly, the securities broker allegedly acted with negligence in selling investments which CSS didn’t approve. For this reason, the client demanded $290,000 in compensation. This suitability and negligence lawsuit is ongoing as of July 21, 2021.

Center Street Securities Disaffiliates With Westbrook For Failure To Follow Policy

Evidently, BrokerCheck also reports that Center Street Securities disaffiliated with Al Westbrook in February 2020. Mainly, the securities firm alleged that Westbrook did not follow firm policy and procedures regarding his email use.

Did You Face Financial Harm Because Of Al Westbrook?

Did securities broker Al Westbrook cause you to suffer losses? If so, call Soreide Law Group at (888) 760-6552 and speak with a skilled securities lawyer regarding a possible recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has helped many United States investors recover compensation after incurring losses caused by their financial advisors and securities brokers. Please note that Westbrook denies all allegations of his sales practice violations.
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