June 8, 2019

BRAD BROOKS Suspended by FINRA

finra-censures-broker

BRAD BROOKS Suspended by FINRA

The Financial Industry Regulatory Authority (“FINRA”) announced that it issued Titan Securities’ sole owner, CEO and president, Brad Brooks (CRD#:1584633, Addison, Texas) a suspension and $50,000 fine. Apparently, in an Extended Hearing Panel Decision, FINRA found that Brooks violated FINRA and NASD Rules because Brooks failed to establish and enforce a supervisory system to preserve e-mails relating to the firm’s securities business. Not only that, but FINRA stated that Brooks unlawfully released clients’ funds held in escrow prior to the firm raising the minimum offering amount for Evolution II. Here’s more on the matter:

Titan Securities, Brad Brooks Fail To Retain, Monitor Private E-mails Concerning Securities Business

First of all, the Decision said that six Titan securities representatives used their private e-mails to do securities business. The firm’s failure to retain and supervise those communication caused the firm to violate NASD Rules 3010 and 3110, FINRA Rules 4511 and 2010, and Section 17(a) of the Exchange Act. Namely, NASD Rules 3010 and 3110 required that Titan retain correspondence for at least three years. Additionally, NASD Rule 3010 required that a Titan registered principal review all of the firm’s securities transactions and the representatives’ correspondence pertaining to securities business. Evidently, Brad Brooks admitted that his brokers used their personal e-mails to conduct securities business.

Titan Securities, Brad Brooks Unlawfully Released Investor Funds Before Minimum Amount Raised In Evolution Offering

The findings show that Titan was managing broker-dealer for limited partnership units that Evolution II issued. Supposedly, Evolution II’s agenda was to buy another limited partnership’s units. That other limited partnership was set up to acquire a Stone Mountain, Georgia business center. Apparently, Brooks was majority owner of Evolution II GP, LLC, the general partner of Evolution II.
FINRA says that Brad Brooks tried to raise at least $1,000,0000. Indeed, the Evolution II PPM stated that the offering, made on a contingency basis, was designed to generate between $1,000,000 and $3,000,000. Apparently, Evolution II GP, LLC was supposed to hold investors’ funds until Evolution II sold the minimum amount. However, if Evolution II GP, LLC did not raise the minimum amount, the partnership would end the offering. Supposedly, Evolution II only raised $300,000 by the time Titan broke escrow. That is, it released the investors’ funds to Evolution II GP, LLC without authorization. Because of this, the Hearing Panel said Titan violated Section 15(C) of the Exchange Act and Rule 15c2-4.
At least two clients brought claims about Brooks’ activities since October 27, 2017.

Titan Securities Client Files Arbitration Alleging Brad Brooks Failed To Supervise Direct Investments

 
A client of Titan Securities brought FINRA Arbitration #: 18-02577 on July 24, 2018. Mainly, the client alleged that Brad Brooks did not supervise direct investments which the firm sold the client. Supposedly, the firm sold limited partnership interests that caused the clients to experience unreasonable losses. Because of this, on October 10, 2018, Titan Securities paid the client $9,850 to settle the matter.

Titan Securities Client Sues Because Of Lack Of Supervision On OTC Equities Sales

 
A second Titan Securities client brought FINRA Arbitration #: 17-02747 on October 27, 2017. According to the client, Brad Brooks failed to supervise the representative who sold or purchased OTC Equities for the client’s account. Allegedly, because of this alleged lack of supervision, the client sustained $300,000 in losses. Therefore, the client sued to recover the losses in this pending matter.

Lars Soreide Highest Ethical Standard Award 2018
Lars Soreide Highest Ethical Standard Award 2018

Have you experienced losses because of Titan Securities and its CEO, Brad Brooks? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.

Recent Posts

March 28, 2024
Al Lovelace In Investor Disputes Over Annuity Misrepresentation

Soreide Law Group is investigating potential investor claims of sales practice violations possibly committed by securities broker Al Stephen Lovelace [CRD: 2393766, Rutherfordton, North Carolina], given the disclosures on FINRA BrokerCheck. Evidently, Lovelace has worked for Equitable Advisors LLC since December 27, 2016, and worked previously at AXA Advisors LLC from October 2, 2008, to […]

March 28, 2024
KAREN CHUNG of WESTERN INTERNATIONAL

Soreide Law Group is conducting an investigation into WESTERN INTERNATIONAL SECURITIES, INC. of Pasadena, California, financial advisor, KAREN TRAN CHUNG (KAREN CHUNG). According to FINRA’s  BrokerCheck, KAREN CHUNG, has been in the securities industry for 20 years and has been listed with 4 firms.  She is currently listed with, WESTERN INTERNATIONAL SECURITIES, INC., 70 S. […]

March 26, 2024
Stifel Fined $400K by FINRA

According to a recent article in Wealth Management, Stifel will pay over $400,000 to settle FINRA disciplinary charges that the firm allegedly did not properly supervise one of their registered representatives who misappropriated over $100,000 from an elderly client. Stifel agreed to the penalties without admitting or denying FINRA’s findings. In addition to a $400,000 penalty, Stifel […]

Contact us Nationwide USA
2401 E. Atlantic Blvd., Suite 305, Pompano Beach, FL 33062
Helping clients recover money across the USA
search
Copyright © 2022 Soreide Law Group, PLLC  |  All Rights Reserved
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram