ENNIS ALLEN HAYES CRD#: 4403550, a broker formerly with Newbridge Securities of Boca Raton, Florida, had a complaint filed against him on January 11, 2019 by FINRA’s Department of Enforcement for alleged “selling away.”
According to FINRA, between March 2010 and June 2016 while he was associated with Newbridge Securities Corporation in Boca Raton, FL, Hayes was named a respondent in a FINRA complaint alleging he recommended 9 investors, 8 of whom were clients of his member firm, purchase securities issued by privately held companies. Allegedly, Hayes facilitated the investments without providing prior written notice to his firm regarding his participation in private securities transactions. According to the FINRA complaint, the investors suffered losses of at approximately $2.3 million, when one of the companies, KIInc. filed for bankruptcy in 2013, and the other companies discontinued operations.
The FINRA complaint alleges that the principal of the companies was a friend of Hayes’ family and Hayes obtained approximately $130,000 from some of the companies, or their affiliate. The complaint also alleges that Hayes caused his firm to fail to preserve books and records by using personal email addresses to correspond with clients about their firm accounts and communicating via text message with one firm client about her firm account. Hayes did not provide these communications to the firm. Therefore, the firm could not review or retain this securities related correspondence. The complaint further alleges that Hayes failed to provide information and documents in response to requests FINRA made related to complaints that clients made about his handling of their investments.
According to FINRA’s BrokerCheck, DENNIS ALLEN HAYES has 9 Disclosures on his report. Seven of the Disclosures are “Customer Disputes.” The significance of Hayes’ FINRA Customer Complaints is underscored in FINRA NOTICE to MEMBERS 03-49. In 2003, FINRA conducted a review of the CRD’s of all 663,000 registered representatives, only 2,751 (.41%) had been the subject of (3) or more customer complaints. In other words Hayes’ customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints.
One of the Disclosures was an “Employment Separation After Allegations.” Hayes was allowed to resign from Newbridge Securities of Boca Raton, Florida, following allegations that, “He was permitted to resign based on two issues. First the firm has an open internal review regarding a customer complaint that evolved into an arbitration for possible selling away and private securities transactions. Second, had little or no production in the last 12 months.”
Hayes has been registered in the securities industry for 13 years and was listed with 8 firms, the two most recent listed below:
04/25/2017 – 04/27/2017 SALOMON WHITNEY FINANCIAL – MELVILLE, NY
02/16/2010 – 09/16/2016 NEWBRIDGE SECURITIES CORPORATION – BOCA RATON, FL
If you were a client of DENNIS ALLEN HAYES formerly of NEWBRIDGE SECURITIES CORPORATION of BOCA RATON, FL, contact the Pompano Beach, Florida-based Soreide Law Group and speak at no cost to an experienced securities lawyer regarding the possible recovery of your financial losses through a FINRA arbitration at: 888-760-6552.