ONALD STEPHEN WOODS (DON STEPHEN WOODS, DONALD S WOODS) CRD#: 727894, a broker formerly with LPL FINANCIAL LLC and THURSTON SPRINGER FINANCIAL of LOUISVILLE, KY, was suspended and fined by FINRA for his alleged handling of the sales and recommendations of real estate investment trusts, also known as REITs. Woods received a six months suspension (5/18/2020 -11/17/2020), a $10,000 fine and a disgorgement of $5,600.70. Woods is currently not registered as a broker.
Without admitting or denying FINRA’s findings, DONALD S WOODS consented to the sanctions and to the entry of findings that he allegedly submitted applications to purchase real estate investment trusts (REITs) that overstated the clients’ liquid net worth in order to circumvent his member firm’s restrictions.
According to FINRA’s finding, Woods did not have a reasonable basis for recommending that the clients purchase the REITs, which were inconsistent with the clients’ investment profiles. Woods received $5,600.70 in commissions in connection with these recommendations.
FINRA stated that from June of 2014 to June of 2015, DONALD S WOODS allegedly submitted REIT applications that inflated several clients’ net worth to evade LPL Financial’s internal policy which would have restricted several clients’ to alternative investments to a certain percentage of their liquid net worth. FINRA also alleged that Woods did not perform a reasonable due diligence for three clients on the risks of REITs.
One client alleged that Woods said the client’s liquid net worth was $746,000 when it was in fact $400,000, according to FINRA. Also a retired couple alleged Woods marked their liquid net worth as $900,000 when it was $700,000, FINRA stated. DONALD S WOODS earned $5,600.70 in commissions in connection with the REIT recommendations, and Woods agreed to pay disgorgement in that amount, plus interest.
According to FINRA’s BrokerCheck, DONALD S WOODS has been listed in the securities industry for 31 years and has 13 Disclosures on his CRD report. Of the 13 Disclosures, 11 are Customer Disputes which began in 2016. Some of the allegations in the disputes included, misrepresentation, unsuitable investments with respect to alternative investments, excessive sales, alteration of account profiles, and losses connected to variable annuities.
DONALD S WOODS has been listed with 10 firms, the three most recent are listed below:
2/22/2016 – 08/15/2018 THURSTON SPRINGER FINANCIAL – LOUISVILLE, KY
07/01/2010 – 01/20/2017 LPL FINANCIAL LLC – LOUISVILLE, KY
12/10/2008 – 05/28/2009 WELLS FARGO ADVIRSORS LLC – LOUISVILLE, KY
If you’ve lost financial investments, particularly in REITs, through the actions or recommendations of DONALD S WOODS formerly of Thurston Springer and LPL Financial of Louisville, Kentucky, contact Soreide Law Group and speak to a lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.