NVESTOR ALERT: FINRA Bars Floyd Powell For Selling Fraudulent Investments
Floyd Earl Powell (CRD#: 2220029, Albertville, Alabama) is a prior MML investors Services, LLC and MSI Financial Services registered representative who the Financial Industry Regulatory Authority (“FINRA”) barred for selling unregistered investments away from the firm. Specifically, FINRA barred Powell pursuant to a Letter of Acceptance, Waiver and Consent #2018058504901, executed on February 13, 2019, finding Powell violated FINRA Rules 3280 and 2010.
FINRA stated that between July 2016 and December 2017, Powell asked customers to purchase Woodbridge Group of Companies LLC promissory notes. Apparently, he sold 13 investors $3,491,707 in Woodbridge promissory notes. All but two of the investors were customers of MSI Financial Services, Inc. (Powell’s employer from March 16, 1992 to March 25, 2017) or MML investors Services, LLC (Powell’s employer from March 25, 2017 to February 5, 2018).
As a result of Powell’s private securities transactions, he obtained $103,598.00 in commissions. Unfortunately for investors, on December 4, 2017 Woodbridge filed a voluntary Chapter 11 bankruptcy petition. Because of this, thirteen customers appear to be facing drastic losses.
FINRA stated that Powell did not inform MML Investors Services, LLC or MSI Financial Services, LLC about his private securities transactions. Critically, Powell was obligated according to FINRA Rule 3280(b) to provide the firms written notice about any transactions that Powell proposed to engage in outside the regular scope of his employment relationships.
In those disclosures, Powell was supposed to have discussed his role in the transactions and whether he would be receiving compensation for selling the securities. Since Powell failed to notify the firms, FINRA found he violated FINRA Rules 3280 and 2010.
Four customers have come forward with complaints about Powell’s sales practices:
October 16, 2018 Arbitration Concerning Floyd Powell’s Alleged Fraudulent Investment Sales
Customers of MML Investors Services, LLC and MSI Financial Services filed FINRA Arbitration #18-03540 on October 10, 2018. Specifically, the customers claimed that in 2016, Powell recommended for them to buy unregistered and fraudulent investment programs. Not only that, but Powell allegedly falsified information and made omissions about the investments. Because of this, customers alleged $3,169,727.00 in damages in the pending matter.
December 3, 2018 Lawsuit Alleging Floyd Powell’s Unsuitable Recommendations
A customer of MSI Financial Services, Inc. filed a lawsuit (Case #28-CV-2018-900308.00) in the Circuit Court of DeKalb County, Alabama on December 3, 2018. Notably, the customer claims that Powell made unsuitable recommendations about promissory note investments. Allegedly, Powell facilitated the customer’s inappropriate promissory notes purchases and caused the customer to incur losses. Apparently, MSI Financial Services, Inc. believes that the customer requested more than $5,000.00 in damages.
August 16, 2018 Arbitration Involving Floyd Powell’s Unregistered Securities Sales
An MSI Financial Services, Inc. customer contested Powell’s sales practices by filing FINRA Arbitration #18-02916. Principally, the matter concerned Powell’s alleged July 2016 sales of unregistered and fraudulent investments. Powell allegedly made bad recommendations about the unregistered securities, violating securities laws in the process. As a result, the customer demanded $290,001.00 in compensation.
May 17, 2018 Arbitration Alleging Floyd Powell’s Bad Advice
A customer of MSI Financial Services, Inc. filed FINRA Arbitration #18-01491 on April 24, 2018. Similar to the other complaints, Powell allegedly advised the customer to buy fraudulent investment programs. Supposedly, the customer purchased the fraudulent promissory notes through Powell in January 2017 and July 2017. Therefore, the customer seeks $135,715.67. While this may be true, the matter is pending a resolution.
If you experienced losses by investing with Floyd Earl Powell, contact Soreide Law Group at (888) 760-6552. 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 broker and advisory misconduct.