Jeffrey W Davidson Fined and Suspended

The Financial Industry Regulatory Authority (FINRA) has fined, JEFFREY WAYNE DAVIDSON (Jeffrey W Davidson) $15,000 and suspended him for 21 months from associating with any FINRA member in all capacities beginning 2/19/2024 and ending 11/18/2025. Davidson was accused of raising over $10 million for a fitness company he owns without receiving written approval from this firm.  According to an article from ThinkAdvisor, while working for Equitable Advisors LLC in Austin, Texas, Davidson allegedly participated in the private equity offering from May of 2021 to January of 2022.

According to the FINRA report, without admitting or denying FINRA’s findings, Jeffrey W Davidson consented to the sanctions and to the entry of findings that he allegedly participated in a private offering of securities that raised $10.21 million for a company that he founded and co-owned without providing prior written notice to his member firm or receiving written approval from it.

FINRA’s findings stated that Jeffrey W Davidson disclosed his ownership interest in the company to the firm as an OBA (outside business activities), which the firm approved.  The company allegedly engaged in a private offering of ownership units, which were securities sold pursuant to Regulation D of the Securities Act of 1933. ln connection with the offering, Davidson allegedly hired a placement agent, approved a private placement memorandum for distribution to prospective investors, presented a business plan to prospective investors, and negotiated the terms of the transaction with investors, according to FINRA.

FINRA states that some of the investors, including two of Davidson's clients at the firm, invested in the company through a limited partnership. Although Davidson did not earn any commissions in connection with the offering, Davidson and his co-owner received approximately $2.4 million by selling a portion of their ownership interest in the company.

On January 26, 2022, according to BrokerCheck, Equitable Advisors discharged Davidson following the allegations, “RR (registered representative) terminated for engaging in a private securities transaction that was not reviewed or approved by the Firm.”  The broker added the following comment, “Transaction related to firm approved outside business activity. Multiple disclosures made to firm management.”

According to FINRA’s BrokerCheck, available on FINRA’s website, Jeffrey W Davidson, has been in the securities industry for 20 years and was listed with 2 firms.  He has 2 disclosures on his FINRA CRD report. One was this “Regulatory” and the other disclosure was his termination from Equitable Advisors.

FINRA didn’t name Davidson’s outside business in the letter of acceptance, waiver and consent, but its records show that he and his wife co-own fitness class operator Camp Gladiator which she founded in 2008 after winning “American Gladiators” and serves as CEO according to the article from ThinkAdvisor. The Davidsons also founded and co-manage CG Victory, a nonprofit Christian sports camp for children, according to information provided to FINRA. Davidson is now a registered investment advisor with Victory Financial Group, where he is listed as founder and chairman according to the article. Jeffrey W Davidson has served as an investment advisor at Victory Financial since last year, the firm, according to ThinkAdvisor had more than $143 million in assets under management on May 30.

If you’ve experienced financial losses due to the actions or recommendations of former Equitable Advisors’ broker, Jeffrey W Davidson of Austin, Texas, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis, no cost to you if no recovery.