John Loofbourrow Sanctioned, Involved In Investor Dispute

Securities Broker John Loofbourrow Faces FINRA Sanctions, Investor Dispute

Soreide Law Group is reviewing potential investor claims against securities broker John Wade Loofbourrow (CRD#: 312494, New York, New York). It appears on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that Loofbourrow is involved in an investor dispute regarding a private placement sale. Not only that, but two regulators sanctioned him. Notably, in June 2020, he agreed to FINRA’s sanctions of a suspension (as principal) and fine to resolve allegations of his failure to supervise outside business activities. Let’s take a closer look at these disclosures.

John Loofbourrow’s Client Files Dispute About Private Placements

It appears that an investor brought a FINRA Arbitration Claim. They alleged that John Loofbourrow committed sales practice violations. Potentially, the investor held accounts with Demopolis Capital Inc. (Loofbourrow’s employer from November 1983 to March 2021) or John W. Loofbourrow Associates Inc. However, it is unclear what employer he worked for (if any) at the time of this alleged incident. Basically, the client claimed that Loofbourrow had them invest in Concorde Group Holdings through a private placement. Allegedly, this private placement was not a legitimate investment but instead a scheme that caused damages to the client. For this reason, they demanded $800,000 in compensation in this ongoing matter.

FINRA Issues Sanctions Against Loofbourrow For Not Supervising Outside Business Activities

Evidently, John Loofbourrow agreed to pay a $7,500 fine and serve a two-month suspension as principal (except for FINOP work). This is to resolve allegations that he did not review outside business activities in violation of FINRA rules when he managed John W. Loofbourrow Associates . Evidently, the focus of this FINRA action concerned two securities brokers who came to John Loofbourrow with information about their outside business activities. Supposedly, Loofbourrow did not take the steps to review those activities.
Particularly, with one of the JWLA securities broker’s activities, that broker claimed to be a CEO and founder of entities in investment related business. In that capacity this person reportedly did capital raising activities. Purportedly, the other securities broker mentioned an outside business activity too. This involved them serving as an officer of the outside entities and doing strategic planning which involved securities sales. Notably, FINRA contended that John Loofbourrow was supposed to see if those activities posed as a problem for the brokers’ jobs and whether those activities were private securities transactions. Reportedly, Loofbourrow served the suspension from July 2020 to September 2020.
Also, two other regulatory actions show up on John Loofbourrow’s record. Evidently, both involved National Association of Securities Dealers issuing censures and fines.

Losses By Investing In Securities Through Broker John Loofbourrow?

Apparently, securities broker John Loofbourrow denies allegations of sales practice violations as has been referenced on BrokerCheck. Have you experienced investment losses by interacting with him or his staff? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered compensation for many US clients who have experienced losses because of their securities brokers and financial advisors.