Mobile, AL, Rep Fined and Suspended by FINRA

The following information appeared on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2013.”

David Darrell Anthony (CRD #4671195, Registered Representative, Mobile, Alabama)

was fined $7,500 and suspended from association with any FINRA member in any capacity for six months. Without admitting or denying the allegations, Anthony consented to the described sanctions and to the entry of findings that he facilitated investors’ tax clients and customers of his member firm involvement in a private securities transaction by introducing, discussing and referring them to an entity for investment purposes. The findings stated that the clients/customers invested a total of $400,000 in the entity by purchasing secured promissory notes offered by the entity, which are now in default.

The FINRA report goes on to say that although the promissory notes were purportedly secured, perfection of the security interest was dependent on the note purchasers’ filing financing statements, and no financing statements were signed by the entity or provided to the purchasers. The client and customers were induced to purchase the promissory notes by the promised return of 9 percent interest rate per annum.

FINRA's findings also stated that Anthony failed to provide any written notice to his firm of his intention to participate in the sale of these promissory notes by introducing, discussing and referring his tax clients/customers to the entity, which led to the purchase of the entity’s promissory notes. Nor did Anthony receive written approval from the firm for his involvement. Anthony understood that he could apply for a commission of 1 percent to 2 percent of the amount invested by promissory note purchasers he referred to the entity. The findings also included that Anthony’s recommendation of the entity to a customer, was unsuitable on the basis of the customer’s other securities holdings, financial situation and needs. Anthony failed to recognize that the customer’s investment in the entity was an overconcentration of her financial holdings. The $100,000 constituted approximately 56.5 percent of the customer’s liquid worth, resulting in an unsuitable overconcentration of her liquid assets, which exposed her to a risk of loss that exceeded her risk tolerance and investment objectives.

The suspension is in effect from May 6, 2013, through November 5, 2013.
(FINRA Case #2010021668703)

According to FINRA's BrokerCheck, David Anthony was previously registered with FINRA at the following brokerage firm:

MULTI-FINANCIAL SECURITIES CORPORATION
CRD# 10299
MOBILE, AL
07/2003 - 11/2010

This ends the information obtained on FINRA’s website.

If you experienced a financial loss due to David D. Anthony, call Soreide Law Group for a free consultation with an attorney on how to potentially recovery your investment at: 888-760-6552.