Securities Lawyers Blog
Our firm is investigating claims made by The Financial Industry Regulatory Authority (FINRA) when the regulator barred broker Tye Williams (Williams). According to FINRA settlement, Williams consented to sanctions that he failed to produce documents and information to FINRA. In addition, FINRA stated that the documents and information requested related to an investigation regarding a customer complaint alleging that Williams converted over $1,000,000 from customers’ accounts, made unsuitable investment recommendations, and engaged in unauthorized transactions and mismanaged assets.
The complaint made in April 2016 alleged that from mid 2004 until 2015, Williams mismanaged their finances by exceeding the scope of his authority and recommended unsuitable investments in ventures like Smashburger. The complaint alleges damages of $1,000,000. The claim is currently pending.
According to Williams’ brokercheck records Williams has at least six disclosed outside business activities. These activities include DC Rightside, LLC which is involved with Smashburger franchise. Also disclosed is Tye Williams Financial Services, Inc., Gold Star Equestrian, LLC, One Source Advisors Group, LLC, and Fellowship of Christian Athletes dfw. The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”. Often times brokers who engage in this practice use outside businesses in order to market their securities.