Broker Keith Ashley Facing Murder and FINRA Charges

Ex-Texas Financial Advisor Allegedly Killed An Investor While Operating a Ponzi Scam

Keith Todd Ashley, who was fired by Parkland Securities in October 2020 and is charged with murder, is now also facing Financial Industry Regulatory Authority (FINRA) charges.

FINRA filed its complaint in December 2021 and is alleging that Ashley took part in undisclosed business activities, misappropriation, and engaged in private securities transactions from February through October 2020. During this entire time, Ashley was a registered representative with Parkland Securities.

In November 2020, the former North Texas financial advisor was charged with multiple counts of wire fraud and murder that involved allegedly staging a client’s “suicide” earlier that year. He also is accused of moving $20K from the victim’s bank account to his own.

Ashley allegedly defrauded other investors while operating a $1.3M Ponzi scam. This included obtaining money from his targets while pretending that the funds would be invested in a unit investment trust (UIT). He is accused of making false statements to these customers, including telling them there was no risk to their principal investment and that returns were guaranteed.

In a Ponzi scheme, newer investors’ funds are used to pay earlier investors their supposed “returns” in what is, in fact, a scam in which participants aren’t making any money. Ponzi schemes have been known to lead to significant investment losses for their victims.

Our Texas broker fraud lawyers are offering free, no-obligation consultation to customers of ex-Parkland Securities broker Keith Ashley who have suffered significant investment losses while working with him. Contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.

Kieth Ashley is Accused of Taking Investors’ Funds For His Own Use

The indictment against Ashley contends that he spent over $1M of investors’ funds on personal expenses, including mortgage bills, credit card payments, casino expenses, student loans, college tuition costs, and to run his establishment Nine Band Brewing.

FINRA said that it opened its investigation into Keith Ashley after he was fired by Parkland Securities but that he has not responded to the SRO’s requests for more information. The regulatory body is investigating whether the ex-Texas broker sold unregistered investments in his brewery.

According to his BrokerCheck, Keith Ashley worked for 20 years in the industry. Other firms where he used to be registered include Sigma Financial Corporation and Walnut Street Securities.

Broker-Dealer Negligence

Brokerage firms must properly supervise their registered representative and the activities in customers’ accounts. This includes maintaining a supervisory system that complies with the law and properly training its financial advisors. It is also a broker-dealer’s job to identify signs of broker misconduct, negligence, or fraud and prevent such incidents from harming investors.

FINRA Arbitration for Investors Wishing To Pursue Financial Recovery

When lax or supervisory failures contribute to broker misconduct or negligence, investors who suffer financial harm or other losses may have grounds for pursuing damages through FINRA arbitration against the financial firm.

Even if the broker-dealer was not involved or aware of a financial advisor’s wrongful actions, it can still be held liable. This is not the type of securities case that you want to pursue without knowledgeable broker-dealer misconduct attorneys representing you and protecting your rights.

Headquartered in Texas, Shepherd Smith Edwards and Kantas have helped thousands of investors collectively recover many millions of dollars from financial firms. Contact our Houston broker misconduct attorneys at (713) 227-2400. Call our Dallas broker negligence lawyers at (214) 613-5306.

To reach us nationwide, call us at (800) 259-9010 today. Your first consultation with SSEK Law Firm is a free, no-obligation case assessment so that we can help you explore your legal options.