Crown Capital Securities Broker Was Recently Named in Four FINRA Arbitration Claims
Dennis Haywood, a Crown Capital Securities broker, is now named in four customer disputes, all of which were filed in the last two months with the Financial Industry Regulatory Authority (FINRA). Haywood is also a Purepath Wealth Management investment adviser.
The claimants are accusing him of making inappropriate investment recommendations of non-traded real estate investment trusts (non-traded REITs), non-traded business development companies (BDCs), alternative investments, and variable annuities (VA).
Our unsuitable investment recommendation lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are speaking to customers of Crown Capital Securities stockbroker, Dennis Haywood, who suffered substantial losses in securities that were inappropriate for them yet were still recommended by him. Contact SSEK Law Firm for your free case consultation today.
What Are The Pending Arbitration Claims?
According to Haywood’s BrokerCheck record (CRD#: 5850275), there are currently four pending customer complaints that have been filed against this broker just this year alone. As noted above, many of these claims accuse the broker of unsuitably recommending alternative investments to clients that resulted in financial losses in the last few years.
One customer dispute, filed in early April, is seeking $100K in damages over two alternative investments bought in 2018. The claimant is alleging unsuitability, breach of contract, and improper due diligence. A second customer claim, also from April, is requesting $400K in damages and makes similar allegations, this time over four alternative investments purchased in 2016.
Another customer dispute, filed in May and seeking $250K in damages, is alleging violations of suitability and fiduciary duties as they relate to non-traded BDCs, non-traded REITs, and a VA contract, as well as material misrepresentations involving profitability, risks, and liquidity. The final customer dispute also from May makes similar claims against Haywood related to non-traded BDCs and non-traded REITs. The claimant is seeking over $167K in damages.
Dennis Haywood has worked in the securities industry for nine years. Prior to Crown Capital and Purepath Wealth Management, he was a Newport Coast Securities broker.
Unsuitable Investment Recommendations
Not every investment is appropriate for every investor. It’s important that a broker only recommend securities that are suitable not just for a customer’s portfolio, but also for their investment goals and the degree of risk they can handle. Stockbrokers also must make sure that no misrepresentations or omissions are made when marketing a security to customers.
Broker-dealers have a duty to properly supervise their brokers and all transactions. They can be held liable when failure to supervise results in fraud, negligence, and significant losses for customers.
If you are currently working with Dennis Haywood or have previously worked with him in the past and believe that this Crown Capital Securities broker made unsuitable recommendations to you, contact SSEK Law Firm for your free consultation. We work with investors nationwide to recover their losses.