Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker David Allen Walters (CRD # 1436760) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into his participation in four different private securities offerings outside of the Firm he was registered with. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Walters or their investments.
Registration Background for David Allen Walters
Mr. Walters first became registered in the securities industry in 1985. He was most recently registered with Laguna Beach, CA based NMS Capital Advisors, LLC (CRD # 140356) from March 2019 to September 2019. His prior registrations include Advisory Group Equity Services LTD (CRD # 15427) from June 2017 to November 2018 and Detwiler Fenton & Co. (CRD # 1794) from June 2015 to July 2017.
FINRA’s Allegations against David Allen Walters
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated October 22, 2020, Mr. Walters consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From October 2017 to June 2018, and while [Mr.] Walters was registered through AGES [Advisory Group Equity Services Ltd. (CRD No. 154270)], [Mr.] Walters participated in four private securities transactions, in which individuals invested a total of $450,000 in exchange for Series A Preferred Units of a company for which [Mr.] Walters served as Executive Chairman (the Company)”;
- “The investors were directed to mail their completed subscription documents and subscription payment to [Mr.] Walters, or to evidence to [Mr.] Walters that their payment was wired directly to the Company”;
- “[Mr.] Walters signed the subscription agreement for each of the four investors in his capacity as Executive Chairman of the Company“;
- “[Mr.] Walters’ participation in the four private securities transactions was outside the regular course and scope of his employment with AGES”;
- “[Mr.] Walters did not provide prior written notice to AGES of the four private securities transactions or his role in the transactions”;
- “[Mr.] While Walters disclosed the Company to AGES as an “outside business activity,” he told the firm that the source of its capital would be “personal assets” rather than investments by third parties”; and
- By virtue of the above, Mr. Walters violated FINRA Rule 3280, regarding private securities transactions and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions David Allen Walters
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s October 22, 2020 AWC also indicates that Mr. Walters consented to the following sanction(s):
- A four-month suspension from association with any FINRA member in any capacity; and
- A $5,000.00 fine.
David Allen Walters has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Walters reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On March 18, 2011 a customer initiated a civil suit in the state of New York against Mr. Walters, for actions that allegedly occurred while he was acting as an officer of Systems Evolution, Inc. The customer alleged that Mr. Walters engaged in a series of transactions that resulted in Systems Evolution having a high level of debt. The civil suit was settled on January 24, 2013.
If you or someone you know has or had a brokerage account with David Allen Walters and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.