Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Dee Dee Brooks (CRD # 2559233) was recently barred from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into her termination from Signator Investors, Inc. (CRD # 468) (hereinafter, “Signator” or the “Firm”) regarding conducting unapproved outside business activities. Specifically, Ms. Brooks engaged in the private securities sales of Woodbridge Group of Companies LLC (hereinafter “Woodbridge”) and Future Income Payments, LLC (hereinafter “FIP”) without prior written disclosure and approval from Signator.
The owners of both Woodbridge and FIP were ultimately indicted on federal charges, including conspiracy relating to the operations of their respective companies.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Ms. Brooks or their investments in Woodbridge and/or FIP.
Registration Background for Dee Dee Brooks
Ms. Brooks first became registered in the securities industry in 1995. She was most recently registered with Huntington Beach, CA based Signator Investors, Inc. (CRD # 468) from July 2015 to June 2018. Her prior registrations include SCF Securities, Inc. (CRD # 47275) from April 2009 to July 2015 and Signator, Investors, Inc. (CRD # 468) in July 2015.
FINRA’s Allegations against Dee Dee Brooks
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated June 5, 2020, Ms. Brooks consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- From July 2015 to June 2018, while registered with Signator Investors, Inc., Ms. Brooks “solicited investors to purchase over $1.77 million in securities in two separate investments, the Woodbridge Group of Companies LLC (“Woodbridge”) and Future Income Payments, LLC (“FIP”)”;
- “Woodbridge was a purported real estate investment fund”;
- “FIP represented itself as a structured cash flow investment, claiming to purchase pensions at a discount from pensioners and then selling a portion of those pensions as a “pension stream” to investors”;
- “[Ms. Brooks,] through a company that she worked with as an outside business, solicited nine investors, five of whom were Signator customers, to invest $906,497 in Woodbridge promissory notes”;
- Additionally, Ms. Brooks sold “$866,895 in FIP purchase agreements to seven investors, six of whom were Signator customers”;
- Ms. Brooks did not provide notice to Signator Investors, Inc. prior to participating in the transactions involving either Woodbridge or FIP, nor did she obtain approval from Signator;
- “Signator’s written supervisory procedures (“WSPs”) prohibited its registered representatives from participating in the sale of private securities transactions without prior written approval from the Firm”;
- “In December 2017, Woodbridge filed a voluntary Chapter 11 bankruptcy petition. On December 27, 2018, the United States District Court for the Southern District of Florida issued final judgments against, among others, Woodbridge and its former owner, Robert H. Shapiro. SEC v. Shapiro, Case No. 17-24624 (S.D. Fla.)”;
- “In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor payments. In a March 12, 2019 indictment, the United States charged FIP and its owner, Scott A. Kohn, with conspiracy to engage in mail and wire fraud related to FIP’s operations”; and
- By virtue of the foregoing, Ms. Brooks violated FINRA Rule 3280 and FINRA Rule 2010.“
FINRA Sanctions Dee Dee Brooks
As a result of such violations, and in addition to the above described findings and conclusions, FINRA’s June 5, 2020 AWC also indicates that Ms. Brooks consented to the following sanction(s):
- A bar from association with any FINRA member in any capacity.
Dee Dee Brooks has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Ms. Brooks (page 14) reveals she has a history of at least 1 customer complaints including but not limited to the following:
- On May 22, 2018 a customer initiated an arbitration in which Ms. Brooks was named as a Respondent for alleged actions that occurred while she was associated with Signator Investors, Inc. The customer alleged that Ms. Brooks recommended she invest her IRA monies in a fraudulent Ponzi scheme (i.e. Woodbridge Mortgage Investment Fund). The customer alleged damages in the amount of $118,000.00. The arbitration was settled on August 27, 2018 in the amount of $75,000.00.
If you or someone you know has or had a brokerage account with Dee Dee Brooks 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.