John Westbrook Suspended from the Securities Industry by FINRA (1)Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/adviser John Westbrook (CRD # 1846059) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into his unapproved sales of the private securities offering of Future Income Payments, LLC (“FIP”).

The owner(s) of FIP have been indicted on federal charges including conspiracy relating to its operation. 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.

The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Westbrook and/or FIP.

Registration Background for John Westbrook

Mr. Westbrook first became registered in the securities industry in 1998. He was most recently registered with McDonough, GA based Cape Securities Inc. (CRD # 7072). His prior registrations include Center Street Securities, Inc. (CRD # 26898) from September 2014 to February 2020, and OneAmerica Securities, Inc. (CRD # 4173) from March 2013 to November 2013.

FINRA’s Allegations against John Westbrook

According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 10, 2020, Mr. Westbrook consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:

  • Between October 1, 2016 and May 9, 2017, [Mr. Westbrook] solicited three investors to purchase $350,335 in securities of Future Income Payments, LLC (FIP)”;
  • FIP represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream” to investors”;
  • FIP generally promised investors a seven to eight-percent rate of return on their investment”;
  • At all times during the stated period, [Mr. Westbrook’s] employer member firm prohibited its registered representatives from participating in private securities transactions without prior written approval from the firm”;
  • [Mr.] Westbrook did not provide notice to his employer member firm prior to participating in the FIP sales”; and
  • By virtue of his actions, Mr. Westbrook violated FINRA Rule 3280, regarding outside business activities and FINRA Rule 2010, regarding principles of trade and standards of commercial honor.

FINRA Sanctions John Westbrook

As a result of such violations and in addition to the above described findings and conclusions, FINRA’s November 10, 2020 AWC also indicates that Mr. Westbrook consented to the following sanction(s):

  • A five-month suspension from association with any FINRA member in all capacities; and
  • A fine in the amount of $5,000.00.

John Westbrook has A History of Customer Complaints

In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Westbrook reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:

  • On June 20, 2020 a customer initiated arbitration was filed naming Mr. Westbrook as a respondent for alleged actions that occurred while he was associated with Center Street Securities, Inc. The customer alleged unsuitability and negligence with regard to Mr. Westbrook’s recommendation of Future Income Payments, LLC, a product not approved by Center Street Securities, Inc. The customers further alleged damages in the amount of $290,000.00. The arbitration is currently pending.

If you or someone you know has or had a brokerage account with John A. Westbrook 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.