FINRA

Turner was named a respondent in a FINRA complaint alleging that he failed to give prior written notice to, and receive prior written permission from, his member firm before participating in private securities transactions. The complaint alleges that Turner offered and sold interests to investors totaling approximately $4.1 million. For successfully soliciting these investments, Turner received approximately $270,000 in compensation. The complaint also alleges that to promote the interests, Turner created and made publicly available online an offering memorandum concerning the offer of one of the interests that failed to provide a sound basis for evaluating the investment and made promissory and unwarranted statements and claims. In addition, Turner wrote an accompanying message to the offering memorandum, also publicly available online, that failed to provide a sound basis for evaluating the investment and included a promissory and unwarranted statement. The complaint further alleges that the offering memorandum and the accompanying message were not approved by a registered firm principal and were not filed with FINRA prior to their dissemination.

Decision

Bar (Permanent)

All Capacities

5/2/2017

Civil and Administrative Penalty(ies)/Fine(s)

$272,879.04

Default decision rendered April 4, 2017. The sanctions were based on findings that Turner failed to give prior written notice to, and receive prior written permission from, his member firm before participating in private securities transactions. The findings stated that Turner offered and sold interests in saltwater disposal wells that are used in oil and gas production, more than $4.1 million, to investors. Eight of the investors were customers of his firm. Turner did not give his firm prior written notice that he was soliciting investors in the private securities transactions. Turner was compensated from the proceeds of each sale through an entity that he wholly owned and which was paid a commission, from each customer's purchase amount. The findings also stated that to market the sale of interests in the private securities, Turner created and made publicly available online an offering memorandum concerning the offer of one of the interests that failed to provide a sound basis for evaluating the investment, and made promissory and unwarranted statements and claims. Here, Turner included false and misleading statements in the offering memorandum he posted online and made available to the public. In addition, Turner wrote an accompanying message to the offering memorandum, and like the offering memorandum, the accompanying message was not fair and balanced and did not provide a sound basis for evaluating an investment in the private securities interests. Turner's statements were therefore misleading. Turner also made unwarranted predictions about the returns investors could expect from investing their money in the private securities interests. Turner lacked a foundation for his financial return predictions. Neither the offering memorandum nor Turner's message was reviewed and approved by his firm before Turner posted them online. The findings also included that the offering memorandum and Turner's online message were not approved by his firm's principal before he used them or before they were filed with FINRA. The decision became final May 2, 2017.

CLAIMANT ALLEGES UNSUITABILITY, FAILURE TO DIVERSIFY, CONFLICT OF INTEREST, FRAUD, AND FAILURE TO FOLLOW INSTRUCTIONS REGARDING PURCHASES OF THE UNIT INVESTMENT TRUST SPONSORED BY VAN KAMPEN.

$292,500.00

$51,301.00