FINRA

RESPONDENT WRIGHT FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

11/25/2014

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT WRIGHT IS SUSPENDED ON NOVEMBER 25, 2014 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

breach of fiduciary duty; negligence and gross negligence; malpractice; promissory estoppel; suitability; common law fraud; breach of Michigan securities law; breach of contract; improper supervision; and vicarious liability

$475,000.00

The Award has not been paid.

FINRA

NASD RULES 2110, 2310: WRIGHT MADE UNSUITABLE RECOMMENDATIONS OF PRIVATE PLACEMENTS TO CUSTOMERS. WRIGHT'S SALE OF A HIGHLY RISKY INVESTMENT IN A STARTUP FIRM WITH NO SIGNIFICANT ASSETS, NO CURRENT CASH FLOW AND NO PRIOR OPERATING HISTORY WAS INCONSISTENT WITH THE RETIREMENT/INCOME NEEDS OF HIS CUSTOMERS. FOR THE CUSTOMERS, THE INVESTMENTS WERE UNSUITABLE BECAUSE OF THEIR AGE (LATE 50S TO EARLY 60S), HEALTH ISSUES, MODERATE TO CONSERVATIVE RISK TOLERANCE, LIMITED INVESTMENT EXPERIENCE, FINANCIAL RESOURCES AND THE NEED TO PRESERVE THEIR CAPITAL DURING THEIR RETIREMENTS. THE CUSTOMERS HAD NO INTENTION TO RETURN TO THE FULL TIME WORK FORCE AND THEIR RETIREMENT FUNDS WERE NEEDED TO SUPPORT THEM IN THEIR RETIREMENTS. THE CUSTOMERS PURCHASED $200,000 OF THE INVESTMENT AND LOST APPROXIMATELY $181,117 OF THEIR INVESTMENT FOR WHICH WRIGHT RECEIVED $16,800 IN GROSS COMMISSIONS. FOR SOME OF THESE CUSTOMERS, IT WAS A SIGNIFICANT INVESTMENT FOR THEIR RETIREMENT FUNDS.

Acceptance, Waiver & Consent(AWC)

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

$25,000.00

Restitution

$144,117.00

Suspension

ANY CAPACITY

TWO YEARS

11/5/2012

11/4/2014

WITHOUT ADMITTING OR DENYING THE FINDINGS, WRIGHT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS FINED $25,000, SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR TWO YEARS AND ORDERED TO PAY RESTITUTION OF $144,117, PLUS INTEREST, AFTER SETTLEMENTS. THE FINE AND RESTITUTION SHALL BE DUE AND PAYABLE EITHER IMMEDIATELY UPON REASSOCIATION WITH A MEMBER FIRM FOLLOWING THE TWO YEAR SUSPENSION, OR PRIOR TO ANY APPLICATION OR REQUEST FOR RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE SUSPENSION IS IN EFFECT FROM NOVEMBER 5, 2012 THROUGH NOVEMBER 4, 2014.

STATE OF MICHIGAN, CS&CL BUREAU

WRIGHT IS THE SUBJECT OF A FINRA ORDER SUSPENDING HIS REGISTRATION FOR 2 YEARS, FROM 11/5/2012 TO 11/4/2014.

Order

Denial

FINRA

NASD RULES 2110, 3040 - LOUIS WRIGHT ENGAGED IN PRIVATE SECURITIES TRANSACTIONS WHEN HE PARTICIPATED IN THE SALE OF PRIVATE PLACEMENTS RELATED TO TELEPHONE EQUIPMENT AND LEASING AGREEMENTS OFFERED THROUGH VARIOUS BUSINESSES CONNECTED TO A COMPANY.

Acceptance, Waiver & Consent(AWC)

Suspension

ANY CAPACITY

ONE YEAR

1/3/2011

1/2/2012

WITHOUT ADMITTING OR DENYING THE FINDINGS, WRIGHT CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR ONE YEAR. WRIGHT AGREED TO COMPENSATE THE CUSTOMERS WHOM HE ASSISTED IN THE PURCHASE OF THEIR INVESTMENTS. WRIGHT RECEIVED NO SELLING COMPENSATION, AGREED TO PROVIDE RESTITUTION OF $1,617,485 TO THE CUSTOMERS BY ENTERING INTO PURCHASE AGREEMENTS WITH EACH CUSTOMER AND HAS COMMENCED PAYMENT. WRIGHT WAS ALSO SUSPENDED BY HIS MEMBER FIRM FOR 10 BUSINESS DAYS AND PLACED ON HEIGHTENED SUPERVISION FOR ONE YEAR. THE SUSPENSION IS IN EFFECT FROM JANUARY 3, 2011 THROUGH JANUARY 2, 2012.