Claimant is alleging unsuitable recommendations and misrepresentation.

$50,000.01

$25,000.00

BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT AND NEGLIGENCE.

$40,000.00

$5,000.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Dustin Paul Shafer ("Respondent"). The Commission finds that on January 29, 2021, the Illinois Secretary of State, Securities Department entered an Order of Prohibition (the "Illinois Order") against Shafer which prohibited him from the offer or sale of securities in or from the State of Illinois, and prohibited him from engaging in the business of an investment adviser representative in or from the State of Illinois. In the Matter of Dustin Paul Shafer (File No. 2001056, Order of Prohibition, January 29, 2021). The Illinois Order found that Shafer took personal loans from an 89 year old brokerage customer and failed to repay the loans. The Illinois Order found that from January 29, 2019 to March 2, 2020, Shafer borrowed a total of $58,678 through four personal loans which she paid from her personal checking account. The Illinois Order further found that on or around September 24, 2019, upon taking the third loan, Shafer signed a promissory note evidencing the three loans, but the note did not provide for security, interest, or a repayment schedule, and that, on this same date, Shafer gave the customer a check for $10,000 postdated to April 15, 2020, and advised her not to attempt to cash it until after the post date. According to the Illinois Order, Shafer closed his bank account before the customer presented the check for payment in July 2020. As of January 29, 2021, the date of the Illinois Order, Shafer had not repaid any of the loans. The Illinois Order stated that during the timeframe when these loans were being made, Shafer continued to manage the customer's accounts as a broker and executed many buys and sells in her account. The Illinois Order found that Shafer's conduct violated Section 12.F. of Illinois Securities Laws of 1953 [815 ILCS 5/1 et. Seq.] which states that "it shall be a violation ? for any person to engage in any transaction, practice or course of business in connection with the sales of securities which works or tends to work a fraud or deceit upon the purchaser or seller thereof."

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

8/9/2022

Participating in any offering of a penny stock

Indefinite

8/9/2022

The customer alleges investments were unsuitable and failure to disclose material information.

$152,630.00

$75,000.00

The customer alleges breach of fiduciary duty, unsuitability, material misrepresentations, FINRA Rules 2010 and 2020. Based on the information available, the firm feels the investment was suitable for the customer's financial profile. The firm and Financial Professional intend to vigorously defend themselves in this matter.

$150,000.00

$45,000.00

Customer alleges she was not informed of the suitability standards or illiquidity of her investment. Firm reviewed information provided by the customer as well as documentation and disclosures in connection with her investments. Firm found the customer acknowledged the financial information provided to the RR and firm was accurate and that she understood the nature of her investments, including but not limited to the risks, costs and illiquidity.

$60,000.00

$32,500.00

FINRA

Without admitting or denying the findings, Shafer consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with an investigation into whether he borrowed money from a customer without pre-approval from his member firm.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

1/7/2021

STATE OF ILLINOIS, ILLINOIS SECURITIES DEPARTMENT

RESPONDENT BORROWED OVER $55,000 FROM ONE OF HIS ELDERLY CLIENTS, AN ILLINOIS RSIDENT, IN VIOLATION OF SECTIONS 8.E(1)(c), 8.E(1)(m) AND 12.F OF THE ILLINOIS SECURITIES LAW OF 1953.

Order

Bar (Permanent)

PROHIBITION

1/29/2021

Prohibition

ORDER OF PROHIBITION

NEWBRIDGE SECURITIES CORPORATION

Discharged

Rep borrowed money from an existing client without firm pre-approval, in contradiction of firm policies.

Clients are alleging unsuitable investment recommendations, misrepresentation and omission, violation of Illinois Securities Law and Regulations of 1953, violation of the Illinois Consumer Fraud & Deceptive Practices Act, Breach of Fiduciary Duty, violation of FINRA Rule 3110, negligence and breach of contract.

$280,000.00

Customer alleges the investment was not explained and that he was guaranteed a monthly dividend. Customer also alleges losses losses due to a devaluation of the offering.

$175,000.00

$94,000.00

INITIAL COMPLAINT HAS EVOLVED INTO AN ARBITRATION. CUSTOMER IS ALLEGING BREACH OF FIDUCIARY DUTY AND NEGLIGENCE.

Customer purchased alternative investments beginning 2013 and is alleging these were misrepresented. Statement of claim alleges violation of Illinois securities laws, breach of fiduciary duty, negligence and violation of FINRA Rules.

$454,000.00

$250,000.00

CUSTOMER ALLEGES RR DID NOT DISCLOSE THE INVESTMEN WAS ILLIQUID AND COULD NOT BE SOLD. CUSTOMER ALSO ALLEGES RR PLACED A LARGE PORTION OF HIS NET WORTH INTO THE REIT.

$90,000.00

CUSTOMER ALLEGES 2014 INVESTMENT WAS NOT SUITABLE AND WAS NOT INFORMED IT WAS ILLIQUID.

$19,834.00

Customer alleges her account dropped in value by $26,583 in July 2018 and her requests for an explanation from the Registered Representative have gone unanswered. Firm learned the drop in value was due to the listing of a non-traded REIT. The newly-listed, now public shares were valued at a lower price than the non-traded REIT.

$26,583.00

Firm provided written response to customer explaining the REIT went public and shares were valued at a lower price than when she owned shares of the non-traded REIT.

$15,112.00

Tax

I DON'T RECALL EVER RECEIVING ANYTHING REGARDING THIS LIEN.

Customer's daughter alleges RR recommended bad investment and is stalling on redeeming her father's account.

$75,000.00

$10,207.00

Civil

I BELIEVE IT WAS DISCLOSED TO MY PRIOR FIRM AND ASSUMED IT DIDN'T NEED DISCLOSED AS A NEW JUDGMENT.

$71,285.00

Tax

$12,704.00

Tax

$14,335.00

Tax

$31,711.32

Tax

CLIENT ALLEGES FAILURE TO DISCLOSE SURRENDER CHARGES AND TAX CONSEQUENCES IN CONNECTION WITH THE SURRENDER OF A FIXED ANNUITY AND REINVESTMENT IN A MANAGED ACCOUNT.

$15,364.80