Jerry Davis Raines, Donna Lynn Barnard">

Former HDVest brokers barred for not cooperating in Woodbridge investigation

Last year, the SEC charged the Woodbridge Group of Companies with running a $1.2 billion Ponzi scheme that targeted 8,400 investors

Sep 10, 2018 @ 2:32 pm

By Mark Schoeff Jr.

Finra barred two former HD Vest Investment Services brokers who did not cooperate in an investigation of a real estate investment Ponzi scheme.

Finra barred Jerry Davis Raines and Donna Lynn Barnard for failing to provide documents and information the regulator requested regarding their participation in sales of promissory notes related to the Woodbridge Group of Companies.

Mr. Raines and Ms. Barnard were registered representatives for HD Vest from August 2014 through May 2017, when they were dismissed by the brokerage. They each have several disclosures on their BrokerCheck profiles involving allegedly unsuitable sales of Woodbridge securities.

Last year, the SEC charged the Woodbridge Group of Companies with running a $1.2 billion Ponzi scheme that targeted 8,400 investors. In August, the agency filed charges against five unregistered salespeople in the scheme.

In July, Finra sent requests for documents to Mr. Raines and Ms. Barnard. In August, their lawyers told Finra staff they would not respond. Failure to cooperate in an investigation is a violation of Finra rules that can result in an industry bar.

Neither Mr. Raines nor Ms. Barnard admitted or denied wrongdoing.

In a motion to dismiss a class action suit on Woodbridge sales filed last month in a Florida federal court, HD Vest argued that it never offered or sold Woodbridge investments, received money from Woodbridge or had any arrangements with Woodbridge. The motion was granted, according to HD Vest spokeswoman Andrea Dorsett.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

How InvestmentNews picks its Women to Watch winners

The process is laborious and exacting, but well worth it. The end result each year is an impressive group of women in the advice industry from whom others can draw inspiration.

Latest news & opinion

6 mistakes advisers make when onboarding new clients

Starting a new relationship with a client is harder than it looks.

TCA by E*Trade lures Edelman Financial Engines with promise of client referrals

Access to clients through E*Trade's 30 branch offices drew the attention of RIA Edelman Financial Engines.

10 states with lowest overall tax burden

Here's a list of the states with the lowest total tax burden from Wallet Hub.

7 surprising things Medicare doesn't cover

Gaps in Medicare's coverage can wreak havoc with a retiree’s budget, but here are some solutions to help your clients fill the gaps.

Step one: Withdraw from the broker protocol

Pulling out of the protocol proved to be one part of multipronged strategies by Morgan Stanley and UBS to reduce broker attrition. So far, their plans seem to be working.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print