Finra barred WFG broker for selling customers a Ponzi scheme

Finra barred WFG broker for selling customers a Ponzi scheme
Stuart G. Dickinson is ordered to pay close to $1 million in restitution.
NOV 14, 2016
A former WFG Investments broker was banned by the Financial Industry Regulatory Authority Inc. after recommending customers invest in a Ponzi scheme. The broker, Stuart G. Dickinson, was barred from the securities industry and ordered to pay $924,000 in restitution to seven customers, according to a default decision notice released by Finra on Friday. The notice said that Mr. Dickinson did not conduct reasonable due diligence on ATM Financial Services (ATMF) and “missed key red flags that signaled fraud.” His oversight led investors to lose $1.02 million. In 2007, Mr. Dickinson sold more than $1 million in limited partnership interests in ATM Alliance (ATMA). Through ATMA, Mr. Dickinson contracted with ATMF to manage and service ATMs at several locations. In 2008, Mr. Dickinson found out that ATMF did not use ATMA funds to purchase ATM machines, but in fact, used the funds to pay fictitious returns to earlier investors, according to Finra. Mr. Dickinson should have recognized there was something amiss when he was shown partly handwritten ATM retail space lease agreements and incomplete and inconsistent performance history of the ATMs, Finra said. WFG did not immediately return a phone call for comment. Mr. Dickinson could not be reached. Mr. Dickinson was terminated by WFG in 2013 and is not currently associated with any other Finra-regulated firm. He had been with WFG since 2005, according to his BrokerCheck profile . Prior to WFG Investments, Mr. Dickinson worked at Linsco/Private Ledger Corp., in Boston, the forerunner to LPL Financial, and Bear, Stearns & Co., in New York. Before Bear Stearns, he worked at Merrill Lynch. Mr. Dickinson has two customer disputes listed on his BrokerCheck profile, that have been settled. He also has a regulatory dispute from Texas in 1982. WFG Investments Inc. , is a midsized independent broker-dealer based in Dallas, Texas.

Latest News

Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says
Advisor headcount down at Bank of America, Osaic and UBS so far in 2025, Wolfe Research analyst says

Counting advisor moves in and out of firms requires some art as well as science.

Carson Group's M&A head sees '10-to-15 year bull market' for RIAs
Carson Group's M&A head sees '10-to-15 year bull market' for RIAs

“I'm just a big believer that based on demographics alone, we are looking at a 10-to-15 year bull market in M&A in the RIA and independent wealth space,” said Michael Belluomini, SVP of M&A at Carson Group.

Nationwide finds Medicare myth on long-term care could cost Americans dearly
Nationwide finds Medicare myth on long-term care could cost Americans dearly

As a tsunami of retirees comes crashing in, three-fifths of those surveyed believe – wrongly – that the federal safety net will cover their LTC needs.

Fintech bytes: Orion, Altruist unveil new RIA-focused integrations
Fintech bytes: Orion, Altruist unveil new RIA-focused integrations

Orion's latest update, a partnership with 11th.com, focuses on an underserved area of compliance for advisors and wealth firms.

Raymond James reels in advisors managing $1B+ in Colorado
Raymond James reels in advisors managing $1B+ in Colorado

The latest arrivals, including a 10-advisor ensemble from Ameriprise, bolster the firm's independent contractor and employee advisor channels.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave