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

OnePoint BFG taps RISR as advisors chase business-owner clients
OnePoint BFG taps RISR as advisors chase business-owner clients

The partnership arrives as most small business owners near retirement age still don''t have a formal succession plan in place.

Trust & Will cuts staff amid restructuring, AI disruption
Trust & Will cuts staff amid restructuring, AI disruption

A spokesperson for the estate planning fintech cited AI's reshaping of the industry as Trust & Will restructures its business.

Ex-Merrill broker who allegedly wooed client to pay $2.75 million to dismiss lawsuit
Ex-Merrill broker who allegedly wooed client to pay $2.75 million to dismiss lawsuit

Juan Rionda, a Merrill veteran, told bereaved client that “he loved her,” convinced her to give him cash, a Florida lawsuit claimed. 

Carson Group adds $236 million California team in latest deal
Carson Group adds $236 million California team in latest deal

Omaha-based RIA expands Northern California footprint with Roseville acquisition amid record annual pace for wealth management M&A.

Envestnet expands tax-management push with Vanguard alliance
Envestnet expands tax-management push with Vanguard alliance

Advisor's Alpha framework joins Envestnet's platform, giving advisors new tools to manage client tax exposure year-round.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.