FINRA charges Rusty Tweed over fund transactions.
On April 27, 2017 FINRA charged Rusty Tweed of Glendale California, a registered representative with Cabot Lodge Securities and formerly with Concorde Investment Services with making misstatements to investors in connection with a private placement in a company that utilized a computerized trading strategy. FINRA alleges that Tweed’s conduct violated section 17 of the Securities Act of 1933.
FINRA’s complaint alleges that Tweed received over one and a half million dollars from his broker dealer clients using a false and misleading private placement memorandum. The transaction involved an investment fund controlled by Tweed that utilized computerized trading to make profits from the stock market.
FINRA contends that Tweed failed to disclose that he had replaced the fund’s custodian with another custodian that was controlled by a person who was engaging in bank fraud and fraudulent trading with another company. This undisclosed custodian then used a significant portion of the funds’ assets for an improper purpose, resulting in a loss of those funds, which have yet to be repaid.
The complaint filed by FINRA is not final, and until the allegations have been proven in a court of law, no adverse inferences should be drawn.
Rusty Tweed registration and disciplinary history
In order to lawfully sell investments to the public, one must either be registered or exempt from registration. Rusty Tweed has been registered with Cabot Lodge Securities since October, 2015. Prior to that he was registered with Concorde Investment Services from August, 2011 to November, 2015.
According to FINRA’s CRD disclosure report, Rusty Tweed has been the subject of twelve customer complaints and one regulatory investigations.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.