Erez Law is currently investigating former Money Concepts Capital Corp. broker Dustin Shafer (CRD# 4198962) regarding unsuitable investment recommendations. He was registered with Newbridge Securities Corporation in Springfield, Illinois, from September 2019 until November 2020, when he was terminated regarding, “Rep borrowed money from an existing client without firm pre-approval, in contradiction of firm policies.” Previously, he was registered with Money Concepts Advisory Service in Springfield, Illinois, from 2008 to 2019.
In January 2021, FINRA barred him after he, “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.”
In December 2020, the Illinois Securities Department barred him regarding, “respondent borrowed over $55,000 from one of his elderly clients, an Illinois resident, in violation of sections 8.E(1)(c), 8.E(1)(m) and 12.F of the Illinois securities law of 1953.”
In August 2022, the Securities and Exchange Commission (SEC) entered an order of prohibition against Dustin Shafer, “prohibiting 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.” The SEC found that he took $58,678 in personal loans from an 89-year-old brokerage customer and failed to repay the loans, signing a promissory note; he did not provide for security, interest, or a repayment schedule. It is reported that he gave the customer a postdated check for $10,000, however, it was found that he closed his bank account before the customer presented the check for payment. The order stated that he continued to manage the customer’s accounts as a broker and executed many buys and sells in the customer’s account.
Dustin Shafer Investment Loss Options
He has been the subject of 12 customer complaints between 2007 and 2023, three of which were denied and two were closed without action, according to his CRD report. Recent complaints were regarding:
December 2023. “Client alleges investments were unsuitable and misrepresentation, violation of Illinois securities law, breach of fiduciary duty.” The customer sought $80,000 in damages, and the case was settled for $32,000. The complaint was regarding direct investments and real estate securities.
May 2022. “The customer alleges investments were unsuitable and failure to disclose material information.” The customer sought $152,630 in damages, and the case was settled for $75,000. The complaint was regarding direct investments.
August 2021. “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.” The customer sought $150,000 in damages, and the case was settled for $45,000. The complaint was regarding direct investments.
June 2021. “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.” The customer sought $60,000 in damages, and the case was settled for $32,500. The complaint was regarding real estate securities.
June 2020. “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.” The case was settled for $280,000. The complaint was regarding non-traded real estate investment trusts (REITS) and took place while he was registered with Money Concepts Capital Corp.
January 2020. “Customer alleges the investment was not explained and that he was guaranteed a monthly dividend. Customer also alleges losses due to a devaluation of the offering.” The customer is seeking $175,000 in damages, and the case is currently pending. The complaint was regarding direct investments and took place while he was registered with Money Concepts Capital Corp.
January 2020. “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.” The customer is seeking $454,000 in damages, and the case is currently pending. The complaint was regarding direct investments and took place while Shafer was registered with Money Concepts Capital Corp.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Money Concepts Capital Corp. may be liable for investment or other losses suffered by Dustin Shafer’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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