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Barred Broker: Former Colorado Financial Service Corporation Financial Advisor Tracy Turner

Posted on Wednesday, September 20th, 2017 at 9:02 am    

Erez Law is currently investigating former Colorado Financial Service Corporation financial advisor Tracy Turner (CRD# 1385745) regarding private securities transactions in saltwater disposal well facilities (SWDs). Turner was registered with Colorado Financial Service Corporation in Carlsbad, California from 2012 to 2014 and with Lighthouse Capital Corporation in Vista, California from 2010 to 2011. In June 2009, Turner was terminated from Capwest Securities, Inc. in Carlsbad, California after less than three months of employment regarding, “Evidence suggested that RR may have conducted prostpecting (sp) and/or sales activity in states where he was not registered, with applications signed by another member of the branch.” Turner was also terminated from employment with Merrill Lynch in 1988 regarding client losses of $95,000.

Oil producers must use SWDs to dispose of saltwater byproduct that is generated by oil drilling. SWDs generate revenue by capturing the residual oil left in the saltwater byproduct and selling it to refineries and disposing of saltwater from trucking companies. Turner sold interests in three SWDs located in Texas, and he was compensated from the proceeds of each sale through Turner Financial Group, which he wholly owned and which was paid a commission from each customer’s purchase amount. Interests in the three SWDs were held by TSWR Development LLC with the intention that interests would be sold to investors to fund the operation and development of SWDs. The investments in the SWDs were managed by an affiliated company called TSWR Fund Management LLC.

In May 2017, FINRA barred Turner from from association with any FINRA member in all capacities and fined $272,879.04, plus prejudgment interest, based on the findings that he failed to give prior written notice to, and receive prior written permission from, Colorado Financial Services Corporation before participating in private securities transactions in which he received commission. According to the FINRA findings, Turner offered and sold more than $4.1 million in interests in saltwater disposal wells used in oil and gas production to investors, eight of which were customers of the firm. It is alleged that Turner created and made publicly available online an offering memo that included false and misleading statements, and he made unwarranted predictions about the returns investors could expect from investing their money in the private securities interests without a foundation for his predictions.

Turner has been the subject of 31 customer complaints between 1988 and 2003, eight of which were denied and two were closed without action, according to his CRD report. Most of these complaints are regarding mishandling client accounts, unsuitability of investments and fraudulent practices.

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, Colorado Financial Service Corporation may be liable for investment or other losses suffered by Turner’s customers.

Erez Law represents investors in the United States for claims against former Colorado Financial Service Corporation financial advisor Tracy Turner, who is alleged to participate in private securities transactions. If you were a client of Colorado Financial Service Corporation or another firm, and 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.