Erez Law is currently investigating former Money Concepts Capital Corp. broker Dustin Shafer (CRD# 4198962) regarding unsuitable investment recommendations. Shafer 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, Shafer was registered with Money Concepts Advisory Service in Springfield, Illinois from 2008 to 2019.
In January 2021, FINRA barred Shafer 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 Shafer 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.”
Shafer has been the subject of eight customer complaints between 2007 and 2020, four of which were denied and two were closed without action, according to his CRD report. Recent complaints were regarding:
- 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 Shafer 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 Shafer 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 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.
"*" indicates required fields