Unsuitable Recommendations by Center Street Securities, Inc. Broker John Westbrook
Posted on Wednesday, January 6th, 2021 at 12:07 am
There are options for customers of Center Street Securities, Inc. broker John Westbrook (CRD# 1846059) who suffered investment losses. Westbrook was registered with Cape Securities Inc. in Montgomery, Alabama from May to June 2020 and previously with Center Street Securities, Inc. in Mcdonough, Georgia from 2014 to February 2020, when he was terminated regarding “Failure to follow Firm policy and procedures on the use of unapproved email address.”
In November 2020, Westbrook was sanctioned to a $5,000 civil and administrative penalty and fine and suspended for five months after he “consented to the sanctions and to the entry of findings that he participated in private securities transactions totaling $350,335 without prior disclosure to or approval from his member firm. The findings stated that Westbrook solicited investors to purchase securities of a company that represented itself as a structured cash flow investment. Westbrook received a total of $14,013 in commissions in connection with his sales of the company’s securities. Later, the company ceased business, owing nearly $300 million in unpaid investor payments. In a subsequent indictment, the United States charged the company and its owner with conspiracy to engage in mail and wire fraud related to the company’s operations.”
Westbrook has been the subject of one customer complaint, according to his CRD report:
June 2020. “Unsuitable, negligence. the rep sold a product not approved by CSS and never told us what he was doing. Nov. 2016.” The customer is seeking $290,000 in damages and the case is currently pending.
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, Center Street Securities, Inc. may be liable for investment or other losses suffered by Westbrook’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If 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.