The Financial Industry Regulatory Authority (FINRA) Department of Enforcement recently approved a Letter of Acceptance, Waiver and Consent (AWC) submitted by Dwight Dykstra to resolve alleged violations of securities industry rules by participating in private securities transactions (PSTs) without providing prior written notice to his member firm.

Dykstra has been associated with two FINRA member firms within the last ten years: FSC Securities Corporation in Orlando Florida (December 2004 to August 2011) and Vision Brokerage Services, LLC (VBS) in Maitland, Florida (May 2013 to July 2019). Dykstra represented both of these firms as a General Securities Representative, Investment Company and Variable Contracts Products Representative, and Investment Company Products/Variable Contracts Principal.

FINRA alleges in the AWC that in October 2018, Dykstra participated in PSTs by soliciting investments in promissory notes issued by a limited liability company raising capital to develop a senior living real estate project (“the Issuer”). Dykstra allegedly used his client base at VBS to begin soliciting this investment and subsequently provided marketing materials and communications about this investment with interested parties. According to the AWC, Dykstra facilitated $2 million of promissory notes to 21 investors and was compensated $67,500 from the Issuer. FINRA further alleges in the AWC that Dykstra and his wife invested $100,000 in a promissory note from this Issuer.

Although Dykstra eventually gave notice and received approval from VBS to sell these promissory notes, he is liable for participating in the PSTs prior to this approval and thus violated FINRA Rules 3280 and 2010. By signing the AWC, Dykstra consented, without admitting or denying the allegations made against him, to a one-year suspension from association with any FINRA member firm in any capacity, a $10,000 fine, and disgorgement of the $67,500 in commissions he received for facilitating the PSTs, plus interest.