November 7, 2017
On October 17, 2017, former registered representative David Ross entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) Department of Enforcement to resolve allegations FINRA made against him regarding violations of securities industry rules. Ross was previously associated with Woodbury Financial Services, Inc. from May 2010 until April 2016 and Signator Investors, Inc. from December 2000 to May 2010, both located in Murfreesboro, Tennessee.
On April 15, 2016, Woodbury filed a Uniform Termination Notice for Securities Registration with FINRA disclosing that Ross’s position was terminated for “failing to disclose an outside business activity [OBA], accepting loans from firm clients and other violations of firm policies and procedures.” Shortly after his termination, FINRA Department of Enforcement opened an investigation into these alleged activities.
Specifically, FINRA alleges that beginning in 2008, Ross accepted five loans from four customers totaling $89,000 and engaged in two undisclosed OBAs: one in which he was paid $1,500 for services and another OBA in which he earned nearly $50,000 in compensation serving as board director of a firm customer. Finally, FINRA asserts that Ross falsely attested his compliance with firm policies concerning OBAs and loans on eight compliance questionnaires. Based on the foregoing, Ross violated NASD Rule 3030 and 2110 and FINRA Rule 3270 and 2010.
By signing the AWC, Ross consented, without admitting or denying the allegations made against him by FINRA, to a ten-month suspension from associating with any FINRA member in any capacity. FINRA Department of Enforcement did not impose monetary sanctions, as Ross submitted a financial statement demonstrating an inability to pay.