The White Law Group is investigating claims regarding John Wendland Handy Jr. (CRD #1580981, Madison, Wisconsin), Jonathan Craig Timson (CRD #2031301, Springfield, Missouri) and Dennis Walker (CRD #1058338, Verona, Missouri). Handy, Timson, and Walker recently submitted a Letter of Acceptance, Waiver and Consent (AWC) in which FINRA assessed a deferred fine of $60,000 and suspended each from association with any FINRA member in any capacity for 18 months (see FINRA Case #2013038066601). According to the AWC, the suspensions are in effect from March 2, 2015, through September 1, 2016. In March 2007, Handy, Timson, and Walker joined Wells Fargo Financial Advisors Network, Inc. as registered representatives in Springfield, Missouri. They operated under the name of Walnut Capital Management. Wells Fargo allegedly discharged Handy, Timson, and Walker in July 26, 2013, for failure to disclose the nature of their relationship with Signal Point Asset Management, LLC, according to their CRDs.
During its investigation, FINRA found that Handy, Timson, and Walker engaged in an outside business activity with Signal Point Asset Management and failed to adequately disclose their involvement in the investment adviser to Wells Fargo, who had denied their requests to hold ownership interest in Signal Point Asset Management. Because Wells Fargo denied their requests to hold ownership interest in Signal Point Asset Management, Handy, Timson, and Walker established the investment adviser with nominee owners acting in their stead, according to FINRA. FINRA found that the nominee owners agreed to transfer their ownership interests to Handy, Timson, and Walker if and when Wells Fargo permitted them to own Signal Point Asset Management. FINRA also found that Handy, Timson, and Walker participated in the management of Signal Point Asset Management, including making all important personnel decisions, participating in board meetings and determining how company assets were allocated. In addition, FINRA found that Handy, Timson, and Walker participated in private securities transactions and failed to disclose their participation in the transactions to Wells Fargo. In entering into the AWC, Handy, Timson, and Walker neither admitted nor denied FINRA”s findings.
FINRA Rule 3040, formerly NASD Rule 3040, provides that a broker may only sell securities with the knowledge and approval of his or her firm. When a broker sells securities without processing the order through the firm and without the firm’s permission or knowledge, this violates FINRA rules and can be referred to as “selling away.” Because Federal and state law define securities broadly, products such as leasing arrangements or promissory notes, may be securities which require firm approval. Selling away often involves investment securities that are in the form of a private placement or other non-public investment.
If you were a client of Wells Fargo, Walnut Capital Management, Handy, Timson, or Walker, and have suffered investment losses or financial irregularities, please contact The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com/.