November 1, 2018 Comments (0) Blog, Current Investigations, Securities Fraud

David Ferwerda Barred from Securities Industry

David Ferwerda

David Ferwerda – Signator Investors – Grand Rapids, Michigan

According to the Financial Industry Regulatory Authority (FINRA), the regulator has barred financial advisor David Ferwerda (CRD No. 832431) from associating with any FINRA member at any time.

On August 27, 2018, FINRA staff reportedly sent Ferwerda a letter requesting documents and information, pursuant to FINRA Rule 8210, in connection with FINRA’s review of Ferwerda’s participation in sales of notes related to the Woodbridge Group of Companies LLC, a group of unregistered investment companies. The letter also requested documents and information related to investments in 1 Global Capital LLC.

As we told you, the SEC filed a 10-count complaint on August 29, 2018 against 1 Global Capital (“1st Global Capital LLC”), a South Florida firm, for allegations that the firm “fraudulently raised more than $287 million from more than 3,400 investors to fund its business offering short-term financing to small and medium-size businesses.”

According to FINRA, the Ferwerda’s response was due on or before September 10, 2018. Without admitting or denying the findings, Ferwerda consented to the sanction and to the entry of findings that he failed to provide FINRA with requested documents and information. Consequently he has been barred from the securities industry.

According to his FINRA BrokerCheck report, Ferwerda was a registered representative with Signator Investors in Grand Rapids, Michigan from September 2012 through March 2018 when he was fired for “Involvement in the sale of unapproved outside investments in violation of firm policy.” Ferwerda has 5 disclosure events listed on his broker report.

For FINRA’s full findings see FINRA case # 2018057887801.

Failure to Supervise

The White Law Group is investigating the liability that David Ferwerda’s former employer may have for failure to properly supervise his alleged activities.

Brokerage firms are required to perform adequate due diligence on any investments they recommend. They must ensure that all recommendations that are made are suitable in light of that client’s age, investment experience, net worth, investment objectives, and time horizon.

If a firm permits unsuitable investments to be made, the firm can be held responsible for the losses in a FINRA arbitration claim.

If you suffered losses investing with David Ferwerda and would like to discuss your recovery options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit https://www.whitesecuritieslaw.com.