FINRA Reportedly Suspends David “Todd” Phillips for Alleged Sales of Future Income Payments
According to the Financial Industry Regulatory Authority (FINRA) this week, the regulator has reportedly suspended financial advisor David Todd Phillips and fined him $5,000 after allegations of private securities transactions.
Between May 2017 and April 2018, Phillips allegedly solicited eight investors to purchase $876,636 in securities of Future Income Payments, LLC (FIP), according to a Letter of Acceptance, Waiver and Consent (AWC). FIP, a structured cash flow investment, purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream” to investors. FIP generally promised investors a seven to eight-percent rate of return on their investment.
Phillips reportedly received a total of $33,184 in commissions in connection with his sales of FIP securities, according to the AWC.
According to his broker profile, Phillips was reportedly affiliated with Moloney Securities Co. in Gilbert, Arizona, from 2017 until 2018. Prior to that, he was affiliated with Proequities, Inc. for ten years. He reportedly has two customer complaints on his broker report, one settled and one pending. Allegations include misrepresentation, and unsuitable investments in connection with Future Income Payments.
Investigating Potential Lawsuits
Moloney Securities Co. and all broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
If you suffered investment losses with David Todd Phillips and Moloney Securities Co., please call the securities fraud attorneys at 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 Franklin, Tennessee.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.