August 2021 – Gilbert, AZ
According to publicly attained records, David “Todd” Phillips, a stockbroker who is not currently registered and who was last employed by Moloney Securities, Co., Inc. , discloses a prior regulatory matter, 1 prior customer dispute, a currently pending customer dispute, a termination from employment and a pending judgement/lien.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In November of 2020, after FINRA case #201806312301, without admitting or denying the findings, Phillips consented to the sanctions and to the entry of findings that he participated in private securities transactions without prior disclosure to and approval from his member firm. The findings stated that Phillips solicited investors to purchase $876,636 in securities of a company that represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a pension stream to investors. Phillips received a total of $33,184 in commissions in connection with his sales of the company’s securities. Subsequently, the company ceased business owing nearly $300 million in unpaid investor payments. In an indictment, the United States charged the company and its owner with conspiracy to engage in mail and wire fraud related to its operations. Later Phillips entered into a settlement agreement with a court-appointed receiver for the company agreeing to repay $22,500 of the $33,184 in commissions he received. Sanctions were a nine month suspension , commencing 12/07/2020, and a $5,000 fine levied against Phillips individually.
In October of 2018, FINRA case #18-03377 a customer of ProEquities alleged that his investment in Future Income Payments was misrepresented. This case settled for $90,000.
In October of 2020 FINRA case#20-03524, a customer of ProEquities brought another suit involving Future Income Payments and is seeking damages of $95,000. This case is still pending.
In November of 2018, Phillips was permitted to resign from Moloney Securities Co., Inc. for failure to follow policies and procedures with respect to outside business activities.
The Internal Revenue Service filed a tax lien against Phillips in the amount of $63,761 in 3/2017. That lien is currently outstanding.
If you have losses in an investment account handled by David “Todd” Phillips, contact us for a no charge consultation with an experienced securities attorney to learn about your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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