Dennis Michael Haywood, a registered broker and investment adviser with Crown Capital Securities of Florida is the subject of pending customer disputes instituted against him on the primary allegations of unsuitable investment recommendations and misrepresentation to the investors, according to an investigation by investor rights lawyer, Alan Rosca.
Investor rights lawyer Alan Rosca of the Goldman Scarlato & Penny PC law firm, is investigating conduct related to the pending customer disputes against the Florida broker, Dennis Haywood, on the allegations of unsuitability of investment recommendations and misrepresentation among others.
Crown Capital Securities is currently registered is a member firm of the Financial Industry Regulatory Authority (FINRA) and he was in the employment of the firm when the alleged conducts were carried out.
Publicly-available records reviewed by the investor right lawyer Alan Rosca reveal that Dennis Haywood has five pending customer disputes instituted against him on the allegations of unsuitability, misrepresentation and breach of fiduciary duty, between the period of April 2020 and July 2020 as reported on his FINRA Brokercheck Page.
In the latest customer dispute instituted against the broker in July 2020, the client alleges that the lack adequate due diligence, negligence and misrepresentations and omissions of material facts in regards to transactions in a non-traded REIT. In another dispute initiated against the broker in the same month, the client alleges that the lack of suitability and adequate due diligence in regards to transactions in non-traded REITs and non-traded BDCs. They further allege negligence, as well as misrepresentations and omissions of material facts. The client is reportedly seeking to recover $40,000 in damages.
In another dispute initiated against the broker in May 2020, the client alleges that the broker violated his fiduciary duty to and his obligation to recommend suitable investments to them. This allegation relates to the purchase of non-traded real estate investment trusts (REITs) and non-traded business development companies (BDCs). In addition to this, the client also alleges that the investment adviser made misrepresentation to them as it relates to the time horizon and projected performance returns of the investment. Owing from this, the client is reportedly seeking to recover $167,357.75 in damages.
Prior to the last customer dispute, another client initiated a dispute in the same month on very similar allegations, according to Dennis Michael Haywood’s Brokercheck report. The client alleges the breach of the fiduciary and investment suitability obligations owed by the broker especially as it related to the purchase of non-traded REITs, BDCs, and a variable annuity contract. The client also alleged material misrepresentation from the broker about the risks, liquidity and profitability of their investments. The client is seeking to recover $250,000 in damages from this dispute.
Another client is alleging that the broker and investment adviser also recommended unsuitable investments to them, breached their contract and did not conduct adequate diligence on the alternative investments recommended by the broker between the period of April 2014 and April 2016. The client initiated this dispute in April 2020 and was seeking to recover $400,000 in damages but the dispute was settled for $95,000.
In a similar action instituted in the same month of April 2020, another client is seeking to recover $100,100 in damages on the allegations that Dennis Michael Haywood recommended unsuitable investments and did not conduct adequate due diligence on two alternative investments recommended to the client in April 2018, the report indicates.
REIT is an alternative investment which involves the investment of the client’s funds into a pool of real estate investments offered and managed by a company. Owing to the fact that the investment is real estate dominated some of the risks attendant to it include the declining value of real estate among others. As a result of the nature of these alternative investments, brokers and investment advisers are often under a fiduciary duty to ensure that they are suitable for their clients. In addition to this, they are expected to conduct a proper and extensive due diligence into these investments to ensure that the investments are valid and the information reported in their prospectus is adequate to avoid any misrepresentation. Where the brokers fail to carry out these duties, they can be held liable for losses incurred by the clients from such investments.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to broker Dennis Michael Haywood’s pending customer disputes on the allegations of unsuitable investment recommendation misrepresentation and inadequate due diligence.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Dennis Michael Haywood’s pending customer disputes on the allegations of unsuitable investment recommendation misrepresentation and inadequate due diligence, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at rosca@lawgsp.com, or through the contact form on this webpage.
