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Tracy Turner's 35th Disclosure is Complaint Alleging $4.1 Million Private Securities Misconduct

Former Colorado Financial Service Corporation (whose branch is located in Carlsbad, California) broker Tracy Rae Turner allegedly participated in unapproved private securities transactions related to three saltwater disposal well facilities in violation of FINRA rules to the tune of approximately $4.1 million in sales as Turner received $270k in commissions, according to Enforcement records.

The complaint charges Turner—who himself has, in the past, been a party to a score of customer complaints resulting in $2.5 million in settlements paid or damages awarded—with failing to provide notice to Colorado Financial, creating and publishing a deficient Offering Memorandum that failed to provide a sound basis for evaluating the investment, and with creating and writing an accompanying message to the Offering Memorandum without approval by a supervisor or principal at Colorado Financial.

OHO Disciplinary Proceeding #201404338401

The findings state the Turner (CRD #1385745) created and posted online an Offering Memorandum for a "new state-of-the-art Saltwater Disposal Facility ["SWD"] in an undisclosed location near Midland, Texas for $3,000,000." Turner purportedly touted a 25%+ cash-on-cash return to investors in the facility and wrote an accompanying message to the memorandum (also posted online) that advertised a "rare opportunity" to acquire a $3 million interest providing a 25.4% cash-on-cash return that was "ideal" for non-leveraged 1031 exchange investors seeking a high level of income.

Investigators say this accompanying message was never reviewed or approved by Colorado Financial principals, and that it included a promissory and unwarranted statement.

FINRA identified three Saltwater Disposal Facilities at issue: the Tom SWD, Clark SWD, and Moreland SWD, noting that Turner as sole proprietor of the Turner Financial Group (also located in Carlsbad, CA) received compensation as a percentage commission from the proceeds of each sale, paid by TSWR Development, LLC, and totaling approximately $270,000.

The complaint states Turner failed to notify Colorado Financial of the SWD sales, failed to gain timely principal approval for the offering memorandum, and failed to provide a sound basis for evaluating the SWD investment.

Turner is accused of selling away, engaging in misleading and other violative communications with the public, and failing to satisfy FINRA requirements as relates to the review, approval and retention of communications with the public.

Previous customer disputes against Turner—that alleged fraud, unsuitable recommendations, misrepresentation, breach of fiduciary duty, and/or negligence—resulted in over $2.5 million in settlements and/or awarded damages.

If you have invested with SoCal broker Tracy Rae Turner, formerly of Carlsbad's Colorado Financial Service Corporation, or with any broker or financial adviser whose improper sales of private securities away from their firm and through the use of misleading, unwarranted, or otherwise inappropriate statements have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

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