After FINRA barred former Taylor Capital Management broker Dennis Mitchell Farrah and suspended Mark Gregory Raezer for misrepresenting Madyson Capital real estate investment trust (REIT) and limited partnership (LP) products and selling the offerings away from their firm without authorization, the SEC launched an investigation. Farrah also faces a criminal charge of securities fraud in Colorado.
A complaint and injunction filed by Colorado's Securities Division indicated that the purportedly fraudulent entities or organizations that otherwise committed securities fraud associated with Farrah and Raezer's misconduct are Madyson Capital Management LLC, Madyson Equity Group LP, Madyson Holdings Inc., Madyson Realty Fund I LLP, and Madyson Realty Partners LLC.
In its report published March 2020, the SEC found that Scottsdale, Arizona resident Dennis Farrah (CRD #2703960) solicited and facilitated real estate-related securities sales away from and without knowledge or approval of his firm. The criminal charge holds that Farrah solicited or convinced clients to "cash out with him and instead invest their money with Joseph David Ryan's Madyson Investments" (Colorado indicted both Farrah and Ryan on charges of securities fraud, though only Farrah was a registered broker).
Pending disputes in Farrah's file range from misrepresentation to misappropriation of funds, omission of material facts, and outright fraud. At least one complaint also charges Farrah's employer, Taylor Capital Management, with failing to supervise its broker.
The Colorado Securities Division also suspended fellow rep Mark Raezer (CRD #6439772)'s license. Raezer, also originally of Taylor Capital in Aurora, CO, subsequently received a FINRA suspension for 10 months, expiring in May 2020. Citing the Colorado Securities Commissioner's decision to bar Farrah from the state's securities industry, the SEC ordered a nationwide bar and additionally ordered him barred from participating in any penny stock offering.
Raezer - who is entertaining two pending customer disputes alleging fraud, misrepresentation, unsuitable recommendations, breach of fiduciary duty, and negligence - resigned from Taylor Capital (TCM Securities, Inc.) in 2018 as the state regulator prepared to file charges for selling away.
For example, one of Raezer's complaints alleges, "Raezer sold Madyson Capital Management LLC Limited Partnership units to Claimant and misrepresented the units as being low-risk, guaranteed, safe and profitable."
If you have invested with ex-Taylor Capital Management brokers Dennis Mitchell Farrah, Mark Gregory Raezer, or with any financial adviser or registered representative who unsuitably recommended the fraudulent Madyson Capital/Equity group of offerings by misrepresenting the products as safe or low-risk, or whose selling away from the firm enabled a harmful escape from firm and regulatory oversight, thus contributing to damages suffered as a result of the illicit sales, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.