FINRA fined and suspended former Advisory Group Equity Services and NMS Capital Advisors (Laguna Beach, CA) broker David Allen Walters over unauthorized private securities transactions related to his outside business activity, Leading Edge Power Solutions.
According to AWC #2018060587101, while registered with Advisory Group Equity Services, broker David Walters (CRD #1436760) participated in four private securities transactions totaling $450,000 in exchange for Series A Preferred Units of a company for which Walters served as Executive Chairman.
The investigation indicated that investors were directed to mail subscription documents and payments directly to Walters and that these transactions were outside the regular course and scope of his employment with Advisory Group Equity Services.
In terminating Walters' employment in November 2018, Advisory Group wrote that Walters had not informed the firm of this activity, and that the firm had not approved of this capital raising away from the firm.
Specifically, according to FINRA, Walters disclosed to his firm that the outside business' source of capital would be "personal assets" rather than "investments by third parties."
After his discharge from Advisory Group, Walters worked for NMS Capital Advisors, also of Laguna Beach in Southern California, from March to September 2019. In addition to serving as Executive Chairman of Leading Edge Power Solutions, Walters' file lists as other business activities Laguna Advisory Partners, Premier Business Processing, and Boustead Securities of Irvine, CA.
If you have invested with ex-Advisory Group Equity Services broker David Allen Walters or with any financial adviser or representative who failed to properly disclose the nature of an outside business, or whose failure to seek approval from a FINRA-registered firm to conduct business such as private securities transactions has proven harmful to your investments or interests when this activity conducted away from the firm resulted in losses or other damages, 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.