Former Vision Brokerage Services, LLC Broker, Dwight Dykstra, Supsended by FINRA For One Year And Fined $10,000, For Allegedly Engaging In Private Securities Transactions
Dwight Dykstra (CRD # 1028210) was a Financial Advisor at Vision Brokerage Services in Maitland, FL from 2013-2019. Dwight Dykstra has been in the securities industry since 1982 and previously worked at FSC Securities Corporation, Walnut Street Securities, Inc., Pruco Securities Corporation, and The Prudential Insurance Company of America.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on October 7, 2020, Dwight Dykstra was suspended by FINIRA for one year and fined $10,000.
According to the FINRA sanction:
“Without admitting or denying the findings, Dykstra consented to the sanctions and to the entry of findings that he participated in private securities transactions without providing prior written notice to his member firm. The findings stated that, while registered through his firm, Dykstra participated in private securities transactions by soliciting investments in promissory notes issued by a limited liability company (the Issuer) raising capital to develop a senior living real estate project. Dykstra contacted prospective investors, some of whom were customers or former customers of the firm, to inform them of the investment opportunity. Dykstra then provided marketing materials to interested investors, participated in communications between the Issuer and interested investors, and facilitated the sale of approximately $2 million of promissory notes to 21 investors. The Issuer paid Dykstra $67,500 in selling compensation for his participation in the transactions. Additionally, Dykstra and his wife invested $100,000 in a promissory note sold by the Issuer. The promissory notes sold by the Issuer were securities. Dykstra’s participation in the promissory note securities transactions was outside the regular course and scope of his employment with the firm. While registered through the firm Dykstra, after giving notice to the firm and receiving its approval, sold membership interests in a fund formed to invest in the same senior living real estate project. Dykstra, however, did not provide any prior notice to the firm of the promissory note transactions or of his role in those transactions.”
For a copy of Dwight Dykstra’s FINRA sanction click here
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
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