• July 31, 2023
• Financial Industry Regulatory Authority

Joseph Todd (CRD#: 1830390) is a previously registered Broker and previously registered Investment Adviser.

Broker’s Background

He entered the securities industry in 1988 and previously worked for Centaurus Financial, Inc.; Investors Capital Corp.; Edward Jones; Invest Financial Corporation; Investors Capital Corp.; IFG Network Securities, Inc.; and Raymond James & Associates, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2023, a customer dispute was filed against Joseph Todd. The allegation states, “In March 2019, the customer alleges that the Registered Representative misrepresented unsuitable, high risk, high commission and illiquid Alternative Investments.” Damages of $100,001 are requested, and the customer dispute is pending.

In addition, Joseph Todd has been the subject of 14 disclosures, including customer complaints, employment events and regulatory matters:

• July 2023 — “The Securities and Exchange Commission (the “Commission”), for its Complaint against Joseph Michael Todd (“Todd”), Todd Financial Services, LLC (“TFS”), and TFS Insurance Services LLC (“TFS Insurance”), alleges that Todd engaged in a fraudulent scheme and misappropriated at least $3 million from at least 20 customers of “Broker A,” a dually registered broker-dealer and investment adviser that employed Todd as a registered representative. Todd obtained investor funds through deceptive means by instructing his Broker A customers to write checks payable to his entities TFS and/or TFS Insurance or to Todd by falsely assuring customers that he and his entities would invest their funds in various securities. Instead, Todd commingled investors’ funds and kept the money for his own personal use, spending it on lavish real estate, boating, hunting, casinos, and adult entertainment. Todd perpetuated the fraud by making material misrepresentations to customers regarding the use of their funds in meetings that took place in person, in phone conversations, and in documents that he prepared and provided to customers. Because of their conduct, Todd, TFS, and TFS Insurance knowingly or recklessly committed securities fraud. Todd and TFS violated Section 17(a) of the Securities Act of 1933 (the “Securities Act”) and Todd, TFS, and TFS Insurance violated Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder.” This civil action is initiated by the United States Securities & Exchange Commission and is pending.
• July 2023 — “During the period of August 2021 through July 2022, the customers allege that the Registered Representative improperly exercised discretion and engaged in unauthorized trading in unsuitable, illiquid and high-risk investments.” The customer dispute is pending, and damages of $900,000 are requested.
• June 2023 — “The customer alleges that in July of 2019, the Registered Representative misrepresented a non-profit organization and engaged in undisclosed outside business activities.” The customer dispute is pending, and damages of $100,000 are requested.
• June 2023 — “During the period of March 2018 through September 2022, the customers allege that the Registered Representative improperly exercised discretion and engaged in unauthorized trading in unsuitable and high-risk investments.” The customer dispute is pending.
• June 2023 — “In June 2022, the customer alleges that the Registered Representative misappropriated funds.” The customer dispute is pending. Damages of $152,400 are requested.
• June 2023 — “During the period of 2019 and 2021, the customer alleges that the Registered Representative improperly recommended high risk and a illiquid investment and misappropriated funds.” The customer dispute is pending, and damages of $238,000 are requested.
• April 2023 — “Respondent Todd failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.” Joseph Todd was suspended from all capacities by FINRA beginning April 25, 2023 and lasting indefinitely, until the required payment is made or discharged after failing to comply with an arbitration award/settlement agreement, and failing to satisfactorily respond to a request by FINRA for more details about the status of his compliance.
• March 2023 — “During August 2021 through July 2022, the customers allege that the Registered Representative incorrectly exercised trading discretion and recommended illiquid investments.” Damages of $130,000 are sought, and the customer dispute is pending.
• January 2023 — “During the period of 2020 through July 2022, the customer alleges that the Registered Representative misrepresented illiquid, high risk and unsuitable investments and stole funds that were supposed to have been invested in safe, liquid fixed income securities.” The customer dispute is pending.
• December 2022 — “During 2014 through July 2022, the customer alleges that the Registered Representative misrepresented illiquid, high risk and unsuitable investments and stole funds that were supposed to have been invested in safe, liquid fixed income securities.” Damages of $16,500 are sought, and the customer dispute is pending.
• July 2022 — “The Firm is investigating whether the Registered Representative violated Firm policy and industry rules with respect to an allegation of selling away and the receipt of customer funds. The Registered Representative has not cooperated with the investigation. The investigation is ongoing.” Joseph Todd was discharged from Centaurus Financial, Inc.
• May 2022 — “Todd was named in a customer complaint that asserted the following causes of action: outside business activities, selling away and private securities transactions; unsuitable investments and negligent account management; negligence and negligent supervision; bogus statement summaries; conversion; violations of the Florida Securities Act; sale of unregistered and non-exempt securities; breach of fiduciary duty and constructive fraud; violations of FINRA Conduct Rules and NYSE Board Rules; violations of statutes and industry rules related to senior investors, elderly persons, and disabled adults; and respondent superior.” Damages of $500,000 were requested, and an award/judgment was made for the customer, which according to FINRA, had not been paid by or on behalf of Joseph Todd, as of April 25, 2023.
• August 2008 — “CLIENT ALLEGED THAT WHILE THE RR WAS AFFILIATED WITH EDWARD JONES HE PRESENTED HER WITH “OTHER [OUTSIDE] INVESTMENTS” WHICH WOULD GENERATE MONTHLY INCOME. BASED ON THE CESSATION OF MONTHLY PAYMENTS, CLIENT HAS ALLEGED MISAPPROPRIATION.” The customer dispute was closed with no action.
• March 2001 — “CLIENTS ALLEGE REP MISREPRESENTED SURRENDER PERIOD OF ANNUITY AND FAILED TO PROVIDE CONTRACT IN A TIMELY FASHION.” The customer dispute was settled for $9,608.66.

For a copy of Joseph Todd’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Alternative investments are not regulated by the U.S. Securities and Exchange Commission (SEC), and are often subject to fraud and other schemes. Examples include commodities, hedge funds, real estate, derivatives contracts, private equity, managed futures, and venture capital. They are not typically regulated by the SEC, nor are they usually liquid or easy to value, which makes them risky investments. In addition, alternative investments are often open only to accredited investors with an income of $200,000 or more or a net worth in excess of $1M; they also require high up-front minimums. When these opportunities are opened to non-accredited investors, it may be because of unsuitability, fraud, selling away or misrepresentation, and the investor may incur losses.

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the financial advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.