Brent Hurt—Failure to Properly Supervise Registered Reps
Brent D. Hurt Allegedly Failed to Supervise a Registered Rep from Red Ridge Securities Inc. (f/k/a H.D. Brent & Company. Inc) Relating to the Sales of a Private Offering
Brent Hurt allegedly failed to supervise a registered rep, Eric Johnson from Red Ridge Securities Inc. (f/k/a H.D. Brent & Company. Inc) relating to the sales of a private offering, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC) currently under review by attorneys Jason Kane and James Booker.
Peiffer Wolf Carr & Kane securities practice lawyers are investigating investment recovery options on behalf of investors in issues related to Brent Hurt’s alleged failure to properly supervise registered representatives.
Investors who believe they may have lost money in activity related to Brent Hurt’s alleged failure to properly supervise registered representatives are encouraged to contact attorneys Jason Kane or James Booker with any useful information or for a free, no obligation discussion about their options.
Hurt and Red Ridge Securities Inc., beginning in May 2010, allegedly participated in three separate private offerings of securities purportedly related to a real estate development project on the Bahamian island of Great Exuma, according to the aforementioned AWC.
Hurt has also allegedly been a limited partner since 1999 and is also purportedly the manager of the Great Exuma project, the AWC notes.
What is more, in order to pay for the Great Exuma project, Hurt and Red Ridge Securities also allegedly solicited three private placements of securities, including a May 2010 debt offering, an October 2012 refinancing of the 2010 debt, and a May 2013 equity offering, the AWC states.
In addition, Hurt also allegedly made Red Ridge Securities maintain incomplete subscription agreements for private offerings sold by the firm between May 2010 and September 2014, in alleged violation of NASD and FINRA Rules, the AWC reports.
The documents for each of the aforementioned offerings allegedly identified Hurt as the manager of the project and granted him broad discretion over the use of the funds in the construction project wherein investors were purportedly required to execute a subscription agreement to participate in any of the offerings, the AWC states.
Said offerings were the sold by Hurt and a registered representative of the Firm, the aforementioned Eric Johnson, the AWC notes.
Brent Hurt Suspended and Fined $10,000 by FINRA; FINRA Requires that Member Firms Establish, Maintain and Enforce Supervisory Systems and Procedures that are Reasonably Designed to Achieve Compliance with Applicable Securities Laws
Brent Hurt allegedly failed to properly supervise Eric Johnson regarding the sale of private offerings and subsequently allegedly violated NASD and FINRA Rules, and thus has been suspended and fined $10,000 by FINRA, according to the aforementioned AWC currently under review by attorneys Jason Kane and James Booker.
NASD Rules require that member firms establish, maintain and enforce supervisory systems and procedures that are reasonably designed to achieve compliance with applicable securities laws, regulations and FINRA Rules, the AWC notes.
NASD Rules further require that supervisors take reasonable steps to ensure that securities transactions are in compliance with the applicable securities laws and rules, and that he or she investigate red flags of potential misconduct, and take appropriate action when misconduct has taken place, the AWC reports.
The SEC also allegedly brought an emergency action against Eric Johnson on November 5, 2014, which alleged that he stole up to $1 million from his clients, according to SEC Documents.
In addition, FINRA also allegedly brought a regulatory complaint against Red Ridge Securities, and Brent Hurt, and FINRA alleged that Red Ridge Securities and Brent Hurt’s alleged supervisory deficiencies allegedly allowed Johnson to perpetrate his scheme of stealing money from clients, the SEC notes.
Eric Johnson was a registered representative of Red Ridge Securities from 1999 to September 2014 and worked at Red Ridge Securities’ Chicago branch office, and he was also affiliated with HDB Advisors and HD Brent & Co., FINRA states.
Johnson was also allegedly fired from Red Ridge Securities in September 2014 in connection with allegations of theft, FINRA notes.
One should also note that, according to the AWC, Brent Hurt neither admitted nor denied the FINRA findings.
Securities Lawyers Investigating
The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of investment fraud and are currently investigating Brent Hurt’s alleged failure to properly supervise registered representatives. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of Brent Hurt’s alleged failure to properly supervise registered representatives may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or James Booker, for a free no-obligation evaluation of their recovery options, at (585) 310-5140 or via e-mail at firstname.lastname@example.org or email@example.com.