David Lee Reynolds — Alleged Misappropriation of Customer Funds

David Lee Reynolds Allegedly Misappropriated Customer Funds as Reported on an Amended Form U5 by his Former Member Firm

David Lee Reynolds allegedly misappropriated customer funds reported on an amended Form U5 by his former member firm, according to a recent Letter of Acceptance, Waiver, and Consent (AWC) presently being reviewed by attorneys Alan Rosca and James Booker.

Investors who believe they may have lost money in activity related to David Lee Reynolds’ alleged misappropriation of customer funds are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no obligation discussion about their options.

The Peiffer Rosca Wolf securities lawyers are currently investigating David Lee Reynolds’ alleged misappropriation of customer funds.

Reynolds reportedly entered the securities industry when he became associated with a FINRA member firm and became registered with FINRA as a General Securities Representative, or GSR, in 2003, and became associated with Principal Securities, Inc. as a GSR in May 2008, where he remained until December 2015, the AWC notes.

Reynolds then allegedly became associated with another FINRA member firm as a GSR, where he remained until October 2017, the AWC states.

David Lee Reynolds Allegedly Refused to Cooperate with a FINRA Request for Documents and Information

David Reynolds, on October 6, 2017, allegedly received a request from FINRA staff to comply with a FINRA request for documents and information issued pursuant to FINRA Rules, according to the aforementioned AWC presently under review by attorneys Alan Rosca and James Booker.

Reynolds, as stated in his counsel’s e-mail to FINRA staff on November 2, 2017, allegedly acknowledged that he received FINRA’s request and that he would not produce the documents and information requested.

Reynolds, by refusing to produce documents and information as requested pursuant to FINRA Rules, allegedly violated FINRA Rules  and therefore was banned by FINRA, the AWC notes.

FINRA Rules state that “[n]o member or person shall fail to provide information or testimony or to permit an inspection and copying of books, records, or accounts pursuant to this Rule,” the AWC reports.

Finally one should also note that, according to the AWC, David Lee Reynolds neither admitted nor denied the FINRA findings.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating David Lee Reynolds’ alleged misappropriation of customer funds. 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 David Lee Reynolds’ alleged misappropriation of customer funds may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1247 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.