Dennis Walker, Jonathon Timson, and John Handy – Unauthorized Investment Business

stockbroker fraud attorneyDennis Walker, Jonathon Timson, and John Handy Jr. Allegedly Set Up Investment Business Signal Point Without Broker-Dealer Firm Permission

Dennis Walker, Jonathon Timson, and John Handy Jr., during the period August 2008 through July 2013, allegedly engaged in an outside business activity, participated in undisclosed private securities transactions, and provided inaccurate information on compliance questionnaires and disclosures to their firm, Wells Fargo Advisors Financial Network, Inc. (WFAFN), of Springfield, Missouri, according to a recent FINRA Letter of Acceptance, Waiver, and Consent (AWC).

The trio allegedly set up an investment adviser firm, Signal Point Asset Management, LLC, with  $488m assets under management, and, the AWC further alleges, because they were refused authorization to operate it under their WCWs umbrella, they named third party nominee owners, but in fact remained the de facto owners and operators of Signal Point.

Dennis Walker, Jonathon Timson, and John Handy Jr., Suspended and Fined, Allegedly Started Walnut Capital Management before Setting up Signal Point

In March 2007, the aforementioned trio all became registered representatives with WFAFN in Springfield, Missouri, and operated under the name Walnut Capital Management (“WCM”), according to the AWC.  They formed WCM, the AWC further alleges, and joined WFAFN with the intention of marketing the Signal Point process to retail and institutional clients.

Walker, Timson, and Handy Jr. reportedly told WFAFN about their intention to incorporate Signal Point into their business, the AWC reports, but WFAFN specifically told the Respondents that the firm could not yet support such an institutional business model. The trio, the AWC notes, reportedly began utilizing a proprietary algorithmic trading model for Exchange Traded Funds referred to as the Signal Point process, but WFAFN would not allow them to manage large institutional portfolios using Signal Point.

By late 2010, the AWC notes, Walker, Timson, and Handy Jr. each provided approximately $170,000 to fund Signal Point’s business. In the end, Walker, Timson, and Handy Jr failed to accurately complete annual compliance questionnaires, and inaccurately described those activities on their outside activity disclosure forms, and thus violated FINRA Rules. As a result, each member of the trio faces an eighteen-month suspension and a $20,000 fine.

The Peiffer Wolf Investor Rights Lawyers Often Represent Investors

The Peiffer Wolf investor rights lawyers often represent investors who lose money as a result of investment misconduct. 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 investment misconduct may contact the investor rights lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.

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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.