Terry Joe Bagwell – Failure to Supervise Alleged Ponzi Scheme

investment fraud attorneyTerry Joe Bagwell Allegedly Failed to Properly Supervise Rep Who Sold About $8.4 Million in Ongoing Ponzi Scheme

Terry Joe Bagwell, who was an Investment Company Products/Variable Contracts Principal and General Securities Principal at Pruco Securities, was the designated supervisor of an unnamed registered representative who allegedly sold 18 Pruco and non-Pruco customers approximately $8.4 million in unapproved investments that were part of an alleged ongoing Ponzi scheme, according to a recent FINRA Letter of Acceptance, Waiver, and Consent (AWC) currently under review by attorneys Joe Peiffer and Alan Rosca.

Bagwell, the AWC further alleges, not only became aware of said representative’s alleged participation in unapproved private securities transactions, in violation of the Firm’s policy, but Bagwell himself personally participated in certain of these unapproved private securities transactions.

Despite his investments with the aforementioned representative, which constituted red flags, Bagwell took no steps to supervise the rep or to report the private securities transactions to Pruco, according to a recent FINRA Letter of Acceptance, Waiver, and Consent (AWC) currently being analyzed by attorneys Joe Peiffer and Alan Rosca.

Terry Joe Bagwell Barred by FINRA for Failing to Supervise Pruco Representative and Also Allegedly Investing with Same Representative

Despite his investments with the aforementioned representative, which constituted red flags, Bagwell took no steps to supervise the rep or to report the private securities transactions to Pruco, according to a recent FINRA Letter of Acceptance, Waiver, and Consent (AWC) currently being analyzed by attorneys Joe Peiffer and Alan Rosca.

In the end, the AWC further alleges, Bagwell allegedly failed to reasonably supervise the representative in violation of NASD and FINRA Rules, and Bagwell also violated NASD and FINRA Rules by purchasing $35,000 in securities from the Representative, through accounts held away from the Firm, without prior written notice to the Firm.

As a result, the AWC reports, Bagwell has been barred from association with any FINRA member in any principal capacity, received  a fine of $25,000, which includes disgorgement of $7,600 representing the investment profits and $445.43 in pre-judgement interest, and was suspended for  30 days from association with any FINRA member firm in all capacities.

Investment Recovery Attorneys Investigating

The Peiffer Rosca Wolf investment recovery attorneys often represent investors who lose money as a result of investment misconduct, and are currently investigating Terry Joe Bagwell. 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.

Any Investors who believe they lost money as a result of the alleged investment misconduct committed by Terry Joe Bagwell may contact the investment recovery attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1159 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.