Finra says it has barred another financial advisor over allegations of sales of promissory notes in the Woodbridge Group of Companies.
Between February 2016 and December 2017, Jeffrey Scott Nimmow allegedly sold more than $3.3 million worth of the notes to 18 investors, without receiving approval from his firm, according to a letter of acceptance, waiver and consent published by the industry’s self-regulator. During that period, Nimmow was registered with Forest Securities, according to BrokerCheck.
Nimmow allegedly lacked the registration necessary to sell promissory notes in the first place, Finra says. He allegedly earned $177,937 in commissions from the sale of the notes, according to the letter of acceptance.
In December 2017, Woodbridge filed for Chapter 11 bankruptcy. And last year, a federal judge in Florida sentenced Robert Shapiro, the former CEO of Woodbridge, to 25 years in prison for his role in the $1.3 billion Ponzi scheme, which harmed around 10,000 investors.
Last week, Nimmow consented to Finra’s bar without admitting or denying the regulator’s findings, according to the letter of acceptance.
Nimmow had been in the financial services industry since 1996, according to his BrokerCheck profile. He had a clear record until February 2018, when a customer alleged that Nimmow solicited them to loan money to the Woodbridge group of companies, according to BrokerCheck. That dispute is still pending, and the customer is seeking $450,000 in damages, according to Nimmow’s record.
Another dispute against Nimmow involving Woodbridge was withdrawn and a third is still pending, according to BrokerCheck.
In March 2018, Forest Securities discharged Nimmow over allegations of “[i]naccurate judgement by the representative involving Woodbridge promissory notes and mortgages contained in Woodbridge funds,” according to his profile. Nimmow hasn’t registered with another firm since then.
Finra has been steadily going after brokers allegedly involved in the sales of the Woodbridge promissory notes. In November, it fined and suspended a broker who allegedly sold $625,000 worth of the notes. In July, it suspended another broker who allegedly sold $895,000 worth of Woodbridge notes. And in February 2019, Finra barred a broker who allegedly sold $3.49 million of the notes.
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