Background Of David T. Phillips
Respondent first registered with FINRA in July 1998, as a General Securities
Representative of a FINRA member. From February 26, 2007 to December 19, 2017,
Respondent was registered as a General Securities Representative through an association
with FINRA member ProEquities, Inc. From November 20, 2017, through November 30,
2018, Respondent was registered as a General Securities Representative through an
association with FINRA member Moloney Securities Co., Inc. Respondent has not been
associated with a FINRA member since November 30, 2018. Although Respondent is not
associated with a FINRA member, he remains subject to FINRA’s jurisdiction pursuant
to Article V, Section 4 of FINRA’s By-Laws.
Respondent does not have any relevant disciplinary history.
Activity(s) Reported – David T. Phillips
FINRA Rule 3280(e) generally defines a private securities transaction as any securities
transaction outside the regular scope of an associated person’s employment with a
member. FINRA Rule 3280(b) states that “[p]rior to participating in any private securities
transaction, an associated person shall provide written notice to the member with which
he is associated describing in detail the proposed transaction and the person’s proposed
role therein and stating whether he has received or may receive selling compensation in
connection with the transaction.” Rule 3280(c) states that when an associated person has
received or may receive selling compensation, the member firm shall provide written
approval or disapproval of the associated person’s participation in the proposed private
securities transaction. A violation of Rule 3280 is also a violation of FINRA Rule 2010,
which requires associated persons, in the conduct of their business, to observe high
standards of commercial honor and just and equitable principles of trade.
Between May 2017 and April 2018, Respondent solicited eight investors to purchase
$876,636 in securities of Future Income Payments, LLC (FIP). FIP represented itself as a
structured cash flow investment that purchased pensions at a discount from pensioners
and then sold a portion of those pensions as a “pension stream” to investors. FIP
generally promised investors a seven to eight-percent rate of return on their investment.1
Respondent received a total of $33,184 in commissions in connection with his sales of
At all times during the stated period, Respondent’s respective employer member firms
prohibited their registered representatives from participating in private securities
transactions without prior written approval from the firm. Respondent did not provide
notice to his respective employer member firms prior to participating in the FIP sales.
Therefore, Respondent violated FINRA Rules 3280 and 2010.
1 In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor payments. In a March 12, 2019
indictment, the United States charged FIP and its owner, Scott A. Kohn, with conspiracy to engage in mail and wire
fraud related to FIP’s operations.
2 In February 2020, Respondent entered into a settlement agreement with a court-appointed receiver for FIP,
agreeing to repay $22,500 of the $33,184 in commissions that Respondent received from his sales of FIP securities
Can you expose the broker trying to trick you?
FINRA offers the free web tool BrokerCheck, which allows users to check a broker’s credentials, registration, and employment history. The disclosure part of BrokerCheck includes information on client conflicts, disciplinary proceedings, and specific financial and legal issues on the broker’s record.
Penalties And Sanctions
■ a nine-month suspension from associating with any FINRA member in any
■ a $5,000 fine.
The fine shall be due and payable either immediately upon reassociation with a member
firm or prior to any application or request for relief from any statutory disqualification
resulting from this or any other event or proceeding, whichever is earlier.
Respondent specifically and voluntarily waives any right to claim an inability to pay, now
or at any time after the execution of this AWC, the monetary sanction imposed in this
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Respondent understands that if he is barred or suspended from associating with any
FINRA member, he becomes subject to a statutory disqualification as that term is defined
in Article III, Section 4 of FINRA’s By-Laws, incorporating Section 3(a)(39) of the
Securities Exchange Act of 1934. Accordingly, he may not be associated with any
FINRA member in any capacity, including clerical or ministerial functions, during the
period of the bar or suspension. See FINRA Rules 8310 and 8311.
The sanctions imposed in this AWC shall be effective on a date set by FINRA
Recent Activity(s)Of The Individual/Firm
Between May 2017 and April 2018, Respondent participated in private securities
transactions totaling $876,636, without prior disclosure to, and approval from his
employer member firm. This conduct violated FINRA Rules 3280 and 2010.
How To Spot A Fraud Finance Advisor (Infographic)
Help For Victims Of David T. Phillips
If you have lost funds because of misrepresentation, unsuitable investment, or unsuitable investment strategy from David T. Phillips. Then you can take legal action and get justice. Fraud, Malpractice & dereliction of duty should not be taken lightly, especially in this industry. We highly suggest that you notify authorities or seek legal action if your financial advisor or brokerage firm fails to abide by FINRA’s rules are regulations.
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Financial advisors are regulatory & legally obligated to suggest (recommend) the most suitable investments/investment strategies to their clients. Their suggestions should have their client’s best interests and should be appropriate for their client’s goals and needs. Similarly, the brokerage firm which hires financial advisors also has a regulatory & legal obligation to keep a close watch and supervise their Financial Advisors’ practices & behavior. They need to make sure that the financial advisor is not being manipulative or having an unreasonable bias towards certain investments. If the financial advisor and/or the brokerage firm breaches these duties, then the client/customer may be entitled to a full or partial recovery of their losses.
Financial advisors need to have the interest of their clients when giving suggestions related to investments and investment strategies. Reasonable basis suitability requires the advisor to do their best to analyze & identify the risks and rewards associated with their suggested investment and/or investment strategy.
David T. Phillips has been involved in fraudulent activities and is an unsafe professional entity. We strongly recommend you avoid any association with such a shady figure.
- Shady Activity
- Swindling Activity Reported By Clients
- Under Govt. Organization's Radar
- High Risk of Fraud