Securities Lawyers Blog
Investment Advisor, Brooklynn Chandler Willy, currently registered at Queen B. Advisors, LLC. is currently facing a one-year suspension of her investment advisor license in connection with the sale of unsuitable and unregistered alternative investments.
According to a news source, between 2013 and 2019, Willy’s practice sold approximately $43.5 million worth of unsuitable and unregistered alternative investments to clients. As a result of these transactions, Willy was sanctioned by the Texas State Securities Board
On October 16, 2020, the Texas State Securities Board issued a disciplinary order stating “Respondent Willy’s registration with the Securities Commissioner is suspended for one (1) year and Respondents are ordered to comply with the terms of an undertaking wherein Respondents undertake and agree to pay back $2,750,500 to all clients to whom Respondent Willy sold the alternative investments, and to certain limitations on their registrations.”
Moreover, an SEC IADP report states that in October 2019, Willy was discharged from her previous investment advisor position at , J. W. Cole Advisors, Inc., for violating the firm’s policies regarding participation in unapproved private securities transactions. Additionally, the report discloses a tax lien against Willy from July 2018, of approximately $50,000.
Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. The SEC discloses information concerning a broker’s financial condition because a broker’s inability to handle their own personal finances has also been found to be material information in helping investors determine if they should allow the broker to handle their finances.
Furthermore, Brokers have an obligation to make only suitable recommendations for investments to the client. There are many investments that are not appropriate for the majority of investors or for certain investors given their risk tolerance, age, and other factors. Brokers should not present these investment options to clients. There are two screens that brokers must employ to determine whether an investment is suitable for a client. First, there must be a reasonable basis for the recommendation – meaning that the product has been investigated and due diligence conducted into the investment’s features, benefits, risks, and other relevant factors. The broker must conclude that the investment is suitable for at least some investors and some securities may be suitable for no one. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short-term goals, age, disability, income needs, or any other relevant factor.
Willy entered the securities industry in 2014. From 2014 through 2019, Willy was registered with Global Financial Private Capital, LLC. From April 2019 through October 2019, Willy was registered with J. W. Cole Advisors, Inc. Also, for approximately two weeks in October 2019, Willy was registered with TCFG Investment Advisors, LLC. Willy has been registered at Queen B. Advisors, LLC. since October 2020.
At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to suitability violations. Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.