According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Russell Goodwyn (Goodwyn), currently associated with Hedgebay Securities LLC, has at least one disclosable event. These events include one customer complaint, alleging that Goodwyn recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,000,000.00 on June 30, 2025.
Hudson Park Capital II LP (‘Hudson’) has filed a lawsuit in New York Supreme Court against South River Capital (‘South River’), its principal Jim Plack (‘Plack’), Hedgebay Securities LLC (Hedgebay’), and Hedgebay broker Russell Goodwyn (‘Goodwyn’), alleging breach of fiduciary duty under New York law against Hedgebay and Goodwyn and alleging fraud and breach of contract against the other defendants. The allegations are in connection with a $2 million loan made by South River and Hudson in early 2020 to a third-party borrower, with South River lending $1.5million and Hudson lending $500,000. \, \, The borrower subsequently defaulted on the loan. The complaint alleges that defendants South River and Plack knew that the collateral used for the loan was pledged to another lender and therefore acted fraudulently and breached the loan contracts with Hudson. \, \, The complaint alleges that defendants Hedgebay and Goodwyn owed a fiduciary duty to investigate and analyze the potential loan to the borrower and to not introduce Hudson to fraudsters like South River and Plack. Hudson Park seeks from all of the defendants collectively over $1 million in compensatory damages and unspecified punitive damages and Plaintiff’s legal fees. \, \, Hedgebay and Goodwyn refutes the allegations against them and intends to vigorously defend the action.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Goodwyn entered the securities industry in 1998. Goodwyn has been registered as a Broker with Hedgebay Securities LLC since 2015.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.