Clinton Byrd Suspended by FINRA
Clinton Byrd (CRD #: 4673625), a broker formerly registered with Cantella & Company, has been suspended by FINRA, according to his BrokerCheck record, accessed on March 6, 2023. Read on if you have questions about his alleged conduct as a broker.
Suspension by FINRA
On January 9, 2023, Clinton Byrd consented to the entry of findings that he allegedly participated in a private securities transaction in December 2012 without providing prior written notice to Cantella & Company, his firm at the time.
A Letter of Acceptance, Waiver & Consent (AWC) alleges that Clinton Byrd signed a promissory note in December 2012 on behalf of a musical production company he owned. He allegedly borrowed $550,000 from Customer A Family through this note, funding for which allegedly came from Customer A Family’s brokerage account.
The AWC further alleges that the note required Clinton Byrd’s company to make quarterly interest payments and repay the principal within one year, which the AWC alleges that the company failed to do.
Clinton Byrd allegedly failed to provide prior written notice to Cantella & Company before causing his company to issue the note, which was a security, and did not receive approval for the transaction. Despite this, Clinton Byrd allegedly claimed on six annual firm attestation forms that he had not referred anyone to investment opportunities outside of Cantella & Company.
The AWC concludes that these allegations constituted violations of NASD Rule 3040 and FINRA Rule 2010.
FINRA Rule 3280
FINRA Rule 3280 requires brokers to provide written notice to their firm before engaging in private securities transactions.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Clinton Byrd consented to the following sanctions:
- $5,000 fine
- 9-month suspension
His suspension began on January 17, 2023, and will end on October 16, 2023.
You can read the full AWC here.
Termination from Cantella & Company
On May 28, 2021, Clinton Byrd was fired from Cantella & Company for allegedly failing to report a rent-to-own property as an outside business activity (OBA), and failing to report a customer complaint related to an OBA.
FINRA Rule 3270
FINRA Rule 3270 requires brokers to seek and receive approval from their firm for any outside business activities they engage in.
Other business activities
Clinton Byrd’s detailed BrokerCheck report currently lists the following outside business activities:
- Officer of Professional Video Resources, Inc., where he assists with the production of educational videos and provides business consulting.
- Consultant for Kitchen Byrd Productions, a musical production company. He also owns the Montague Collection and prepares exhibits for museum display.
- Elder of the Springhill Road Church of Christ, providing financial supervision.
- Secretary and treasurer for the Institute of African American Health, where he assists with planning community projects.
Investor Disputes
On January 28, 2021, an investor filed a dispute alleging that an LLC owned by Clinton Byrd executed a promissory note on December 7, 2012, in order to purchase an art collection, and failed to repay the principal on its due date, December 7, 2013.
The investor also alleged that Clinton Byrd made unsuitable investment recommendations. This dispute is currently pending.
A dispute filed on January 28, 2021, made similar allegations regarding a promissory note issued by Clinton Byrd’s LLC and unsuitable investment recommendations. This dispute was settled for $450,000.
FINRA Rule 2111
FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile. These profiles describe an investor’s tax status, risk tolerance, and other characteristics.
Investors who rely on their broker for recommendations may be able to recoup their losses through FINRA arbitration.
Background Information
Clinton Byrd has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 – Futures Managed Funds Examination
- Series 7 – General Securities Representative Examination
He previously worked for the following firms:
- Cantella & Company (CRD#:13905)
- Morgan Stanley & Company (CRD#:8209)
- Morgan Stanley DW (CRD#:7556)
Kurta Law Can Help
If you worked with Clinton Byrd and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.
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