Donald Wright Barred by SEC Following Civil Suit

Donald Wright (CRD #: 5562960), a broker formerly registered with Silver Oak Securities, has been barred by the SEC, according to his BrokerCheck record, accessed on February 11, 2025. Keep reading to learn more about his alleged conduct as a broker.

SEC Regulatory Action

On January 22, 2025, the Securities and Exchange Commission barred Donald Wright, alleging that on December 17, 2024, a judgment was entered by consent against him and Retirement Specialty Group in a civil suit filed by the SEC.

In that lawsuit, the SEC alleged that Donald Wright and Retirement Specialty Group misappropriated funds belonging to investors and at least one non-client through the offer, recommendation, and sale of fraudulent promissory notes.

They allegedly made material misrepresentations and omissions about the nature of these investments, the intended use of proceeds, and Donald Wright’s relationship with the issuers of the notes.

Sanctions

The SEC barred Donald Wright from associating with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organizations (NRSROs)

SEC Civil Suit

On September 9, 2024, the SEC filed a civil complaint alleging that investment adviser Retirement Specialty Group (RSG) and Donald Wright, as its principal, recommended, offered, and sold more than $2.4 million in fraudulent promissory notes.

Donald Wright allegedly participated in this fraudulent offering in order to secure financing for the acquisition of a faith-based media marketing company. He had allegedly been told by several entities (“note issuers”) that he needed to provide capital before they could assist him in fully financing the acquisition.

RSG and Donald Wright allegedly sold these notes to at least five RSG clients and at least one additional person.

The SEC alleged that Donald Wright made material misrepresentations and omissions about the nature and safety of these notes and the intended use of the proceeds. For example, he allegedly misrepresented in some cases that he had invested his own money in a note.

Donald Wright allegedly failed to disclose his conflicts of interests to clients, including that he and/or RSG had business relationships with the note issuers and that the purpose of recommending these investments was to secure financing for an acquisition.

Further, the SEC alleged that Donald Wright sold forged notes that purported to be issued by one of the note issuers. He allegedly did not disclose that these forged notes were unauthorized.

Following the sale of these notes, Donald Wright allegedly misled investors about the status of their investments and repayments on these promissory notes, including by falsifying wire transfer information to mislead a client that funds for repayment would be available.

Some clients allegedly also entered into other agreements with the note issuers under Donald Wright’s direction.

Judgment

According to Donald Wright’s detailed BrokerCheck report, the judgment entered in the lawsuit permanently enjoined him from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

Donald Wright was also subjected to the following sanctions:

• Enjoined from directly or indirectly participating in the issuance, purchase, offer, or sale of a security, except in his personal account
• Prohibited from acting as an officer or director for an issuer with a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act
• Payment of disgorgement, prejudgment interest, and a civil penalty

Securities Act of 1933

Section 17(a) of the Securities Act of 1933 prohibits the use of fraudulent schemes and devices relating to the purchase and sale of securities across state lines. In particular, it prohibits the use of false or misleading statements and the omission of facts concerning securities.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of manipulative or deceptive devices in relation to the purchase or sale of securities. Rule 10b-5 extends this to include fraudulent schemes, untrue statements and omissions of fact.

Investment Advisers Act of 1940

Sections 206(1) and (2) of the Investment Advisers Act of 1940 forbid the use of fraudulent and deceptive schemes or practices.

Resignation from Silver Oak Securities

On October 19, 2015, Donald Wright was permitted to resign from Silver Oak Securities following allegations that he failed to follow firm procedures related to advertising.

FINRA Rule 2210

FINRA Rule 2210 defines how firms and brokers are permitted to communicate with the public (e.g., in advertising). This rule requires all communications with the public to be fair and balanced and free from any false or misleading statements.

Background Information

Donald Wright has passed the following exams:

• Securities Industry Essentials Examination – SIE
• Investment Company Products/Variable Contracts Representative Examination – Series 6
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

In the past, he worked for the following firms:

• Silver Oak Securities (CRD#:46947)
• Woodmen Financial Services (CRD#:117365)
• PlanMember Securities Corporation (CRD#:11869)
• EquiTrust Marketing Services (CRD#:5309)

Kurta Law Can Help

If you worked with Donald Wright 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 that 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.