Philip Wright Subject of FINRA Complaint

Philip Wright (CRD #: 2453688), a broker formerly registered with BrokerBank Securities, is named in a pending FINRA complaint, according to his BrokerCheck record, accessed on April 18, 2023. Read on to learn more about his alleged conduct as a broker.

Pending FINRA Complaint

On March 20, 2023, Philip Wright was named in a FINRA complaint alleging that BrokerBank Securities, acting through him, allowed an unregistered individual to sell bonds and preferred shares to the firm’s retail clients.

The complaint alleges that Philip Wright, as the firm’s majority owner, CEO, and sole supervising principal, had a responsibility to supervise this individual.

The firm allegedly paid this unregistered individual more than $100,000 in commissions in relation to their sales of securities between November 10, 2017, and October 28, 2019. Further, FINRA alleges that Philip Wright failed to respond to three requests for information.

The complaint alleges that Philip Wright and BrokerBank Securities violated NASD Rule 1031, Article III, Section 3(b) of FINRA’s By-Laws, and FINRA Rules 1210, 2010, 2040, 8210, and 8311. You can read the complaint here.

FINRA Rule 1210

FINRA Rule 1210 requires registration with FINRA for individuals engaged in the investment banking or securities business through a FINRA member.

Article III, Section 3(b) of FINRA’s By-Laws

Article III, Section 3(b) of FINRA’s By-Laws prohibits individuals from associating with FINRA members if they are subject to a disqualification.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 2040

FINRA Rule 2040 prohibits FINRA members from providing compensation to unregistered brokers.

FINRA Rule 8210

FINRA Rule 8210 requires members to provide documents, information, and testimony upon request by FINRA.

FINRA Rule 8311

FINRA Rule 8311 states that individuals subject to sanctions (e.g., a suspension or bar) cannot be associated with other FINRA members in violation of that sanction. Members are also prohibited from compensating individuals subject to sanctions.

Michigan Regulatory Action

On October 14, 2020, the State of Michigan revoked Philip Wright’s license, alleging that he failed to reasonably supervise another individual who allegedly violated the Securities Act of 1933. Philip Wright was also fined $2,500.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems in order to comply with securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

FINRA Suspension

On March 30, 2016, FINRA filed a complaint against Philip Wright alleging that BrokerBank Securities, acting through him as its Chief Executive and Chief Compliance Officer, issued hundreds of misleading press releases in violation of NASD and FINRA rules.

The complaint alleged that, from January 1, 2014, through October 28, 2015, BrokerBank issued press releases falsely implying that the firm was the author of research reports on specific companies. Some of these press releases allegedly also falsely implied that BrokerBank was recommending certain securities.

A non-registered entity identified as “SCS” allegedly paid BrokerBank between $50 and $100 for each press release the firm submitted to a newswire service. This service allegedly only accepted press releases from registered broker-dealers or directly from the companies covered in the release.

Further, 22 of these press releases allegedly failed to disclose that BrokerBank was being compensated for issuing them. Several press releases allegedly also omitted material negative information about the companies.

Lastly, the complaint alleged that Philip Wright failed to ensure that the firm had adequate policies, procedures, and a supervisory system to ensure that these press releases complied with relevant regulations.

On May 31, 2017, Philip Wright consented to the entry of findings that he allegedly violated NASD Rule 3010(a) and (b), and FINRA Rules 2210(d)(1)(A) and (B), 3110(a) and (b), and 2010.

FINRA Rule 2210

FINRA Rules 2210(d)(1)(A) and (B) require that all communications between FINRA members and the public be fair, balanced, and free from any false, promissory, or misleading statements.

Sanctions

Philp Wright consented to the following sanctions:

• $10,000 fine
• 1-month suspension
• $15,000 fine, jointly and severally with BrokerBank Securities

His suspension ran from June 20 to July 19, 2016.

BrokerBank Securities was also censured by FINRA.

You can read the Orders Accepting Offers of Settlement here.

Background Information

Philip Wright has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• Series 99TO – Operations Professional Examination
• Series 79TO – Investment Banking Registered Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 87 – Research Analyst Exam – Part II Regulations Module
• Series 55 – Limited Representative-Equity Trader Exam
• Series 7 – General Securities Representative Examination
• Series 14 – Compliance Officer Examination
• Series 24 – General Securities Principal Examination
• Series 27 – Financial and Operations Principal Examination

He previously worked for the following firms:

• BrokerBank Securities (CRD#:130116)
• Emergent Financial Group (CRD#:37891)
• Protective Group Securities (CRD#:6757)
• Sheffield Securities (CRD#:33828)

Kurta Law Can Help

If you worked with Philip 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 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.