Colorado Financial Broker Barred by FINRA for Unauthorized Private Securities Transactions
Tracy Rae Turner, a former broker with Colorado Financial Service Corporation, was barred by the Financial Industry Regulatory Authority (FINRA) amid findings that he offered and sold over $4.1 million in interests in saltwater disposal wells used in oil and gas production without the approval of his member firm. FINRA found that Tracy Turner, of San Marcos, California, offered and sold interests in saltwater disposal well facilities (SWDs) to 12 investors, 8 of whom were Colorado Financial customers, without providing the firm with the required written notice of his participation in the securities transactions. According to FINRA, Mr. Turner marketed the sale of the SWD interests by creating and making available online an Offering Memorandum which purportedly touted a “25.4% cash-on-cash return” on the investment. FINRA found that Mr. Turner’s statements made unwarranted predictions about the returns investors could expect and were therefore misleading. Mr. Turner was barred from association with any FINRA member in all capacities and fined $272,879.04 plus prejudgment interest. The amount of the fine assessed is equal to the commissions Mr. Turner received from the sales of the SWD interests.
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