The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Derrick Trussell. According to his publicly available FINRA BrokerCheck report, Derrick Trussell has been the subject of multiple customer disputes.
Derrick Trussell was a Texas-based securities broker. He worked in the securities industry for ten years. He spent his entire career registered with PFS Investments. His career spanned from 2006 to 2017.
The Allegations
- Derrick Trussell was terminated from his position at PFS Investments in May 2017. This termination followed allegations that he took part in an outside business activity that had not been approved by his member firm. He allegedly failed to disclose a private transaction where he used a client’s funds to purchase securities not offered by PFS Investments without authorization from the client.
- In March 2019, a customer allege that Derrick Trussell made material misrepresentations about where he was investing her money. This case was settled for $8,000.
- Also in March 2019, a customer alleged that Derrick Trussell executed an unauthorized trade. This case was settled for $33,000 in damages.
- Derrick Trussell is facing pending criminal charges of ‘securities fraud’, ‘securities execution of documents by deception’, and ‘money laundering’.
What Does This Mean?
Derrick Trussell’s termination from PFS Investments was the result of two serious types of misconduct. The first was that he engaged in unauthorized private securities transactions. Securities brokers are not allowed to recommend private investments outside the scope of their member firm without first obtaining their member firm’s authorization. This is because private securities can create serious conflicts of interest for securities brokers. These conflicts can in turn cause brokers to recommend these private investments to investors that are financially unqualified for them. That is why securities firms require their registered brokers to disclose their intent to recommend these investments prior to engagement.
Not only did Derrick Trussell allegedly purchase securities his firm had not authorized on his customer’s behalf, he allegedly did this without the customer’s consent. This is a very serious charge known as unauthorized trading. Securities brokers are not allowed to execute trades on their customers’ behalf without first obtaining their authorization to do so. Just because an investor has hired a broker to recommend suitable securities does not mean they have forfeited the right to ultimately decide what they want to be invested in. The main reason brokers do not obtain their customer’s authorization prior to executing a trade on their behalf is because they know it is an unsuitable trade that should not be authorized.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Derrick Trussell, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
