National investment loss lawyers KlaymanToskes is investigating broker Jeffrey Davidson (CRD# 4585780) of Equitable Advisors and Victory Financial, who has been suspended from acting as a broker by the Financial Industry Regulatory Authority (“FINRA”), following allegations that he participated in a private offering of securities that raised $10.21 million for a company that he founded and co-owned without providing prior written notice to his firm or receiving written approval from the firm.
According to FINRA’s investigation, Davidson was allegedly a founder and co-owner of a fitness company (“Company A”). While FINRA did not identify the company by name, BrokerCheck records show that in 2008 Davidson started Camp Gladiator, “a fitness company specializing in outdoor group fitness and virtual fitness.”
Davidson purportedly disclosed his ownership interest in Company A to Equitable Advisors as an outside business activity, which Equitable approved. However, from May 2021 through January 2022, FINRA found that Company A allegedly engaged in a private offering of ownership units, which were securities sold pursuant to Regulation D of the Securities Act of 1933.
On January 31, 2022, Equitable Advisors filed a Uniform Termination Notice for Securities Industry Registration (Form U5) reporting that it had discharged Davidson for “engaging in a private securities transaction that was not reviewed or approved by the Firm.” Davidson is currently registered as an investment advisor with Victory Financial in Austin, TX and was also previously registered with Purshe Kaplan Sterling Investments from 2022 to 2023.
Further, according to FINRA’s findings, Davidson hired a placement agent, approved a private placement memorandum for distribution to prospective investors, presented a business plan to prospective investors, and negotiated the terms of the transaction with investors. The offering allegedly raised $10.21 million from 18 investors. One investor in the offering was a private equity fund, while the remaining 17 were accredited investors who invested in Company A through a limited partnership.
Davidson and his co-owner allegedly received approximately $2.4 million by selling a portion of their ownership interest in Company A. By failing to disclose his participation in these private securities transactions to Equitable Advisors, Davidson violated FINRA Rules 3280 and 2010, and consented to sanctions of a 21-month suspension from associating with any FINRA member in all capacities and a $15,000 fine.
Investors that suffered losses with broker Jeffrey Davidson are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national investment loss law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The articles linked below contain important information relating to KlaymanToskes’ investigation of broker Jeffrey Davidson:
If you suffered losses with broker Jeffrey Davidson, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million* for investors, and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
*Exclusive of attorneys fees and costs.
As an investor, there are a few signs that you should look out for if you believe you may have a claim against broker Jeffrey Davidson. These signs could potentially indicate broker misconduct, negligence, or investment fraud. Investors are encourage to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
According to FINRA, brokerage firms such as Equitable Advisors are responsible for the supervision of all of the activities of their registered brokers and investment advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Engaging the services of an experienced securities attorney to evaluate the specific circumstances of your case is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered losses with broker Jeffrey Davidson, or have concerns regarding your investment portfolio at Equitable Advisors, Victory Financial, and/or Purshe Kaplan Sterling Investments, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation to discuss recovery options.