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Robert E. Turner Jr. Barred by FINRA and Sued by UBS for $17M Investor Fraud

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Updated on: February 3, 2023

Ex-UBS Financial Broker’s, Robert E. Turner Jr., 24-Year Long Fraud Causes Significant Damages To Investors

National investment fraud lawyers KlaymanToskes is investigating former UBS Financial broker Robert E. Turner Jr. (CRD# 2113736) following his permanent bar from FINRA in connection with the selling away and misappropriation of more than $17 million in investor funds over a 24-year period.

On January 27th, 2023, FINRA’s Department of Enforcement entered into an Acceptance, Waiver, and Consent (“AWC”) with Robert E. Turner Jr., disclosing that he has been permanently barred from the securities industry in connection with findings that from approximately 1997 to 2021, Turner marketed, recommended, and sold over $7.2 million in “fixed annuities” offered by Fairfax Financial Corporation – a sham company set up by Turner.

FINRA’s investigation determined that the “fixed annuities” were actually securities and were not approved by UBS, causing Turner to be in violation of FINRA Rule 3280 and Rule 2010 for engaging in private securities transactions without notifying or obtaining approval from his former firm. All of the customers involved allegedly lost the entirety of their investments.

Investors who suffered losses with Robert E. Turner Jr. and/or UBS Financial Services in Waco, TX are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com to learn about recovery options.

On May 12th, 2022, UBS filed a lawsuit against Turner alleging he persuaded at least 23 advisory clients to invest more than $17 million in “sham” outside investments. The suit alleges that “there were no assets backing the ‘investments’” and “It was just a scheme that Robert Turner and his college buddy, Mark Woodward, cooked up.” Woodward, who the lawsuit identifies as a managing trustee of Fairfax, took his own life on December 20th, 2022 following a confrontation with the Federal Bureau of Investigation (“FBI”) regarding the allegations.

Over $12 Million in Settled Investor Complaints Against Turner

According to FINRA Brokercheck, Robert E. Turner Jr. has seven customer complaint disclosures which have settled for a total of over $12 million in favor of the investors.

Turner was registered with UBS Financial Services from 1996 to 2021 in Waco, TX and with Stifel, Nicolaus & Co., Inc. from September 24th, 2021 to February 7th, 2022 in Waco, TX.

  1. 05/23/2022: Investor alleged his money was invested in a fraudulent manner by his Financial Advisor. The client further alleges his Financial Advisor was not looking out for his best interest and did not manage his money honestly.
    • (Settled for $335,692.25)
  1. 04/08/2022: Investors alleged they were defrauded by the Financial Advisor when presented with a bogus scheme to invest.
    • (Settled for $3,213,467.54)
  1. 02/22/2022: Investor alleged that money was funneled from his account by the FA to his college friend and makes further allegations of selling away.
    • (Settled for $5,070,514.16)
  1. 02/14/2022: Investor alleged the financial advisor stole money from her account.
    • (Settled for $468,686.05)
  1. 02/02/2022: Investor alleged he was aware of the Fairfax investment, but thought it was an interest bearing account. He does not know what an annuity is and wasn’t aware that he purchased one at Fairfax.
    • (Settled for $975,487.02)
  1. 02/01/2022: Investor alleged his FA represented that he would receive a guaranteed rate of 7.75% initially and then he believes it could drop down to a rate of 5% but not fall below that rate for as long as he owned it.
    • (Settled for $1,992,839.22)
  1. 10/27/2020: Investor alleged the variable annuity was represented as offering a 7% withdrawal rate as a living benefit and that as long as the 7% withdrawal rate was not exceeded, then the original premium was a protected death benefit.
    • (Settled for $150,000.00)

What Are Private Securities Transactions (“Selling Away”)?

Selling away” in private securities transactions occurs when a broker or investment advisor engages in selling an investment to a customer that is not offered by the executing brokerage firm, and without the brokerage firm’s approval. FINRA Rule 3280 defines a private securities transaction as “any securities transaction outside the regular course or scope of an associated person’s employment with a member.”

In accordance with FINRA Rule 3270, registered financial professionals are required to report and receive approval from their brokerage firm before engaging in any business activity outside of his/her relationship with the firm. Investors can access their broker’s outside business activities by using FINRA’s free Brokercheck tool.

See our recent blog post to learn more about this firm:“Attention Michael Dellinger Investors: Over $4.5 Million in Complaints Filed Against UBS Broker

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com