Senior Vice President of Kay Properties, the national Delaware Statutory Trust (DST) Investment firm with offices all across the nation, Matt McFarland has recently come under scrutiny. The stockbroker, primarily located in Torrance, CA, has allegedly been linked to misconduct involving private placements under Regulation D.
Matt McFarland: A Profile
Bearing the name Mr. Matthew Douglas McFarland and often going by the alias Matt McFarland, the broker is currently employed at FNEX Capital LLC. He has previously been associated with Growth Capital Services and Wealthforge Securities.
Your average stockbroker is usually responsible for making sound financial decisions for their clients. Yet, the echoes of previous allegations against McFarland and his brokerage firms paint a damning picture. He stands accused of failures in conducting reasonable due diligence, supervising transactions, and more.
According to the FINRA Broker Check, McFarland’s highest settlement or award for his alleged misconduct reaches a staggering $1,500,000. As per FINRA regulations, he can be sued in arbitration for these allegations.
The Controversial World of Private Placements
A warning slate from the U.S. Securities and Exchange Commission (SEC) indicates that private placements, legally defined as offerings not registered with the SEC, can be ripe with the potential for investment scams. Unregistered offerings do not always meet the registration requirements, but they often escape close scrutiny due in part to the exemption under Securities Act Section 4(a)(2) and Regulation D.
The finicky nature of these investments also creates opportunities for less scrupulous brokers to take advantage of unwary investors. The investment sector is notoriously daunting, and not every investor may have the ability to absorb a total loss — characteristic of these highly illiquid investments.
Emerging Consequences for Investors
In the case of Matt McFarland, investors have suffered losses under dubious circumstances. Back in December 2023, Wealthforge Securities compensated a client $1.5 million to settle allegations that McFarland did not exercise due diligence on a private placement offering. Previously in September 2023, another customer received $479,698 to settle claims that federal and California securities laws were breached in relation to the sale of private placements.
Moreover, while McFarland remains unsanctioned by FINRA, he can be sued under FINRA arbitration for losses investors incurred under his advisory. While the specifics of the Financial Industry Regulatory Authority’s regulations might seem complex, their primary role is clear – protect investors from unscrupulous actions, such as those alleged against Matt McFarland.
If you invested with Matt McFarland and suffered losses, it is crucial to reach out to an experienced securities attorney for a complimentary consultation. Moreover, it is also worth keeping abreast of investigations involving other Wealthforge Securities brokers to ensure the transparency of your investments.
Investing is a complex and risky endeavor, and even the most seasoned of investors must be vigilant against very real dangers. By staying informed and taking timely action, you can ensure that your investments, and financial future, are secure.