Dennis Haywood (CRD#: 5850275), a registered representative with Crown Capital Securities, L.P. (CRD#: 6312) in Land O’ Lakes, Florida, is currently involved in three pending customer disputes over unsuitable investment recommendations, according to his BrokerCheck record accessed on May 27, 2020. The investments at issue are variable annuities, Real Estate Investment Trusts, and Business Development Companies.
Dennis Haywood
Dennis Haywood’s troubles began on April 9, 2020, when a client alleged that Dennis Haywood breached his contract and did not do proper due diligence regarding two alternative investments purchased in April 2018. The client alleged that the alternative investments were unsuitable. What are alternative investments? Also known as private placements or “Reg. D offerings,” alternative investments are highly speculative investments that are exempt from SEC registration. They can yield significant returns but can also lead to significant losses for investors.  Indeed, due to their risky nature, alternative investments should only be recommended to “accredited investors” who meet specific federal criteria (i.e. an individual annual salary of $200,000 or more, plus a $1 million net worth). For more information, see our article “What is an Accredited Investor?”
On April 13, 2020, a client alleged that Dennis Haywood recommended unsuitable investments, breached his contract, and did not perform proper due diligence regarding four alternative investments purchased between April 2014 and April 2016. The client is seeking $400,000 in damages.
On May 4, 2020, a customer alleged that Dennis Haywood breached his fiduciary duty and recommended unsuitable investments. The investments at issue were non-traded Real Estate Investment Trusts (REITs), non-traded Business Development Companies (BDCs), and a variable annuity. Non-traded REITs are notoriously risky and are illiquid, but the customer alleges that Dennis Haywood did not inform him about their lack of liquidity. Business Development Companies are closed-end funds that invest in mid-sized businesses, but investors should be careful with BDCs because the businesses are often financially distressed. Variable annuities are complex investment products that combine elements of securities with aspects of insurance. They are not suitable for every investor, particularly those with a short time horizon. For more information about variable annuities, see our article “What are Variable Annuities?” This client also alleges that this broker made material misrepresentations about the risks and profitability of these investments. The client is seeking $250,000 in damages.
Dennis Haywood has passed the Series 65 – Uniform Investment Adviser Law Examination, the SIE – Securities Industry Essentials Examination, and the Series 7 – General Securities Representative Examination. He is registered to sell securities in Florida. In addition to Crown Capital Securities, L.P. (CRD#: 6312) in Land O’ Lakes, Florida, he has also worked for Newport Coast Securities, Inc. (CRD#: 16944), which was expelled by FINRA in 2018.
If Dennis Haywood was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn about your options for investment loss recovery. Call (877) 238-4175 or email info@fkesq.com for your free case consultation with a securities attorney.