FINRA censured and barred former H&R Block financial advisor and Ameriprise Financial Services, Inc. general securities representative Hugh Monroe Dyson, Jr. for allegedly soliciting seven individuals to invest in an entity Dyson created based on false representations regarding how Dyson planned to use the investors' funds. FINRA additionally ordered Dyson pay $740,000 plus interest in restitution to the affected customers.
FINRA found that during a two-decade period from 1992 through 2011, Dyson solicited over $740,000 in funds from Dyson's current or former securities customers from an employer, such as H&R Block or Ameriprise. Dyson allegedly falsely represented that the solicited investments in his solely-owned business, Keyport Oil, would be used for oil and gas extraction.
FINRA's investigation uncovered that Dyson never invested these funds in an oil or gas extraction venture and that Dyson's payment of quarterly distributions or dividends for investors was financed from the $740,000 pool of invested funds.
The investigation also found that Dyson converted some of the funds for his own personal use, constituting improper use of client funds and conversion. Dyson allegedly deposited the funds into one bank account for which he was the only authorized signatory.
Specifically, FINRA found that Dyson not only wrote checks from this Keyport bank account for his customer's quarterly "distributions," but also to finance Dyson's membership for a swim and racquet club and for lease payments on two personal vehicles.
Investigators found Dyson also created falsified ownership certificates and Internal Revenue Service ("IRS") forms and provided these false documents to multiple customers. He furthermore allegedly created fictitious tax identification numbers for Keyport and falsely confirmed to customers that they had purchased a specific percentage of the Keyport "limited partnership."
Dyson has accepted and consented to the above findings without admitting or denying them.
He was previously sanctioned by the NYSE in 1994 for allegedly unauthorized customer trading activity and making material misrepresentations to a customer.
If you have invested with Hugh Monroe Dyson, Jr. or with any other broker or financial professional who you believe has made false representations or engaged in similar misconduct that has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.