Dwight Dykstra (“Dykstra”), a Maitland, Florida stockbroker, has been suspended from acting as a broker for one year by the Financial Industry Regulatory Authority (“FINRA”). Dykstra allegedly engaged in private security transactions and solicited promissory note investments amounting to $2 million without informing his member firm. Dykstra consented to the entry of findings without admitting or denying and was ordered to pay disgorgement of $67,000 in addition to civil and administrative penalties of $10,000.
Dykstra was previously employed by Vision Brokerage Services, LLC (“Vision”) from 2013 to 2019. Before Vision, Dykstra was employed by FSC Securities Corporation (2004-2011), Walnut Street Securities, Inc (2002-2004), Pruco Securities Corporation (1982-2002), and The Prudential Insurance Company of America (1982-1993).
According to FINRA, Dykstra participated in private securities transactions while registered through his firm by soliciting investment promissory notes issues by a limited liability company raising capital to develop a senior living real estate project. Dykstra supposedly contacted investors, provided marketing materials, and participated in communications between investors and the Issuers.
FINRA found that Dykstra facilitated the sale of promissory notes to twenty-one investors, resulting in approximately $2 million. Many of the prospective investors were allegedly current and former customers of Dykstra’s member firm. The promissory notes were securities transactions. Dykstra was reportedly paid $67,000 by the Issuer in compensation for his sales. FINRA also reports that Dykstra and his wife personally purchased a $100,000 promissory note from the Issuer.
Dykstra’s FINRA BrokerCheck report states that Dykstra’s participation and facilitation of promissory note transactions were outside of the scope of his employment with Vision Brokerage Services. FINRA also reports that without disclosing his role in the promissory note transactions, Dykstra received approval to sell membership interest to invest in the senior living real estate project that the Issuer was developing. According to the report, Dykstra failed to provide prior notice or disclose his role in the transactions.