Donald Wright Allegedly Misappropriated Investments
Donald Wright (CRD# 5562960), formerly an investment adviser registered with Retirement Specialty Group, sold fraudulent promissory notes to investors, according to Securities and Exchange Commission charges. MDF Law is investigating the former Cookeville, Tennessee-based financial professional for similar conduct. If you are a former client with concerns about your investments, call us for a free consultation.
More information about the allegations against Mr. Wright is available in this post. The information below is sourced from his BrokerCheck record, a Financial Industry Regulatory Authority profile reviewed on October 14, 2024.
SEC Charges Detail Fraud, Misappropriation Allegations
On September 9, 2024, the SEC filed charges against Mr. Wright and his firm, Retirement Specialty Group. According to a litigation release, the charges allege that he defrauded his firm’s clients. These were were largely Christian investors, it adds, targeted by the company’s “faith-based” investment approach. He allegedly sold clients “over $2 million in fraudulent promissory notes” by providing misleading information about the products. Among other things, the SEC alleges, he represented that the investments were secured by real estate; that they were safer than stock investments; and that he “personally had invested substantial funds in the notes.” These representations were false, according to the SEC.
The charges allege further that he “misappropriated most of the note proceeds for his own personal benefit.” He also allegedly deceived investors about “the repayment status of the notes,” in one case fabricating a wire transfer confirmation intended to assure a client that the note’s repayment “was forthcoming.” In other cases, he allegedly “obtained investor funds by creating and using fake promissory notes” no company had issued.
The SEC has charged Mr. Wright and Retirement Specialty Group with violations of securities law. While neither has admitted or denied the SEC’s allegations, they have consented to an injunction from violating the relevant laws. They also agreed to the entry of an order authorizing the court to determine disgorgement and penalties. Finally, Mr. Wright consented to a permanent bar from participating (with certain exceptions) in securities transactions.
Why Did Donald Wright Resign from Silver Oak Securities?
On October 19, 2015, Mr. Wright resigned from one of his former member firms, Silver Oak Securities. According to a disclosure on his BrokerCheck report, the firm permitted to resign over allegations involving his “failure to follow firm procedures regarding advertising.”
FINRA: Adviser Last Registered in Cookeville, Tennessee
Donald Wright launched his career as a broker in 2008, registering with Equitrust Marketing Services in Gilbert, Arizona. Over the following years, he worked at firms like PlanMember Securities and Silver Oak Securities. He registered with Retirement Specialty Group in Cookeville, Tennessee in 2021, remaining at the firm until August 2024. With six years of experience as a broker, he has completed four industry exams, including the Series 65 and the Series 6.
Broker Fraud Victim? Talk to a Lawyer for Free
If you’re a former Donald Wright client with concerns about your investments, contact MDF Law. You may have recovery options, including the FINRA arbitration process. Call 800-767-8040 to receive a free consultation with one of our investment fraud attorneys. We take all cases on contingency, meaning we only received a fee when our clients win. You may have a limited window to file a complaint, so don’t delay: call MDF Law today.