Last Updated: October 2024 (New Albany, Indiana)
Donald Wayne Rhodes Financial Advisor Fraud Alert
National securities fraud lawyers Patil Law P.C. are investigating broker Donald Wayne Rhodes (CRD #2813490), who previously worked at American Equity Investment Corporation. He has faced customer complaints related to unsuitable investment recommendations.
Donald Wayne Rhodes (CRD #2813490) is a former financial advisor with decades of experience, most recently with American Equity Investment Corporation. However, his career has been marked by a significant customer dispute related to an unsuitable investment recommendation, which led to a $40,000 settlement. Below, we provide further details on his professional background and the customer complaint that may raise concerns for potential investors.
Critical insights about New Albany IN stockbroker Donald Wayne Rhodes:
- Advisor Name: Donald Wayne Rhodes
- CRD: 2813490
- Location: New Albany, Indiana
- Current Employer: Not currently registered
- Classification: Stockbroker + Financial Advisor
- Primary Location: New Albany, IN
- Can Donald Wayne Rhodes be sued in private FINRA arbitration: Yes
- Has Mr. Rhodes been barred by FINRA: No
- Highest Damages Allegation: $120,000
- Highest Settlement: $40,000
- Pending Customer Dispute: No
If you have suffered investment losses by Donald Wayne Rhodes, we strongly encourage you to exercise your rights to experienced legal representation. Recover what is owed to you by retaining a breach of fiduciary duty lawyer. Reach out to the legal team at Patil Law P.C. via the secure online form or call the firm directly toll-free at (800) 950-6553.
Lost Money With Stockbroker Donald Wayne Rhodes?
A customer of American Equity Investment Corporation filed a complaint alleging that Donald Wayne Rhodes made unsuitable recommendations in the purchase of a bond with GWG Holdings Inc. in April 2021. GWG later filed for Chapter 11 bankruptcy in April 2022. The customer sought $120,000 in damages. The dispute, filed on November 25, 2022 (FINRA Docket #22-02667), was settled for $40,000 on September 6, 2023.
If you have experienced similar investment losses, we can help you investigate and pursue claims.
Allegations of Broker Misconduct Against Donald Wayne Rhodes
Customers of Donald Wayne Rhodes have alleged the following misconduct in connection with his handling of their accounts:
- Unsuitable Investment Recommendations: Rhodes was accused of failing to properly convey the risks associated with purchasing a GWG Holdings Inc. bond, which later led to financial losses when the company filed for bankruptcy.
Brokers and their firms have a duty to comply with FINRA Rule 2111, which mandates that they ensure investment recommendations are suitable for clients based on their financial profile. Rhodes’ actions appear to have violated this suitability rule, resulting in a customer dispute and settlement.
FINRA Rule 2111, the Suitability Rule, requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s financial situation, needs, and investment profile. This rule covers the three key obligations: reasonable-basis suitability (the recommendation must be suitable for at least some investors), customer-specific suitability (the recommendation must be appropriate for that particular customer), and quantitative suitability (ensuring that the number of recommended transactions is not excessive). Related rules include FINRA Rule 2090, the Know Your Customer Rule, which mandates that brokers understand their clients’ investment profiles to provide suitable advice.
Broker Experience Summary
Donald Wayne Rhodes (CRD #2813490) has a long career in the financial services industry, working for multiple firms over several decades. His most recent employment was with American Equity Investment Corporation in New Albany, Indiana, where he was registered from February 2013 to September 2023, as well as an earlier period from November 1996 to June 2011. During his career, he passed several important industry exams, including the Series 7 General Securities Representative Exam in 2020 and the Series 63 Uniform Securities Agent State Law Exam in 1996.
Rhodes is not currently registered with any financial firm. He has passed four general industry/product exams and one state securities law exam. In addition to his financial advisory career, Rhodes has been involved in non-investment-related activities, including ownership of an auto repair business. His qualifications and long employment history reflect broad industry experience, though recent disclosures have raised concerns about his investment practices.
Negative Disclosures and Customer Disputes
Donald Wayne Rhodes has one reported customer dispute, which resulted in a settlement:
- Customer Dispute: Filed on November 25, 2022, alleging that Rhodes made an unsuitable recommendation regarding a GWG Holdings Inc. bond in 2021. The claimant sought $120,000 in damages after GWG filed for bankruptcy in 2022. The case was settled for $40,000 on September 6, 2023 (FINRA Docket #22-02667).
There are no additional regulatory actions, employment terminations due to misconduct, or tax liens reported in connection with this broker.
Allegations and Accusations
The following allegations have been made against Donald Wayne Rhodes:
- Unsuitable Investment Recommendations: Rhodes was accused of recommending an investment in a GWG Holdings Inc. bond that was deemed unsuitable for the customer’s financial situation. The bond later became illiquid when the company filed for bankruptcy, leading to financial losses for the investor.
No other regulatory actions or terminations have been reported for Rhodes, aside from this single customer dispute.
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by Donald Wayne Rhodes or have a question about the performance of your account, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.
Our cases are handled on a contingency basis. We don’t get paid unless we win for you.
