Donald Woods, Formerly of LPL Financial, Suspended by FINRA After Allegations He Falsified Records

Donald Woods is also accused of making unsuitable investment recommendations, and currently has four pending customer complaints claiming nearly $500K in damages.

The Sonn Law Group is investigating allegations that Donald Woods committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Donald Woods (CRD#: 727894) consented to sanctions in the form of a six-month suspension, a fine of $10,000, and disgorgement of $5,600.70 ordered by FINRA.

The sanctions were based on FINRA’s findings that Woods submitted applications to purchase real estate investment trusts (REITs) that overstated the customers’ liquid net worth in order to circumvent his member firm’s restrictions.

The findings stated that Woods did not have a reasonable basis for recommending that the customers purchase the REITs, which were inconsistent with the customers’ investment profiles. Woods received $5,600.70 in commissions in connection with these recommendations.

Woods has 11 other disclosures on his BrokerCheck report.

Donald S. Woods
October 2019 Customer Dispute

• Status: Pending

• Allegations: “Claimants allege they desired to purchase low-risk investments, but were encouraged to invest in risky business development companies and REITs through ongoing misrepresentations, which caused them monetary losses. They further allege losses in connection with a variable annuity. They also allege LPL failed to adequately supervise claimants’ representatives.”

• Damage Amount Requested: $140,000.00

Donald S. Woods
June 2019 Customer Dispute

• Status: Pending
• Allegations: “Customers allege through counsel failure to disclose risks and fees associated with annuity purchase, and misrepresentation and unsuitable recommendation with respect to alternative investments.”

Donald S. Woods
March 2019 Customer Dispute

• Status: Pending
• Allegations: “Customers allege misrepresentation and unsuitable recommendations in connection with alternative investment purchases.”

Donald S. Woods
February 2019 Customer Dispute

• Status: Pending

• Allegations: “Customers allege through counsel misrepresentation and unsuitability in connection with alternative investments.”
• Damage Amount Requested: $350,000.00

Donald S. Woods
January 2019 Customer Dispute

• Status: Settled
• Allegations: “Customer alleges misrepresentation and unsuitable investment in connection with an alternative investment.”
• Settlement Amount: $10,000.00

Donald S. Woods
December 2018 Customer Dispute

• Status: Settled

• Allegations: “Customer alleges misrepresentation and unsuitable investments in connection with two alternative investments.”
• Damage Amount Requested:  $120,000.00
• Settlement Amount: $25,374.83

Donald S. Woods
August 2018 Customer Dispute

• Status: Settled

• Allegations: “Customer alleges excessive selling of variable annuities, misrepresenting or failing to disclose material facts, unsuitability of products and alteration of account profiles.”

• Damage Amount Requested: $153,554.00
• Settlement Amount: $61,852.07

Donald S. Woods
March 2018 Customer Dispute

• Status: Settled
• Allegations: “Customer’s attorney alleges misrepresentation of financial information, unsuitable investments, unwarranted fees, and failure to invest in a timely manner.”
• Damage Amount Requested: $26,889.67
• Settlement Amount: $17,500.00
• Broker Comment: “Don Woods denies this claim in its entirety. Client was fully advised of all actions in her account. Account was invested in a timely manner. Client invested in instruments entirely suitable for her age, investment objectives, and risk tolerance. Don Woods engaged in multiple discussions with client in which client expressed to Woods how the account was to be invested, and clients approved of all investment choices. Clients further dictated and approved of the dates in which the investments were to be made. Client also took an active role in managing her account, so account composition was per the clients’ own instructions.”

Donald S. Woods
March 2018 Customer Dispute

• Status: Settled
• Allegations: “Customers allege misrepresentations, unsuitable investments, failure to invest in a timely manner, and losses in accounts. Customers also allege some documents were altered and specifically allege they do not recognize certain signatures or initials and other signatures appear to be copies.
• Settlement Amount: $96,480.00
• Broker Comment: “Don Woods denies this claim in its entirety. Clients were fully advised of all actions in their account. Account was invested in a timely manner. Clients were invested in a diversified portfolio entirely suitable for their age, investment objectives, and risk tolerance. Don Woods engaged in multiple discussions with clients in which clients expressed to Woods how the account was to be invested, and clients approved of all investment choices. Clients further dictated and approved of the dates in which the investments were to be made. Clients also took an active role in managing their account, so to a great extent, the account composition was per the clients’ own instructions.”

Donald S. Woods
February 2017 Customer Dispute

• Status: Settled
• Allegations: “Customer alleges misrepresentation of structured product.”
• Damage Amount Requested: $10,574.00
• Settlement Amount: $10,722.00
• Broker Comment: “The client is a seasoned investor, a respected financial professional who is employed as a chief financial officer. The client studies the securities and commodities markets, conducts his own research, and seeks his own market opportunities. The client came to me in 2015, following a pronounced slide in oil prices. On his own belief and research, the client believed that oil would soon rebound, and he hoped I could provide a means to participate in what he expected to be a near- to mid-term upswing in oil prices. In response to his request, I searched for, and located, a note product that would allow him to participate in market improvement in the price of oil. Though it was explained to the client that he was not purchasing the index, directly, and that market instruments attempting to correlate to an index or designed to track an index only approximate the performance of the underlying index, the client is dissatisfied that his index-related investment has not performed as well as the index, itself.”

Donald S. Woods
November 2016 Customer Dispute

• Status: Denied

• Allegations: “Customer alleges mismanagement of accounts and unsuitable investments.”
• Broker Comment:  “Client felt portfolio underperformed and that instructions were not followed, but I did not feel that it would be suitable to be as aggressive as client wanted.”

Investment Losses with Donald Woods? Contact Sonn Law for a Free Case Review

The Sonn Law Group is currently investigating allegations that Donald Woods committed misconduct. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.